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Paper Packaging Materials Market Estimated to Reach $466.2 Billion by 2027

Paper Packaging Materials Market Estimated to Reach $466.2 Billion by 2027
Paper Packaging Materials Market | IndustryARC
The global Paper Packaging Materials Market is the rising demand for flexible paper packaging as consumers become more aware of the adverse impacts of plastic on the environment.

The Paper Packaging Materials Market size is estimated to reach $466.2 billion by 2027. Furthermore, it is poised to grow at a CAGR of 3.9% over the forecast period of 2022-2027. Food packaging is made out of a variety of materials, including paper and board. To package loose foods, paper packaging is formed of parchment paper or in the shape of bags. Paper bags are made from Kraft paper and come in a variety of forms and sizes. Corrugated cases are commonly used in direct contact with food and as secondary packing. Liquid packaging cartons are used to pack Foods such as liquid and dry foods, frozen foods, and fast food. Owing to the rising need for flexible paper-based packaging, this industry is likely to rise quickly. Flexible packaging materials are in high demand owing to a growing population and a growing desire for low-cost packaging alternatives. Paper Bags, envelopes, pouches, cellulose, and aluminum foils are examples of flexible packaging. When compared to other materials such as metals and plastics, paper packaging materials are reused and recycled. As a result, paper packaging is one of the most environmentally friendly and cost-effective types of packaging. Another driving factor for the global Paper Packaging Materials Market is the rising demand for flexible paper packaging as consumers become more aware of the adverse impacts of plastic on the environment. During the forecast period, a ban on lightweight plastic bags in some countries is projected to push the Paper Packaging Materials Industry.

Paper Packaging Materials Market Segmentation Analysis- By Type

The Paper Packaging Materials Market based on Product Type is segmented into Liquid Packaging Cartons, Corrugated Cases, Carton & Folding Boxes, Others. Liquid Packaging Cartons held a dominant market share in the year 2021. By the advancements in novel retail packaging, the segment is projected to gain traction. Owing to its widespread use in milk and juice box packaging, liquid packaging cartons are the most common type of paper packaging material. Moreover, the uprising of plant-based milks have allowed the use of liquid packaging, as a predominant portion of multinationals are following sustainability goals which propels them to adopt the said packaging material. The plant-based milk collected the maximum revenue of the entire segment, by having a share of 35.71% in 2020.

However, Corrugated cases is estimated to be the fastest-growing, with a CAGR of 4.7% over the forecast period of 2022-2027. Corrugated cases are projected to see increased use in retail packaging as a result of advancements in design innovation. Furthermore, corrugated cases, which are very robust, reusable, recyclable, and lightweight, are predicted to grow rapidly, encouraging the growth of the Paper Packaging Materials Market.

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Paper Packaging Materials Market Segmentation Analysis- By Application

The Paper Packaging Materials Market based on Application is segmented into Fresh Foods, Fast Foods, Beverages, Dairy & Bakery, Frozen foods, and Others. In 2021, the Beverage segment accounted for the largest revenue market share in 2021 in Paper Packaging Materials Market. The segment is benefiting from rising demand for functional foods, a diverse product selection, and simple access to products. The growth of the organic beverage business in developed economies such as North America and Europe is also helping to grow the paper packaging material market. The frozen food application category is predicted to develop at a significant rate throughout the forecast period, owing to the rapid expansion of frozen food and the fast food sector in emerging nations.

Fast Foods segment is estimated to be the fastest-growing, with a CAGR of 4.84% over the forecast period of 2022-2027. Owing to advancements in paper packaging materials and marketing strategies, the fast food category is likely to develop at a significant rate. Furthermore, the industry is predicted to rise by the rapid proliferation of fast-food chains in emerging economies such as Indonesia, India, and others that use paper as a packaging material. Additionally, accords such as Paris Climate Agreement which focuses on reducing the global temperature by 1.5 degree have readily showed the impact of plastic packaging, which would allow for the growth of the paper packaging market.

Paper Packaging Materials Market Segmentation Analysis- By Geography

The Paper Packaging Materials Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held a dominant market share of 34% in the year 2021. With a slew of manufacturers operating in the region, North America remains one of the most important markets for paperboard packaging products. Paper and paperboard consumption in North America totaled 74.21 million metric tonnes in 2018. According to FAO and UNECE data, this is the case.

Asia-Pacific is expected to offer lucrative growth opportunities to marketers in the projected period of 2022-2027. The key reasons for this situation are rising living standards, greater disposable income, a growing trend for fast food, and more knowledge of paper bag use. The market in the region is predicted to benefit from strong demand from countries like China owing to the proliferation the fast food chains in this region.

Paper Packaging Materials Market Drivers

Rising paper production is predicted to be a major driving factor for the paper packaging material industry. According to the International Energy Agency, the rate of growth in paper and paperboard output increased to 2.3 percent in 2017, and demand is predicted to continue to rise until 2030, owing to rising population and economic growth. As a result, increased paper production boost the demand for paper packaging material. The market for paper packaging material is poised to develop in response to rising demand for eco-friendly packaging solutions as a result of growing environmental concerns. Consumer awareness of sustainable packaging is also contributing to the rise of the paper-based packaging market. Furthermore, increased government rules aimed at protecting the environment boost the market. Furthermore, players are concentrating on reducing the environmental impact of their manufacturing processes by making them eco-friendly and long-lasting. International Paper declared its objective to cut greenhouse gas emissions from its processes by 35%from 2017 levels in November 2020, based on this concept.

An emerging trend for Paper Bottles is poised to boost market growth.

Paper Bottles are a sustainable product that provides an adequate solution and paradigm change to meet both consumer demand and manufacturing company sustainability packaging criteria. When it comes to sustainability and environmental damage, paper bottles have become a viable alternative to plastic bottles. In 2018, L'Oréal USA Seed Phytonutrients developed a recyclable, compostable, paper-based pump container specifically for use in the shower. This bottle was created in collaboration with Ecologic Brands by L'Oréal USA. The paper bottle's outer shell is made entirely of paper and is both recyclable and compostable. The shell is created from recycled corrugated boards from L'Oréal USA. This bottle's labels are also compostable and may be recycled along with the bottle.

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Paper Packaging Materials Market-Challenges

The physical property of paper-packaging makes it ready for taking damages, which impedes the market growth

The inability of paper packaging to package heavy commodities, causing manufacturers to choose polymer materials for packaging, is likely to limit the market growth of paper-based packaging. The market expansion of paper-based packaging is projected to be hampered by strict environmental regulations surrounding deforestation as a result of extracting raw materials for paper manufacture and the discharge of harsh chemicals during paper production. During the development of the paper bags, many harmful chemicals such as printing inks, phthalates, surfactants, bleaching agents, hydrocarbons, and others are added, which leach into the food chain during paper manufacture, food intake, which hampers the market growth. Food contact materials in Europe are governed by the EU Framework Regulation EC 1935/2004 on materials and articles designed to come into contact with food, which allows for additional regulation of paper and board materials such regulations are poised to restrain the market growth.

Paper Packaging Materials Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Paper Packaging Materials Market. Paper Packaging Materials top 10 companies include:

Smurfit Kappa Group Plc.

Napco National Paper Products Company


International Paper Company

WestRock Company

Georgia Pacific LLC

Pratt Industries

DS Smith Packaging Limited

Stora Enso Oyj

Mondi Group Plc.

Recent Developments

On August 18, 2020, Smurfit Kappa announced a partnership with Wildlife Fund Combia, to improve forestry protection and expand the usage of recyclable papers. The alliance further aims to restore-expand-and even protect forests and ecosystems in the said country, wherein totality the company manages around 68,000 hectares of woodland. Additionally, the company believes that by expanding the alliance various aspects of forest flora and fauna can be preserved.

In December 2019, Huhtamaki finalized the acquisition of the majority of the business of South African felxible packaging producer Everest Flexibles (Pty) Limited ("Everest"), allowing the company to capitalize on its current customer base. Huhtamaki also bought Mohan Mutha Polytech Pvt. Ltd., a privately held flexible packaging producer in India, in January 2020.

In April 2019, DS Smith Plc announced the sale of two packaging operations to International Paper, a company based in the United States (IP). The businesses are located in North Western France and Portugal, and the amount for which the sales have been agreed upon is 54 million pounds. The sales would fulfill the commitment made to the European Commission in relation to the clearance of DS Smith’s acquisition of Papeles y Cartones de Europa, S.A., known as Europac, which was completed on 22 January 2019.Related Reports:Paper

Key Takeaways

In terms of geography, North America dominated the market in 2021. It is owing to the availability of strong manufacturing capabilities, which benefit the end-user industries as a whole. However, Asia-Pacific is expected to offer lucrative growth opportunities to the marketers in the projected period of 2022-2027 owing to a steady government's inclination(s) to allow incentivized manufacturing capabilities.

The market for paper packaging is being driven by rising consumer awareness of sustainable packaging and tight rules enforced by various environmental protection organizations (regarding the usage of environmentally friendly packaging items). The use of cardboard and paper bags has increased owing to the rapid expansion of online shopping and delivery-on-demand services. Paper packaging, on the other hand, is very flimsy and readily folds or tears, which is a key restraint on the market expansion.

A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Paper Packaging Market Report.

Related Report

Paperboard Packaging Market

For more Food and Beverage Market reports, please click here

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