Folding Carton Market Is Projected To Expand At A 4.84% CAGR from 2017 To 2021

“Market Research and Consulting Company”
Folding cartons are paper-based container boxes used in the packaging of various durable goods. These are a flexible, cost-effective, lightweight, and durable form of packaging, and find extensive application in the packaging of consumer and industrial goods.

The market is driven by increasing demand for folding cartons from the healthcare sector. Demand for frozen/chilled and dry foods from developing economies can bolster market growth during the forecast period. Rise in disposable incomes of consumers in Brazil, China, and India coupled with the demand for quality packaging can positively impact the market.

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Designs in packaging are being experimented to appeal to consumers in various end use sectors. Vendors are attempting to do the same by creating unique and eco-friendly packaging to stand out in the market. Development of special scanners to detect known and unknown contaminants in packaging can positively impact the market for folding carton. Large corporations are launching brand campaigns which encourage the use of sustainable packaging to reduce packaging costs.

Novel printing methods and smart packaging solutions are some of the new trends gaining traction in the market. Folding carton converters are turning to holographic images, Fresnel lenses, and quick response (QR) codes to enhance the security of packaging. Digital printing has come to the forefront with brands leaning on attractive packaging to communicate with consumers. Smart packaging solutions are on an upswing due to continuous developments in printed electronics. However, high cost of raw materials can pose a challenge to market growth.

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The folding carton market is segregated on the basis of end user and region. Major end users in the market include healthcare, personal and household care, food, and others. Regions covered in the market report include Americas, Asia Pacific (APAC), and Europe, Middle East and Africa (EMEA). The APAC folding carton market accounted for nearly 42% share in 2015 and expects to increase the number by the end of the forecast period. This can be credited to China, one of the biggest consumers of folding cartons. Equal credit should be attributed to high demand in the food and beverages sector and advent of new manufacturing technologies.

The Americas market for folding cartons can purportedly experience a steady growth rate mainly due to demand for superior quality packaged foods coupled with expendable incomes in Canada and the U.S. Increasing population in North America, consumption of foods, and demand for packaging solutions are factors predicted to augment market in the forthcoming years. The expansion of industrial sectors in Argentina, Brazil, and Mexico combined with disposable incomes of consumers are expected to propel market growth in South America.

The EMEA folding carton market is projected to maintain a steady growth rate during the forecast period due to high demand for packaging from food and non-food sectors. Germany was one of the strong markets, followed by Italy and U.K. The market is characterized by acquisitions as exemplified by the acquisition of Delta Print and Packaging Limited by HuhtamäkiOyj, a Finnish company, in 2016.

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Some of the key folding carton market players include West Rock Company; Graphic Packaging International, Inc.; Sonoco Products Company; and The Smurfit Kappa Group plc. The market is competitive and fragmented with the presence of several players. Differentiation in quality, service, innovation, design is expected to keep prices economical in the forthcoming years. Large vendors are following inorganic strategies to expand their presence. Mergers and acquisitions can play a major role as evident by the acquisition of Cenveo Packaging by West Rock in January 2016.

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