The Growing Global Demand For Paper-Based Packaging

Different types of paper are used by Paper Mart for packaging applications depending on the requirements of the product and the manner through which it will be transported. There are special types of paper that have been treated with lamination to make it moisture proof. Wet strength paper is the choice when tensile strength needs to be maintained once exposed to moisture. High strength is achieved due to the virgin fiber used in the production of paper for packaging purposes.

The rising awareness for eco-friendly packaging materials has increased the demand for paper-based packaging. In 2012, the global market for paper packaging reached $254.80 billion and it has been growing at 4.4% CAGR since 2013, a rate that is expected to continue until 2019. According to a research report made by Paper Packaging Materials Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019, the overall demand for paper packaging stood at 181.48 billion tons in 2012.

The report also revealed that paper has the largest market in the packaging industry. The demand for paper packaging is further increased by the ban on lightweight plastic packaging materials all over the world. Other critical factors that affect the global packaging industry include volatility in the prices of raw materials, energy costs and global economic slowdown. To overcome these critical factors, packaging manufacturers are developing sustainable and eco-friendly materials that can be recycled and reused.

Paper is among the most economical and eco-friendly packaging materials that addresses consumer demands and awareness for paper-based flexible packaging that can be used for cushioning, bracing and blocking in applications that include pharmaceuticals, cosmetics, food and beverages and pet food.

Liquid packaging cartons held over 40% of the market share since 2012 but corrugated cases are expected to catch up as an upcoming packaging product segment by 2019. The segments of carton and folding boxes are also expected to grow significantly because of the growing global demand for decorative bulk packaging.
In 2012, Asia Pacific held more than 35% of the market share for paper packaging but North America and Europe remain to be dominant regions for the paper packaging materials. In the next few years, it is expected that the whole world will get a substantial share of the market because of increased consumer spending.