GLOBAL CORRUGATED BOX MARKET

INTRODUCTION

Nowadays, the most common cardboard box is the corrugated box. The boxes are used in the packing of chemicals and pharmaceuticals, tobacco, construction machinery, canned and bottled goods, food products, lights, electrical equipment, glassware, and so on.

Packaging is very crucial to the country's economy. Until recently, only the Western world, particularly the industrialised countries, was concerned with adequate packaging.

The box is made of corrugated cardboard with three or more layers of kraft paper. Two flat parallel sheets of paper are used to adhere the middle-fluted layer.

Corrugated boards were initially manufactured in India in the early 1950s. Corrugated board output has continually risen since then. Corrugated boxes have largely supplanted hardwood boxes and crates in a variety of applications.

Approximately 80% of all shipments in the world are now done in fiberboard boxes. Corrugated fiberboard boxes account for about 60% of all packaging in India.

Corrugated fibre board is made out of a flat layer of paper sheet (liner) bonded to one or both sides of a perforated paper sheet (medium).

Corrugated board is created by running two layers of paper (often kraft) through a corrugating machine. After passing through the heated rolls, one layer of paper gets corrugated, and another comes into contact with it after the former has glued at the points.

The corrugating' medium' is typically made of 0.009" (9 calliper) or 0.23 mm thick material. Starch or silicate of soda adhesive is a common type of glue.

When only one liner is utilised, the product is referred to as "single surface" or "two ply." This board can only be bent in one way. Double-faced or "3-ply board" is created when corrugated material is joined on both sides with flat sheets.

CORRUGATED BOX MARKET DYNAMICS

Corrugated fiberboard boxes are used to pack both industrial and consumer items. Chemicals, drugs, tobacco, industrial equipment, bottled and bottled goods, meals, electrical items, confectionary, textiles, fruit and vegetables, vegetables, potteries, footwear, glassware and other fragile items, medical instruments, photographic equipment, and a variety of other products are all packed in them.

As a result, demand for corrugated paper boards/boxes will remain healthy. An unusual aspect of this industry is that on the one hand, some units in both the big and small-scale sectors are ill and unable to operate effectively, while on the other hand, several units are inundated with orders and are operating at full capacity.

The ability to purchase orders from bulk consumers on a contract basis is a crucial component for the successful production of corrugated paper boards/boxes.

Only significant and consistent orders will maintain the unit's stability. Though the market potential for these items is pretty high, much will rely on the advertising strategy employed by an individual entrepreneur.

The corrugated box is a key outlet for paper board produced by the paper and board sector, with uses in textiles, processed foods, fast-moving consumer goods (FMCG), technology and engineering products, beverages and distillery, and consumer durables.

The enormous changes that are beginning to take form are already posing a threat to the current scenario. As a corrugated box manufacturer, more and more in-line automation factories are being built.

The corrugated packaging business has effectively substituted hardwood and plywood boxes for the country's packaging needs, therefore contributing to environmental conservation and ecological balance.

With this in mind, numerous multinational corporations are targeting the Indian corrugated box industries not only for selling machinery but also for establishing factories through financial and technological alliances.

International players have already established their foothold on Indian territory, coupled with prohibitive limits that serve as roadblocks to reaching the international level.

Smaller players (50-100 MT conversions per month) utilise quasi board production and transforming technologies, whilst bigger players (500-1000 MT conversions each month) have a continuous paper deck line with low automated concentration, with manually or semi-automatic converting systems.

Large manufacturers (1500 MT and up) have high-speed continuous corrugated board production facilities with great automation and quick flute changeover capabilities.

In these systems, conveyorized in-process material handling, printer slitters with pre-feeders, and other converters are employed.

CORRUGATED BOX MARKET SEGMENTATION

The Global Corrugated Box Industry Market can be segmented into following categories for further analysis.

By Product Application

• Commercial Usage
• Military Usage
• Domestic Usage
• Industrial Usage
• Training Usage
• Learning and Development Usage

By Material Integration Type

• Recycled
• Virgin

By Wall Construction

• Single Wall
• Double Wall
• Triple Wall

By Box Modulations

• Rigid Boxes
• Self-Erecting Boxes
• Telescope boxes
• Slotted boxes
• Other Boxes – Special Design

By Regional Classification

• Asia Pacific Region - APAC
• Middle East and Gulf Region
• Africa Region
• North America Region
• Europe Region
• Latin America and Caribbean Region

RECENT TECHNOLOGICAL TRENDS IN CORRUGATED BOX INDUSTRY MARKET

Corrugated boxes are widely used in the horticulture business for shipping and storing fresh products. Drops, collisions, vibration, and compression loads do not cause mechanical harm to the contents of these boxes.

Corrugated board is becoming increasingly popular in packaging as sustainability is becoming a more critical concern across the value chain — it is simple to recycle, and the pulp and paper industry is already skilled at turning these into new generations of containerboard.

In the horticulture business, corrugated boxes are extensively used for shipping and storing fresh commodities. Mechanical damage to the interior of these boxes is not caused by drops, accidents, vibration, or compression stresses.

Corrugated board is becoming increasingly popular in packaging as sustainability becomes a more important concern throughout the value chain.

It is simple to recover, and the pulp & paper industry is already skilled at turning these into new generations of containerboard.

Retail-ready packaging has shown to be a significant cost reduction for merchants, particularly in Western Europe. This continued profit pressure is creating incentive to utilise additional retail ready forms as a labor-saving alternative, since these secondary packaging formats are predicted to save shelf restocking and handling expenses by up to 50%.

We are gradually seeing a movement toward the usage of reusable plastic containers (RPCs) to carry some items, such as fruits and vegetables.

These containers offer higher protection because of their increased stacking strength and longevity, as well as their resistance to changing climatic conditions.

Following the trade war between the United States and China, as well as decentralised global supply networks, China and Vietnam have implemented a variety of industrial revitalization programmes in order to stimulate markets and restore the economy as quickly as feasible.

As a result, the packaging demand generated as a result of the pandemic will benefit the paper industry; in particular, Vietnam is likely to play a positive role in the post-pandemic stage; hence, the outlook is good.

Cheng Loong has made the circular economy one of its development priorities, not only assessing the financial impact of climate change but also implementing related projects, improving manufacturing processes, and promoting low-carbon sustainable products.

The Company has invested in green energy, smart recycling, and the creation of carrier tape paper in the field of papermaking during the last few years, while also investigating new fields of home paper, such as pure pulp, eco-friendly toilet paper, diapers, and detergents.

The Company has expanded its corrugated container business beyond bulk sales of cartons to include cartons for freezing, preservation, and waterproofing, as well as expanding packaging design capabilities and researching flexible packaging materials.

To boost ESG, the headquarters has also developed a sustainability department. All of this is done to improve the Company's and industry's values.

CORRUGATED BOX INDUSTRY MARKETCOMPETITIVE LANDSCAPE

Packaging demand is increasing due to a shift in purchasing behaviour throughout the world as a result of a growing middle class and an ageing population.

Consumers nowadays are searching for three primary attributes in their packaged items, particularly in food product packaging: convenience, simplicity of use, and ease of transport.

Amcor is a worldwide pioneer in responsible global packaging solutions, offering the food, beverage, healthcare, home, personal care, and tobacco packaging sectors with a wide range of rigid and flexible packaging materials.

The company has created a new blown-film production line, allowing clients to switch to Amcor recycle-ready solutions, with the goal of reducing the rising use of corrugated boxes and, as a result, improving the healthcare-based packaging market.

Georgia Pacific LLC Corrugated Packaging has been a member of the next generation recycling process of corrugated box installation. Our packaging solutions meet you where you are, thanks to a production network that spans the United States.

Our corrugated operations are strategically positioned near Georgia-Pacific Containerboard mills throughout the United States and Mexico to better service our clients.

Georgia-Pacific Recycling collects comment waste, which is then processed and sent to our containerboard mills and re-pulping. The recycled sludge is then sent to Georgia-Pacific Corrugated plants to meet the needs of another client – and the cycle continues.

CORRUGATED BOX INDUSTRY MARKETCOMPANIES PROFILED

• Alliabox International (Alliance)
• BBP (Alliance)
• Bingxin Paper
• Cascades
• Cheng Loong Corporation
• DS Smith Plc
• Europac Group
• Georgia Pacific LLC
• Hexing Packing
• Huhtamaki Oyj
• Inland Paper
• International Paper Company