Growth in the e-commerce industry is also predicted to benefit the corrugated box manufacturing companies in the Asian market. The growth of the corrugated box market in the Asian market is owing to factors such as the growing food and beverage industry and the surge in demand for packed products.
Other factors that have bolstered the growth of the global corrugated boxes market include the increasing disposable incomes of people in developing countries, changing preferences of manufacturers towards sustainable packaging, and growth of the e-commerce industry. However, factors such as the increasing cost of raw materials, availability of a low-cost alternative to corrugated boxes are expected to hinder the growth of this industry.
The global corrugated boxes market is anticipated to reach USD 76.76 billion by 2021, growing at a Compound Annual Growth Rate of 3.94 percent. Major factors fueling the growth of this market include the rise in demand for fresh food and beverages, home and personal care goods and electronic goods industries, logistics applications.
The corrugated box market is classified into various segments based on printing technology, print ink, material, end-use industry, and region. Based on the type, slotted boxes hold the largest market share, in terms of both volume and value and Flexography printing was the most widely used printing technology among other technologies. In terms of printing ink, water-based ink is predicted to grow at the highest rate during the forecast period.
APAC fastest-growing region Based on the region, the corrugated boxes market is classified into North America, Europe, Asia-Pacific, and the rest of the world and the Asia-Pacific market is estimated to be the fastest-growing region during the forecast period.
As per the Indian Corrugated Case Manufacturers’ Association, the Manufacturers of corrugated boxes are facing huge losses owing to a steep increase in the cost of raw materials and other inputs. With over 350 automatic corrugators and more than 10000 semi-automatic units, the Indian corrugated box industry has seen kraft paper mills increase prices steeply.
The kraft paper mills stated that domestic and imported waste paper’s prices have increased in the last two months, owing to the fact that China’s plan on banning waste paper imports, as it is consuming the supplies available now in the global market and this has pushed the prices up.
Sandeep Wadhwa, President of the Indian Corrugated Case Manufacturers Association, appealed to the kraft paper mills to stabilize the prices. He also asked them to ensure that the supply chain is not hampered during the recovery phase. Harish Madan, Vice President of the Indian Corrugated Case Manufacturers Association, said that unless the box users, including large FMCG brand owners, support the industry, its survival will be difficult.