Food Industry Shipment Growth Expected to Benefit Corrugated Market

The report, "U.S. Corrugated Box End-Use Markets: Analysis and Forecast through 2016," provides forecasts through 2016 for consumer spending, trade, production and corrugated box shipments for 21 specific end-use industries in the food and beverage, nondurable (nonfood), durable goods and nonmanufacturing sectors.
 

According to the RISI report, the food and beverage industry is the largest end-user segment of corrugated boxes in North America, accounting for 51 percent of shipments in 2010. Within the food and beverage category, the study finds that beverages, fresh fruit and vegetables and dairy will see the largest future shipment growth. 
 

“This is opening up opportunities for mini-flute corrugated,” explains Ken Waghorne, RISI vice president, paper packaging, “potentially taking share from markets traditionally dominated by folding cartons.”
 

Following recent economic trends, corrugated box shipments declined at an average annual rate of 0.6 percent, from 2002 to 2011, RISI says. However, the report says, in 2010 corrugated box shipments rebounded, reflecting the resilience of the broader U.S. economy, increasing 3.6 percent over 2009 to a value of more than $24 billion.

RISI says the demand for corrugated boxes traditionally fluctuates with the growth of a wide range of consumer products industries, including both durable and non-durable manufactured goods. As such, trends in corrugated shipments can often be explained by general macroeconomic conditions such as changes in real GDP, consumer spending, international trade and industrial production, and other factors that affect manufactured goods markets, RISI says.
 

According to RISI, opportunities for corrugated in the food and beverage segment will abound as Walmart and other big box retailers remain committed to increasing stocking efficiency and the use of sustainable packaging materials such as corrugated packaging, which is 100 percent recyclable. Corrugated is also cost-effective for transporting and stocking produce, meat and other food products, RISI points out.
 

RISI works with clients in the pulp and paper, wood products, timber, biomass, tissue, nonwovens, printing and publishing industries. More information is available at www.risi.com/enduse.