Corrugated Market To Experience Growth
Therefore, the demand for environment friendly and easily recyclable packaging material is increas- ing, especially in the non-durable consumer goods segment. Europe has the highest paper recycling rate (78 percent), while the developing countries are also aiming toward lowering of carbon foot- prints. China is expected to increase its paper recy- cling rate up to more than 72 percent by the end of 2015. Governments in the developing market are also providing a helping hand to the corrugated packaging material suppliers. Merging Industry The corrugated packaging market has witnessed large numbers of mergers and acquisitions (M&A), in recent years. The falling profit margin, particularly for small players have led to market consolidation in the devel- oped markets of NorthAmerica and Europe. Another report, this one from Technavio, forecasts the global corrugated box packag- ing market to grow at a CAGR of 4.8 percent through 2020, primarily as a result of the growth of e-commerce. The growing e-commerce market, which pri- marily includes online shopping, has witnessed an increase in the demand for corrugated boxes for the shipment of products sold through them.The ease of online shopping has made many customers switch from the tradi- tional method of shopping. Online retailers use different types of corrugated boxes according to the product transported.These boxes ensure the safety of the products which are being transported. In addition, the effective packaging is becoming one of the key business require- ments in the e-commerce marketplace, thus fu- eling the growth of the market. E-Commerce Revolution “Global e-commerce experienced a growth of around 23 percent from 2013 to 2014,” said Sriram Mohan, a lead packaging indus- try research analyst at Technavio. “In 2013, around 4.2 billion consumers shopped on- line, which amounted to $1.5 trillion in rev- enue. In 2013, Asian and Pacific Coasts (APAC) was the largest market for B2C e- commerce reaching a global value of $563.7 billion and the market is expected to flour- ish at the same rate during the forecast peri- od. The other key leading regions for B2C e-commerce market are Europe, reaching a value of $483.2 billion and North America, reaching a value of $454.2 billion.”
The global corrugated packaging market was worth $150.1 billion in 2014, and it is expected to grow at a CAGR of 4.6 percent during 2015-2020, according to a new report from Research and Markets called Glob- al Corrugated Packaging Market Size, Share, Devel- opment, Growth and Demand Forecast to 2020 - Industry Insights by Application . The processed food corrugated packaging dominat- ed the global corrugated packaging market in 2014, with 25.4 percent market share. Both the consumer and regulatory bodies have raised their concern to- ward the environment and sustainability, since the growing number of landfills is becoming more chal- lenging for governments in the developed countries.
4 February 8, 2016 Flexo Market News
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