Non-durable goods continues to drive demand for corrugated boxes
Though corrugated cardboard packaging market may have become matured, there are still opportunities for further growth. In particular to take into account more direct consumer use and the emphasis on sustainable quality of paper packaging through the upgrading of paper packaging functions. The demand in U.S. for corrugated box and folding cartons is expected to grow 2.6 percent annually to $43 billion by 2022. Nearly half of the new demand for paper packaging will come from the large food and beverage markets, while another 25 percent will be contributed by the smaller but fast-growing ecommerce sector. The demand for corrugated boxes in e-commerce will be double in 2022 as these products are best positioned to take advantage of increased shipments.
Catering services and takeout services will contribute strong growing opportunities for folding cartons and provide innovative food delivery options such as package delivery and multi-exit restaurant food delivery platforms (such as DoorDash, Grubhub and Uber Eats in the US). As more people choose to eat ready-made food outside restaurants, an increasing number of people choose to deliver it outside restaurants, which will also help.
Gone are the days when packaging sustainability took a back seat. Consumers notice that they want their purchasing decisions to be echoed with their values. When deciding to buy products on the shelf, especially when prices are close, consumers often take into account factors such as the ease with which packaging can be recycled and how much is made of post-consumer materials. In this regard, the motivations of consumers and brand owners are aligned. Effective and responsible use of resources makes good business sense, in particular from the long run perspective.
Although more recycled paper is being used in corrugated boxes and products are easy to recycle, reducing pollution is still the most effective way to achieve green goals. Resizing boxes to the size of the items shipped is a key part of this trend. The development of on demand paper packaging products has enabled companies to obtain a wider range of packaging sizes and shapes to suit their merchandise.
The recycling rate for paper packaging is high, but will higher shipping costs to consumers change such situation? Historically, more than 90 percent of corrugated boxes have been recycled, and the industry is keen to maintain a high recycling rate to maintain its green image. As more boxes are shipped to consumers, it is crucial to make sure they know how to properly recycle them. The easy operation of tearing down a carton and leaving it on the side of the road indicates a continuation of high recycling rates, but consumers are not as reliable as companies, which essentially hire workers to do recycling. Therefore, the continued high recycling rate of corrugated board is facing more and more uncertainty.
