How The Future of The Corrugated Cardboard Packaging Market Is Changing

The global market for corrugated cardboard packaging is growing much faster than anyone really expected. This growth has defied some predictions that thought that a slowdown in corrugated consumption was coming. Some of these predictions include a drop in demand from China and a ban on contaminated recycled paper stocks, but neither of these predictions have come true yet!

The causes of this unexpected growth could be put down to several trends and changes in the industries that use corrugated cardboard packaging.

Continued Growth in The Ecommerce Market

Sales for eCommerce retailers are continuing to rise. The eCommerce trade in Europe alone has been estimated to have a growth of around 20%.

By 2023, experts predict that global online sales will have reached over $5.5trillion. This increase in sales will of course have a real impact on the demand for sustainable eCommerce packaging. This is good news for companies that provide corrugated cardboard packaging, as this currently represents 80% of the demand for packaging in eCommerce.

Logistics chains for direct-to-consumer delivery are becoming more and more complex. This complexity means there is more demand than ever for cost-effective corrugated board packaging. Demand for sturdier packing material is high as eCommerce packages are expected to be handled more than twenty times during shipping. To get there in one piece, products need to be packaged in hard-wearing materials.

The demands of brand owners for packaging for eCommerce that can stand up to these logistics chains are now being felt in the converting industry. Many brands now need the secondary pack to carry their brand imaging into the home, and not just into the retail outlet. This need for an image to make it into the home also increases the need for converters to be able to produce graphics of high quality onto the shippers themselves.

Sustainable Cardboard Packaging

The corrugated board has become a very popular packing material recently, as more and more businesses take sustainability more seriously. Sustainable eCommerce packaging has become a major issue across the value chain. Corrugated cardboard is ideal for this, as it is easy to recycle. The pulp and paper industry already knows how to convert the cardboard into new kinds of containerboard. These qualities have caused a big rise in the popularity of corrugated cardboard packaging, over polymer-based options, like expanded polystyrene foams, which are much harder to reuse or recycle.

The corrugated cardboard industry has been affected for a long time by the light-weighting of boards. However, both right-weighting and right-sizing have played a very important role in the market, both as a response to the increased demand from consumers for packaging that is sustainable and efficient, and in response to the logistic chain’s adoption of dimensional weight, or DIM, pricing. In some cases, there can be a good impact to using a heavier grade of board, as it will allow users to get away without needing to use more protective elements.

Many businesses are aiming to minimize the amount of air that is shipped within their delivery channels as much as possible. This goal means that in some cases, there have been some cost increases. For example, shipping a 32-pack of toilet roll now costs about 37% more to ship than it used to when shipping charges are based on dimensions, rather than on simple weight.

Light-weighting has been especially successful in Western Europe. Box weights have dropped to about 80% of US shipping weights. Light-weighting is likely to continue to make itself felt over the next few years, as retailers look at ways to save costs and appeal more to their end-users.

Changes In Retail

Packaging that is ready for retail has been a great way for retailers to save money. All eCommerce businesses are trying to increase profit, which makes retail-ready packaging a great way to save on some of the costs of labour. By choosing the right packaging formats, businesses can reduce the cost of restocking shelves and handling by up to 50%. Retail-ready packaging is especially popular with discount retailers and convenience stores.

Eliminate Delays and Errors by Getting in Touch to Find Out What You Should Do Next

The corrugated cardboard packaging market is constantly changing and with demand continuing to rise, it’s vital that you find the ideal corrugated packaging solution that helps eliminate delays and errors. Discover how DiamondBox can help you by contacting a member of our team via our contact form below. You can also talk to a member of the DiamondBox team today on 0121 505 2211 or by emailing us at sales@diamond-box.co.uk.