Corrugated Boxes Publicized as Backbone for U.S. Essential Industries During COVID-19 Crisis

Companies in the fiber based packaging market are taking additional efforts to keep transport packaging flowing to support stakeholders in food, medical, and other essential industries during the COVID-19 crisis. Tissue, hygiene, and pharmaceutical products have triggered the demand for corrugated box packaging. Manufacturers in the fiber based packaging market are expected to follow the guidelines of the Center for Disease Control and Prevention (CDC) and the Occupational Safety and Health Administration (OSHA) to prevent the spread of the novel coronavirus.

The box industry continues to operate and deliver needed packaging to end use customers linked with grocery stores, hospitals, pharmacies, and the food industry, among others. Corrugated cardboard packaging is emerging as the backbone for the U.S. supply chain.

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New Product Functionality of Corrugated Cardboard Necessary

The fiber based packaging market is predicted to grow at a modest CAGR of 3.6% during the assessment period. This is explained since certain materials used in packaging may not be eligible for recycling. For instance, boxboard is recyclable, but the same material used for packaging beer and frozen food may not be recyclable, as they are often waxed for refrigeration. Hence, manufacturers need to boost their R&D capabilities to develop easily recyclable materials that support frozen food, beer, and soda packaging.

Reinventing corrugated cardboard has become the need of the hour in the fiber based packaging market. Thus, manufacturers are working closely with producers to target new and improved product functionality.

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High Capital Investments Prevent Innovations in Corrugated Box Packaging

Corrugated boxes are anticipated to dictate the highest share among all packaging types in the fiber based packaging market. However, ensuring innovations in corrugated boxes is a capital-intensive strategy for the already expensive supply chains, thus preventing development of new materials. Hence, manufacturers are boosting their research efforts and establishing close interactions with product manufacturers in the food, beverages, personal care, and eCommerce industries to steer innovations in corrugated box materials.

Small entrepreneurs such as GreenBox are gaining recognition in the fiber based packaging market for their innovative designs in existing corrugated boxes to create value proposition for stakeholders in the value chain. As such, reusable plastic containers are posing a threat to corrugates box sales.

Indian Kraft Paper Manufacturers Innovate in Mobile Apps for Transparency in Business

Companies in the fiber based packaging market are developing new apps to ensure transparency in business operations. S N Paper Co. based in Delhi, India, has developed a mobile app to help its clients place orders online and track the orders for deliveries. The Digital India movement is benefitting app developers who are allowing customers to check rates of materials in real-time, check updated statements, and receive rate change information via SMS. Kraft paper manufacturers are taking cues from such companies to introduce new technologies in the market landscape.

Transparency and fast delivery of kraft paper packaging have become crucial to gain a competitive edge between wholesalers and retailers. Companies in the fiber based packaging market are addressing challenges of customers for difficulty in purchasing inventory with the help of mobile apps that give real-time information.

Securing Patents in Enzyme Pulping Processes Enables Development of Eco-friendly Molded Pulp Materials

Highly efficient manufacturing equipment are increasing production levels in the fiber based packaging market. Deluxe— a specialist in eco-friendly sustainable development is providing designing plans and technology for the blowdown systems meant for molded pulp. Better equipment ensures better capacity, efficiency, and quality in molded pulp packaging products. Companies in the fiber based packaging market are seeking design, planning, and technical support from consultant firms to manage pulp providing equipment and sewage treatment.

Manufacturers are taking efforts to gain patent in enzyme pulping processes to develop eco-friendly molded pulp materials. They are setting new production targets with eco-friendly molded pulp materials to boost their credibility.

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Analysts’ Viewpoint

Companies such as the Antalis Packaging have flagged supply shortages for cardboard boxes and corrugated boards due to delays in facilitating pulp fibers back into the recycling chain, owing to the coronavirus crisis. Corrugated cardboard is gaining popularity, as it can be recycled several times before it degrades into sludge waste. However, food safe and plant-based bioplastic materials are emerging as an alternative to corrugated cardboard and kraft paper materials. Hence, companies in the fiber based packaging market should increase their interaction with producers to innovate in fiber materials and introduce solutions including environment-friendly molded pulp products to diversify their production, revenue, and supply chains.

Fiber Based Packaging Market: Overview

  • According to Transparency Market Research’s latest report on the global fiber based packaging market for the forecast period of 2021-2025, the market is estimated to grow, owing to the demand from food & beverages and personal care & cosmetics industries.
  • The global fiber based packaging market is expected to clock a CAGR of 3.6% during the forecast period

Multi-sensor Packaging Product Features Propelling Market Growth

  • Manufacturer across the packaging industry are focusing on adding tactile appeal, which renders a real velvet feel through soft touch pack products. Many fiber-based paperboard producers manufacturing cartons, partitions, inserts, etc. have entered into the competition of heightening the consumer’s consumption sensory experience.
    • For instance, several carton packets render features of opening and reclosing through a click of a button, thus creating a unique feature appeal to consumers while purchasing food or cosmetic products
  • These special feature boxes and cartons are predominantly used by paper and paperboard manufacturers, which are highly demanded in cosmetic and food segments. Moreover, such additive features fasten up the product consumption operation of consumers, thus offering speed and flexibility to consumers across multiple application industries.
  • Regions of North America and Europe have adopted multisensory fiber based packaging products on a massive scale. Following such an enormous drive, countries of APAC have witnessed a significant increase in consumption of multi-sensory paper and paperboard packaging products.

Fiber Based Packaging in Personal Care & Cosmetics Industry to Boost Production

  • Personal care is playing a key role in boosting the fiber based packaging market sales in the world. According to a study, the global personal care & cosmetics industry contributes more than 30% to the market share. Increasing consumption of various cosmetics products and rapidly evolving consumer habits of using cosmetics on a regular basis are driving the global cosmetics & personal industry, which, in turn, is fueling the growth of the fiber based packaging market.
  • Moreover, retails and the eCommerce sector have resulted in increased supply of cosmetics across nations. The demand for making skin and body beautiful has made the world try more number of products. The availability of variety of products has fulfilled the demand of consumers at a wide and large scale. Furthermore, the ongoing trend of being entrepreneur in personal care & cosmetics industry is bringing a change in consumers’ choice, which has led to the production of more fiber based packaged products.

Fiber Based Packaging Market: Key Findings

  • Among packaging types, the corrugated boxes segment is expected to hold a major share of the global market. However, this segment is estimated to witness a loss of 40Bps by 2025.
  • Partitions & inserts segment is estimated to account the prominent growth during the forecast period, and is likely to create an incremental opportunity of more than US$ 2.1 Bn by the end of the forecast years.
  • Based on material type, the kraft paper segment is expected to expand at the growth rate of 4.5%
  • Consumption of recycled fiber is expected to bolster in the upcoming years attributing to minimizing landfills and wastage. This segment is projected to reach over 1,231 Bn Units by the end of 2025.
  • Food segment is anticipated to outbid others in the global market; however, the fiber based packaging market for personal care and cosmetics is anticipated to expand 1.3 times of current market value in upcoming years
  • In terms of CAGR, Middle East & Africa is likely to emerge as the dominating region in the global fiber based packaging market, owing to the increasing demand from the beauty industry

Fiber Based Packaging Market: Competition Landscape

  • TMR analyzed that the global fiber based packaging market is highly competitive, owing to a large number of local players in the market. This competition among key players is carefully studied based on developments, strategies, and segmental revenue of the company. 
  • In the latest fiber based packaging market study, leading players that have been included are
    • International Paper Company
    • Smurfit Kappa Group PLC
    • Georgia-Pacific LLC
    • WestRock Company
    • Reynolds Group Holdings Ltd
    • Stora Enso Oyj
    • DS Smith Plc
    • Huhtamaki Oyj
    • Sonoco Products Company
    • Pratt Industries Inc.
    • KapStone Paper and Packaging Corp
    • Mayr-Melnhof Karton AG
    • Rengo Co., Ltd.
    • Mondi Group
    • AR Packaging Group AB
    • BillerudKorsnäs AB
    • U.S. Corrugated, Inc
    • UFP Technologies, Inc.
    • ESCO Technologies Inc.
    • Brodrene Hartmann A/S 
  • TMR distinguished these fiber based packaging market players as per their segmental earnings into different tier slabs. Among these players, International Paper Company, Smurfit Kappa Group PLC, Georgia-Pacific LLC, WestRock Company, Reynolds Group Holdings Ltd, Stora Enso Oyj come under Tier 1 companies. Tier 2 players include DS Smith Plc, Huhtamaki Oyj, Sonoco Products Company, Pratt Industries Inc., KapStone Paper and Packaging Corp, Mayr-Melnhof Karton AG, Rengo Co., Ltd., Mondi Group, AR Packaging Group AB, BillerudKorsnäs AB and Tier 3 players include U.S. Corrugated, Inc, UFP Technologies, Inc. and ESCO Technologies Inc, and Brodrene Hartmann A/S.

Impact on COVID-19 on Fiber Based Packaging Market

  • Like every other industry, packaging has witnessed the negative impact of the pandemic situation caused by the COVID-19 virus. It has shown its effect on the market, from delay in raw material supply to product sales; lockdown across various nations has made the industry face several issues of elevated price, lack of labor, and different operational challenges.
  • Fiber based products associated with applications in the food & beverages industry have witnessed a declined growth rate and industries, which are associated with non-essential products, might face flexibility in the short term
  • Major end uses of the fiber based packaging market such as personal care & cosmetics, tobacco packaging is likely to witness a slowdown, as the pandemic has affected how and what the customers are buying
  • However, end users such as the healthcare sector and chemical & fertilizers packaging have witnessed rapid growth rate
  • The COVID-19 pandemic has majorly affected the food & beverages industry, which is trying to overcome all the downward shifts and challenges, and make an inclined growth rate
  • Although the pandemic has had an impact on eCommerce and retail industry, as closures and lockdowns restricted industries in creating opportunities for the fiber based packaging market. Furthermore, with government support, manufacturing levels are expected to ramp up and to boost the fiber based packaging market.

Rising Focus on Eco-friendly Products by Consumers to Aid in Favor of Fiber based Packaging Market

The increasing number of fiber-based packaging from different end user industries are likely to aid in expansion of the global fiber based packaging market in the years to come. The rise in consumer inclination towards eco-friendly packaging solutions, coupled with the availability of raw materials at cost efficient rates will also promote the growth of this market. Fiber based packaging items have diverse visual allure contrasted with customary adaptable packaging. Fiber based packaging can oppose mugginess and different solvents, and looks after respectability.

The fiber based packaging market is anticipated to become influenced by the flooding demand from end-use ventures, like, food and refreshments, individual consideration and beauty care products, which are enlisting huge development in a few areas because of expanded utilization. The brightening surface of conveying units with fiber based packaging is probably going to propel growth of the market in the coming years.

The rising utilization of reasonable assets is driving the creation rate satisfied by maker and eco-friendly buyers around the globe. This imposed a positive impact on the utilization of biodegradable, ecofriendly packaging materials among different cost-efficient food organizations and retailers, such as QSRs, (MC Donald's, Walmart, and others.) These organizations tie up with multi-partners, for example, Environmental Defense Fund, WWF with an aspiration to decrease various sorts of ecological risks, which suggest the necessary changes in packaging materials to underscore and broaden the utilization of paper based packaging. These paper based items help in lessening the expense of the maker organizations at the underlying level, which at last causes the shopper to purchase more practical bundled items. Inexpensive food organizations and retailer are getting profited broadly with the assistance of utilizing paper and paperboard packaging. This pattern of utilizing paper and paper board packaging has made a monstrous pay of income across the world.

Fiber Based Packaging Market – Scope of the Report

Transparency Market Research (TMR) started a new study on the global fiber based packaging market, providing forecast for the period of 2021-2025. In the study, growth opportunity for the fiber based packaging market is witnessed. The report provides valuable insights, which enable readers to make winning business decisions for future growth of their businesses. The report highlights significant factors that are constantly determining the growth of the fiber based packaging market, untapped opportunities for manufacturers, trends and developments, and other insights across various key segments. Macroeconomic factors that are directly or indirectly affecting market growth are also incorporated in the report.

Key Questions Answered in TMR’s Fiber Based Packaging Market Report

  • What will be the impact of COVID-19 on fiber based packaging market?
  • Which end use will be the most lucrative for fiber based packaging?
  • What will be market size of fiber based packaging by the end of 2025?
  • Which is the most preferred packaging type in the global market?
  • Which region will remain most lucrative for market growth?
  • Which are the top five countries of fiber based packaging market?
  • Which material holds maximum market share in the global fiber based packaging market?
  • Who are major key players in the fiber based packaging market?

Key indicators associated with the fiber based packaging market have been calculated thoroughly in the report. The study enumerates vital market dynamics such as key drivers, challenges, and trends, along with opportunities in the global fiber based packaging market. A comprehensive study on the value chain, which includes component suppliers, manufacturers, distributors, and end users have been incorporated in the global market report. Other key aspects laid down in the market include pricing strategy of leading market players and comparative analysis of fiber based packaging. Furthermore, forecast factors and forecast scenarios of the fiber based packaging market have been covered in the report to understand future prospects of the market.

A comprehensive evaluation and forecast on the fiber based packaging market are provided on the basis of packaging type, material type, material source, level of packaging, end user base, and region.

Y-o-Y growth comparison, volume, revenue comparison, and market share comparison of various market segments are provided in the report. The fiber based packaging market is analyzed at both regional and country levels.

The report delivers an exhaustive assessment on the structure of the fiber based packaging market, in tandem with a dashboard view of all leading company profiles in the report. Every company’s share analysis on market players have also been presented in the report, apart from the footprint matrix of profiled market players. The report depicts the presence of fiber based packaging manufacturers by leveraging an intensity map. It also highlights key end users for fiber based packaging.

The report includes company overview of key players. Some of the key companies profiled in the fiber based packaging market report include International Paper Company, DS Smith Plc, Smurfit Kappa Group PLC, Sonoco Products Company, Georgia Pacific LLC, WestRock Company, Pratt Industries Inc., U.S. Corrugated, Inc, Reynolds Group Holdings Ltd, UFP Technologies, Inc., ESCO Technologies Inc., Brodrene Hartmann A/S, KapStone Paper and Packaging Corp, Mayr-Melnhof Karton AG, Rengo Co., Ltd., Mondi Group, AR Packaging Group AB, KapStone Paper and Packaging Corp, Stora Enso Oyj, and BillerudKorsnäs AB.

Research Methodology

A realistic methodology, along with a holistic approach makes the base for sharp insights, which are provided in the fiber based packaging market for the study evaluation period. The TMR report comprises of detailed information on growth prospects, along with riveting insights into the forecast assessment of the market.

Extensive primary and secondary researches have been employed to garner keen insights into the forecast study of the fiber based packaging market. The report has further undergone a cross-validation by in-house professionals to make the fiber based packaging market report one-of-its-kind with the highest credibility.

Fiber Based Packaging Market – Segmentation

The global fiber based packaging market has been segmented on the basis of packaging type, material type, material source, level of packaging, end user base, and region. Each of these segments are analyzed to provide readers with holistic view of the market.

Packaging Type

  • Corrugated Boxes
  • Cartons
    • Folding Cartons
    • Liquid Cartons
    • Hinge Lid Cartons
  • Partitions & Inserts
  • Bottles & Cup Carriers
  • Trays
  • Plates
  • Clamshells
  • Display Packaging
  • Bags & Sacks
  • Others

Material Type

  • Corrugated
  • Boxboard/Cartonboard
  • Molded Pulp
  • Kraft Paper

Material Source

  • Virgin Fiber
  • Recycled Fiber

Level of Packaging

  • Primary Packaging
  • Secondary Packaging

End User Base

  • Food Packaging
  • Beverages Packaging
  • Tobacco Packaging
  • Healthcare Packaging
  • Personal Care & Cosmetics
  • Homecare & Toiletries
  • Electrical & Electronics
  • Industrial Packaging
  • eCommerce Packaging
  • Chemical & Fertilizers

Region

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • MEA

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Fiber Based Packaging Market

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