GLOBAL CORRUGATED BOX INDUSTRY MARKET
Corrugated Box is the most popular shipping container, now-a-days. The boxes find their number of applications in the packaging of chemicals & drugs, tobacco, engineering goods, canned & bottled goods, food products, lamps, electrical appliances, glassware etc.
Packaging plays an especially important role in the country’s economy. Until recently only the western world, more particularly the developed countries cared about proper packaging. The box is manufactured from corrugated cardboard which consists of 3 or more layers of kraft paper. The middle-fluted layer is pasted with two flat parallel sheets of paper.
Corrugated boards were first produced in India in the early fifties. Since then the production of Corrugated boards has increased steadily. Corrugated boxes have replaced wooden boxes & crates in many applications. Today, about 80% of all shipments in the world are being made in fibreboard boxes. In India, about 60% of the packaging is being done with corrugated fiberboard boxes.
Corrugated fibre board consists of a flat layer of paper sheet (liner) glued on one or both sides of a corrugated paper (medium). The corrugated board is made by passing two layers of paper (usually kraft) through a corrugating machine. One layer of paper becomes corrugated after being passed through the heated rolls and another is brought into contact with it after the former having glued at tips.
The corrugating ‘medium’ is generally made from a 0.009″ thick (9 calliper) or 0.23 mm. The glue frequently used is starch or silicate of soda adhesive. When only one liner is used, the product is known as a “Single face” or “two ply” board. This board is flexible in one direction. When the corrugated medium is combined on both sides with flat sheets, it is known as double faced or “3-ply board”.
CORRUGATED BOX MARKET DYNAMICS
Corrugated fiberboard boxes are being used for the packing of industrial as well as consumer goods. They are used for packing of chemicals, drugs, tobacco, engineering goods, canned and bottled goods, food, electrical appliances, confectionary, textiles, fruits, vegetables, potteries, footwear, glassware and other fragile items, medical instruments, photographic equipment, and a number of other products across the world.
Consequently, the demand for corrugated paper boards/boxes will also continue to be buoyant. A peculiar feature of this industry is that on the one hand there are several units in the large as well as small-scale sectors, which are sick and unable to function properly, while on the other hand several units are flushed with orders and are working to capacity. An important factor for successful undertaking of corrugated paper boards/boxes is the capacity to procure orders from bulk users on contract basis. Only large and regular orders will ensure stability to the unit. Though the market potential for these products can be considered to be fairly good, much will depend upon the marketing strategy adopted by an individual entrepreneur.
One of the important outlets of paper board manufactured by the paper and board industry is the corrugated box, having applications in Textiles, Processed foods, fast-moving consumer goods (FMCG), Electronics and Engineering goods, Beverages & Distillery, and consumer durables.
This present scenario is already being challenged by the sweeping changes that are beginning to take shape. More and more in-line automatic plants are being set up, as corrugated box makers gear up to meet the new demands for high precision boxes with attractive graphics and large integrated production capacities.
The corrugated packaging industry has been adequately meeting the packaging requirements of the country by successfully substituting wooden and plywood boxes, thereby contributing to environmental protection and the ecological balance.
Keeping this in mind, many international companies are eyeing the Indian corrugated box industries not only for supplying machinery but also to set up plants with financial and technological partnerships. The international players have already made their presence on Indian soil along with the insurmountable constraints as hurdles for rising to international level.
The small players (50 to 100 MT conversions per month) employ semi-automatic board making and converting technologies, while the larger players (500-1000 MT conversion per month) possess continuous corrugated board-making line with low automation intensity, the converting being manual or semi-automatic systems.
The big manufacturers (1500 MT and above conversion per month) are equipped with high-speed continuous corrugated board manufacturing lines with a high degree of automation and quick flute change capabilities. The converters for these units consist of conveyorized In-process material handling, printer slitters with pre-feeders etc.
CORRUGATED BOX MARKET SEGMENTATION
The Global Market of Corrugated Box Industry 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
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 MARKET TECHNOLOGICAL TRENDS IN CORRUGATED BOX INDUSTRY
Corrugated boxes are used extensively for transporting and storing fresh produce in the horticultural industry. These boxes protect their contents from mechanical damage due to drops, impacts, vibration, and compression loads.
Corrugated board is proving popular in packaging as sustainability becomes a more important issue across the value chain – it is easy to recycle, and the pulp and paper industry is already adept at converting these into new generations of containerboard.
These qualities mean there has been a rise in popularity of corrugated protective formats over polymer-based alternatives, such as expanded polystyrene (EPS) foams. While light weighting of board has long been affecting the corrugated industry, right weighting, and rightsizing are playing an increasingly important role in this market, not only in response to consumer demand for efficient packaging, but also in response to the logistics chain’s adoption of dimensional weight (DIM) pricing. In some instances substituting to a heavier board grade can have a beneficial impact overall as it allows for the elimination of additional protective elements.
Retail-ready packaging has established itself as a major cost saver for retailers, especially in Western Europe. This ongoing profit pressure is providing an impetus to use more retail ready formats as a labour-saving solution, as it is estimated that these secondary packaging formats can reduce shelf restocking and handling costs by up to 50%.
We are seeing a gradual shift towards the use of reusable plastic containers (RPCs) to transport certain goods such as fruits and vegetables. These containers provide superior protection by means of greater stacking strength and enhanced durability, as they are impervious to changing environmental conditions.
There is increasing demand for packaging due to a shift in consumption behaviour across the globe as a result of a growing middle class as well as a growing elderly population. Today’s consumers are looking for three main qualities in their packaged products, especially when it comes to food product packaging: convenience, ease of use, and ease of transport.
Amcor is a global leader in responsible global packaging solutions, supplying a broad range of rigid and flexible packaging products to the food, beverage, healthcare, home, personal care, and tobacco packaging industries. The Company has introduced a New blown-film production line enabling customers to shift to Amcor recycle-ready solutions which would aim at decreasing the increased usage of corrugated boxes and thereby also enhance the healthcare-based packaging segment.
The Georgia Pacific LLC Corrugated Packaging has been part of the new generation recycling methodology of implementation for corrugated boxes. With a manufacturing network spanning the United States, our packaging solutions meet you where you are. Our corrugated operations are intentionally placed throughout the U.S. and Mexico to best serve our customers, while also being strategically located near Georgia-Pacific Containerboard mills.
The Georgia-Pacific Recycling team picks up post-consumer content, which is then sorted and returned to our containerboard mills for re-pulping. The recycled pulp-turned-paper is then brought back to Georgia-Pacific Corrugated facilities where it can serve another customer’s need – and the cycle continues.