PPC Releases Summary Of 2023-24 Trends Report
dropped 7.2 percent and consumer spending fell 3 per- cent. Consumers, however, flush with stimulus money and stuck in lockdown greatly increased their spending on goods, helping boost carton shipments to some of the strongest years in recent history. “Carton shipments recorded extraordinary growth of 5.5 percent year on year in 2020. These gains were main- tained in 2021 when shipments grew another 0.2 percent. “With the remaining pandemic restrictions lifted in 2022, spending started to shift away from goods and back toward services, but strong inventory rebuilding through- out the supply chain helped push shipments up another 4.5 percent. While 2022 had the highest volume of carton shipments since 2010, it was still 8.7 percent below the pre-recession peak in 2007. “The COVID-19 pandemic and the associated recession saw spending shift from services to goods, which had a significant impact on folding carton shipments. While con- sumer spending in 2020 declined 3 percent and spending on services dropped 6.2 percent, nondurables spending increased 2.7 percent. “In 2021, consumer spending rose 8.3 percent, with nondurables spending increasing 8.8 percent. Spending on services in 2021 saw a partial recovery, rising 6.3 per- cent. In 2022, spending grew 2.7 percent but began to shift toward services, which increased 4.5 percent for the year. While still elevated, non-durables good spending CONTINUED ON PAGE 18
The Paperboard Packaging Council announced the com- pletion of the 2023-24 Trends Industry Outlook and Mar- ket Data Report, a compilation and analysis of industry data prepared exclusively for PPC members by Fastmar- kets RISI, an independent economic consulting firm. The report is designed to help executives, sales staff, and marketers identify potential opportunities for growth. The following is a summary of the report: “In 2022, as the world began to move past the COVID-19 pandemic, there were concerns about how markets would react as the economy moved toward a “new normal.” “Carton shipment growth had been in decline since the Great Recession. Prior to 2020, losses in shipments were largely the result of continued headwinds facing major processed food and consumer product companies. Pro- cessed food exports were challenged by the appreciation of the US dollar in 2015, which trickled down to recycled boxboard demand and folding carton shipments. “Over the last decade (2010-19), folding carton ship- ments were under persistent downward pressure and de- clined at an average annual rate of 1.2 percent. Since the Great Recession, only five years have not experienced a decline in shipments: 2014, 2017, 2020 and 2021. “When COVID-19 hit in 2020, industrial production
16
www.boardconvertingnews.com
December 4, 2023
Made with FlippingBook - Online Brochure Maker