- Exports and shipments support demand in the corrugated market, hence export-oriented markets typically have large corrugated markets.
- Though mature, the corrugated market is expected to grow at a moderate pace as e-commerce gains ground due to increasing accessibility through mobile devices, competitive prices, urbanization, and fast shipping. The growing e-commerce movement represents an enticing opportunity for corrugated packaging as items need to be protected during transportation and distribution.
- Like China, the Indian e-commerce market is growing strongly and it is expected to double in size in the upcoming years.
- Corrugated products are effected by ‘light-weighting’ and ‘down gauging’. In layman’s terms, using less material to produce packages, to maintain pricing advantages against competitors, partially due to increasingly demanding environmental and sustainability requirements. Companies are making significant strides in their environmental protection and energy optimization programs, along with initiatives to reduce water consumption. Nevertheless, ‘right weighting’ is a new concept being introduced. ‘Right weighting’ suggests that while some markets are taking advantage of reduced transportation costs from the use of lightweight boards, other markets are adopting heavyweight cardboard products aimed to replace wooden packaging. This heavyweight corrugated brings a significant reduction in weight and the ability to overcome regulations regarding pest and insect damage common with wood.
- The demand for environmentally friendly packaging has never been higher. Consumer and regulatory entities in numerous industries demand sustainable products and processes. Because corrugated cardboard can be made of recyclable material, many companies are recycling corrugated packages, and reclaiming the used fiber in the manufacture of new corrugated packages. It’s no surprise that almost 90% of corrugated packages are recycled every year.
- Traditionally considered a low value-added market, corrugated has started making waves in higher value-added markets. Corrugated experts are introducing innovative, new technologies to print retail-ready packaging; including point of sale displays and merchandising units, enhanced graphics for improved shelf appeal, Quick Response (QR) codes on consumer boxes, and high-quality digital print images. Experts claim that these trends are on the rise, signaling growth potential within a higher value-added segment of the corrugated market.
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- Smithers Pira. Insight: Key Drivers and Trends in Corrugated Packaging.
- World Wide Market for Print 2.0: Global Opportunities in Packaging (2011 – 2020)