Global ultraflute paper market set to reach market value of US$4.81B in 2023, expected to grow at CAGR of 5.35% to reach US$8.1B in 2033; use of ultraflute paper in application of protective packaging solutions driving product sales

July 11, 2023 (press release) –

The global ultraflute paper market is anticipated to accumulate a market value of US$ 4.81 billion in 2023 and is expected to garner a valuation of US$ 8.1 billion by exhibiting a CAGR of 5.35 % in the forecast period 2023 to 2033. The industry for Ultraflute Paper registered a CAGR of 3.9 % in the historical period 2018 to 2022. The utilization of ultraflute paper in application of protective packaging solutions is driving the sales of this product. The global demand for ultra flute paper market is expected to witness growth in the future period as it offers more useful and unique features.

Flute paper has the capacity to protect the products by offering the cushioning effect to it. Moreover, ultra fluted paper has important qualities like recyclability, eco-friendliness and it is made from renewable resources. This paper is preferred as the best alternative for plastic made packaging solutions. Additionally, with the rising demand from the packaging industries and a wide range of papers available of different sizes and colours, consumers are attracted towards flute paper market actively. Thus, leading to market growth.

Consumers inclination towards buying goods online has increased in the past few years. This led to increase in the sales of eco-friendly packaging and is anticipated to accelerate the demand for this packaging type in the coming years as well. Also, consumers prefer packaging with instructions on the packets. According to research by ' Billerudkorsnas' on corrugated packaging, there is a lot of transition in purchasing habits as most consumers' demand information about packaging and recycling around the world

On the other hand, logistics service providers are looking for fit to product as they want to utilize the entire area for warehousing and shipping containers. This fit to product technology allows the production of customized secondary packaging based on product size which is anticipated to fuel the product demand in the forecast period.

In addition, digital printing in the worldwide packaging business has already offered brand owners a whole new range of opportunities to improve their marketing and branding initiatives that is supporting market expansion. The appeal of flute paper among many end-users is being driven by the availability of such a broad range of printing options in corrugated packaging, including micro flute paper packaging.

The F and N-type micro flute papers have excellent printing-quality surfaces and enhance the presentation of packaged goods which is propelling the market growth. On the other hand, various countries that banned plastic packaging have paved way for several opportunities for new and existing manufacturers in the packing industry. Similarly, environmental issues, government regulations on the use of plastic packaging and eco-friendly nature of flute papers will encourage the end-users to adopt ultra-flute packaging solutions.

Regional Outlook

Asia Pacific is expected to possess a dominating share of 38.4% by end of the forecast period. The growth is attributed to a growing industrialization and technological innovations.

Increasing number of research and development activities and rising production of micro flute paper are also anticipated to foster market growth in the region.

Likewise, the market in North America is projected to accumulate over 35% market share by end of the forecast period. Factors such as rising use of the papers for framework of corrugated packaging is augmenting growth in this region.

The market in Europe will also reflect significant growth due to surging demand for cosmetics and personal care products, which is set to increase the demand for flute packaging solutions during the forecast period.

How Competitive is the Market?

Recent developments and breakthroughs in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing ultra flute paper are expected to create lucrative opportunities for market growth during the forecast period.

In November 2022 : Sappi North America informed about the investment of US$ 418 million in paper machine rebuilds at its Somerset Mill in Skowhegan. With this investment, the company is focusing on improving Paper Machine No. 2's capacity to produce solid bleached sulphate board products, a sustainable substitute to plastic packaging. This move of the company indicates its long-term Thrive25 strategy, which focuses on expanding its portfolio in packaging and speciality papers, pulp, and biomaterials.

In September 2022 : Sappi Europe, a packaging and speciality paper manufacturer, is set to increase its capacity at its mill in Gratkorn, Austria , enabling the mill to manufacture wet-strength label papers. The double-digit million-euro investment in a state-of-the-art technical infrastructure will fuel the site's expansion and establish Sappi as a leader in the label sector for a long time.

Demand for product in the paper market is derived by cost, strength and sustainability factor. The newest flute paper by Sappi which is lighter in weight and uses 75% of virgin fibre is called as Ultra flute paper, making it an excellent choice for packaging of fragile products in the supply chain.

Ultraflute paper allows packaging manufacturers to cut the cost of secondary packaging as products can be stacked on the pallets directly. Pallets hold goods properly and staged so the storage costs are reduced as well.

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