The ASEAN market for folding cartons demonstrates a highly competitive market, finds a new research report by Transparency MARKET Research (TMR). Analysts expect the competition between the players to intensify further in the coming years.
According to the research report, the ASEAN folding cartons market presented an opportunity worth US$2.8 bn in 2016. Researchers estimate the market to expand a CAGR of 7.10% during the period from 2016 to 2024 and reach a value of US$4.9 bn by the end of the forecast period. SBS-based folding cartons have been enjoying a significantly higher demand among consumers comparing to other material-based cartons and are expected to continue doing so over the next few years.
Indonesia to Emerge Key Contributor to ASEAN Folding Cartons Market
The ASEAN market for folding cartons is spread across Indonesia, Malaysia, Myanmar, Thailand, Vietnam, Philippines, and the Rest of ASEAN. The report also offers an exhaustive study of the performance of this market on the basis of its geographical spread. Among these, Indonesia has acquired the leading position and estimates indicate towards it retaining its leadership over the forecast period, rising at a CAGR of 7.20%. The food and beverage sector has surfaced as the key consumer of folding cartons in Indonesia and is expected to remain seated in this position over the forthcoming years. Apart from this, Malaysia and Thailand are also projected to witness significant growth in future.
Folding cartons find a widespread application in the industrial food and beverages, homecare products, personal care, pharma and healthcare, and tobacco sectors in ASEAN countries. The food and beverages industry has been reporting a greater demand for folding cartons among these and the scenario is projected to remain so over the next few years, with the demand rising at a CAGR of 6.80% between 2016 and 2024. These cartons are heavily utilized in the packaging of fresh food products in the food and beverage sector.
Among others, the pharma and healthcare and the personal care sectors are also expected to experience a rise in the demand for folding cartons in the near future. The escalating population base of working middle-class people in these countries and the augmenting level of awareness regarding the benefits of these cartons are anticipated to boost their application in these industries over the next few years, states the report.
Rise in Takeaway Food Industry to Boost Market’s Growth
“The significant rise in the demand for packaged and takeaway food products in the ASEAN countries is the key factor behind the growth of the folding carton market in this region,” says an analyst at TMR. The takeaway food industry is growing extensively in this region and has been recognized as a new business avenue for investors to make money. Apart from this, the growing number of tourists and emigrants in these countries, increasing tremendously every year is also reflecting positively on the demand for such takeaways. All these factors, together, are pointing towards a thriving future of the ASEAN folding cartons market.
In addition, the cost efficiency offered by folding cartons while transportation and handling of products is likely to boost their demand substantially over the coming years, driving the overall market. However, the preference of customers for traditional flexible plastic packaging materials and rigid boxes for packaging, which are available at comparatively low prices, may limit the adoption of folding cartons to some extent in the near future, hampering the market, notes the research study.
The study presented here is based on a report by Transparency Market Research (TMR), titled “Folding Cartons Market (End User - Food & Beverages (Frozen & Chilled Food Products, Fresh Food Products, Bakery & Confectionary, Ready to Eat Food Products, and Beverages), Homecare Products, Personal Care Products, Pharma and Healthcare Products, Tobacco Products, and Industrial Products; Order Type - Standard and Customized; Material Type - Solid Bleached Sulfate (SBS), Coated Unbleached Kraft (CUK), Coated Recycled Board (CRB), and Uncoated Kraft Boxboard (UKB)) - ASEAN Industry Analysis Size Share Growth Trends and Forecast 2016 - 2024.”
The ASEAN folding cartons market is segmented into:
By End User
- Food & Beverages
- Frozen & Chilled food products
- Fresh food products
- Bakery & Confectionary
- Ready to eat food products
- Homecare Products
- Personal care products
- Pharma and Healthcare products
- Tobacco Products
- Industrial Products
By Order Type
By Material Type
- Solid Bleached Sulfate (SBS)
- Coated Unbleached Kraft (CUK)
- Coated Recycled Board (CRB)
- Uncoated Kraft Boxboard (UKB)