Heavy Duty Corrugated Packaging Market - Key Research Findings
- The global heavy duty corrugated packaging market size in 2019 is estimated to be over US$ 17 Billion.
- The heavy duty corrugated packaging market is expected to expand at a CAGR of approximately 5% over the forecast period.
- The European region accounts for nearly one-fourth of the global heavy duty corrugated packaging market. According to European Corrugated Packaging Association FEFCO, more than 40% of the corrugated products are used by the food industry.
- Among board type, double wall board is estimated to be prominent in the market throughout the forecast period with market share of more than half in the heavy duty corrugated packaging market.
- Features such as durability and extra padding offered by double wall boards ensure safety of heavy goods during transit.
- Key manufacturers in the heavy duty corrugated packaging market are strengthening their market presence by acquiring their regional competitors in the market.
- Mondi Group acquired LLC Beepack corrugated packaging company based in Lebedyan, Russia.
- Corrugated boxes are estimated to be the sig product in the heavy duty corrugated packaging market. Corrugated boxes provide crush resistance and adequate strength for stacking in warehouses. These boxes give buyers the leverage of using them for various size requirements, thus reducing inventory and optimizing cost management. Pallet boxes account for more than a quarter of the total market share in 2019.
Heavy Duty Corrugated Packaging Market Outlook
The global heavy duty corrugated packaging market is likely to pass through significant growth stages amid the COVID-19 pandemic. As pandemic’s humanitarian impact compounds, demand for essential commodities such as foodstuffs and medical supplies is increasing manifold. Therefore, in the initial stages, growth for groceries, foodstuffs and medicines witnessed significant expansion.
This multiplying demand has fueled heavy duty corrugated packaging demand for the aforementioned products as they need to be shipped in bulk quantities. At the same time, demand for luxury, B2B and industrial goods has registered a steep decline.
In the ensuing months, declining household incomes and weak corporate balances are expected to sustain the recessionary phase across key end-use industries, barring the essential services. The endeavor to disarm COVID-19 could highly influence consumer packaging preferences. They are likely to choose substrates and packaging designs which address consumer safety and hygiene concerns.
In order to ease the burden on the global healthcare industry, prominent heavy duty corrugated packaging manufacturers are aiding providers in their own way. Mondi Group Plc, for instance, is foraying into producing personal hygiene products and safe packaging for foodstuffs.
Simultaneously, manufacturers are sustaining their daily businesses. In October 2020, VPK Group NV announced a partnership agreement with the Canadian Overseas Packaging Industries (COPI) Ltd. This was inked with the objective of purchasing Encase Ltd., to secure its corrugated cardboard packaging business.
Likewise, the International Paper Company, a prominent renewable fiber-based packaging, paper and pulp products company recently completed the sale of its Brazilian corrugated packaging business to Klabin S.A. as a strategic divestiture move.
Also, WestRock Company recently announced plans to reduce its solid bleached sulphate mill system production capacity by 200,000 tons by ceasing operations of one of its paper mills in Evadale, Texas. The move was planned with the objective of balancing supply with customer demand.
Key Factors Shaping the Global Heavy Duty Corrugated Packaging Market
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Budding Retail Sector is a Major Driver for the Growth of the Heavy Duty Corrugated Packaging Market
Over the years, superstores were the only choice available to consumers for shopping, especially in urban regions. In addition, many developing countries now permit foreign direct investment in the retail sector. This is anticipated to boost the sales of POP displays in the heavy duty corrugated packaging market in the near future.
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For instance, in India, the Organized Retail Penetration (ORP) was 8% in 2014, which is estimated to grow to 15% by 2020.
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Growing Usage of Heavy Duty Electrical & Electronic Goods to Drive Market Growth
The increasing demand for electronic and electrical appliances such as washing machines, microwaves, etc. is driving the growth of the heavy duty corrugated packaging market. For the shipment of such electronic products, safe and secure packaging is required, which is given by heavy duty corrugated packaging. As the electronic industry is witnessing a boom in developing countries such as India and China, the demand for shipment of flexible items is also expected to increase. This increase in demand for electronic products is expected to fuel the global heavy duty corrugated packaging market during the forecast period.
The FMI Perspective
Demand for enhanced capacity in food industry has compelled heavy duty corrugated packaging manufacturers to implement belt tightening strategies so as to optimize their efficiency. Investment in R&D activities to enhance properties of the products remain a key focus area of the manufacturers. Key market participants will also continue to focus on expanding product portfolios and strengthening their geographical footholds through mergers & acquisitions.
How Growth will Unfold
Corrugated boxes will continue to maintain lead over their counterparts, for their excellent crush resistance and high strength, whereas penetration of superstores will push the demand for POP displays.
Heavy Duty Corrugates Packaging Market- Report Scope
| Attribute | Details |
| Forecast Period | 2014-2018 |
| Historical Data Available for | 2019-2029 |
| Market Analysis | US$ Mn for Value and Tons for Volume |
| Key Regions Covered | North America, Latin America, Europe, South Asia, East Asia, Oceania and Middle East & Africa |
| Key Countries Covered | China, India, U.S, Canada, Brazil, Mexico, Germany, Italy, France, U.K., Spain, BENELUX, Russia, Thailand, Indonesia, Malaysia, Japan, South Korea, Australia, New Zealand, GCC, Turkey, Northern Africa and South Africa |
| Key Segments Covered | Product Type, Board Type, Capacity & End-Use |
| Key Companies Profiled | Mondi Group, VPK Packaging Group, International Paper Company, WestRock Company, Georgia Pacific LLC, Pratt Industries Inc., Oji Holdings Corporation, Smurfit Kappa Group Plc., DS Smith Packaging Limited, Sonoco Products Company, Elsons International, SCG Packaging Public Company Limited, GWP Group Limited, Felbro Inc., Packaging Corporation of America, Menasha Packaging Company LLC., Quadwall Ltd., Cheng Loong Corporation and U.S Corrugated Inc. |
| Report Coverage | Market Overview, Key Market Trends, Key Success Factors, Demand Analysis, Market Background, COVID-19 Impact Insights, Segmental Analysis, Regional Profiling, Market Structure Analysis & Competition Analysis |
| Customization & Pricing |
HEAVY DUTY CORRUGATED PACKAGING MARKET TAXONOMY
The global heavy duty corrugated packaging market is segmented in detail to cover every aspect of the market and present complete market intelligence to the reader.
By Product Type
- Corrugated Boxes
- Pallet Boxes
- Single Cover Boxes
- Double Cover Boxes
- Telescopic Boxes
- Liquid Bulk Boxes
- Slotted Boxes
- Others
- Octabins
- High Performance Totes
- Vegetable Totes
- Pallets
- POP Displays
- Others (Edge Protectors, etc.)
Board Type
- Single Wall
- Double Wall
- Triple Wall
Capacity
- Up to 100 lbs.
- 100 to 300 lbs.
- Above 300 lbs.
End Use
- Food & Beverages
- Chemicals
- Consumer Electronics
- Cosmetics & Personal Care
- Healthcare
- Textile
- Glassware & Ceramics
- Automobile
- Homecare
- Others
Region
- North America
- Latin America
- Europe
- South Asia
- East Asia
- Oceania
- Middle East & Africa
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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