Corrugated Carton Market Size, Share & COVID-19 Impact Analysis, By Wall Type (Single Wall, Double Wall, and Triple Wall), By Product Type (Slotted Carton, Folding Carton, Telescope Carton, and Die Cut Carton), By End-Use Industry (Food & Beverage, Pharmaceutical, E-commerce, Chemicals, Building & Construction, and Others), and Regional Forecasts, 2023-2030

The global corrugated carton market size was valued at USD 158.76 billion in 2022 and is projected to grow from USD 164.93 billion in 2023 to USD 218.39 billion by 2030, exhibiting a CAGR of 4.09% during the forecast period. Asia Pacific dominated the corrugated carton market with a market share of 39.77% in 2022.

Moreover, the corrugated carton market in the U.S. is projected to grow significantly, reaching an estimated value of USD 41.43 billion by 2032, driven by the rise of e-commerce and online shopping for shipping and delivery purposes.

Corrugated cartons are generally made up of two to three layers of liners to create an overall robust structure. These cartons are lightweight, pressure-tear-resistant, and provide exceptional strength to the products, making them suitable for the transportation of the goods. Such factors contribute to thriving market growth. The surging demand for sustainable and renewable packaging has raised the demand for corrugated packages, such as cartons and boxes, due to their ecological advantage of being made from a high percentage of recycled paper, thus enhancing market growth.

CORRUGATED CARTON MARKET TRENDS

Incorporation of Smart Packaging in the Corrugated Carton to Emerge as a Key Trend

The packaging plays a crucial role in handling the goods during transport until it reaches the final customer. The integration of technologies, such as QR codes, RFID, and sensors, into the corrugated cartons provides product-related information to the consumers and ensures product safety. Smart packaging provides enhanced packaging functionality that results in benefits for customers and manufacturers. The integration of these technologies can help control the temperature of the packaging and provide information about the products' internal environment, thereby extending the products' shelf life. In addition, these technologies help to provide the product and the manufacturer with information about the location of the products during transport. These features increase the demand for the integration of intelligent packaging into corrugated cartons and represent an important trend in the market.

COVID-19 IMPACT

Rapid Growth in the Pharmaceutical Industries Boosted Market Growth During COVID-19 Pandemic

The unexpected COVID-19 outbreak affected all the industries and economies globally. The packaging industry was adversely affected by the recession that prevailed by the outbreak of the pandemic. Governments imposed strict regulations on all social activities and implemented lockdowns. It led to the shutdown of production units and a shortage of labor and raw materials, thus impacting industrial growth negatively, while fluctuating demands observed positivity in the market.

The outbreak of COVID-19 had an overwhelming effect on the market. During the initial period, supply chain disruptions were observed due to the imposed strict lockdowns. However, the exemption on essential products, including pharmaceutical and healthcare products, has less impact on overall market growth. The sudden rise in corrugated type of cartons is due to increased R&D activities for manufacturing new drugs and vaccines to fight COVID-19. International organizations, such as the Centers for Disease Control and Prevention (CDC) & the Occupational Safety and Health Administration (OSHA), also supported market growth. The manufacturers followed the guidelines provided by such organizations to ensure that the products continued to flow to market. Due to the increasing clinical trials globally, the industry is studied to witness extensive growth in the post-pandemic era.

DRIVING FACTORS

Accelerating Demand in the E-Commerce Sector is Fueling Market Growth

Corrugated cartons act as the main pillar for the logistics of the e-commerce industry. Through online services, it supports the safe transportation of almost all products from different industries, such as food & beverages and pharmaceuticals. Cartons are lightweight, high in strength, and have more space, which aids value in the packaging. Moreover, the cartons' easy printability and customizability help manufacturers differentiate their packaging and make it more attractive, thus driving market growth.

The shifting preferences of people toward packaged food and the increasing number of online food outlets are one of the primary reasons that are accelerating the growth of the e-commerce sector. The cartons used in the packaging of food & beverages are sturdy, foldable, and biodegradable, making them the best choice for manufacturers. Moreover, the increasing demand from the food & beverages sector leads to the production of cartons that provide heat insulation and regulate temperature by minimizing the amount of heat. Additionally, the easy customizability of these cartons according to the demand of customers and restaurant owners helps increase the brand image and attract more customers, bolstering market growth.

Recyclability of Corrugated Packaging Compared to its Alternatives is Driving Market Growth

Plastic is a major issue globally as it is non-degradable. Packaging made up of corrugated material is sustainable and easily degradable. Corrugated packaging provides various benefits regarding sustainability and reducing carbon footprint. It is primarily made of recycled newspaper, paper, and cartons, making it easily recyclable. Unlike other materials, it is manufactured without using bleaches or colors, ensuring a more sustainable and disposable process. The corrugated packaging composition allows proper recycling, conserving resources, and minimizing waste. Such factors are accelerating market growth.

• For instance, according to the American Forest & Paper Association, 91.4% of corrugated material was recycled in the U.S. in 2021, and around 35 million tons of cardboard were recovered for recycling. Nearly 12.1% of recycled paper is used in making boxboard, 7.1% in tissue, 5.9% in newspaper, and nearly 41% in making containerboards, which are further used in producing packaging boxes and cartons.

They are easily customizable, eliminating waste compared to their alternatives, and are entirely reusable. They are designed to easily collapse and be reused for other purposes, which reduces their cost, making them very economical, thus thriving market growth.

RESTRAINING FACTORS

Volatility of Wood Pulp Prices to Hinder the Growth of this Market

Corrugated cartons are used to package home appliances, electronic items, electrical products, and e-commerce items. These cartons are generally made of wood pulp, and the price volatility of wood pulp affects market growth. Cardboard manufacturers are concerned as the price of kraft paper has already increased by at least 70 percent since January 2020.

There were many reasons for the price hike, including demand recovering from the pandemic slowdown, unexpected downtime and shipping restrictions impacting supplies, inventories being tighter than in 2020, and a general increase in commodity prices after the ease of the lockdown. Rising costs and supply chain disruptions are negatively impacting the corrugated packaging industry and resulting in decreasing revenue.

SEGMENTATION

By Wall Type Analysis

Single-Wall Segment Dominates Due to Surge in the Number of Online Businesses

Based on wall type, the market is segmented as single wall, double wall, and triple wall. The single wall holds the largest corrugated carton market share. The single wall type segment will attain vital growth during the forecast period. A single wall carton is developed with an inner & outer liner that surrounds one flute layer. These cartons are highly suitable for lightweight products and are mostly preferred by online businesses. Moreover, as single-wall corrugated cartons are cost-effective, light & safe during transit, they are gaining huge demand from several end-use industries.

The double-wall type is the second-dominating segment and is projected to experience excellent growth in the near future. The rising demand for these products is due to their greater rigidity, which makes them ideal for longer-term stacking storage and for house moving or archiving.

By Product Type Analysis

Slotted Carton Segment Steers Growth Due to its Durability and High Preference

Based on product type, the market is segmented into slotted carton, folding carton, telescope carton, and die cut carton. Slotted carton is the dominating product type segment. The slotted cartons have become the primary packaging choice for nearly every product shipment worldwide. Their strong flaps & stable structure make them more durable, owing to which several companies and customers utilize them as their main packaging for shipping products. The rapid growth in the food & beverage, pharmaceutical, and e-commerce industries and rising demand for sustainable packaging by consumers are also fostering the segment's growth.

Folding cartons are the second dominant product type segment of the global market. The segment’s growth can be attributed to rising demand for frozen/chilled foods, ready-to-eat, dry foods, and cigarettes, specifically in developed countries.

By End-Use Industry Analysis

Food & Beverage Segment Thrives with High Demand for Sustainable Packaging from Food & Beverage Industry

Based on the end-use industry, the market is segmented as food & beverage, pharmaceutical, e-commerce, chemicals, building & construction, and others. The food & beverage end-use industry segment accounted for the largest share and dominated the market. It is projected to attain noteworthy growth over the upcoming years. Sustainability has steadily been climbing the consumer agenda in recent years and is becoming a top concern among consumers. Owing to this, many manufacturers are utilizing these cartons for food & beverage packaging. Henceforth, the rising usage of these cartons and the massive growth in food & beverage sales is boosting the segment's growth.

E-commerce is the second-dominating end-use industry. The increasing internet penetration and online shopping trends encourage manufacturers in the e-commerce sector to utilize corrugated cartons for shipping, further driving segmental growth. 

CORRUGATED CARTON MARKET REGIONAL INSIGHTS

The market is analyzed across North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The global corrugated carton market growth is anticipated to be driven in the upcoming years due to the rising utilization of such cartons in several end-use industries. Amongst these regions, Asia Pacific dominates the market and is projected to experience noteworthy growth during the forecast period.

Asia Pacific is an emerging economic region, and the continuous growth in the pharmaceutical, chemical, and food & beverage industries encourages manufacturers to produce corrugated cartons. The increase in e-commerce sales and e-commerce packaging owing to the consumer inclination toward online shopping and ease in availability of products is also contributing to the utilization of corrugated cartons. These factors lead to rapid market growth in the Asia Pacific and are expected to provide profitable opportunities in the future.

Europe is the second leading region and is projected to experience astonishing growth. A major factor contributing to market growth in Europe is the ban on single-use plastic. Several leading packaging manufacturers in Europe are interestingly increasing their product portfolio by introducing paper and paperboard products. The growing sustainability trend in the region is increasing the demand for corrugated cartons, thus propelling market growth.

North America is the third-leading region and is projected to attain noteworthy growth. The growing food and beverage trends in the region, such as ready-to-eat, on-the-go, and packaged and processed foods, greatly favor market growth.

KEY INDUSTRY PLAYERS

Growing Key Players Focus on Innovative Packaging Offerings to Aid Market Growth

The global market is highly fragmented and competitive. Regarding market share, the few major players dominate the market by offering innovative packaging in the packaging industry. These major players in the market are constantly focusing on expanding their customer base across the regions and innovation.

Major market players include Rengo Co., Ltd., Mondi Group, DS Smith, Smurfit Kappa, International Paper, WestRock Company, Cascades, Georgia-Pacific, LLC, Kapco Packaging, Stora Enso, and others. Numerous other players operating in the industry are focused on delivering advanced packaging solutions to strengthen their market position.

List of Key Companies Profiled:

• Rengo Co., Ltd. (Japan)


• Mondi Group (U.K.)


• Smurfit Kappa (Ireland)


• International Paper (U.S.)


• WestRock Company (U.S.)


• DS Smith (U.K.)


• Cascades (Canada)


• Georgia-Pacific, LLC (U.S.)


• Kapco Packaging (India)


• Stora Enso (Finland)

KEY INDUSTRY DEVELOPMENTS:

• July 2023 - Apex Packaging, Oman's leading packaging solution provider, opened a new corrugated boxes plant in Samail Industrial City. The products are cost-effective, eco-friendly, and fully recyclable, reflecting the company's environmental commitment. Apex Packaging is the first Omani company to manufacture and innovate new products using the highest quality of corrugated cardboard. The new factory is vital in meeting market demands for cardboard cartons and other packaging materials and products.


• July 2022 - Menasha Packaging acquired Color-Box, a provider of packaging solutions, containerboard, corrugated boxes, and sheets. The acquisition is intended to expand Menasha Packaging's geographic footprint and deliver added packaging options for its customers, including the consumer products, food and beverage, industrial and automotive, pharmaceutical, and electronic industries.


• September 2021 - WestRock joined Lumi, a leading U.S. marketplace for packaging and print products, to offer folding and corrugated manufacturing across North America. Lumi members can now access factory prices from WestRock in North America. Lumi's service is innovative and a win-win for WestRock and its customers.


• August 2021 - Mondi rolled out its range of sustainable corrugated solutions for the increasing online grocery delivery services across Central Europe. Mondi launched seven packaging solutions that meet the increasing demand for online grocery delivery services. The packaging comes with innovative designs, fully recyclable, and convenient options. The company has created new solutions for the varied needs of grocery retailers who can now transport various goods, from perishable food to wine bottles, in fit-for-purpose packaging.


• July 2020 - Sabert Corporation, a global manufacturer of innovative food packaging, launched a new product line, the Kraft Collection. The company's kraft collection consists of an array of paperboard and corrugated food packaging solutions made with recyclable material. The high demand for off-premise dining and the desire to minimize environmental impact has driven the need for sustainable packaging solutions. The kraft collection balances performance, sustainability, and versatility to help the operators make lasting and positive customer impressions.

REPORT COVERAGE

The corrugated carton market research report provides detailed industry analysis. It focuses on key aspects such as key players, competitive landscape, product/service types, market segmentation, Porter's five forces analysis, and leading applications of the product. Additionally, the report offers insights into market trends and highlights key industry developments. In addition to the above factors, the report encompasses several factors that contributed to the market's growth in recent years.