Food Contact Paper & Board Market - Forecast(2023 - 2028)

Food Contact Paper & Board Market Overview

The Food Contact Paper and Board Market size is forecast to reach US$ 92.5 billion by 2027, after growing at a CAGR of 5% during the forecast period (2022-2027). Food contact paper and board can be categorized into a wide range of product types which include kraft paper, greaseproof paper, parchment paper, label paper, solid bleached sulfate paperboard, coated unbleached kraft paperboard, coated recycled paperboard, non-blending chipboard, folding boxboard, white lined chipboard, and other similar types. According to recent insights published on Interpack in 2020, the global packaging sector is expected to grow by an annual rate of 3.5% within the next four years. An increase in demand for paper packaging from food and beverage industries along with stringent government regulations regarding the use of plastics acts as the major driver for the market. On the other hand, the availability of substitutes is likely to obstruct the market and hinder its growth.

COVID-19 Impact

There is no doubt that the COVID-19 lockdown has significantly reduced manufacturing, and production activities as a result of the country-wise shutdown of manufacturing sites, shortage of labor, and the decline of the supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of raw materials in 2020 due to a lack of operations across multiple countries around the world. However, the COVID-19 pandemic has increased the demand for packaging all over the world. For instance, recent insights from Flexible Packaging state that the food packaging industry witnessed a sharp increase in demand during the pandemic due to a high number of consumers turning to online groceries shopping. By the end of 2021, U.S. online grocery sales reached up to 12.4% of the country’s overall e-commerce sales. It further states that the U.S. digital grocery buyers grew up to 137.9 million in 2021, representing a growth of 4.8% in comparison to 2020. Supermarkets witnessed a huge surge in demand for paper packaging materials for the wrapping of food and other grocery products.

In this way, a steady increase in food production, and distribution activities are expected to increase the demand for paper and board such as greaseproof paper, label paper, solid bleached sulfate paperboard, coated unbleached kraft paperboard, and more required for packaging of such food and supplies, which indicates a steady recovery of the market in the upcoming years.

Report Coverage

The report: “Food Contact Paper & Board Market Report– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Food Contact Paper and Board Industry.

By Product Type: Kraft Paper, Greaseproof Paper, Parchment Paper, Label Paper, Solid Bleached Sulfate Paperboard, Solid Unbleached Sulfate Paperboard, Coated Unbleached Kraft Paperboard, Coated Recycled Paperboard, Non-Blending Chipboard, Folding Boxboard, White Lined Chipboard, Others.
By Packaging Type: Corrugated Boxes, Boxboard or Paperboard Cartons, Paper Bags and Sacks, Others.
By Pulping Method: Mechanical Pulping, Chemical Pulping, Semi-Chemical, Chemical-Mechanical, Others.
By Application: Bakery and Confectionery, Dairy Products, Fruits and Vegetables, Instant Meals, Others.
By Geography: North America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa).

Key Takeaways

• White lined chipboard held a significant share in the Food Contact Paper and Board market in 2021. Its wide range of characteristics, durability, and operational efficiency made it stand out in comparison to other product types in the market.
• Paper and paper boards are made from a natural renewable resource, are biodegradable and easily recyclable in nature, and are quite versatile in terms of capabilities, design, and printing quality in comparison to plastics, wood, and other types of materials. All of these properties make them ideal for use in the packaging of food products.
• North America dominated the Food Contact Paper and Board Market in 2021, owing to the increasing demand for paper and board from the food sector of the region. For instance, in October 2021, Nestle invested around US$ 550 million in the development of a new food processing facility in Ohio, U.S. The new facility is expected to increase the company’s production capacity and is scheduled to be completed by the end of 2023.

Figure: North America Food Contact Paper and Board Market Revenue, 2021-2027 (US$ Million)

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Food Contact Paper & Board Market Segment Analysis – By Product Type

The white lined chipboard segment held a significant share in the Food Contact Paper and Board in 2021, owing to its increasing demand due to the characteristics and benefits it offers over other product types. For instance, white lined chipboard is much thinner, consumes less space, and can be easily shaped and formed in comparison to coated unbleached kraft paperboard, folding boxboard, and other product types. Moreover, the density of white lined chipboard gives it superior strength and provides a packaging material that is less prone to damage as compared to unbleached kraft paperboard, folding boxboard, and other product types. Furthermore, white lined chipboard is comparatively cheaper, owing to the simplicity of its production process, while offering greater protection and strength. Thus, all of these benefits are driving its demand for use in food packaging, which in turn, is expected to boost the market growth in the upcoming years.

Food Contact Paper & Board Market Segment Analysis – By Packaging Type

The boxboard or paperboard cartons held the largest share in the Food Contact Paper and Board Market in 2021 and it is expected to grow at a CAGR of 5.2% between 2022 and 2027, owing to its increasing demand for packaging of food products due to the properties they hold. Boxboard or paperboard cartons are highly flexible, adaptable, and can be easily cut to any shape or size as per the requirements in comparison to other packaging types. They can store a wide variety of food products from bakery products to dairy products, and even fruits and vegetables. Moreover, boxboard or paperboard cartons are designed with high quality and sturdy materials, which makes them capable to withstand any form of abrasion or pressure. Thus it provides better protection of the food products and ensures convenient and safe delivery of food products from one destination to another. Furthermore, they are lightweight, cost-effective, and readily available in comparison to other types of packaging. Hence, all of these properties are driving its demand over other types of packaging for food products, thus, boosting the market growth during the forecast period.

Food Contact Paper & Board Market Segment Analysis – By Geography

North America held the largest share in the Food Contact Paper and Board Market in 2021 up to 35%. The consumption of paper and board is particularly high in this region due to its increasing demand from the food sector. For instance, in September 2021, Tyson Foods invested US$ 300 million to build a 325,000 square foot food manufacturing facility in Virginia, U.S. The facility is expected to be completed in 2023. In October 2021, Nestle invested around US$ 550 million in the development of a new food processing facility in Ohio, U.S. The new facility is expected to increase the company’s food production capacity and is scheduled to be completed by the end of 2023. Furthermore, in April 2021, Cargill invested around US$ 350 million to build a new food processing facility in Regina, Canada. The project is scheduled to begin in early 2022 and it is expected to become operational by 2024.

In this way, such increasing production of food products is expected to increase the demand for paper and board for packaging of such food products, owing to its low cost, wide availability, excellent printability, light-weight, and sustainability. This is expected to accelerate the growth of the Food Contact Paper and Board Market during the forecast period.

Food Contact Paper & Board Market Drivers

An increase in demand from the food and beverage industry is most likely to increase demand for the product

According to PMMI (The Association for Packaging and Processing), the North American beverage industry is expected to increase by 4.5% from 2018 to 2028, with the United States leading the beverage packaging sector. Likewise, recent insights from the Packaging Federation of the United Kingdom state that the UK packaging manufacturing industry reached an annual sales of GBP 11 billion (US$ 15.2 billion) in 2020, owing to the increasing demand for packaging from multiple sectors including food & beverage sector of the region. Furthermore, according to a recent study published on Interpack, the consumption of food packaging is expected to increase to 447,066 million in 2023. Likewise, it also states that the Chinese packaging companies such as 3D, SIP, and WLCSP alone achieved a revenue of around US$ 5.88 billion with end packaging.

Paper and board such as greaseproof paper, label paper, solid bleached sulfate paperboard, coated unbleached kraft paperboard, and more are primarily used for packaging in the food and beverage sectors, owing to their wide range of properties such as biodegradability, recyclability, versatility, lower cost, wide availability, excellent printability, light-weight, and sustainability. Thus, an increase in demand for food and beverage paper packaging is expected to drive the growth of the Food Contact Paper and Board Market in the upcoming years.

Stringent government regulations regarding the use of plastics are most likely to increase demand for the product

Strict governmental regulations associated with the use of plastics, owing to their adverse impact on the environment are likely to drive the demand for paper packaging across the world. In April 2021, the Australian Capital Territory (ACT) Legislation Register reported the Plastic Reduction Act 2021 (ACT), with the relevant bill having been passed by the ACT Legislative Assembly on March 31, 2021. The legislation aims at reducing the use of plastic in the ACT, specifically single-use plastic used in soda, water bottles, and other food packaging, by eliminating the supply of identified single-use plastic items. In August 2021, the Government of India launched the Plastic Waste Management Amendment Rules, 2021, which prohibits identified single-use plastic items that have low utility and high littering potential by the end of 2022. Furthermore, in July 2021, the Directive on Single-Use Plastics took effect in the European Union (EU). The directive bans certain single-use plastics for which alternatives are available. Thus, such strict regulations regarding the use of plastics in multiple regions across the world are expected to increase the demand for paper and board for the packaging of food and beverage products. This will further drive the growth of the market in the upcoming years.

Food Contact Paper & Board Market Challenges

Availability of substitutes may cause an obstruction to the market growth

There is a wide range of substitutes available for paper and paperboard for food packaging in the market, which include wooden boards, bamboo boards, aluminum containers, steel containers, and more. They also offer a range of benefits which include free fumigation, high bearing capacity, and strong impact resistance along with waterproofing, anti-insect, and mildew proofing properties. Moreover, such substitutes also offer a strong structure and high flexibility. In addition to this, some of the substitutes are also recyclable in nature, easier to maintain and repair, and offer competitive prices. Thus, such availability of other substitutes may confine the growth of the market.

Food Contact Paper & Board Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Food Contact Paper and Board Market. Food Contact Paper and Board top 10 companies are:

1. Mondi Group
2. Westrock Company
3. Georgia-Pacific LLC
4. Twin River Paper Company
5. Nippon Paper Group
6. Ahlstrom-Munksjo
7. GM Packaging (UK) Ltd
8. Superiorpaper Pty Ltd
9. TopCare
10. KRPA Holding CZ, A.S.

Recent Development

• In January 2022, JK Paper commenced the operations of its new packaging board plant. The new plant will increase the capacity of the packaging board by 170 million tons per year and take the company’s overall production capacity to approx. 780 million tons per year.
• In June 2021, Mondi Group, a company specializing in packaging and paper, launched a new wrapping system for pallets called StretchWrap that use paper instead of plastic. Some of the benefits of StretchWrap include a reduction in the supply chain’s reliance on plastic while moving towards a renewable and completely recyclable material.
• In April 2019, Sappi Limited launched its Atelier Paperboard with the slogan “brilliance meets function.” Its new paperboard is an extremely effective solution for packaging products.

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