New York, July 05, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Folding Carton Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06290946/?utm_source=GNW
Key Highlights
The growth in the folding carton packaging market is mainly due to the continued and increasing demand for frozen/chilled foods, dry foods, and cigarettes, especially in emerging economies. The demand for folding carton packaging from developed economies is expected to remain stable during the forecast period.
Like food packaging, pharmaceuticals have strict demands for their quality. The sterility of products must remain intact, from the packaging plant to the consumer. Though these demands rule carton board packages out of primary packaging, they are used widely as secondary protective packaging for glass ampoules and plastic containers, such as blister packaging. ?Moreover, tamper evidence and protection from children are the latest introductions to pharmaceutical packaging. These properties are mostly achieved through a combination of material technology (strength properties) and design, which further drive the demand for folding cartons in child-proof medicine packaging.?
Label printing is one of the most innovative sectors in the region, contributing to overall market growth. France-based Autajon Industrial Labels produces more than 15 billion labels per year, and the company plans to expand its capacity due to growing regional demand.? The labeling segment of the folding carton market may account for a significant share over the forecast period. Easy to customize, cost-effectiveness and sustainability are the major features that may drive the demand for folding carton packaging and labeling. ?Furthermore, several market incumbents have multiple patents to realize new revenue streams through licensing deals. For instance, Lamina Packaging Innovations LLC operates with a patent for folding cartons with a pressure-activated closure mechanism. ?
With the outbreak of COVID-19, folding cartons faced slow growth due to lockdown imposed by various countries that have disrupted the supply chain. During the pandemic, the stockpiling from consumers’ end reduced after the initial phases and was witnessed by grocery stores across the globe. This stockpiling behavior also reduced the demand for folding carton manufacturers during the pandemic.
From observing market changes, the pulp market continued to be down for many years. Pulp prices have increased sharply, with its production capacity reduced. As a result, paper prices have increased. In India, the raw material shortage has resulted in domestic wastepaper prices rising from INR 20/kg to INR 28/kg. Such developments act as a market constraint.
Key Market Trends
Food and Beverage Segment to Hold a Major Market Share
In the packaged dry food market, folding carton packaging is the preferred option. It is used in a wide range of dry foods, like dry fruits, nuts, powdered milk, dried beans and peas, potatoes in a box, dried fruits and vegetables, pasta, and rice. Changing food habits and the influence of western culture on the dietary patterns of consumers, as it provides a convenient solution to readily accessible food that optimizes the ease of consumption without further preparation, is fueling the market’s growth.
In 2021, Kellogg India introduced Froot Loops to its breakfast cereal range to benefit from increased in-home consumption of packaged products, owing to the post-pandemic surge in the breakfast cereal market. Such instances are pushing the demand for folding cartons in the segment.
The changing lifestyles of the public and the rising demand for ready-to-eat, frozen, and packaged items have fueled the rise of the food and beverage business, which, in turn, is driving the folding cartons market. Furthermore, the rapid growth of the e-commerce business is boosting the development of this segment due to the usage of product-specific corrugated boxes to protect objects from external stress.
A growing awareness of food safety has led to the development of folding cartons with various coatings to prevent the ingress and absorb unwanted contaminants into food. From improved curtain coating technology in paper mills to the development of water-based coatings applied by converters and, more recently, the development of nanotechnology to create thinner barriers, the industry has responded to the need for barrier coatings. Most of these barrier coating materials are used to manufacture foldable cartons for use in the frozen and chilled food markets.
The drive for sustainability has pushed many folding carton manufacturers to launch new products in the market. For instance, in August 2021, Elopak launched its Pure-Pak eSense carton, an aseptic carton made without an aluminum layer. The packaging solution is primarily aimed at milk packaging. In March 2022, SIG India launched a similar aluminum-free folding carton aseptic packaging to tap into the rising demand for carton packaged milk products in the country.
Asia Pacific to Hold the Largest Market Share
The growing environmental awareness heavily influences the Chinese folding carton packaging sector by urban populations, proliferation in demand for sustainable packaging, increasing demand for convenient packaging, growth in e-commerce activity, and rising demand for electronic goods and home and personal care products.
Over the projection period, the rise of e-commerce giants like Alibaba is expected to fuel the carton packaging market. For example, Chinese shoppers received approximately 1.9 billion shipments during Alibaba’s Double 11 shopping event, which lasted ten days. In addition, according to the e-commerce vendors like Alibaba and Rival JD.com, Chinese shoppers spend USD 139 billion during Single’s day fest. This raises the inventory and storage of various goods and drives demand for carton packaging.
Due to the restrictions imposed on people’s movement and the closure of physical stores during the COVID-19 pandemic, the Indian e-commerce industry saw a huge increase in online orders. People throughout the country are increasingly buying groceries, meals, and other necessities online. As the e-commerce and retail industries are among the country’s largest paper and paperboard solutions users, such trends are projected to increase demand for sustainable packaging solutions.
Since India’s food and beverage, cosmetics, and other industries are rising faster, this industry is rapidly expanding. Furthermore, several government measures to limit plastic waste influence the market’s growth. According to data from the Associated Chambers of Commerce and Industry of India, the market for organized food could reach INR 780 million in 2020. As a result, rising consumer awareness and India’s organized food sector drive market growth.
The folding carton packaging industry in Japan is experiencing healthy growth, fueled by the increase in consumption of beverages and packaged food in the country. The country is also focused on sustainable packaging to reduce global warming and abide by the environmental protection act proposed by its government. Furthermore, according to the company Oizuru, the collection rate of boxes in Japan is as high as 95%, with a recycling rate of 90% at corrugated cardboard facilities, driving manufacturers to reduce costs and increase processing capacity. In addition, the enhanced flexibility of carton boxes, which may be utilized as exterior materials and processed into the interiors of complicated constructions, is driving market demand in the region.
Competitive Landscape
The Folding Carton Packaging Market is moderately competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with innovative and sustainable packaging, many of the companies are increasing their market presence by securing new contracts and by tapping new markets.
April 2022 - WestRock Company partnered with Recipe Unlimited to implement a suite of recyclable paperboard packaging intended to divert 31 million plastic containers from landfills across Canada each year. The packaging began appearing at Swiss Chalet restaurants in October 2021 and is now available across all its locations.
July 2021 - Graphic Packaging International acquired all the assets of Americraft Carton Inc., the largest independent folding carton converter in North America. The acquisition included seven converting plants across the United States and is reported within the Americas Paperboard Packaging reportable segment.
Additional Benefits:
The market estimate (ME) sheet in Excel format
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Read the full report: https://www.reportlinker.com/p06290946/?utm_source=GNW
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