Board packaging involves the use of corrugated fiberboard and solid fiberboard in the packaging of various industrial and consumer products. Corrugated fiberboard is made up of a fluted corrugated sheet in between two flat linerboards. This robust and lightweight material provides protection against vibration, impact resistance, and compressive strength. Board packaging finds widespread application in industries such as electronics, food and beverages, automotive, healthcare, and personal care. It is used in the packaging of various consumer goods ranging from electronics to home appliances to household cleaning supplies.
The global board packaging market is estimated to be valued at US$ 170 Bn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The increasing demand from the electronics industry is the major driver responsible for boosting growth of the board packaging market. Rising consumer electronics sales and the need for safe delivery of components are fueling the demand for protective board packaging from this industry. As per estimates, around 2.5 billion smartphones were shipped in 2021 globally which required packaging for safe transportation. This generates huge demand for corrugated and solid board packaging. Moreover, the growing demand for eco-friendly packaging from various end-use industries is expected to present lucrative opportunities for market players during the forecast period. This has encouraged packaging manufacturers to introduce sustainable packaging solutions made from recyclable materials like paper. However, fluctuations in paper prices may hinder the overall market growth during the forecast period.
SWOT Analysis
Strength: The board packaging market benefits from a strong demand for sustainable and eco-friendly packaging. Many leading brands and manufacturers prefer board packaging owing to its sustainability credentials and recycling capabilities. The market also receives support from government initiatives aimed at promoting the use of recyclable materials. Board packaging provides high strength at an affordable cost, making it suitable for shipping a wide range of products.
Weakness: Th price of board packaging is directly linked to the cost of raw materials such as paper and wood pulp. Fluctuations in raw material prices can negatively impact the overall packaging costs for brands. Further, some types of board have low resistance to water, making them unsuitable for certain products.
Opportunity: Rising e-commerce activities have increased the demand for secure and protective packaging solutions for shipping various goods. This presents an opportunity for board packaging manufacturers to introduce innovative and customized designs well-suited for the logistics/shipping sector. Manufacturers are also focusing on developing moisture-resistant boardgrades to gain traction in new industries like food and beverage.
Threats: Restrictions on deforestation and sustainable wood sourcing pose challenges to the steady supply of raw materials. Alternative sustainable packaging materials like bioplastics are gaining ground, threatening the market position of board packaging over the long run if they can match functionality at competitive costs. Tightening environmental regulations also compel manufacturers to improve their green credentials.
Key Takeaways
The Global Board Packaging Market Size is expected to witness high growth led by rising e-commerce activities and focus on sustainable options.
North America currently dominates the board packaging consumption due to well-established logistics chains and retailer preference for recyclable solutions.
Key players like International Paper Company, Mondi, WestRock Company, Nippon Paper Industries are focusing on renewable/recycled materials and customized designs to strengthen their market position.
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https://www.newsstatix.com/board-packaging-market-size-share-growth-outlook-2023/
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