Demand for Corrugated and Paperboard Boxes to Rise

Demand for corrugated and paperboard boxes is expected to rise 2.5 percent annually through 2012 to $39.9 billion, with gains driven by an increase in the production of both nondurable and durable goods, according to a market report by Cleveland-based research firm the Freedonia Group.

Sales of corrugated and solid fiber boxes, which accounted for more than 70 percent of demand in 2007, will increase 2.7 percent annually through 2012 to $28.8 billion. Growth will be based on their well-entrenched position as low-cost shipping containers in virtually all manufacturing sectors. Demand will also be supported by the good environmental profile of corrugated boxes, which will become increasingly advantageous as interest in sustainable packaging continues to rise.

Folding paperboard box demand will increase 1.7 percent annually through 2012 to $10.5, slower than corrugated box growth as folding cartons face heightened competition in many markets from alternative packaging, such as pouches, clamshells and blister packs.

Food and beverages will remain the largest market for boxes, according to the Freedonia Group’s study, accounting for more than 40 percent of demand in 2012. Favorable growth will be registered in markets such as beverages, meat products, fresh produce and frozen foods.

The full study, “Corrugated and Paperboard Boxes,” is available for purchase through the Freedonia Group at www.freedoniagroup.com.