2021 to See Growth of Corrugated Board Packaging Market Slow Down
Smithers Pira’s latest report, The Future of Global Corrugated Packaging to 2021, reveals an expected decline in the corrugated board packaging industry from this year through 2021, which is determined by a number of factors. The report predicts the volume consumption of corrugated board packaging will decrease from a growth average of 4.3% annually, which occurred from 2009-2015, to 3.6% annually in 2016-2021. Specifically, growth rates decreased from 7.4% between 2009 and 2010 to 3.6% from 2014 to 2015.
On the contrary, Asia’s market – which will consist of over half of the global corrugated packaging market by 2021 – has seen an increase of 6% from 2009-2015; growing from 40% to 46% during those seven years. This growth might be a direct result of the Chinese government’s plan to purge obsolete and ineffective paper machines, with a focus on linerboard and fluting machines less than two meters wide that produce with a speed slower than 80 meters per minute.
However, cost factors will drive change in the corrugated board packaging industry, and the impact electricity prices might have on production facilities will play a factor. The emergence of demand for electrical goods and internet shopping, which will see the use of lightweight micro and fine-flute corrugated configurations growing, and the decrease in demand for paper products will help grow the market. The largest net incremental demand is expected to be the processed food market.