The Heavy Duty Corrugated Packaging Market Continues to Grow
Published August 22, 2019
In light of rising e-commerce sales, the continued increase in subscription box services, the expansion of curbside pickup and delivery offerings, and other developments in the packaging and delivery sphere, the corrugated packaging market is perfectly positioned for further growth. With demand increasing for corrugated material, the heavy duty corrugated packaging market is currently estimated to be valued at over $17 billion. The industry is projected to expand by 5 percent over the course of the next decade.
Which Industries Are Experiencing the Most Growth?
Nearly a quarter of the worldwide heavy duty packaging market is found in Europe. What’s driving all that business? Food. The European Corrugated Packaging Association FEFCO reports that as much as 40 percent of corrugated products are used by the food industry.
Heavy duty corrugated cases are also often used to ship varied consumer goods like cosmetics, beverages, household wares, and even pet food. Since e-commerce sellers like Amazon are only continuing to increase in popularity, the demand for pallet boxes and heavy duty corrugated packaging has risen drastically. It seems clear that heavy duty corrugated packaging will remain in high demand for years to come.
A number of brands are setting themselves apart in the heavy duty corrugated packaging market, actively acquiring corrugate and expanding their reach in new and developing markets like Latin America and the Asia Pacific region. The Mondi Group, Smurfit Kappa Group, and DS Smith are currently at the forefront. Other key market players include VPK Packaging Group, International Paper Company, WestRock Company, Georgia Pacific, LLC, Pratt Industries, Inc., Oji Holdings Corporation, Smurfit Kappa Group Plc., and more.
Which Types of Corrugated Packages Are in High Demand?
The favored product in the heavy duty corrugated packaging market, corrugated boxes are durable and ideal for transportation. Flexible in size, shape, and capacity, corrugated boxes can allow for lower overhead costs, and their versatility makes them useful for a variety of shipping and packaging needs.
Accounting for more than a quarter of the total market share in 2019, pallet boxes are also in high demand. Environmentally-friendly (when compared to plastic-based packaging), biodegradable, and recyclable, heavy duty corrugated boxes and pallet boxes are finding increasing popularity as the corrugated packaging market continues to grow.
As more brands step up recycling efforts to reduce their environmental footprint and we see tighter regulations on plastic-based packaging, packaging materials like heavy duty corrugate are being chosen over other products. As a result of these changes, this past year has also prompted major price increases in the global heavy duty corrugated packaging market.
Global Impact on Market Increases
The increased demand for heavy duty corrugated packaging has led to an industry-wide shortage of heavy duty corrugated material, kickstarting the supply and demand cycle. As a result, countries like China, India, and Brazil are seeing fast growth in their corrugated packaging markets. This is prepping them to support much of the heavy duty corrugated packaging market growth within the next ten years.
The biggest contributor to the market increases is China, which is predicted to rise as much as 6 percent within the next ten years. Developing countries like Mexico are contributing to the increased demand for heavy duty corrugated packaging, driving market growth and raising the price of corrugate.
Representing one-fourth of the global heavy duty corrugated packaging market, Europe is another key player at this time. We also expect to see the United States heavy duty corrugated packaging market expand, thanks to our high number of convenience and superstores.
How Your Business Can Prepare for Corrugated Packaging Increases
As the heavy duty corrugated packaging market continues to grow, prices will keep rising. Prepare to see increases from vendors and increased packaging demands from customers. To combat this, take the time to examine your packaging process step-by-step, checking for areas of inefficiencies or gaps in the process. Ensuring that your production line is streamlined saves time and money, which can be funneled into other parts of your budget and used to help offset price increases.
While prices are rising, there is good news for CPG suppliers and producers, too. Higher prices are the result of increased demand, meaning expanding business opportunities. Is your marketing top-notch? Are you effectively reaching your targeted customer base? The answers to these questions will help reveal how prepared your business is to answer increased demands for your services.
Get Ready for Growth With INSITE
No matter what your packaging needs may be, it’s vital that your business is prepared for the predicted growth in the heavy duty corrugated packaging market. INSITE is eager to support your packaging process through our thoughtful machine design, quality customer service, and unbeatable advice. Give us a call today—we’ll make sure you’re ready to grow with the right equipment.