NEW YORK, Jan. 24, 2023 (GLOBE NEWSWIRE) — Here are some interesting takeaways from a recent IndexBox report on the global paper packaging market.
The global paper packaging material market is forecast to increase at a CAGR of 2.2% from $243B in 2022 to $290B in 2030 driven by the growing demand for flexible and sustainable packaging solutions. The Asia-Pacific region is expected to be the largest market for packaging materials. It is set to be followed by North America, and Europe.
The food and beverage industry is the largest end-use sector for packaging materials, accounting for nearly 40% of the total market. The growing demand for packaged products, due to the changing lifestyles of consumers, is the major driver for this segment. The takeaway food industry is booming, and an increasing amount of paper is being used to wrap up fast food.
Flexible packaging is expected to be the fastest-growing type of packaging material during the forecast period. The increasing use of flexible packaging in food and beverage applications, due to its benefits such as easy handling, product visibility, and tamper-proof nature, is driving the growth of this segment. Rising environmental concerns regarding waste are expected to fuel the demand for eco-friendly solutions over the next decade. Paper packaging has an advantage over other types of packaging, as it fully meets the strict environmental requirements, being biodegradable and renewable material.
However, the market faces challenges such as volatile raw material prices and stringent regulations on packaging materials. Logistic tensions could also hamper market growth.
The growth of e-commerce has had a significant impact on the packaging materials market. The increase in online shopping has led to a need for more packaging material to protect items during shipping. This has resulted in a rise in demand for corrugated cardboard and other packaging supplies. E-commerce sales are to increase. This will provide opportunities for companies that produce packaging materials to expand their businesses and invest in new technologies.
Paper Packaging Recycling
As the costs of landfilling and incineration of waste continue to rise, along with public awareness of the environmental impact of packaging, recycling rates are expected to increase. This will provide opportunities for companies that produce recycled packaging materials and equipment designed for recycling facilities.
In Europe, paper recycling is a well-established industry with a long history. The first paper mill was built in Spain in the 11th century, and papermaking spread to Italy, France, Germany, and other countries in the following centuries. Today, Europe recycles nearly 80% of the paper and cardboard products that it consumes. This high rate of recycling is made possible by a combination of factors, including strong environmental policies, advances in technology, and a well-developed infrastructure for collection and processing.
Other countries, which have developed recycling programs are the United States (processes about 67% of its paper), Canada (63%), China (58%), Japan (54%), and Brazil (50%).
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
Amcor Ltd., Bemis Company Inc., Berry Global Inc., Cascades Inc., Coveris Holdings S.A., Huhtamaki Oyj, International Paper Company, Plastipak Packaging Inc., SC Johnson & Son Inc., and Sealed Air Corporation
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