Freedonia Market Research Analyzes the Corrugated Boxes Industry

Demand for corrugated and paperboard boxes is expected to rise 2.5 percent annually through 2012 to $39.9 billion, with gains driven by an increase in the production of both nondurable and durable goods.  Advances will be bolstered by the increasing importance of higher-value boxes offering improved printing and graphics capabilities as producers seek ways to boost the aesthetic appeal of boxes in the face of competition from alternative packaging.  The continued popularity of Internet shopping will drive demand for shipping boxes.  These and other trends, including market share and company profiles, are presented in Corrugated & Paperboard Boxes, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Sales of corrugated and solid fiber boxes, which accounted for more than 70 percent of demand in 2007, will increase 2.7 percent annually through 2012 to $28.8 billion.  Growth will be based on their well-entrenched position as low-cost shipping containers in virtually all manufacturing sectors.  Demand will also be supported by the good environmental profile of corrugated boxes, which will become increasingly advantageous as interest in sustainable packaging continues to rise. 

Folding paperboard box demand will increase 1.7 percent annually through 2012 to $10.5 billion, slower than corrugated box growth as folding cartons face heightened competition in many markets from alternative packaging such as pouches, clamshells and blister packs.  Nevertheless, folding carton sales will be supported by advances in printing and paperboard graphics capabilities and a better environmental image than plastic packaging.  Demand for set-up boxes will primarily be driven by their extensive use in high-end confectionery, and silverware and jewelry applications.

Food and beverages will remain the largest market for boxes, accounting for more than 40 percent of demand in 2012.  Favorable growth will be registered in markets such as beverages, meat products, fresh produce and frozen foods.  Other nondurable goods markets offering good prospects for boxes are pharmaceuticals, cosmetics and toiletries, and rubber and plastic products.  In durable goods markets, the best prospects will be in medical and other instruments, and entertainment and software products.  Faster box growth in nonmanufacturing markets, such as retail shipping and carry-out foodservice, will be supported by the continued expansion of Internet shopping and the increased share of spending for food eaten or prepared away from home.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.