|Market Size in 2022||Market Forecast in 2030||CAGR (in %)||Base Year|
|USD 379.3 million||USD 553.1 million||3.95%||2022|
Paper Packaging Material Market
The global paper packaging material market size reached around USD 379.3 billion in 2022 and is estimated to reach USD 553.1 billion by 2030, with a compound annual growth rate (CAGR) of roughly 3.95% between 2023 and 2030.
Paper packaging materials are widely used for various packaging applications due to their eco-friendly and versatile nature. They are mostly made from cellulose, a natural material found in plants. Paper packaging materials are biodegradable, recyclable, and compostable. They are also lightweight and strong, making them ideal for a variety of packaging applications.
Rising urbanization to drive market growth
The global population is expected to grow to 9.7 billion by 2050, which will create demand for new housing. The world is becoming increasingly urbanized, with more people living in cities. As urbanization continues and populations grow, the demand for housing rises. This led to the construction of new residential buildings, apartments, and housing complexes. Each of this structure consists of people who purchase groceries, food, and beverages which increases the need for sustainable packing as awareness about sustainability is rising. Consumers and businesses are increasingly demanding sustainable packaging solutions, and paper is a good option because it is recyclable and biodegradable. This is being driven by a number of factors, including growing environmental awareness, government regulations, and consumer demand for more sustainable products.
Fluctuating prices of raw materials may affect the market stability
The market for paper packaging materials is particularly troubled by fluctuations in the cost of raw materials. The pricing of raw materials like paperboard and pulp has a significant impact on the paper packaging materials market. Because of various variables, including weather, crop yields, and world economic situations, the prices of these raw commodities can vary considerably. Companies that produce paper packaging may experience greater production costs as a result of rising raw material prices. The demand for paper packaging items may be impacted by higher prices as a result. Other packaging materials, such as plastic and metal, are becoming more and more competitive with paper-based packaging materials. These materials frequently cost less than paper and have certain benefits like stronger barrier qualities and longer durability. In order to preserve their competitive edge, paper packaging companies must concentrate on creating novel solutions. The market for paper packaging materials is subject to very rigorous governmental regulations. Both the environment and customers are to be protected by these regulations. However, they can make operating a paper packaging company more expensive.
Increasingly demand for sustainable packaging solutions
The growing need for environmentally friendly packaging is the main driver of market opportunities for the paper packaging material industry. Paper is a fantastic option because it is recyclable and biodegradable as consumers and businesses are demanding more sustainable packaging options. In the upcoming years, it is anticipated that the market for paper packaging materials will continue to expand as a result of the rising demand for environmentally friendly packaging. The major market participants are well-positioned to profit from this trend by concentrating on creating novel solutions and making investments in new technologies. In the upcoming years, it is anticipated that the market for paper packaging materials will continue to expand as a result of the rising demand for environmentally friendly packaging. In the upcoming years, it is anticipated that the market for paper packaging materials will continue to expand as a result of the rising demand for environmentally friendly packaging.
Lack of stability in paper as a packing material due to its properties
Some paper packaging can be weak or flimsy, lacking the support that less environmentally friendly packaging provides. To transport goods safely, businesses need sturdy materials that will store products securely. Some paper packaging involves a water-intensive production process. If an excess use of water is involved in the production process, it can counteract the environmental benefit of using paper over plastic packaging. Paper packaging can cost more than other packaging types, such as plastic. An increased demand for paper can result in more deforestation. Paper packaging can be heavier to transport than other, less environmentally friendly packaging, which can negatively impact business carbon footprint.
The global paper packaging material market is segmented based on product, application, and region.
Based on the product type, the global market is divided into liquid packaging cartons, corrugated cases, cartons & folding boxes, and other products based on the materials used to make paper packaging. In 2022, the segment of corrugated cases held the largest share of the global market. Also, it is anticipated that during the forecast period 2023 to 2031 need for corrugated cases will increase more quickly. It is anticipated that corrugated cases will be in high demand due to their use in retail packaging and cross-border trade. The robustness of the packaging and recyclability of these can be credited to their widespread use. Corrugated boxes for packaging are also portable and reusable. This should increase consumer demand for them. The demand for cartoons and paper folding is anticipated to increase along with the demand for bulk and attractive packaging.
Based on application, the paper packaging material industry is opening up new income opportunities in the beverage, fast food, frozen food, dairy & bakery, pet food, cosmetics, and pharmaceutical industries. In recent years, drinks have held the top revenue position among these. However, the combined share of frozen, quick, and fresh meals in the same year is sizeable and is anticipated to increase at a high CAGR over the course of the projected year. Their enormous demand for wrapping food goods is what drives the market for paper packaging materials for frozen foods, quick foods, and fresh foods. Additionally, recent developments in paper packaging materials and ongoing improvements in manufacturing techniques have resulted in the development of very useful packaging, such as those that are leakproof.
|Report Attributes||Report Details|
|Report Name||Paper Packaging Material Market|
|Market Size in 2022||USD 379.3 Billion|
|Market Forecast in 2030||USD 553.1 Billion|
|Growth Rate||CAGR of 3.95%|
|Number of Pages||211|
|Key Companies Covered||Georgia-Pacific Corporation, DS Smith PLC, Holmen AB, International Paper Company, Hood Packaging Corporation, OJI Holding Corporation, MeadWestvaco Corporation, Stora Enso Oyj, Smurfit Kappa Group Plc, The Mayr-Melnhof Group, and others.|
|Segments Covered||By Product, By Application, and By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)|
|Historical Year||2017 to 2021|
|Forecast Year||2023 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
Asia Pacific to lead the market during the forecast period
Asia Pacific held the leading share in the global paper packaging material market in 2022. Although the combined share of Europe and North America was more than 50% of the market, the market in Asia Pacific is predicted to rise at an exponential rate during the forecast period. The exponential growth of this regional market can be attributed to the vast advancements made in the packaging industry in various countries. The market in Latin America and Middle East & Africa is predicted to gather pace during the forecast period. The growth is likely to be fueled by the rapid emergence of the packaging sector in these regions.
In June 2023, International Paper announced that it would invest USD 500 million in expanding its paper packaging production capacity. This investment will help the company to meet the growing demand for its paper packaging products.
In July 2023, WestRock announced that it would acquire KapStone Paper and Packaging, another leading US-based paper and packaging company. This acquisition will help WestRock expand its product range, strengthen its position in the US market, and meet the growing demand for its paper packaging products.
Key players operating in the global paper packaging materials industry include
Paper packaging materials are widely used for various packaging applications due to their eco-friendly and versatile nature. They are mostly made from cellulose, a natural material found in plants. Paper packaging materials are biodegradable, recyclable, and compostable.
The global paper packaging material market cap may grow owing to the increasing urbanization. Significant growth opportunities can be expected due to the growing demand for sustainable packaging solutions
According to study, the global paper packaging material market size was worth around USD 379.3 billion in 2022 and is predicted to grow to around USD 553.1 billion by 2030.
The CAGR value of the paper packaging material market is expected to be around 4.5% during 2023-2030.
The global paper packaging material market growth is expected to be driven by Asia Pacific. It is currently the world’s highest revenue-generating market owing to the vast advancements made in the packaging industry in various countries.
The global paper packaging material market is led by players like Georgia-Pacific Corporation, DS Smith PLC, Holmen AB, International Paper Company, Hood Packaging Corporation, OJI Holding Corporation, MeadWestvaco Corporation, Stora Enso Oyj, Smurfit Kappa Group Plc, and The Mayr-Melnhof Group.
The report analyzes the global paper packaging material market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the paper packaging material industry.