New Market Demands and Intelligent Solutions for Corrugated Packaging
Corrugated market growth is roughly 4% annually, and is expected to reach $300 billion in 2023. One factor driving the growth in both shipping cartons and product packaging is the increase in ecommerce retail sales; the estimate is 20% annual growth in ecommerce trade in Europe alone. Protecting products from damage during shipping is crucial for online retailers, so corrugated boxes deliver a robust and sustainable choice for brand owners.
Another factor is the growth in demand for packaged food and beverage products. As convenience leads lifestyle preferences, consumers prefer easy to open, easy to prepare, easy to consume product choices. It seems that packaged foods and beverages account for nearly half of the global corrugated market.
Other industries spurring the growth of corrugated box usage include electronics, personal and household care goods, glassware and ceramics, chemicals, and textile goods. “Manufacturers are also coming up with different shapes, sizes, and designs in order to increase their consumer-base,” according to digital agency Imarc.
Smithers Pira says ecommerce has given birth to a new phenomenon called FtP (fit-to-product). This technology enables the production of customized secondary packaging based on the exact size of the product being packed, including irregular shapes. For the end-user, this eliminates the need for large inventories of standard-sized boxes which often require copious amounts of filler material.
Sustainability is another factor. Corrugated materials are easy to recycle and reconstruct. Though they are lightweight, they are durable and protect their contents. This is important for products that ship, as well as those that sit on a store shelf.
Smithers Pira says that retail-ready packaging is a major cost saver, especially in Western Europe. “This ongoing profit pressure is providing an impetus to use more retail-ready formats as a labor-saving solution, as it is estimated that these secondary packaging formats can reduce shelf restocking and handling costs by up to 50%,” they report.
The reports also cite digital printing as a game changer because of its flexibility, cost savings, ability to personalize, and the advancement in quality.
