Corrugated Market To Increase To $380B
E-commerce, sustainability and digital printing will help demand for corrugated to grow 3.5 percent to 4 percent annually, according to a new study, The Future of Corrugated Packaging to 2023 , from Smithers-Pira. Growth rates for corrugated have dropped from more than 7 percent annually between 2009 and 2010 to just 3.4 percent per annum on average from 2011 to 2017, as the industry came out of the global recession. Two drivers, e-commerce and digital printing, are having an impact on the corrugated industry. E-com- merce packaging favors the use of corrugated board with an estimated $20 billion worth of corrugated materials used in this sector. Markets making use of corrugated for e-commerce fulfillment include consumer electronics, books and media products, fashion, toys, hobbies, and sports equipment. A related trend is the growing adoption of digital printing in corrugated applications. The flexibility of run lengths, savings in set-up costs, and ability to personalize the unboxing experience is leading small and mid-size brands to capture sales and excitement on social media. The study also predicts that the advent of e-com- merce, especially in the grocery sector, is likely to have a slight negative impact on retail-ready packag- ing (RRP) usage, as e-sales do not require any RRP systems. Subscription box services and meal kits that offer direct-to-consumer weekly or monthly delivery of specialty foods will contribute to this slight nega- tive impact on RRP. Resource Label Group, LLC, a full-service provider of pressure sensitive label, shr ink sleeve and RFID/NFC technology for the packaging industry, has acquired Paragon Label, a label manufacturer special- izing in the premium wine segment. Terms of the transaction were not disclosed. Resource Label is a long-standing portfolio company of First Atlantic Cap- ital, a New York-based private investment firm, and TPG Growth, the middle market and growth equity investment platform of TPG. Located in Petaluma, California, Paragon primarily ser- vices premium wine customers in Sonoma and Napa Counties and offers a full range of flexographic and dig- ital printing capabilities. Paragon is also equipped with proprietary finishing technology that reportedly en- hances the shelf appeal of its customers’ products. Resource Label Group Acquires Paragon Label
Flexo Market News September 17, 2018 11
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