The paper packaging market involves manufacturing and distribution of paper-based packaging materials like boxes, pouches, envelopes etc. Paper packaging provides protection, functionality and convenience to packaged products and finds applications across food and beverage, personal care, healthcare, industrial and agriculture industries. Paper is a renewable and environment-friendly material which can be recycled multiple times.
The global paper packaging market is estimated to be valued at US$ 373.7 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The paper packaging market is driven by the increasing demand for recyclable and sustainable packaging materials from consumer as well as manufacturing companies. Paper is widely recycled and has the highest recycling rates among all packaging materials. The use of recycled paper reduces impact on environment by lowering greenhouse gas emissions and cutting down on number of trees being felled. Recycling has also become mainstream today with access to dedicated paper recycling programs across regions. The positive environmental perception of paper packaging is a major factor propelling its demand compared to plastic and other materials with poor recycling infrastructure.
- Strength: Paper packaging is sustainable and environment friendly. It is produced using renewable resources and is easily recyclable.
- Weakness: Paper packaging has lesser strength and rigidity as compared to plastics and other materials. It is bulky in nature and has high transportation costs.
- Opportunity: Growing consumer awareness towards environmental issues is increasing the demand for paper packaging products. Technological advancements are helping in developing paper packaging with improved strength and barrier properties.
Threats: Availability of substitute materials like plastic poses a threat to the paper packaging market. Stringent government rules and regulations regarding the usage of forests for paper production can also hamper the market growth.
The global paper packaging market is expected to witness high growth over the forecast period of 2023 to 2030. With the growing environmental concerns, paper packaging is emerging as a sustainable alternative to plastic packaging.
Asia Pacific dominates the global paper packaging market and is expected to remain the fastest growing region during the forecast period. The presence of developed packaging industries and high paper production in countries like China and India are driving the regional market growth. North America is another major paper packaging market supported by stringent regulations banning plastics.
Key players operating in the paper packaging market are DS Smith PLC, Georgia-Pacific Corporation, Holmen AB, Hood Packaging Corporation, International Paper Company, MeadWestvaco Corporation, OJI Holding Corporation, Smurfit Kappa Group Plc, Stora Enso Oyj, The Mayr-Melnhof Group, Sonoco Products Company, Pratt Industries and WestRock Company. These players are focusing on capacity expansion and new product development through heavy investments in R&D to strengthen their market position.