Canadian Packaging

Future Brighter For Global Corrugated Board Industry?


July 28, 2010
by Canadian Packaging Staff

The global corrugated board packaging market is forecast to grow to 98 million tonnes in 2015, a new study by Pira International reveals.
According to the study, the sector is to grow by a CAGR (compound annual growth rate) of nearly five percent between 2010 and 2015, with the highest expansion rates forecast in Brazil, Russia, India, China (the BRIC countries) and Poland. Following the global recession, the paper and packaging industry has faced mill closures, staff redundancies, evaporating profits and dwindling demand. Based on extensive primary and desk research, The Future of Corrugated Board Packaging to 2015 report offers up-to-date information on the state of the global corrugated board market plus rational forecasts of future demand, broken down by country, print process, end use and other factors.
The study also contains an in-depth analysis of the sector in terms of its key players, supply chain, geographic structure, key drivers and the shares of individual uses of corrugated board.
Actual consumption of corrugated board was 77 million tonnes in 2009, with a value of almost US$82 billion. Asia was 44 per cent of total corrugated board production, China was almost 25 per cent and the US was 20 per cent. Pira expects the overall market to rise 1.2 per cent in 2010 to 78 million tonnes. For the period to 2015 the outlook is more positive with a forecast CAGR of 4.7 per cent, taking the market to 98 million tonnes in 2015. 
Pira expects the growth rate to vary by country. “Over the short term, we forecast that developed markets will show slight declines in consumption. At the same time we believe that India, China, Russia, Poland and Brazil offer the most compelling growth prospects in the five years to come”, says Adam Page, head of editorial at Pira. 
More than 60 per cent of corrugated board is used to package non-food products. The largest single end-use sector is the electrical goods market. Processed food is 25 per cent of the total demand and all food is just under 40 per cent.
Pira expects the strongest prospects will be found in personal and household care products, glassware, electrical goods and chemicals. Processed food will be 25 per cent of incremental volume, over five million tonnes of additional demand between 2010 and 2015.
In food markets, the BRIC countries – Brazil, Russia, India and China – offer the most exciting growth prospects, along with Poland and Brazil; forecast incremental demand for 2010–15 is seven million tonnes and China will take four million tonnes.   

The key drivers to affect the corrugated board industry in 2010-2015 include:

According to Pira, there are 850-900 mills producing containerboard in the world. The number of board converting companies is much larger though, making the corrugated board market a fragmented industry. The sales of the top 20 companies make up 35 per cent of the market volume, and the largest player is International Paper, holding a 7 per cent market share. 
The Future of Corrugated Board Packaging to 2015 is available now for £3,750. For more information, please contact Stephen Hill at +44 (0) 1372 802025, or via e-mail on stephen.hill@pira-international.com or visit www.pira-international.com.

Established in 1930, Pira provides strategic and technical consulting, testing, intelligence and events to help clients gain market insights, identify opportunities, evaluate product performance and manage compliance.