The Paper Packaging Market Status

Paper packaging is one of the largest sector in recycled materials market which is around 65% of all recycled packaging. Paper and cardboard have the highest recycling rates in the world. The usage of paper packaging will carry on increasing due to the China manufacturing economies and other emerging countries. Refer to some prediction in the related industry, the whole market for recycled paper packaging will have a 5% CAGR increment to reach $139 billion in 2018.

Prediction 2018

In North America, paper and cardboard recovery will have 81% increment since 1990, and has reached a recycling rate of 80% in Canada and 70% in the United States. For the countries in Europe, it reached an average of 75% for recycling paper, with some countries like Austria and Belgium achieving around 90% recovery. In United Kingdom and some Western Europe countries, the paper recycling rate is around 80%.

The paper pulp demand is growing very fast in China, India and the rest of Asia as they are the fastest growing users of paper in the region. The transit packaging sector increment in China, and the growing consumerism, is leading the fast growing demand for paper packaging which has been growing at around 6.5% since 2008 and being the highest in the world.

Paper packaging products represent the largest market for recycled paper and board. Around 30% of US recovered paper and paper board are used to produce containerboard which is used to make corrugated packaging. China has imported a large amount of recovered paperboard, while the rest is used to produce boxboard, folding boxes and others. In 2011, about 42% of the recovered paper collected in the US were exported to China and other countries.

What's next for paper packaging ?

For some experts’ estimation, there will be 1.5 million tons of recycled pulp demand exceeding the supply per year by 2018. In order to satisfy the growing demand in developing world, the paper industry will invest in paper packaging plants in these regions.

In upcoming future, paper packaging seems to be the best choice for replacing polystyrene. Many big companies in the world have already switched to or plan to use paper products for packaging. Starbucks is an example to use only paper cups and is actively involved in paper recycling initiatives in selected locations.

New technology can also help the growth of paper recycling in the market. For example, some coated paper packaging along with corrugated paper can also be recycled nowadays. This will reduce the cost of recycling and increase the demand for recycled paper.