Paper Packaging Market Size, Share & COVID-19 Impact Analysis, By Material (Corrugated Board, Kraft Paper, Molded Pulp, Specialty Paper, and Others), By Packaging Type (Corrugated Boxes, Bags & Sacks, Folding Cartons, Wraps, Cups & Trays, and Others), By End-use Industry (Food & Beverage, Personal Care & Cosmetic, E-commerce, Healthcare, Home Care, Electrical & Electronic, Automotive & Industrial, and Others), and Regional Forecast, 2023-2030

The global paper packaging market size was valued at USD 348.08 billion in 2022 and is projected to grow from USD 362.00 billion in 2023 to USD 488.64 billion by 2030, exhibiting a CAGR of 4.38% during the forecast period. Asia Pacific dominated the paper packaging market with a market share of 37.34% in 2022. Moreover, the paper packaging market in the U.S. is projected to grow significantly, reaching an estimated value of USD 87.73 billion by 2032, driven by the increasing sales through online shopping platforms are positively influencing the demand for secondary and tertiary packaging products in the country.

Packaging which uses paper and boards is known as paper packaging. These materials possess superior properties as they can be recycled and reused easily, gaining an advantage over other packaging materials such as plastic and metal, which is increasing the use of paper packaging and boosting the market growth. In addition, the increasing demand for paper-based flexible packaging due to the rise in buyer awareness about the unfavorable effects of plastic on the environment is propelling the market growth globally. Paper packaging serves to be lightweight, eco-friendly, and economical, which are major factors contributing to the growth of the market.

COVID-19 IMPACT

Slowdown in the Retail Sector Hampered Market Growth

This market has been negatively affected by the COVID-19 pandemic. The lockdown and physical retail restrictions during the pandemic decreased the use of the product. However, after the pandemic, there was an increase in e-commerce activities, which led to an increase in the demand for products such as folding cartons, boxes, and protective packaging for online deliveries. Moreover, cafes and restaurants switched toward takeout and food delivery models, and there was more demand for paper used in bags, wraps, and food containers. Furthermore, a significant rise in the demand for certain products from the end-use industries will continue to drive market growth during the forecast period.

Paper Packaging Market Trends

Increasing Focus on Eco-friendly Packaging in the Food & Beverages Industry is Emerging as New Trend

The rising number of online food deliveries with a focus on sustainable packaging solutions is increasing the paper packaging market share. Businesses and consumers are emphasizing packaging materials that are recyclable, biodegradable, and renewable, increasing in demand for paper-based packaging solutions. With the rising awareness of plastic pollution and its environmental implications, a significant shift has been observed from single use plastics to paper-based alternatives in the food & beverages industry, which is fueling the growth of the market. Moreover, paper and paperboard are used in making microwave popcorn bags, fast food containers, and many others. The use of innovative packaging solutions is growing significantly for enhancing the perseveration of various beverages, which is increasing the use of the product in the food & beverages industry and propelling the market growth.

Paper Packaging Market Growth Factors

Recyclability of Paper and Paperboard to Propel Market Growth

Paper packaging is made of pulp, which can be recycled. Recycling aids in decreasing the need for solid waste disposal. Recycling product saves tons of waste generated from packaging, thereby saving significant landfill space and bolstering market growth. Moreover, the increasing regulation of non-biodegradable materials has led to a peak in demand for paper and paperboard packaging. Thus, recycling acts as a driving factor for the growth of the market as consumers are increasingly inclined toward utilizing recycled and eco-friendly products. Many key players in the industry have also already switched to experimenting with paper packaging products and are actively involved in paper recycling initiatives, including closed-loop systems. Furthermore, government initiatives and regulations aimed at reducing waste and promoting recycling have also played a considerable role in propelling the growth of the market.

Increasing Utilization of the Product in the Pharmaceutical Industry to Drive Market Growth

The pharmaceutical industry is observing a substantial transition, and the emphasis on the development of biopharmaceutical drugs has witnessed considerable growth. Along with this, the use of the product is increasing for the safe transportation of goods, which is driving the market growth. Moreover, packaging manufacturers are majorly focusing on the utilization of recycled material and are also emphasizing more sustainable packaging solutions. Pharmaceutical drugs are mainly offered in capsule, tablet, and powder forms. Different types of packaging, including boxes, cartons, and bags, are deployed for their packaging. Furthermore, packaging companies are growingly emphasizing administration aids, counterfeiting measures, and sustainable material in the packaging to enhance their functionality and safety, thus increasing the use of the product for transit in the pharmaceutical industry.

RESTRAINING FACTORS

The inability to Package Heavy Goods and Deforestation May Restrain Market Growth

A major challenge associated with paper packaging is its inability to package heavy goods, leading to the manufacturer adopting polymer packaging products, which is poised to hamper the paper-based packaging market growth. The product is prone to tearing, especially when subjected to rough handling or extreme conditions that offer limited strength and durability compared to other materials such as metal or plastic. Some paper packaging can also be flimsy, lacking the support that less environmentally friendly packaging provides to transport the goods safely. In addition, it may not be suitable for packaging heavy or bulky items that require robust protection. Strict environmental regulations about deforestation due to the extraction of raw materials for paper production and the release of harsh chemicals during the process are expected to hamper the growth of the market.       

Paper Packaging Market Segmentation Analysis

By Material Analysis

Availability of Different Types and Sizes of Corrugated Boards to Foster Segment Growth

In terms of material, the market is segmented into corrugated board, kraft paper, molded pulp, specialty paper, and others.

The corrugated board segment holds the largest share of the market. The corrugated board comes in various types, weights, coatings, and flame-resistant qualities. With the increasing e-retail, the demand for corrugated boards is expected to increase for shipping, storage, and packaging purposes. Such favorable properties of corrugated boards are projected to bolster the corrugated board segment growth.

Molded pulp holds the second-largest share in the material segment. The material provides good cushioning characteristics for low static loadings, single impacts, and low drop heights, which boosts the segment’s growth.

By Packaging Type Analysis

Ease in Handling and Lightweight Characteristics of Corrugated Boxes to Fuel the Segment Growth

Based on packaging type, the market is segmented into corrugated boxes, bags & sacks, folding cartons, wraps, cups & trays, and others.

The corrugated boxes segment holds the largest share of the market. Corrugated boxes are more robust and they serve as a sturdy cushion for any goods while transporting throughout shipping and handling. The corrugated boxes are sustainable packaging solutions and their lightweight properties also help with keeping the shipping cost minimum. Such features of corrugated boxes are impelling the segment growth.

Folding cartons hold the second largest share in the packaging type segment as the packaging product provides rigidity, stiffness and toughness, offering compression strength to protect goods in use and distribution, which is increasing the segment’s growth.

By End-use Industry Analysis

Technological Innovations and Sustainable Factors to Drive the Food & Beverage Segment Expansion

Based on the end-use industry, the market is segmented into food & beverage, personal care & cosmetics, e-commerce, healthcare, home care, electrical & electronic, automotive & industrial, and others.

The food & beverage segment holds the largest share. Paper packaging is being increasingly utilized to package fast food, fresh food, and frozen foods. In addition, the technological innovations in food & beverage packaging, including wraps and coated paper, that help prevent leakage are contributing to the segment growth. The efficiency, versatility, and sustainability of the product are further boosting the food & beverage segment growth.

E-commerce holds the second-largest share in the end-use industry. The increasing use of smartphones and the internet is accelerating segment growth due to easier and more convenient shopping experiences.

REGIONAL INSIGHTS

The market is analyzed across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific dominates the global market. The rapid growth of the food & beverages and e-commerce industries drives the growth of the market in the region. The growing presence of manufacturers and the increasing number of government initiatives for sustainable packaging solutions further contribute to regional growth.

Europe is the second most dominating region in the global market. The increasing demand for recyclable and environmentally friendly packaging solutions is propelling the demand for the product. The increase in online shopping and the need for packaging material to ensure the safety of the goods is further propelling the market growth in the region.

North America is anticipated to register significant growth during the forecast period owing to the increasing demand from the U.S., high reliance of customers on packaged home care products, adoption of eco-friendly packaging by food industries, and changing regulatory scenarios with an increased emphasis on environmental concerns. These are some of the factors boosting the region's growth.

The Middle East & Africa is expected to have moderate growth during the forecast period due to the rising demand for secondary products, which has increased dramatically as online shopping platforms have been growing rapidly in the region.

Latin America is projected to have a stable growth during the forecast period owing to the increasing sales of electrical & electronic products. In addition, the increasing adoption of lightweight packaging material in the end-use industry is expected to fuel the market growth in the region.

List of Key Paper Packaging Market Companies

Prominent Companies Dominate Due to their Focus on Innovation

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

Major players in the market include DS Smith PLC, Georgia-Pacific Corporation, WestRock Company, Mondi Group Plc, Hood Packaging Corporation, and others. Numerous other players operating in the industry are focused on delivering advanced packaging solutions.

List of Key Companies Profiled:

• DS Smith PLC  (U.K.)


• Georgia-Pacific Corporation (U.S.)


• WestRock Company (U.S.)


• Mondi Group Plc (U.K.)


• Hood Packaging Corporation (U.S.)


• Smurfit Kappa (Ireland)


• Napco National (Saudi Arabia)


• Billerud (Sweden)


• Stora Enso Oyj (Finland)


• Rengo Co. Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• September 2023 – ProAmpac, a leader in flexible packaging and material science, launched its patent-pending ProAactive Recyclable RP-1000 High Barrier paper-based technology. It offers excellent moisture barrier and grease resistance and is suited for dry food products such as confectionery, dehydrated fruit, and flavored oatmeal.


• September 2023 – Mondi and Veetee launched the first paper-based packaging for dry rice in the U.K. The packaging is created using Mondi’s recyclable functional barrier paper and was developed for Veetee’s price range. This packaging is a direct replacement for plastic.


• May 2023 – Mars launched a recyclable paper packaging trail in the U.K. The new paper-wrapped Mars bars will be available at Tesco for a limited period. For the first time, Mars Wrigley has introduced paper packaging in the country after extensive development work and investment. The trail will achieve a significant reduction in plastic on the Mars Bar.


• April 2023 – M & S launched a new recyclable rice and grain packaging solution. The company introduced two designs: a paper-based bag and a paper box. Customers are competent to recycle both of the new packaging types in their recycling containers at home. The paper-based bags include a small plastic coating, sufficient to preserve the quality of the food inside, and still can be recycled.


• April 2023 – Mondi, a global leader in packaging solutions, announced a collaboration with Swiss converter ATS-Tanner for the creation of a paper band to hold bundles or products, minimizing the use of plastic. Mondi’s kraft paper Advantage MF SpringPack is deployed by ATS-Tanner, and the company transforms it into a band by the addition of a functional barrier on each paper’s side. The paper is made from renewable and certified materials and is recyclable.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects such as leading companies, competitive landscape, product/service types, Porter's five forces analysis, market shares, and leading applications of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the above factors, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation