The world is rapidly changing, and the global economy is changing and growing at a rate that is unprecedented.
With that said — there are still a number of industries and products that might be thought of to be legacy items but are anything but, and are actually going to see substantial growth for the next ten years.
One such industry and product that is going to see a good amount of growth is the paper packaging market.
According to the Future Gadgets,
“Paper packaging market is a traditional market. It contributes more than 30% to overall packaging market share and dominates other packaging domains. In 2016 overall market size of paper packaging was estimated to be $243 Billion and forecasted to reach $450 Billion by 2027. Paper packaging market is estimated to be growing at a CAGR of 7%. Paper packaging is used in variety of applications ranging from food & beverages to pharmaceuticals to cosmetics. Different grades of papers and products are used in packaging. Paper packaging is the most preferred packaging among all other types of packaging, because of its lightweight and flexible features. In heavy-duty packaging paper packaging is not the suitable or preferred packaging. Paper packaging is majorly used as a tertiary packaging.
Paper packaging: Market Dynamics
Paperboard is estimated to be the fastest growing product segment with estimated growth rate of 7.5% among all other product segments of paper packaging. APAC region leads the paper packaging market (estimated revenue share of 35%). Europe region follows APAC, North America follows Europe. The demand in APAC is driven by India & China. The carton board market is dominated by European paper packaging manufacturers because of lack of facility and capacity in APAC region. Flexible plastics packaging is posing a tough competition to paper packaging.
Rising oil prices work in favor of paper packaging market, but in recent times the oil prices are so volatile and declining due to over production and over supply. The rise in the number of hypermarkets and supermarkets is influencing the growth of the paper packaging market. A rapidly growing organized retail sector is leading to rise in demand of food & beverages and other. Paper packaging not only helps retail stores to pack the food but also to protect and maintain nutritional values.
Global paper packaging market is consolidating to gain new capacities, expertise and new markets. Major M&A deals happened in 2016. Clearwater Paper Corporation has acquired Manchester Industries of Richmond, Virginia, from PaperWorks Industries, an integrated full-service packaging provider for a purchase price of $68.25 million Mondi Group has acquired 100% of the outstanding share capital of LLC Beepack from a private investor for a consideration of RUB 2,825 million (EUR41 million) on a debt-and-cash-free basis. Packaging Corporation of America acquired Columbus Container, Inc., an independent corrugated products producer in a cash-free, debt-free transaction of $100 million.”
Economists and investors will be paying close attention to the paper packaging industry, and from now until 2027, this industry is bound to pay out dividends for the foreseeable future.
Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses in the industry. With 200 disabled workers and 50,000 square feet available, we have space and the manpower required to service all of our clients and their custom packaging needs.