Paper Packaging Materials Market

Paper Packaging Material Market Size (2024 To 2029)

Paper Packaging Material Market was estimated at $413.76 billion in 2024 to $501.00 billion By 2029 With a CAGR of 3.9 %

Paper and board are common materials used in food packaging. Paper packaging in the shape of bags or parchment paper is used to package loose meals. Paper bags are constructed of Kraft paper and are available in many different shapes and sizes. Corrugated cases are widely used as secondary packing and in direct contact with food. Foods such as liquid and dry meals, frozen foods, and fast food are packed in liquid packaging cartons. This business is expected to grow significantly due to the growing need for flexible paper-based packaging. Corrugated boxes, paper sacks & bags, cartons, wrapping paper, inserts & dividers, cups & trays, display packaging, clamshells, and tapes & labels are examples of flexible and rigid paper packaging formats. Paper packaging has significant weight advantages, resulting in cost savings in terms of raw materials and distribution.Paper packaging is a flexible and cost-effective way to protect, store and transport a variety of items. It can also be tailored to match the needs of certain clients or products.

The paper packaging material market is expected to grow significantly due to the growing need for flexible paper-based packaging. Due to an increasing population and a growing desire for low-cost packaging solutions, flexible packaging materials are in great demand. Flexible packaging includes paper bags, envelopes, pouches, cellulose, and aluminium foils. Paper packaging materials are reused and recycled more than other materials such as metals and plastics. As a result, it is one of the most environmentally friendly and cost-effective types of packaging. The increased demand for flexible paper packaging as customers become more aware of the negative effects of plastic on the environment is another driving factor for the worldwide Paper Packaging Materials Market.

Paper Packaging Material Market Drivers:

The market for paper packaging is being fueled by increasing consumer awareness of sustainable packaging and stringent rules implemented by several environmental protection organizations.

The use of cardboard and paper-based bags has increased due to the rapid expansion of online shopping and delivery-on-demand services. Additionally, its qualities of being lightweight, biodegradable, and recyclable make it a crucial component for sustainable packaging.Packaging firms across the world have made environmentally friendly packaging solutions the rule rather than the exception. A paradigm shift in the packaging business has occurred because of significant changes in corporate standards, government policies, trade rules, and consumer preferences.

Paper Packaging Material Market Restraints:

The inability of paper to package highly heavy materials and the characteristics of being flimsy and one that easily folds, or splits poses a significant barrier to market growth. It is one of the primary issues faced by the paper packaging sector, which has resulted in the industry being overtaken by the plastics and metal packaging industries. Strict environmental rules around deforestation because of mining raw materials for paper manufacture and the release of harsh chemicals during paper production are expected to stymie the growth of the paper-based packaging market. Many toxic chemicals are added to paper bags throughout development, such as printing inks, phthalates, surfactants, bleaching agents, hydrocarbons, and others, which leach into the food chain during paper manufacture, hampering market expansion. As a result of these issues, the paper packaging market is slowing down.

REPORT COVERAGE: 

This research report on the Global Paper Packaging Material Market has been segmented and sub-segmented based on Material Type, Application, Region. 

Paper Packaging Material Market - By Material Type:

• Liquid Packaging Cartons

• Corrugated Cases

• Carton & Folding Boxes

• Others

Liquid Packaging Cartons, Corrugated Cases, Carton & Folding Boxes, and Others are the product types that make up the Paper Packaging Materials Market. In the year 2021, Liquid Packaging Cartons dominated the market. The segment is expected to grow due to developments in unique retail packaging. Liquid packing cartons are the most popular type of paper packaging material, thanks to their widespread use in milk and juice box packaging. Furthermore, the rise of plant-based milk has enabled the use of liquid packaging, as a large number of corporations are pursuing sustainability goals, prompting them to use the material. Plant-based milk had the highest revenue of the overall segment in 2021, with a share of 35.71 per cent.

Corrugated cases, on the other hand, are expected to increase at the fastest rate, with a CAGR of 4.7 per cent from 2022 to 2027. As a result of developments in design innovation, corrugated containers are expected to see more use in retail packaging. Corrugated cases, which are extremely durable, reusable, recyclable, and lightweight, are also expected to increase rapidly, boosting the Paper Packaging Materials Market growth.

Paper Packaging Material Market - By Application:

• Fresh Foods

• Fast Foods

• Beverages

• Dairy & Bakery

• Frozen foods

• Others

Fresh foods, fast meals, beverages, dairy & bakery, frozen foods, and others are the application segments of the Paper Packaging Materials Market. In the Paper Packaging Materials Market in 2021, the beverage category accounted for the biggest revenue market share. The segment is gaining traction thanks to increased demand for functional meals, a broad product offering, and easy product access. The rise of the organic beverage industry in major economies like North America and Europe is also boosting the market for paper packaging materials. Because of the rapid expansion of frozen food and the fast-food sector in emerging countries, the frozen food application category is expected to grow at a high rate throughout the projection period.

The Fast Food segment is expected to increase at the quickest rate, with a CAGR of 4.84 percent from 2022 to 2027. The fast-food industry is expected to grow rapidly because of developments in paper packaging materials and marketing methods. Furthermore, the growing growth of fast-food chains in emerging nations such as Indonesia, India, and others that use paper as a packaging material is expected to boost the business. Furthermore, agreements such as the Paris Climate Agreement, which aims to reduce world temperatures by 1.5 degrees Celsius, have demonstrated the impact of plastic packaging, allowing the paper packaging business to develop.

Paper Packaging Material Market - By Region: 

• North America
• The Asia Pacific
• Europe
• Middle East & Africa
• Latin America

In the forecasted period of 2022-2027, Asia-Pacific is predicted to provide profitable growth prospects for marketers. The main causes of this predicament include rising living standards, increased disposable income, a growing fast-food trend, and increased awareness of the use of paper bags. Because of the expansion of fast-food chains in the region, the industry is expected to gain from increased demand from nations such as China.

North America dominated the market in 2021 in terms of geography. It's because there are strong manufacturing capabilities available, which benefit all end-user industries. Furthermore, through expanded M&A activity or R&D plans, market players are increasingly investing in innovative and bespoke packaging solutions.

KEY MARKET PLAYERS:

Key market players in the Paper Packaging Material Market are Smurfit Kappa Group Plc, Napco National Paper Products Company, Billerudkorsnas, International Paper Company, WestRock Compan, Georgia Pacific LLC, Pratt Industries, DS Smith Packaging Limited, Stora Enso Oyj, Mondi Group Plc.

RECENT HAPPENINGS IN THE MARKET:

Mondi Group, a packaging and papermaker, has established a relationship with BIOhof Kirchweidach, an organic farm. This collaboration would focus on creating a long-term packaging solution for fresh food on the vine. The entirely recyclable packaging is constructed of renewable resources and recycled corrugated boards, and the average recycling rate in Europe is over 80%.