May 22, 2024
Paper and Packaging Market

Paper and Packaging Market is Estimated to Witness High Growth Owing to Rising E-Commerce Sales

Paper and packaging products play an essential role in goods packaging and material handling applications. Corrugated boxes made of kraft paper and containerboard are widely used in the packaging of food & beverage items, pharmaceuticals, electronics, and other industrial and consumer products. Paper-based packaging offers advantages such as high durability, easy disposal, and low costs. It is an environment-friendly and recyclable material as compared to plastics. The growing demand for sustainable and eco-friendly alternatives coupled with the expansion of the e-commerce sector is fueling the demand for paper packaging globally.

The Global Paper and Packaging Market is estimated to be valued at US$ 454.5 Mn in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Paper and Packaging are Dell Technologies Inc., HP Inc., Lenovo Group Limited, and Toshiba Corporation. These players account for a significant share of the market. Strategic partnerships and collaborations are some of the key opportunities in the paper packaging domain. Significant investments in R&D are helping key players to develop advanced and innovative packaging solutions.

Paper and Packaging Market Growth is witnessing increased growth in the Asia Pacific region owing to rising industrial activities, urbanization, and the growth of e-commerce. Countries like China, India, and other Southeast Asian nations are major contributors to the expansion of the Asia Pacific market. North America and Europe are also important regional markets for paper packaging.

Market drivers

The rising sales of e-commerce is one of the key drivers propelling the Paper and Packaging Market growth. Online retail shopping has picked up significantly over the past few years. This has increased the demand for corrugated boxes and other forms of paper-based packaging from logistics companies and retailers. Paper remains a highly preferred material for packaging and shipping goods purchased online due to its environmental friendliness and cost-effectiveness.

PEST Analysis

Political: Regulations around use of plastics and environmental protection have impacted paper and packaging industry. Regulations promote use of eco-friendly and sustainable packaging materials.

Economic: Economic growth and changing consumer lifestyle and expenditure patterns have increased demand for packaged goods. Rise of e-commerce has also augmented growth in paper packaging needs.

Social: Growth of organized retail and demand for conveniently packaged products suitable for on-the-go consumption. Increase in nuclear families and dual income households has boosted need for packaged food and beverages.

Technological: Advanced machinery and automation has improved production efficiency. Innovation in materials and packaging styles to provide functionality, ensure product safety and increase shelf life cater to customer requirement. Digital printing technology offers design flexibility.

North America remains the largest regional market for paper and packaging, accounting for over 30% of global market value. USA is the major country market owing to high consumption rates of packaged goods. Europe is the second largest regional market led by countries like Germany, UK and France. Asia Pacific is witnessing fastest gains led by China, India and other developing nations experiencing rapid economic development and changes in consumption patterns. Growing middle class population and urbanization levels in Asia Pacific economies are supportive factors.

Among regions, the Paper and Packaging Market in Asia Pacific region is projected to witness highest growth during the forecast period. This can be attributed to rising incomes, improving standards of living, growing demand for packaged food items from countries like China, India and other developing economies. Rapid economic development and shifting preferences of Asian consumers towards convenience and quality packaged products are main drivers for market growth in Asia Pacific.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it