Paper Packaging Materials Market to Cross $423 billion Revenue by 2030

Paper Packaging Materials Market Overview

“The global Paper Packaging Materials Market is expected to grow rapidly at a CAGR consequently, it will grow from its existing size of 5.75% from $248 billion in 2023 to $423 billion by 2030.”

Packaging materials: Food packaging made of paper

Paper, a renewable material, is highly adaptable and environmentally friendly due to its ability to be easily recycled, composted, or burned. It is used in various food packaging applications like wrapping paper, folding box boards, and corrugated boards, and may occasionally come into contact with food. Other paper grades, like tissue paper, may also come into contact with food.

Producers design production processes and recipes for paper-based goods that may come into contact with food, adhering to current standards and guidelines to ensure consumer safety.

Benefits Of Paper-based Packaging

Manufacturers frequently use paper packaging due to its efficient storage, functional design, and eco-friendly features. Made from recycled materials and available in various shapes and sizes, it offers a visually appealing and easy-to-carry option.

Paper-based packaging, also known as paper containers, is widely used and accepted over plastic containers due to its environmental benefits, not only for the end user but also for the environment.

Paper packing types that are commonly used:

- Premium paper packaging:

The dairy industry relies heavily on multi-layer packaging for milk, as it is expensive, easily fermented, and damaged without proper protection. This stringent packaging makes it difficult to preserve products and reduces the market share of this product type. The main packaging companies in Vietnam are Tetra Pak of Sweden and Combibloc of Germany.

- Paper carton packaging:

Carton type packaging is the most popular and widely used type of paper packaging in various industries, including food and beverage, due to its fast consumption nature.

- 3-5-layer kraft paper packaging:

This product line, utilized in various sectors like cement, chemicals, construction, flour, fried flour, and food, has a capacity of 10-50kg.

- PP plastic kraft paper packaging (KP packaging):

A new type of packaging made of PP plastic offers superior qualities to 3-5-layer kraft paper packaging. Its durability aids product preservation and makes it easier to carry. This reduces the number of material layers, resulting in significant cost savings compared to traditional 3-5 kraft paper options.

Demand Outlook

The global paper packaging materials market is gaining momentum due to increasing demand for flexible packaging and the increasing awareness of the environmental impact of plastic, particularly due to bans on lightweight plastic bags in several countries.

Environmental concerns over plastic packaging have led to a shift in consumer preferences towards paper-based alternatives. Governments and organizations are expected to establish strict laws and regulations to protect the environment and promote recyclable paper alternatives in the market.

The global packaging industry is increasingly adopting eco-friendly alternatives due to shifts in business ethics, regulatory frameworks, trade restrictions, and consumer preferences, resulting in a paradigm shift in the packaging sector.

Paper packaging, made from inorganic fibers like paper and pulp, serves as the primary and secondary packaging for products, with innovative designs providing a beautiful appearance, serving as a crucial point of sale and differentiation.

The packaging sector has shifted towards eco-friendly alternatives due to changes in business ethics, legal frameworks, trade laws, and consumer preferences.

Paper packaging, made from inorganic fibers like paper and pulp, is used for safe transit and secondary product wrapping. Retail packaging improvements, like imaginative designs, enhance the item's appearance, serving as a major point of sale and differentiation.

Flexible packaging, including paper carrier bags, envelopes, pouches, cellulose, and aluminum foils, offers customization options for client or product-specific needs, presenting profitable market expansion opportunities.

The e-Commerce industry has significantly boosted the paper packaging materials market, as it is affordable and lightweight, making it an attractive choice for secondary and tertiary packing, opening new growth opportunities for the global economy, including online shopping and delivery-on-demand services.

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Market Dynamics

Growth Factors

The global popularity of paper packaging materials is primarily due to their durability and sustainability

Continuous advancements in paper packaging materials and the emergence of paper bottles

Technological advancements in paper recycling and increased government and producer support for R&D programs are expected to drive growth opportunities. Paper-based packaging products are also utilized for packaging aesthetics and market expansion. Corrugated shipping bags for large items are in high demand and expected to remain so in the future.

Paper bottles are a sustainable and eco-friendly alternative to plastic bottles, catering to client demand and sustainability criteria in the packaging industry, offering a viable alternative to plastic bottles in terms of environmental impact.

Challenge

Various factors that could impact the sales of paper packaging material.

Challenges in effectively wrapping heavy items using paper packaging materials.

Manufacturers are shifting to polymer materials for packaging due to the challenges of wrapping large objects using paper, which is expected to hinder market growth. Environmental regulations and harsh chemicals released during paper production are also expected to stifle market growth.

Market Segment Analysis

The popularity of liquid packaging cartons can be attributed to their ability to effectively store and transport various products.

Liquid packaging cartons are widely utilized due to their recyclable nature

The global market for liquid packaging cartons comprises 50% of the total, encompassing various types such as paper bags, corrugated containers, and folding boxes, among others.

The demand for paper-based packaging is expected to rise due to the increasing demand for liquid packing cartons and beverage consumption, coupled with global trade.

The demand for paper-based packaging is expected to rise due to the increasing demand for liquid packing cartons and beverage consumption, coupled with global trade.

Which end user is expected to generate the most revenue for market participants?

The demand for high-quality food with longer shelf life is driving the sales of paper packaging materials in the food and beverage industry.

The food and beverage industry is expected to experience a significant CAGR increase in demand for paper packaging materials, categorized into food and drinks, healthcare, and industrial sectors.

The food and beverage industries were pioneers in using paper packaging, which is now widely used in ready-to-eat foods, snacks, frozen dinners, and cake mixes. Paper packaging is available in pouches, wraps, and containers for all products.

Paper packaging is a valuable asset in the food sector, offering environmental benefits and convenience for customers. There are various materials available, including corrugated and cardboard boxes, to meet various packaging needs.

The industry is experiencing a surge in demand due to changing dietary habits and lifestyles. Products with high barrier properties, long shelf life, and safety are in high demand. Natural, high-quality foods with minimal processing and no preservatives are also gaining popularity.

Competitive Landscape of the Paper Packaging Materials Market

• International Paper Company
• WestRock Company
• Georgia Pacific LLC
• Pratt Industries
• DS Smith Packaging Limited
• Stora Enso Oyj
• Mondi Group Plc.
• Smurfit Kappa Group Plc.
• Napco National Paper Products Company
• Billerudkorsnas

 Recent Developments in Paper Packaging Materials Market

Smurfit Kappa and Wildlife Fund Combia have partnered to enhance forestry conservation and increase the use of recyclable papers.

On August 18, 2020, Smurfit Kappa announced a partnership with Wildlife Fund Combia, to improve forestry protection and expand the usage of recyclable papers. The alliance further aims to restore-expand-and even protect forests and ecosystems in the said country, wherein totality the company manages around 68,000 hectares of woodland. Additionally, the company believes that by expanding the alliance various aspects of forest flora and fauna can be preserved.

In December 2019, Huhtamaki finalized the acquisition of the majority of the business of South African felxible packaging producer Everest Flexibles (Pty) Limited ("Everest"), allowing the company to capitalize on its current customer base. Huhtamaki also bought Mohan Mutha Polytech Pvt. Ltd., a privately held flexible packaging producer in India, in January 2020.

In April 2019, DS Smith Plc announced the sale of two packaging operations to International Paper, a company based in the United States (IP). The businesses are located in North Western France and Portugal, and the amount for which the sales have been agreed upon is 54 million pounds. The sales would fulfill the commitment made to the European Commission in relation to the clearance of DS Smith’s acquisition of Papeles y Cartones de Europa, S.A., known as Europac, which was completed on 22 January 2019.

Regional Insights

The advancements in the packaging sector are significantly driving market value in the Asia Pacific region

The Asia Pacific region holds the largest share of the global packaging market due to significant advancements in this sector.

The market growth is driven by rising living standards, increased demand for food packaging, high disposable income, and growing awareness about biodegradable paper packaging materials.

The regional market is being influenced by the growth in paper packaging production and exports, as well as the growing demand for paper pulp in developing nations.

The demand for paper packaging materials in South Korea is primarily driven by the high demand for cartons and folding boxes.

The country is experiencing a significant increase in the demand for carts and folding boxes.

The market for paper packaging materials in South Korea is expanding due to strong demand for cartons and folding boxes, industry participation, rapid adoption of paper-based food packaging materials, and growing preference for preventative healthcare.

Segments Covered in the Paper Packaging Materials Market

Paper Packaging Materials Market By Product

• Liquid Packaging Cartons
• Paper Bags & Sacks
• Corrugated Containers & Packaging
• Folding Boxes & Cases
• Others

Paper Packaging Materials Market By End User

• Food & Beverages
• Healthcare
• Industrial
• Others

Paper Packaging Materials Market By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Frequently Asked Questions:

What is the paper packaging materials market size?

The global market for paper packaging materials market currently accounts for a valuation of US$ 248 billion.

Which segment is expected to garner the highest traction within the paper packaging materials market?

Liquid packaging cartons account for 47.85% share of the global market in 2022.

What is the market for paper packaging materials estimated to be valued by 2030?

Global demand for paper packaging materials is slated to reach US$ 423 billion by 2030.

Who are the top manufacturers of paper packaging materials?

Stora Enso Oyj, WestRock Company, and Hood Packaging Corporation are major suppliers of paper packaging materials.

Segments Covered in the Paper Packaging Materials Market

Paper Packaging Materials Market By Product

• Liquid Packaging Cartons
• Paper Bags & Sacks
• Corrugated Containers & Packaging
• Folding Boxes & Cases
• Others

Paper Packaging Materials Market By End User

• Food & Beverages
• Healthcare
• Industrial
• Others

Paper Packaging Materials Market By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Research Methodology