Corrugated Boxes Demand, Prices On Rise
activity will encourage higher demand for corrugated boxes, which are used as shipping containers for many of the goods that operators in these sectors produce and require. Overall, growth in demand for corrugated boxes will allow operators to raise prices without risking losses in business from buyers. Finnish Converter Invests In Folding Carton Suite Finnish packaging printer Jaakkoo-Taara Oy, which specializes in the pharmaceutical, healthcare and food industry, invested in Xeikon’s Folding Carton Suite with a Xeikon 3500 digital press to add digital capa- bilities to its existing offset and flexo production. Jaakkoo-Taara Oy was founded in 1935 and employs 115 people. Each year it prints more than 20,000 packaging and printed projects. In other news, Xeikon has established a direct pres- ence in India.This move follows Xeikon’s decision to create a direct-to-market approach in Australia and New Zealand. Starting in March 2017, Xeikon will build on the mar- ket presence through its parent company FlintGroup to support and service the label, folding cartons and commercial printing segments of the Indian market.
While prices dropped in 2015 and 2016, IBISWorld expects the price of Corrugated Boxes to shift direc- tion and rise 3.9 percent in 2017. “This increase can be attributed to swelling de- mand and increasing input costs,“ said IBISWorld Procurement Research Analyst, Mark Seraydarian. “Additionally, the market-wide $50 per ton price hike on linerboard, which went into effect in Octo- ber 2016, will contribute to price growth,” he contin- ued. “On the input side, the price of paper, which is one of suppliers’ key production inputs, is expected to shift direction and rise due to increasing wood pulp prices. Because of this, suppliers are expected to pass rising input costs to buyers in the form of higher corrugated box prices.” Through 2020, IBISWorld expects demand from key buyers (including grocery and food distributors) to rise, partly due to further growth in the population, which will increase the amount of food shipped via corrugated boxes. Consumer spending is also pro- jected to continue increasing amid general wage growth, thereby increasing demand for various goods that are shipped in corrugated boxes.Additionally, ac- celerating mining, manufacturing and other industrial
4 March 6, 2017 Flexo Market News
www.nvpublications.com
Made with FlippingBook Online newsletter