What can packaging firms like Paper Mart expect in the near future? After the economic slowdown from 2007 to 2009, paper and paperboard packaging markets is showing a slight growth. The market for paper and paperboard packaging is projected to reach at least $213.4 billion by 2020 and a CAGR of 3.5% from 2015 to 2020.
The European region accounts for approximately 33% of the total market share value and closely followed by the North American and Asia Pacific regions. The Asia Pacific region particular China and India is estimated to gain the fastest growth during the review period because of the increase in demand for convenience food and better healthcare and personal products. The growth of the market is also related to the increasing population and the growth of disposable income among the citizens in the region.
Paper and paperboard packaging is an end-user oriented market. It is growing in accordance with packaging industry. It is mostly driven by consumer preferences for eco-friendly packaging solutions due to the increasing problems of landfills. Other packaging materials like plastic and metal are non-biodegradable or degrade very slowly that is why most manufacturers have switched to paper and paperboard packaging. Concerns over the ecosystem and animal habitat are the main reasons that are driving the packaging industry to come up with innovative solutions that are more convenient to their customers.
The eco-friendly appeal of paper has penetrated global packaging. In the last decade, the packaging industry has experienced innovations in design and technological advancements. Paper and paperboard packaging has captured new segments like frozen foods, multi-pack beverage holders and recycled paperboard for dry food packaging and healthcare products.
However, there is fierce competition in the paper and paperboard packaging industry because of the entry of a large number of players. In order to ensure their presence in the market, they key strategies used by most market players include new product launches, mergers and acquisitions, partnerships and expansions.
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