Industry Trends

North America Paperboard Packaging Market Share was USD 28.13 billion in 2019 and will grow at a CAGR of 3.3% up to 2026.
 

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The North America market size will be experiencing tremendous growth owing to the rising demand for packaged food in the U.S. Shifting consumer preference towards food & beverages products along with increasing expenditure on consumer food will offer growth opportunities. In March 2019, the U.S. consumers spent around USD 57.8 billion on food services. This figure has considerably reduced to USD 42 billion during the same period in 2020. The key reason responsible for this change is the ongoing COVID-19 pandemic, which has resulted in the shutdown of major food processing facilities for a very short period. However, the packaged food sector is projected to recover soon, which will further create product demand post-2021.

Growing penetration of environment-friendly packaging products in the U.S will escalate North America market growth. Major companies in the personal care & cosmetics sector are realizing the potential of sustainable packaging to curb environmental degradation. Recently, Loreal announced that 100% of its products will have an enhanced level of social or environmental profile by the end of 2020. Additionally, the company has reported an average biodegradability rate of more than 90% in its shampoos and shower gels sold in 2018. Such trends are projected to open new avenues for sustainable packaging products in the U.S., thereby driving industry growth.

The presence of a large number of substitute products may hamper revenue generation by 2026. The key substitutes for paperboard are plastic, metal, and glass. These materials are easily available and provide superior aesthetic & gloss to the final product. Plastics have been a preferred choice of material for major food processors, personal care & household companies, and consumer goods manufacturers owing to their better appearance and protective properties. However, presence of stringent government regulatory norms, such as FDA and EPA, will create a need for biodegradable packaging in the long-run. This factor may provide key opportunities to product manufacturers to innovate themselves by 2026.

The fresh (virgin) sources segment is projected to grow at 2.4% CAGR in North America market. This can be attributed to rising consumption of pulpwood in the papermaking sector. Global paper production is estimated to reach approximately 400 million tons in 2018, which is further expected to grow steadily by 2026. Such trends will enhance the usage of fresh sources in the regional paperboard packaging sector by the end of 2026.

The Folding Boxboard (FBB) category is projected to grow at over 3% CAGR from 2020 to 2026. These boxboards are mainly employed to package frozen food, pharmaceutical, and beauty care products. FBB possesses superior stiffness and is considered to be a low-density board.

The food & beverages segment will be accountable for a 50% share in the North America paperboard packaging market owing to the growing penetration of the packaged food segment in the U.S. Growing consumer spending in the U.S. on nutritional products led by changing food patterns is estimated to drive the sales of paperboard products in the region.

The U.S. will witness significant growth by 2026 and is attributed to rising usage of personal care products and growth in food & beverage. The medical sector is also projected to increase its share in the regional market owing to stringent regulatory requirements for pharmaceutical & medical device products. Additionally, external factors, such as the coronavirus pandemic, trade disputes between the U.S. & China, will increase the need for strengthening policies related to food & beverages and pharmaceutical packaging. Such trends will further increase demand for sustainable packaging across the region, which is projected to increase the share of paperboard packaging by 2026.

Some of the key manufacturers considered in the market are Metsa Group, Mondi Plc, International Paper, Oji Holdings, Cascade, Stora Enso, Sappi, DS-Smith, Clearwater Paper, Packaging Corporation of America, Svenska Cellulosa, Smurfit Kappa Group, and BillerudKorsnäs AB.