US folding carton and container manufacturing industry to increase revenue at rate of 3%/year to $59.9B over five years to 2014, experience restrained growth over five years to 2019, report finds
March 25, 2014
– The offshoring of manufacturing facilities is expected to continue over the next five years, reducing domestic demand for cardboard from the packaging and transportation sectors. 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.
The Cardboard Box and Container Manufacturing industry is the largest paper-converting industry in the United States. This industry is a significant consumer of paper, paperboard and old corrugated containers, and services nearly every sector of the economy. Only an estimated 2.9% of domestic demand is met by imports, a much lower proportion than many similar US paper-converting industries.
Although cardboard continues to be one of the most widely used forms of packaging, the industry could not avoid the adverse effects of the recession. “While the economic downturn greatly damaged industry performance in 2009, general improvements in the macroeconomic landscape have since contributed to moderate growth,” according to IBISWorld Industry Analyst Stephen Hoopes. Revenue is estimated to increase at an annualized rate of 3.0% to $59.9 billion over the five years to 2014. Demand from food manufacturing industries has remained stable, sharply contrasting with improvements in demand from automotive, electronics and other manufacturing industries since the recession. In light of improving economic conditions, demand is expected to continue increasing during 2014, resulting in a 2.6% rise in revenue.
Despite recovering revenue, weak operating conditions have forced companies in the industry to restructure and downsize over the past five years, with many operators exiting the industry. Consequently, the number of industry establishments is expected to decline at an annualized rate of 1.1% to 2,121 over the five years to 2014. “Additionally, substitute products, particularly plastic packaging, have improved over the five-year period through reduced energy consumption during production and enhanced product durability,” says Hoopes. Despite the biodegradability of industry products, substitutes will serve as competition for industry operators.
Over the five years to 2019, the industry is forecast to experience restrained growth. Food and beverage producers will continue to provide a stable source of demand for industry products. Furthermore, automobile manufacturing is anticipated to continue growing, which will boost sales for the industry. However, the offshoring of manufacturing facilities is expected to continue over the next five years, reducing domestic demand for cardboard from the packaging and transportation sectors.
For more information, visit IBISWorld’s Cardboard Box and Container Manufacturing in the US industry report page.
IBISWorld industry Report Key Topics
The Cardboard Box and Container Manufacturing industry converts purchased paper, paperboard and old corrugated containers into cardboard boxes, containers and similar packaging solutions. The industry produces corrugated and solid cardboard packaging for a range of sectors and industries, including manufacturing, agriculture, wholesale, shipping and retail, among others.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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 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.