Paper Packaging Materials Market 2013 Trends, Research, Analysis and Review Forecast 2019

Paper, timber, pulp and other such forest and recycled products are used as basic raw materials in paper packaging materials. Paper packaging materials are used for various purposes such as bracing, blocking, cushioning and preserving products. Paper is used in the packaging of a wide range of products such as foods, beverages, cosmetics, pharmaceuticals and pet food among others.

Paper packaging materials can be recycled and reused easily compared to other packaging materials such as plastic and metal. Hence, paper packaging is among the most eco-friendly and economic packaging material. This has been the primary driver for market growth. Additionally, growing demand for paper based flexible packaging due to rising consumer awareness regarding the harmful effect of plastics on environment is expected to be another vital factor for the growth of the paper packaging market. Furthermore, increasingly favorable economic conditions in BRIC countries are expected to drive the packaging market in these countries. Paper was the largest type of material in the packaging industry. Growth in the packaging market is estimated to boost demand for paper packaging and subsequently paper packaging materials. Moreover, increasing awareness of ecological issues regarding the use of plastics is expected to drive consumer preference towards paper packaging as they are a cheaper and eco-friendly option as compared to other materials such as glass and metal. However, stringent deforestation regulations in several countries around the world are expected to impact the growth of the market adversely over the forecast period. Ban on lightweight plastic bags are expected to provide an opportunity for the growth of the market over the next few years.

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Liquid packaging cartons was the largest product segment of the paper packaging materials market; it accounted for over 40% of the market in 2012. However, corrugated cases are expected to be the fastest growing product type of the market due to increasing trade activities across the globe. Corrugated cases are primarily used in packaging as they offer a highly durable and light weight solution along with being reusable and recyclable. Additionally, corrugated cases are being increasingly used in retail packaging due to advancement in design innovation. Furthermore, demand for cartons & folding boxes is expected to rise significantly over the next few years due to its growing demand in bulk and decorative packaging.

Beverages were the largest application segment of the paper packaging materials market in 2012. Frozen foods, fast foods and fresh foods together accounted for over 25% of the market share in 2012. Additionally, these segments are expected to witness the fastest growth in the paper packaging materials market over the forecast period owing to the increasing use of paper to wrap and envelop food products. Technological advancement leading to the development of coated and laminated papers which prevents leakage is expected to boost the demand for paper packaging in food application.

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Asia Pacific was the largest market for paper packaging, accounting for over 35% of the market share in 2012. North America and Europe together accounted for over half the global demand for paper packaging materials in 2012. However, Asia Pacific is expected to be the fastest growing market for paper packaging materials during the next few years due to growth in the overall packaging industry in the region. RoW is anticipated to gain substantial market share during the forecast period due to the upcoming packaging industry in these regions and rising per capita spending of consumers.

Some of the key players in the paper packaging materials market include DS Smith Plc, Georgia Pacific Corporation, Hood Packaging Corporation, International Paper Company, MeadWestvaco, OJI Holding Corporation Smurfit Kappa Group Plc and Stora Enso Oyj among others. The paper packaging materials industry is highly fragmented in nature owing to the presence of several regional small and medium scale manufacturing industries.

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