MARKET OVERVIEW- NORTH AMERICA CONTAINERBOARD MARKET
The containerboard market covers a comprehensive analysis of the market based on material, type, end-user, and region. Containerboard or corrugated case material (CCM) is a type of paperboard specially manufactured for the production of corrugated board. Containerboard is made on modified paper machines that can handle higher grammages. It is made from a combination of paper pulp, recycled paper, and other materials and is chosen for its strength and durability. Containerboard makes boxes for a wide range of products, including food, beverages, consumer goods, industrial products, and containers for shipping and storage. Containerboard is becoming more and more common in the world of packaging. Due to its adaptability, portability, and durability, it is the packaging material that is used most commonly. In addition, it comes from a renewable resource. It is also the one packing material that is recycled the most.
North America containerboard market will expand significantly, due to rising corrugated box shipments and e-commerce shipments, increasing demand for packaged foods and businesses, and shifting consumer preferences toward recyclable packaging options. In addition to that, demand for containerboard material in North America is anticipated to be driven by consumers' growing awareness of the benefits of eco-friendly products. Many of the top exporters of containerboard, is the United States. Compared to other regions, the country has lower manufacturing and material expenses. High containerboard manufacture is related to the nation's concern for sustainable development which is further driving the market in North America region. Also, factors such as environmental concerns have positive impact on containerboard market. As corrugated boxes are environmentally friendly and sustainable form of packaging related to other forms of packaging such as plastics metals, and others. Containerboard boxes are made using 46% recycled material. In addition to that, manufacturers are looking for flexible packaging solutions to decrease the usage of raw materials to maintain sustainability across the production process. Thus, such usage of containerboards in flexible packaging is expected to create lucrative opportunities in the forecast period.
MARKET DRIVERS
The market is driven by factors such as growing young population with an inclination towards processed foods, presence of large population pool requiring safe and protective packaging during transportation and increasing e-commerce and export activity across region. In addition to that, increasing purchases towards light weight packaging across industries are expected to boost market growth. Containerboard is relatively lightweight and can be broken down for easy transport. This allows for reducing shipping and transportation costs which decrease overall packaging and carriage costs. Additionally, containerboard has high applicability in the pharmaceutical sector, as paperboard is durable and has high wear and tear, it is used in packaging various medicinal products. The growing demand for various medicines coupled with government policies for the development of the sector has resulted in its significant growth. For instance, according to the statement by the Indian Government, in 2021, the pharmaceutical sector of the county showed significant growth of 103% in comparison to 2013. Furthermore, the growing consumption of electronic items is expected to acts as a driving factor. As containerboard packaging provides flexible packaging and a good strength-to-weight ratio, owing to which it is primarily used for packaging electronics items such as smartphones, television and computers.
MARKET OPPORTUNITIES
Technological advancements in the digital printing sector are expected to generate several potential opportunities in the containerboard market. Moreover, increasing adoption of advanced processes and rising demand for high-volume liner and post-print products are anticipated to further create new opportunities. Furthermore, growing demand for eco-friendly packaging and increasing government regulations for plastic use is providing huge opportunities in the North America containerboard market. For instance, major cities, like California, New York, Washington, Maine, and Massachusetts, have banned the use of plastic containers and bags and other single-use non-recyclable products that are harmful to the environment, boosting the demand for containerboard packaging solutions.
MARKET RESTRAINTS
Recycled paper such as kraft paper constitutes a major raw material in containerboard manufacturing. The negative impact imposed by external climatic factors causes fluctuation in the production of such raw materials, thereby fluctuating their prices which is expected to acts as a restraint on the market.
MARKET GROWTH CHALLENGES
Stringent government regulations on the exploitation of natural resources is expected to acts as a restraining factor for the containerboard market. The manufacturers of the virgin containerboards require the use of virgin wood fiber that increases a burden on the environment. The manufacturing of these boards exploits natural resources and emits harmful greenhouse gas, thereby increasing the final cost. The government regulations imposed on the tree-cutting are also hampering the market growth.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the North America containerboard market including, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. With increasing demand of the containerboard in various applications, the market is expected to witness growth at a specific CAGR from 2023-2029.
CONTAINERBOARD MARKET SEGMENTAL OVERVIEW
The North America containerboard market comprises of different market segments like material, type, end-user and country.
CONTAINERBOARD MARKET BY MATERIAL
Based on material, the North America containerboard market is segmented into
- Virgin Fibers
- Recycled Fibers
North America containerboard market by material is segment into virgin fibers and recycles fibers. Containerboards can be media can be virgin, and recycled depending on the pulp material used. Containerboards is one of the most recycled packaging materials in recent times, as approximately more than half of corrugated packaging was recycled. Recycled fibers cardboard has accounted for the largest segment in the North America containerboards market. The growing preference of consumer goods manufacturers for recyclable materials has increased the demand for recycled materials. In addition, the market is driven by the high demand for eco-friendly and sustainable packaging solutions from the food and beverage industries. In addition, the demand for recycled ones is expected to grow as they are cost effective and meet government environmental regulations, thus boosting the overall market.
CONTAINERBOARD MARKET BY TYPE
Different type for containerboard market is
- Kraftliners
- Testliners
- Flutings
- Other
Containerboard can be described as any paperboard used in making containers, as corrugated paper or cardboard. It is a highly used packaging material since it is versatile, lightweight, strong, and made from renewable resources. It is also the only most-recycled packaging material. Several types of containerboards are available on the market. Some of them include kraftliners, testliners, flutings, and others. Kraftliner is defined as one of the types of packaging paper or containerboard, whose fiber content has no less than 80% Virgin fibers obtained by the chemical sulfate or soda processes. They are ade from virgin fiber, and it is noted for its high resistance to tearing, stress and punching. Kraftliners are estimated to lead the market during the forecast period due to their high tensile strength and wide application in paper sacks production.
CONTAINERBOARD MARKET BY END USERS
The North America containerboard market finds its major end users in
- Food and Beverage
- Consumer Goods
- Industrial
- Other
Due to rapid industrialization activities combined with increased consumer preference for ready-to-eat and packaged foods and beverages due to busy lifestyles among these, the food and beverage segment holds a significant share of the packaging carton market. Corrugated boxes made from cartons are required by the food and beverage industry for transportation and storage purposes. This is due to its properties such as toughness, resistance to stacking and vibration, and the ability to resist crushing. These benefits help reduce shipping and handling costs, thereby reducing overall packaging costs. Hence, growth in the food and beverage industry will drive the market.
CONTAINERBOARD MARKET BY COUNTRY
The North America containerboard market is studied for the following regions
- United States
- Canada
- Mexico
In the North America region, the U.S. is the most important market for containerboards owing to an increase in consumption of processed food. According to a new study by NYU School of Global Public Health, ultra-processed food consumption grew from 53.5 percent of calories in the beginning of 2001-2002 to 57 percent at the end of 2017-2018. The intake of ready-to-eat or heat meals, like frozen dinners, increased the most, while the intake of some sugary foods and drinks declined. Thus, a rise in consumption of processed food is a major factor driving the growth of the market in the U.S during the estimated time period. Along with that, an increase in product launches and a rise in awareness regarding the benefits of eco-friendly products is expected to support the growth of the market in the country.
COVID-19 IMPACT ANALYSIS ON NORTH AMERICA CONTAINERBOARD MARKET
On concluding, as the spread of COVID-19 pandemic around the globe have hit all the sectors of production and almost on all the industries, the demand of the finished products has fall in the countries which resulting into the lower import and export of the goods with other regions which have negative impact on the containerboard packaging product manufacturers. The demand for electronic goods has fallen, due to which the demand for containerboard packaging has also fallen as more containerboard packaging is preferred for electronic goods. The auto motive sector and supply chain company have been impacted by COVID-19 as demand for the spare parts of automobiles in the different countries has fallen, which needs containerboard packaging. Due to danger of the virus spreading, the countries have stopped the import and export of raw materials as well as of finished goods, which has impacted the supply chain industry.
Eventually, the e-commerce industry has the positive impact on the demand of the containerboard packaging as containerboard packaging comes in every size and during the COVID-19 situation, the demand of the consumer goods has increased which have positive impact on the containerboard packaging in e-commerce industry. The fluctuation in the raw material price which is wood pulp during the pandemic situation has also impacted the revenue of the containerboard manufacturers in the North-America containerboard packaging market.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of Containerboard market is majorly focused on expanding the growth of Containerboard industry with new product innovation, business expansion, increasing presence of a range of manufacturer operating in Containerboard sector has led to growing demand for the market. Besides, the market offers a range of products in different application to fulfil the required demand of consumers which further contributes to healthy growth in the market.
The key players studied in market are
- Greif
- International Paper
- New Indy Containerboard
- Westrock
- Stora Enso
- Sonoco Products
- PCA
- SAICA
- Georgia-Pacific
- DS Smith
- Smurfit Kappa Group
- Klabin
- Nippon Paper
- BillerudKorsnas
- Pratt Industries
- Cascades
- Kruger Inc.
RECENT DEVELOPMENT:
April 2021: North Pacific paper company announced the arrival of a new state-of-the-art drum pulper that will help the company expand its production of lightweight recycled packaging paper and safeguard more than 400 mill job and support other indirect jobs in Cowlitz country.
December 2022: Georgia-Pacific has launched or completed around $1.8 billion in capital improvement projects throughout the company. These investments are expected to improve productivity and provide income opportunities.
