Surprising Growth in Corrugated Cardboard
A report by Smithers Pira shows the corrugate packaging industry is doing surprisingly well. The industry produced $140 billion of product in 2013 and it’s expected to grow 4% annually to $176 billion by 2019.
Drivers of Corrugate Growth
Corrugate packaging has its advantages, and Smithers Pira’s research identifies 4 factors that will promote this rapid growth in the coming years: environment, paper weighting, Internet shopping and printing. Let’s take a look at each factor.
1) Environment. The drive to improve efficiencies and reduce costs is creating more eco-friendly package designs and packaging production techniques. Some organizations and governments are trying to force eco-friendly requirements (including Walmart) to save on material usage, cut energy costs and promote recycling. In turn this should lighten criticism of the packaging industry as wasteful and polluting.
2) Lightweighting and Heavyweighting. Average paperboard materials continue to lighten driven by the need to reduce shipping weights and waste products. Most of the new capacity is said to be coming from Chinese production machines using containerboards of 70 to 160 gsm. Weights have been reduced by 5gsm in Europe. Also the industry has seen new heavyweight products generated with new fluting techniques which can replace double walled with single walled product. They are said to help logistics and handling as well provide extra strength, and even replace wood packs.
3) Internet Shopping. Who could have forecast that the Internet would have a major effect on physical packaging, yet Internet shopping is creating a demand for cardboard packaging. The physical retail store is being bypassed as manufacturers use simple brown cardboard packaging and ship direct to the customer.
Big retailers such as Amazon and Walmart are battling for Internet sales supremacy. New packaging systems and machines automatically measure the product size and create custom packaging using cardboard and shrinkwrap.
4) Printing. The demand for high quality printing is driven by RRP (ready for retail packaging), point of purchase, and merchandising displays. Manufacturers are looking to displays and shelf packaging to increase shelf appeal and brand exposure.
Other Trends in Retail Packaging
There’s much more going in packaging within an integrated marketing sphere. Besides paper packaging benefits, manufacturers still see benefits in coupons, sweepstakes, QR codes, and interactive packaging as excellent ways to stimulate sales.
Corrugate and Coroflot displays are giving designers lots of creative capabilities to design spectacular new POP displays that power up promotional results. If you’re looking for beautiful packaging ideas, best packaging designs, and creative POP displays, we’ve got a bunch for you to view along with some packaging design tips.
Good with your packaging improvements this year.