Demand for corrugated and paperboard boxes in the US is projected to
increase 2.3 percent annually to $36.5 billion in 2016, boosted
by an overall strengthening of the US economy following the 2007-2009
recession. In particular, growth will benefit from expanded food,
beverage and durable goods output, as well as from a rebound in construction
spending, which will stimulate demand for goods and materials (and their
related boxes) used in construction applications. Gains will also be
helped by a trend toward more expensive boxes, such as corrugated boxes and
folding cartons that offer high-quality graphics and printing. Other
value-added box types, such as those that are retail- or shelf-ready, are also
expected to gain ground. Food and beverages, which accounted for 50
percent of total US box demand in 2011, are the largest single box
market. These and other trends, including market share and product
segmentation, are presented in Corrugated
& Paperboard Boxes, a new study from The Freedonia Group, Inc.,
a Cleveland-based industry market research firm.
Corrugated and solid fiber box demand is forecast to climb 2.5 percent
per year through 2016 to $26.1 billion, supported by a rebound
in manufacturing activity and accelerated growth in consumer spending. In
addition, corrugated and solid fiber box demand will be supported by their
well-entrenched position as the shipping container of choice in a number of
markets as a result of their cost-effectiveness, excellent protective
performance and limited competition from other packaging alternatives.
Demand for folding paperboard boxes is expected to increase 1.7 percent
per year to $9.8 billion in 2016, trailing the corrugated box
pace as a result of strong competition from other packaging formats -- mainly
flexible packaging and mini-flute corrugated boxes. Source reduction
efforts -- such as the elimination or downsizing of secondary cartons -- will
also limit advances. Nonetheless, gains will benefit from a rebound in
nondurable goods output and continued use in many markets because of their low
cost, functionality and ability to provide considerable billboard space for
eye-catching graphics and printing. Set-up box demand will increase
modestly due to inroads by less costly options like folding cartons and plastic
containers, but will benefit from usage as upscale packaging for premium confectionery
products and fragrances.
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.
