The global paperboard packaging market depicts the presence of a highly competitive and fragmented vendor landscape, says Transparency Market Research, on the basis of a newly published report. Such a fragmented scenario mainly exists owing to the presence of a large number of players coupled with the expansion of product portfolios that are projected to enhance the competitive scenario of the global paperboard packaging market. With an increase in the number of companies expected to occur in the near future, the competition in this market is projected to increase dramatically.
Most international players are expected to face stiff competition on account of a number of small and medium-sized companies present in the industry, making it a highly unorganized one. Most players are focusing on developing high-performance, lightweight packaging boxes and cartons as they are eco-friendly, robust, and also help in reducing the overall cost. Smurfit Kappa Group, METSÄ GROUP, Svenska Cellulosa Aktiebolaget (SCA), ITC Limited, and NIPPON PAPER INDUSTRIES CO., LTD., are six players which accounted for maximum collective market shares in this market.
As per expert analysts, the global paperboard market, which stood at US$122.69 bn in 2015, is prophesized to reach an estimated value of US$227.47 bn by the end of 2024. During the forecast period from 2016 to 2024, the market is anticipated to rise at a strong 7.1% CAGR.
Rise in the Demand for Packaged Commodities Boosts Growth in Market
An outstanding increase in demand for packaged foods and beverages is mainly responsible for driving the global paperboard packaging market. This is mainly due to a large-scale use of paperboard packaging materials for packaging commodities and other items owing to key advantages such as quality printing surfaces, lightweight character, smoothness, flexibility, and easily available raw materials. Apart from foods and beverages, this type of packaging is also utilized in various other applications such as stationary, logistics, construction, hardware, e-commerce, and others. This also is a key factor propelling progress in the global paperboard packaging market, especially as each of these applications are witnessing high demand. Moreover, skilled labor in large numbers is not required for manufacturing paperboard packaging equipment, this lowering down the end-user costs. In this way, this is a low-cost packaging option that can help decrease the overall expenses of the products being packaged.
Fluctuation in the Availability of Raw Materials in Remote Regions Hampers Progress
However, paperboard packaging might not be easily available and manufactured in remote and underdeveloped regions, thus constituting as a key obstacle to the market’s growth. Moreover, there are several other options preferred by many packaging companies owing to greater advantages than paperboard, thus hindering the global paperboard packaging market’s expansion Nevertheless, many companies are expected to increase their geographical reach, thereby offsetting most restrains affecting the global paperboard packaging market.