Top 3 Trends Impacting the Containerboard Market in North America Through 2020
(USA, Nov. 22, 2016) Technavio’s latest report on the containerboard market in North America provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Abhay Sinha, a lead analyst from Technavio, says, “The demand for paperboard packaging from industries like food and beverage, pharmaceuticals, electronics, and e-commerce is driving the containerboard market in North America. Containerboard packaging is a cost-effective and highly sustainable option for marketing, protecting and tracking items.”
The top three emerging trends driving the containerboard market in North America according to Technavio’s research analysts are:
• Growing demand for sustainable packaging solutions
• Demand for premium packaging
• Emergence of innovative lightweight materials
Growing demand for sustainable packaging solutions
Consumer goods manufacturers prefer eco-friendly packaging materials as they promote sustainability. Corrugated boxes are considered an environmentally friendly and sustainable form of packaging compared with other forms of packaging such as plastics. These boxes are made of recycled material, and almost 46% of the materials used in packaging products are recycled. This helps corrugated boxes manufacturers to reduce the environmental cost, providing sustainability to the environment. In addition, there are several industry standards and government regulations to ensure environmental protection. Therefore, manufacturers are focusing on producing 100% recyclable corrugated boxes. For instance, in 2015, Mondi Containerboard launched eco-friendly ProVantage kraftliner Aqua and ProVantage Fluting Aqua paper grades using high-quality containerboard paper grades. These products are water-resistant and eco-friendly.
Demand for premium packaging
“The demand for premium packaging, especially for premium consumer products such as cosmetics and other household items, is increasing in developed and mature markets such as the US,” says Abhay. Premium packaging is the basic indication of the high quality of the product inside. Vendors use expensive ingredients, technologies, colors, and other raw materials to develop premium packages. Many consumers also buy these products as gifts, driving the demand for premium packaging in the market.
Retail giants such as Walmart are using this form of packaging in the premium brand segment to improve marketing activities. These boxes are placed at the point of sale to attract consumers.
Emergence of innovative lightweight materials
Vendors are providing high-performance, lightweight corrugated and containerboard grades to reduce costs, improve performance and adhere to environmental regulations. Companies in the market show responsibility toward the environment as non-compliance with laws, regulations, and standards for environmental protection can curb their growth. For instance, in 2014, WestRock launched the HyPerform line of kraftliner and fluting papers that are tamper-resistant and have a lower basis weight. These products are eco-friendly, with a 10% reduction in greenhouse gas emissions and 61% reduction in water consumption. Similarly, Mondi introduced ProVantage, a high-fiber containerboard made from recycled fiber, which is lightweight and provides high-strength packaging. In 2015, Mondi showcased its kraft portfolio of high-quality containerboard grades suitable for various packaging end-users such as the chemical and pharmaceutical industries.
Technavio is a leading global technology research and advisory company. To learn more, visit: www.technavio.com (Source: Technavio)
Cover Photo: Containerboard Production (courtesy Smurfit Kappa)