The corrugated boxes market size is expected to advance at a CAGR of 4.6% during 2022–2030, to reach $359.6 billion by 2030.
This development in the sector can be attributed to the expanding e-commerce and offline retailing activities, as well as the rising need for lightweight and environment-friendly packaging solutions across a number of industries.
Since corrugated boxes are the backbone of the supply chain, the COVID-19 epidemic had only a slight impact on the market. Due to their expanding use in the delivery of essential goods to hospitals, pharmacies, shops, and grocery stores, the need for these boxes has significantly increased.
The growth of the APAC corrugated boxes market may be ascribed to the booming consumer demand for electronics and personal care products, expanding e-commerce operations, and increasing environmental consciousness and emphasis on sustainable packaging. Additionally, the use of these materials for primary and secondary packaging applications is encouraged by the expanding availability of raw materials and the growing number of government initiatives to stimulate the creation of eco-friendly products.
Additionally, the widespread use of corrugated boxes in the region has been aided by the significance of the APAC region as a manufacturing hub, due to its affordable labor and lower logistics costs and availability of resources. This results in many companies from all over the world outsourcing their manufacturing operations to APAC nations.
Therefore, China’s market will experience a growth rate of over 4% during the forecast period, due to its high industrial production. Over the years, the country has emerged as one of the leading exporters of consumer electronics and automotive parts in the world. Besides, corrugated boxes are widely used in trade owing to their suitability as a convenient packaging solution and their lower cost compared to other packaging materials.
Moreover, the e-retail industry in the country has witnessed considerable growth in the past few years, thus generating a high demand for corrugated packaging solutions. Hence, with urbanization and the increase in the disposable income, the demand for corrugated boxes is expected to grow in the country in the near future.
There has been a considerable increase in the use of corrugated packaging by online retailers over the past few years, with India and China the fastest-growing markets for online retail. This growth is driven by the aggressive discount-driven sales, development of the delivery infrastructure, and increasing smartphone penetration and data usage.
Furthermore, the global e-commerce sector is driven by the emergence of scale-open retail platforms across regional markets, which offer retailers a compelling alternative to building and scaling their capabilities. The count of these platforms is primarily driven by strategic marketing initiatives.
Online retailers use different types of corrugated boxes, based on the kind of products ordered, to ensure their safety during transportation. Several consumer electronics companies prefer corrugated boxes for the shipment of tablets, smartphones, laptops, and flat-screen televisions. Thus, the increasing use of corrugated boxes by online retailers is driving the growth of the market globally.
Owing to the rising concerns over food freshness and safety, particularly during the shipping of grain-based food, canned & frozen food, and bakery & dairy products, the demand for corrugated boxes among processed food manufacturers is considerably high.
The most-significant corrugated boxes market players are International Paper Company, WestRock Company, Georgia-Pacific LLC, Smurfit Kappa Group plc, Mondi Group, Packaging Corporation of America, Nine Dragons Paper (Holdings) Limited, Oji Holdings Corporation, DS Smith plc, and Stora Enso Oyj.