Global paper packaging materials market to reach 240.9 million tonnes by 2017 driven by increase in consumer spending, entrance into new application areas primarily from food and beverage industry, growing demand in developing countries: GIA

SAN JOSE, California , April 26, 2012 (press release) – GIA announces the release of a comprehensive global report on Paper Packaging Materials market. Global market for paper packaging materials is forecast to reach 240.9 million metric tons by the year 2017, driven by increase in consumer spending and penetration into new applications areas. Growth in the market remains challenged by the growing preference for plastics and the slow recovery in major geographic markets.Future growth is expected to primarily emanate from the food & beverage industry and growing demand for containerboard and packaging & wrapping papers in developing economies.

The paper packaging industry, similar to the other industries is highly sensitive to economic upheavals. Some of the factors which have had enormous impact on the global packaging industry during the past few years include the global economy slowdown and volatility in raw material, transportation and energy costs. These apart, climate change emerged as a key factor instrumental in changing shape of the industry. Even before the recession of 2008-09 surfaced, demand for paper and board packaging had slowed mainly owing to the growing environmental concerns, and falling growth rate in GDP levels of major markets including the US, Japan and West European countries. Demand in the paper packaging market is mainly sustained by factors such as affordability and recyclability. A positive trend in paperboard and corrugated boxes market is an increase in non-durable products shipments, as they account for over 3/4th of demand for boxes. Growth in the market for durable goods, which utilize costly and large boxes, is identified as an important factor influencing demand for paper packaging materials. Currently, the impact of the eurozone debt crisis has been relatively insignificant on the paper packaging markets. However, a persistent and strong decline in consumer spending on non-durable goods could eventually affect corrugated box sales in the long run. Currently the bearing of volatile economic conditions is limited to the extent of reduction in inventory levels of raw materials used in production of corrugated boxes.

Majority of international companies are striving for continuous improvement and innovation to effectively address the growing competition within the industry, and from substitute materials such as plastics. Despite making inroads into several niche applications, paper-packaging materials are replaced by plastic films and composites with enhanced properties, in traditional applications. Carry-out and prepared foods, beverage cartons and shipping sacks represent high growth potential areas for paper packaging, while the industry is likely to lose its share in milk cartons, retail bags/cartons and egg cartons. Demand for containerboard is forecast to grow at a gradual pace over the near future, mainly due to the ban on usage of plastic bags in select markets. However, the rising popularity of reusable bags and availability of alternative packaging products other than containerboard is forecast to moderate the growth pace to some extent. Increasing demand from end-use markets and penetration into new applications have also resulted in significant technological developments in converting and manufacturing stages of paper packaging materials. Enhanced printing technologies, product quality and uniformity, and incorporation of high graphics have become a common feature in the paper packaging materials market.

As stated by the new market research report on Paper Packaging Materials, Asia-Pacific represents the largest market worldwide. The other significant market is the US, which is a major producer and consumer of paper and paper products. Asia-Pacific, primarily led by China, is forecast to enjoy a strong growth in paper packaging materials consumption. Consumption of virgin grade boxboard is expected to rise in these markets due to an increased demand for high-quality packaged goods from the rising middle class consumer group. The trend is also forecast to offer significant profit margins to manufacturers in the region. Segment-wise, containerboard materials, used primarily for manufacture of corrugated boxes, represent the largest product category. Cartonboard, which includes folding boxboard, solid bleached board, and white lined chipboard among others, represents the second largest segment. Low cost structure of certain waste-based grades such as schrenz, wellenstoff, and testliner has made them prominent, as these provide a cost-effective alternative for both fiber-rich and fiber-poor regions worldwide. New flute structures are likely to play a major role in enhancing the competitiveness of containerboard and corrugated boards, as against folding cartons.

Major players in the marketplace include DS Smith PLC, Georgia-Pacific Corporation, Graphic Packaging International, Holmen AB, International Paper Company, MeadWestvaco Corp., M-Real Oyj, Mayr-Melnhof Group, Oji Paper Co., Ltd, Smurfit Kappa Group Plc, RockTenn Company, Stora Enso Oyj, Svenska Cellulosa Aktiebolaget, UPM-Kymmene Corporation, and Weyerhaeuser Company.

The research report titled "Paper Packaging Materials: A Global Strategic Business Report" announced by Global Industry Analysts, Inc., provides a comprehensive review of trends, issues, strategic industry activities, and profiles of major companies worldwide. The report provides market estimates and projections (‘000 Metric Tons) for global and regional markets including United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China and Rest of Asia-Pacific), Latin America and Rest of World. Product segments analyzed include Containerboard, Cartonboard, Packaging & Wrapping Paper and Other Paperboard.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.

Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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