Box demand climbs higher

By Staff -- Modern Materials Handling, 3/1/2006

Demand for corrugated and paperboard boxes is projected to climb 2.1% per year through 2009, rebounding from weak growth during the 1999-2004 period, according to The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Increases in manufacturing of finished goods is driving that growth, which is historically low due to inroads by plastics and other packaging materials.

In "Corrugated & Paperboard Boxes," Freedonia asserts that gains will be bolstered by the shift toward high-quality printing and graphics on boxes, as packaging suppliers continue to focus on aesthetics as a means of competing with alternative packaging materials.

Corrugated and solid fiber boxes, which account for nearly 70% of consumption, will see the best opportunities for growth. Although facing competition in several areas, including reusable plastic containers for fresh produce applications in particular, corrugated boxes will largely maintain market share due to the low cost and the ease of recycling.

The report says folding paperboard box demand will increase modestly through 2009, accelerating from the 1999-2004 period but be restricted by intense competition from alternative packaging. Folding cartons will benefit from advances in printing and paperboard graphics capabilities as well as a positive environmental image. Set-up box demand will continue to decline as product manufacturers seek lower-priced alternatives, although these boxes will maintain a strong presence in strategic markets.

Food and beverages will remain the largest market for boxes, comprising more than 40% of corrugated and folding paperboard box demand in 2009. Advances will be fueled by popular products such as beer and soft drink beverage carriers, as well as solid growth in shipments of food products such as dairy and fresh produce. Boxes for chemical products are also expected to see healthy growth, as pharmaceuticals in particular focus on high-value boxes-to-market products.