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The corrugated box market has a strong demand outlook, and it will not disappear regardless of economic recession or inflation

2023-11-23

In the sluggish market, the demand outlook for corrugated boxes remains strong and will not be affected by economic recession, inflation or high interest rates. The demand growth of corrugated packaging is mainly driven by consumer spending. With the increase of residents' income and the strengthening of consumerism, the demand for packaging and packaging products will maintain healthy growth. In addition, corrugated packaging is a form of environmentally friendly, sustainable packaging, so in the context of increasing consumer demand for compostable and sustainable packaging in the new era, corrugated packaging has advantages.

The demand outlook for the corrugated box market is very strong. Whether it is in a sluggish market environment or in the case of economic recession, inflation or high interest rates, the demand for corrugated packaging in the market will not disappear. According to statistics, the annual growth rate of corrugated packaging exceeds 10%, and in the near future, this growth rate will remain almost unchanged.https://www.risedongsheng.com/

The demand growth of corrugated boxes is mainly driven by consumer spending. With the increase of residents' income and the strengthening of consumerism, the increasing consumer preference for ready-to-use products for daily needs, as well as the general preference for better display, will lead to a healthy growth in the demand for upgraded display of packaging and packaging products. Therefore, regardless of the economic situation, the demand for corrugated packaging will maintain a steady growth trend.

In the new era, the increasing consumer demand for compostable and sustainable packaging has also had a positive impact on corrugated packaging. Corrugated boxes can almost be considered one of the most sustainable packaging, almost 90% of the materials it uses can be recycled into new paper, and very little goes to landfills. In addition, the corrugated packaging industry is moving towards miniaturization and lightweighting, which may have some impact on tonnage, but little impact on the value of corrugated boxes. Technological innovation will protect the position of corrugated box manufacturers in the packaging industry.https://www.risedongsheng.com/

However, for kraft and double-sided paper mills across India, they have been hit hard by overcapacity and falling exports. This is mainly due to factors such as the low quality of Indian paper and the extremely low capacity of factories to meet export demand. At the same time, new packaging capacity in South East Asia, China and the Gulf Cooperation Council has also reduced India's paper exports. Therefore, this export decline trend is likely to continue.

As Vice President of the International Corrugated Box Association (ICCA), I have been dedicated to driving the growth of paper packaging worldwide and have been actively involved in many associations in India and globally. I see the growth trend in the global paper packaging industry as positive, with new ones emerging all over the world Packaging paper mills and carton mills. The demand in the Chinese market has experienced some fluctuations, but now the situation has normalized and demand growth has slowed down. At the same time, ASEAN countries have always been a market with insufficient paper capacity and the quality of paper they produce is better, so Indian mills have no potential in the ASEAN market. The market for Indian paper mills is mainly concentrated in the Indian subcontinent and the Middle East, but the volume involved is relatively small.https://www.risedongsheng.com/

Overall, the demand and supply of the global paper packaging market are gradually coming into balance, but there are still some problems of overcapacity. However, the corrugated box industry, as one of the most environmentally friendly and sustainable packaging, still has a good market prospect. In the central region of India, the demand for corrugated boxes has shown a strong appeal as it not only meets consumer demand for packaging, but also has environmentally friendly and socially acceptable characteristics. With the increasing awareness of environmental protection and the promotion of sustainable development, the requirements for packaging are becoming higher and higher.

Therefore, although new packaging capacity in South East Asia, China and the Gulf Cooperation Council has reduced India's paper exports, the corrugated box market still has a lot of growth potential. Moreover, as an environmentally friendly packaging form, corrugated boxes can also give enterprises a competitive advantage while meeting the needs of sustainable packaging. Therefore, I am optimistic about the prospects of the corrugated box market and will continue to work on driving the development and innovation of the industry.https://www.risedongsheng.com/

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