In terms of revenue, the global heavy duty corrugated packaging market is projected to expand at an approximate CAGR of 5% during the forecast period, owing to numerous factors, regarding which, study offers thorough insights and forecasts in this report.
Heavy duty corrugated packaging products are frequently used as shipping containers. These are extensively used to package goods such as food items, beverages, cosmetics, pharmaceuticals, hazardous chemicals, and other materials. Heavy duty corrugated packaging products provide product protection by themselves, but often require an inner component for cushioning such as corrugated inserts and edge protectors, which help ensure the safety of fragile products. In recent years, the demand for pallet boxes in heavy duty corrugated packaging has increased significantly. This can be attributed to immense size flexibility offered by these boxes.
Heavy duty corrugated packaging products such as boxes provide crush resistance and adequate strength for stacking in warehouses. They are environment-friendly, biodegradable, and can be recycled. Products such as octabins, also have high durability, are lightweight, and offer significant cost benefits to the buyer. Thus, heavy duty corrugated packaging products are being increasingly used in secondary packaging of goods, across a wide range of industries.
Online Retail Boom Favoring Heavy Duty Corrugated Packaging Sales
Study analyses that E-commerce & the growing retail industry plays a crucial role in driving the heavy duty corrugated packaging demand. In addition to this, the stringent rules and regulations on the use of plastic-based packaging products will also push the usage of recycled paper packaging products such as heavy duty corrugated packaging, in the near future. The global market for heavy duty corrugated boxes has witnessed unprecedented price increase in the last one and a half year. The heavy duty corrugated packaging industry is still struggling with the supply of raw material i.e. containerboard. Paper packaging markets in countries such as China, India, and Brazil, are growing at a fast rate and the demand has increased several folds in the last 10 years, which will support the growth of the heavy duty corrugated packaging market during the forecast period.
Despite being a fragmented market, Europe represents one-fourth of the global heavy duty corrugated packaging market. The United States heavy duty corrugated packaging market is anticipated to expand at a progressive CAGR due to highest number of convenience and superstores in the region. Moreover, the expanding middle class in emerging economies of Latin America such as Mexico & Brazil, is creating demand for protective packaging solutions such as heavy duty corrugated packaging, and subsequently driving the market. Considering the Asia Pacific region, the organized retail industry and the growing FMCG sector are escalating the growth of the heavy duty corrugated packaging market in China, India, etc. China is anticipated to represent a healthy CAGR of above 6% in the global heavy duty corrugated packaging market.
Strategic M&A Enabling Market Players to Expand in Developing Regions
Vendor landscape remains highly splintered in the global heavy duty corrugated packaging market. Key players in the heavy duty corrugated packaging market such as Mondi Group, Smurfit Kappa Group, and DS Smith are the most active acquirers in the corrugated industry. The companies are focusing on expanding their footprint in developing countries of Asia Pacific and Latin America regions through mergers and acquisitions in the heavy duty corrugated packaging market.
Key market players that have been profiled in the report on the heavy duty corrugated packaging market include Mondi Group, VPK Packaging Group, International Paper Company, WestRock Company, Georgia Pacific, LLC, Pratt Industries, Inc., Oji Holdings Corporation, Smurfit Kappa Group Plc., DS Smith Packaging Limited, Sonoco Products Company, Smurfit Kappa Group Plc, Elsons International, SCG Packaging Public Company Limited, GWP Group Limited, Packaging Corporation of America, U.S. Corrugated, Inc., Quadwall Ltd., Cheng Loong Corporation, Felbro, Inc. & Menasha Packaging Company, LLC. Several unorganized and regional market players are expected to contribute to the global heavy duty corrugated packaging market during 2019-2029.