PPC Releases 2023-24 Trends Industry Outlook And Market Data Report
The Paperboard Packaging Council (PPC) announced the release of its 2023-2024 Trends Industry Outlook & Market Data Report, the only com- prehensive market outlook for folding cartons. Prepared exclusively for PPC by Fastmarkets RISI, a provider of pulp and paper industry intelligence, the report features overall growth fore- casts for the U.S. and Canada as well as in-depth analysis of 17 end-use markets. Some of the key findings include: Steady Growth Through 2027 Despite challenges such as inflation and economic uncertainty, the re- port forecasts positive, though slow, growth for folding cartons. The mar- ket is slated to enjoy annual growth of 0.4 percent over the next three years, reaching 5.4 million tons by 2027. Economic Challenges Carton manufacturers, especially independent converters, are fac- ing pricing challenges as paperboard prices consistently outpace actual folding carton prices. The report provides a detailed analysis of the eco- nomic dynamics affecting the industry. Sustainability Wins Plastic substitution and environmentally friendly packaging trends should provide a tailwind for carton growth over the forecast. In fact, recent decisions by some of the largest fast-food companies and municipalities across the country suggest that paperboard packag- ing materials are poised to benefit from their environmentally friendly profile. Reduced Capacity In Canada The macroeconomic environment in Canada during the forecast peri- od will support carton shipment growth. However, the planned closure of a cartonboard mill in 2026 will re- duce Canadian folding cartonboard capacity by close to 30 percent. This will greatly reduce the amount of folding cartons that can be produced and shipped in Canada. In addition to forecasts for the overall folding carton market, the re- port analyzes 17 key end-use segments, including beverage, confection- ery, dairy, dry foods, cosmetics, pharmaceuticals, and retail carry-out. This year, four categories were classified as growing markets, nine as mature, and four as declining. “The 2023-2024 Trends Report provides our members and the in- dustry with crucial insights into the current market landscape and future trends,” said Ben Markens, PPC President. “As we navigate the complexities of economic recovery and changing consumer behaviors, this report equips converters with the knowledge needed to make strategic decisions and drive innovation within the pa- perboard packaging sector.” PPC members can access the full 140-page report and explore de- tailed findings at paperbox.org/trends . A free summary is also available for non-members. For over 90 years, PPC has served as the premier North American association for converters of paperboard packaging and their suppliers. PPC works to grow, promote, and protect the paperboard packaging industry while providing its members with resources and tools to com- pete successfully in the marketplace. For more information, visit www.paperbox.org .
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www.boardconvertingnews.com
January 29, 2024
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