Revenue of cardboard box and container manufacturing industry in Canada expected to decline at annual rate of 3.4% from 2009 to 2014, reaching US$4.3, report finds, with revenue forecast to continue to fall over five years to 2019

Elyse Blye

NEW YORK , March 14, 2014 (press release) – Industry operators will find it necessary to contend with declining downstream production, especially food and beverage manufacturing, which is set to decline as a share of GDP over the five-year period. For these reasons, industry research firm IBISWorld has updated a report on the Cardboard Box and Container Manufacturing industry in its growing industry report collection.

Subdued industrial production and mounting competition from imports have harmed the performance of the Cardboard Box and Container Manufacturing industry over the five years to 2014. Industry products include corrugated and solid fibre boxes, folding paperboard boxes and other assorted converted paper items, which are ubiquitous in domestic packaging. The industry is highly dependent on the manufacturing sector for demand, particularly on food, beverage and agricultural producers. “Given the nondiscretionary nature of their products, food and beverage manufacturers have continued to provide a relatively stable source of demand for industry operators,” according to IBISWorld Industry Analyst Stephen Hoopes. Yet, sales to the manufacturing sector as a whole have declined in recent years due to the long-term trend of offshoring manufacturing operations to low-cost countries that also provide access to emerging markets. Consequently, industry revenue is expected to decline at an annualized rate of 3.4% from 2009 to 2014 to reach $4.3 billion; this decrease includes a 2.1% drop in revenue anticipated in 2014 alone.

Moreover, cardboard box and container manufacturers continue to face escalating competition from imported corrugated products, particularly those sourced from the United States and China. Over the five years to 2014, the total value of imports is anticipated to increase at an annualized rate of 7.0%, with imports now accounting for over one-fifth of domestic cardboard use. “Meanwhile, export sales are expected to decline at an annualized rate of 2.6% over the same period, reflecting continued weakness in overseas markets, declining domestic production and the continued appreciation of the dollar,” says Hoopes.

Over the five years to 2019, revenue is forecast to continue to fall. Industry operators will find it necessary to contend with declining downstream production, especially food and beverage manufacturing, which is set to decline as a share of GDP over the five-year period. Moreover, competition from substitute products is anticipated to intensify, with flexible packaging expected to increasingly replace rigid packaging due to its lighter-weight characteristics. Yet, not all trends are anticipated to damage the industry's performance.

For more information, visit IBISWorld’s Cardboard Box and Container Manufacturing in Canada industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.

IBISWorld industry Report Key Topics

This industry includes companies which primarily convert purchased paper, paperboard and old corrugated containers into cardboard boxes, containers and similar packaging. The industry produces corrugated and solid cardboard packaging for a range of industries, including manufacturing, agriculture, wholesale, shipping, retail and others.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.