High Impact Corrugated Boxes Market Trends

Market Driver - Rising Demand for High Impact Corrugated Boxes on E-commerce

The growing popularity of online shopping and e-commerce platforms across the globe has created a massive demand for durable packaging solutions. High impact corrugated boxes have emerged as the preferred choice for packaging and shipping various products through online channels.

Rise of global online retail giants and increasing transparency in delivery has made customers more demanding about packaging experience. They expect their purchases to reach intact without any damages or inconveniences. This pushes e-commerce companies to rely on robust, yet cost-effective corrugated packaging solutions. Their preference for sustainable products also benefits corrugated which can be recycled multiple times.

With online shopping projected to grow exponentially worldwide, the demand for rigid, high impact corrugated boxes is poised to increase substantially in the coming years. This will eventually drive growth of the high impact corrugated boxes market.

Market Driver - Increasing Preference for Sustainable Packaging Solutions

Transportation and logistics networks worldwide produce massive amounts of plastic and paper waste every year. This has brought sustainability to the forefront as a major consideration for packaging purchases. Companies in the high impact corrugated boxes market increasingly recognize their responsibility to use environment-friendly options. Among various materials available, corrugated stands out as one of the most sustainable choices for packaging.

Furthermore, high impact corrugated boxes have a high recycling rate with over 85% of them being reused or recycled after use. The paper fibers can be broken down and remolded repeatedly into new corrugated sheets with minimal quality degradation. This circular life cycle of corrugated reduces landfill waste and carbon footprint.

High impact corrugated boxes provide all the protection and durability expected from packaging with fully sustainable and recyclable composition. Their long shelf-life ensures maximum uses before disposal or recycling. This has augmented the boxes’ appeal as an eco-friendly substitute for other materials across industries, driving growth of the high impact corrugated boxes market.

Market Challenge - Fluctuating Raw Material Costs, Making Production More Expensive

Prices of raw materials used for manufacturing corrugated boxes such as linerboard, containerboard, and kraft paper are determined by the fluctuations in wood pulp and virgin fiber costs. These raw materials heavily rely on wood pulp produced from softwood and hardwood trees, creating a hurdle for players in the high impact corrugated boxes market.

The costs of wood pulp are dependent on various environmental and economic factors such as timber harvesting costs, demand and supply forces, freight rates, and currency exchange rates. As witnessed over the past couple of years, changes in these factors have led to significant volatility in wood pulp costs across different regions.

Additionally, the prices of virgin fibers used for manufacturing liner and containerboard are also influenced by crude oil rates as these are produced from petroleum-based resources. It also affects manufacturers’ capability to offer competitive prices to brand owners without compromising margins. This volatility in input costs tends to reduce the profitability of corrugated box suppliers, posing a big challenge in the high impact corrugated boxes market.

Market Opportunity - Expanding Demand for Eco-Friendly, Recyclable, and Biodegradable Corrugated Boxes

There is growing consumer awareness about environmental protection and sustainability across the globe. Corrugated boxes have a distinctive advantage as they can be recycled and also break down completely when discarded. Their renewable and sustainable nature forms a strong value proposition for brands targeting environmentally-conscious customers.

Manufacturers in the high impact corrugated boxes market are innovating new product lines created from recycled content or biodegradable materials. They are promoting properties like recyclability, reuse, and compostability of high impact corrugated boxes. Offerings compatible with the circular economy principles are enabling players in the high impact corrugated boxes market to strengthen their positions and improve sales revenues.