Over the five years to 2023, the industry has benefited from growth in global consumer spending and world GDP. Growing consumer spending led to expanding downstream markets, including manufacturing, retail and wholesale businesses. In addition, rising demand from emerging markets, such as China and India, has boosted demand for cardboard containers. But strong fluctuations in the world price of wood pulp have hampered revenue growth in specific years. However, supply chain disruptions during and following the COVID-19 pandemic caused prices to increase and revenue to surge. Altogether, industry revenue is expected to grow at a CAGR of 7.2% to $458.3 billion over the five years to 2023, including an increase of 0.1% in 2023 alone. The United States has long been one of the world's largest producers, but it's been steadily losing its share of global production. While production has grown in the nation, it has not done so to the same extent as some emerging markets, and China has become the leader in global production. Notably, while emerging markets have experienced substantial growth in demand, developed markets have not grown to nearly the same extent. So many of the world's largest operators have pursued acquisitions to expand, either to consolidate their hold on a given market or to increase exposure to new markets. Industry revenue is forecast to increase at a CAGR of 2.7% to $524.1 billion over the five years to 2028. GDP growth in developing markets is forecast to continue to outpace economic growth in the United States and Europe during the outlook period. As a result, the share of production accounted for by emerging economies is anticipated to increase further. Meanwhile, global consumer spending will likely grow at an accelerated rate over the next five years, boosting demand for packaging products. In addition, consumers' increasing interest in sustainable packaging and new government regulations will likely encourage operators to invest more in research and development, contributing to growth in profit. However, strong volatility in the world price of wood pulp will likely continue to pose a potential threat to industry operators.
Trends and Insights
- Box manufacturers come out of COVID strong.
- The greater use of e-commerce and inflated consumer prices supported robust revenue growth following the pandemic. Corrugated boxes remain the mainstay of the industry.
- While the segment has declined slightly, corrugated cardboard's uses in industrial settings have kept demand strong. China is the largest producer of cardboard boxes.
- Over the past two decades, China's growing manufacturing sector has led to rapid growth in its need for cardboard containers. Demand for sustainability hinders plastic and foam.
- Cardboard is one of the more sustainable options for shipping and storing products, giving it an advantage over substitutes.
Industry Overview
Industry revenue has grown at a CAGR of 7.2 % over the past five years, to reach an estimated $458.3bn in 2023.Trends and Insights
Consistent downstream demand is a critical factor for industry growth An important factor influencing how successful industry manufacturers will be is consistent downstream demand from parallel industries that can affect industry growth.Industry outlook (2024-2029)
Market size is projected to grow over the next five years.Trends and Insights
- Strong rebound in downstream markets will fuel demand for industry manufacturers
- As the broader economy continues to recover following the COVID-19 pandemic, downstream markets like food and beverage manufacturers will have enlarged consumer demand for their goods and services.
Table of Contents
About this Industry
Industry Performance
Products & Markets
Competitive Landscape
Operating Conditions
Key Statistics
