The heavy-duty paper and multiwall shipping sack market is expected to reach a CAGR of 4.1% during the forecast period (2020 - 2025). The growing need for heavy-duty paper and multiwall bags is gaining traction across various end-users such as fertilizer, textile, cement manufacturers, etc. as paper packaging is one of the most used eco-friendly packaging solutions. Moreover, people are becoming aware of the environment, bolstering the demand for heavy-duty paper and multiwall shipping sack market.
- The ability of this packaging format to be produced in many sizes with a small footprint, compared to other bulkier packaging options, makes it feasible for use in almost all end-user industries. The recyclability characteristic is one of the critical advantages of using paper for packaging over other packaging materials.
- Multiwall paper bags are becoming popular as they can be used for customization of the product for promotional purposes. They are prepared from various layers of kraft paper. The inner layer of the multiwall bags is specially coated and laminated to prevent contamination. Further, the demand for these is driven by the increasing growth of the real estate industry in the developing countries as well as in the developed countries as they are widely used in the cement packaging.
- With government initiatives taken to ban plastic packaging, the paper packaging market is expected to experience a substantial boost due to the continuous adoption of paper packaging as an alternative. Various countries, such as China, India, and Taiwan, have implemented environmental safety policies to eliminate single-use plastic usage. For example, in January 2020, a new policy was implemented by the National Development and Reform Commission and the Ministry of Ecology and Environment, the directive will see non-degradable bags banned in major cities of China by the end of 2020 and in all cities and towns by 2022.
- Moreover, the increasing growth of organized retail such as supermarkets and hypermarkets also propels the growth of the multiwall bags market during the forecast period because many companies do not consider normal plastic for the packaging. Further, increasing the growth of horticulture is expected to drive the market growth.
- The outbreak of COVID-19 has reshaped industry megatrends in ways that can have major short- and long-term implications for packaging design. Although sustainability remains the top trend and therefore, the market is likely to grow over the forecast period. The rising R&D activities by the government and manufacturers and increasing adoption of paper recycling technologies andare expected to present lucrative opportunities to the market.
Key Market Trends
Food Industry to Hold Significant Market Share
- Multiwall Shipping Sacks are used to packaging a wide variety of food, agricultural building materials, and are cost-efficient options for shippers that offer a better degree of customization. They can be designed to meet exact requirements and provide the highest degree of product quality protection, which is a critical requirement in the food industry, at the lowest cost that meets normal handling, shipping, and service requirements.
- According to Paper Shipping Sack Manufacturers' Association (PSSMA), paper shipping sack and customer sack used in the food business raised billions of dollars in the industry. An increase in the demand for quick-service eateries amongst the urban youth and the government guidelines that forced plastic elimination is likewise widely increasing the production of paper shipping sack market majorly in the food and beverage industry.
- The United Nations predicts that by 2050, two-thirds of the world's people will live in cities. The rural population's trend continues to migrate to urban areas is reinforcing various patterns, such as fast-paced life, use of packaged and frozen foods, fast food, delivery, and takeaway. These patterns are expected to impact the market during the forecast period.
Europe Occupy Significant Market Share
- Europe has been facing considerable societal and regulatory pressures to adopt sustainable forms of packaging. This has led to the faster adoption of heavy-duty paper and multiwall shipping sack packaging in the region. In Europe, both companies and governments have set ambitious sustainability targets.
- The European Commission has proposed a ban on single-use plastic products, like cotton buds and plastic straws, to clean up waste. Further, countries like Germany have introduced strict laws for the use of sustainable materials in packaging. European manufacturers face many legal requirements regarding the protection and hygiene of the stored food.
- In June 2020, to support manufacturers in meeting all regulations and providing the necessary information for food contact compliance to the food producer, the European Paper Sack Research Group (ESG), a collaboration between EUROSAC and CEPI Eurokraft, launched an update of their food contact guideline for paper packaging.
- Further, in Feb 2020, a group of paper and fiber-based food and foodservice packaging manufacturers have launched the European Paper Packaging Alliance (EPPA). This alliance aims to find concrete solutions to recycling and reduce carbon emissions of food and foodservice packaging without compromising food safety and human health protection.
The heavy duty paper and multiwall shipping sack market is a moderatley fragmented market . The presence of the players' distribution channel and access to raw material impacts the competition in the regional market. Moreover, players adopt strategic activities like partnerships, mergers, and acquisitions to expand their presence. Some of the recent developments in the market are:
- Oct 2020 - Mondi, a leading global packaging and paper manufacturer, partnered with Adelaide Brighton Cement and Pope Packaging on the development of a new water-resistant paper bag called ‘Rain Barrier,’ made out of Mondi’s Advantage Protect White sack kraft paper, for the Australian construction market.
- Aug 2020 - ProAmpac, the flexible packaging leader, launched their online packaging design configurator branded MAKR (pronounced Make Er)., MAKR allows users to remotely create custom three-dimensional package designs in both film and paper formats which can then be prototyped at the company’s Design and Sample Lab (DASL).
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Table of Contents
1.2 Scope of the Study?
4.2 Market Drivers?
4.2.1 Scope for versatile design and durability ?
4.2.2 Recent changes in legislations favor the use of Paper-based bags over Plastic-based products ?
4.2.3 Growing demand from horticulture segment ?
4.3 Market Challenges ?
4.3.1 Relatively high susceptibility to external environmental conditions ?
4.4 Market Opportunities (Key product innovations aimed at improving shelf-life of products such as the launch of mixed shipping sacks)?
4.5 Detailed assessment of the impact of COVID-19 on the Multi-wall Paper Shipping Sacks Market?
4.6 Industry Ecosystem Analysis ?
4.7 PESTEL Analysis
4.8 Major working bodies and legislations relevant to the market ?
4.9 Industry Attractiveness - Porter’s Five Forces Model ?
4.10 Analysis of the major paper grades used in Multi-wall Shipping Sacks - Kraft, Extended & Semi-Extended?
5.1.1 Agriculture & Fertilizers?
5.1.2 Construction & Chemicals ?
5.1.3 Food (Large-scale) ?
5.1.5 Others ?
5.2.1 North America
5.2.3 Asia Pacific
5.2.4 Rest of the World
6.1.1 Endpak Packaging Incl?
6.1.2 Mondi Bags USA LLC?
6.1.3 Northeast Packaging Company?
6.1.6 Hood Packaging?
6.1.7 El Dorado Packaging Inc?
6.1.9 Dairyland Packaging?