Research Finds Folding Carton Market Set for Steady Growth
In the face of economic challenges including inflation, the North American folding carton market is poised for positive, albeit gradual, expansion, as outlined in a recent report released by The Paperboard Packaging Council (PPC). The forecast anticipates a steady annual growth rate of 0.4% over the next three years, propelling the market to an impressive 5.4 million tons by 2027.
The 2023-2024 Trends Industry Outlook & Market Data Report highlights the resilience of carton manufacturers, particularly independent converters. These players grapple with pricing challenges, as paperboard prices consistently outpace actual folding carton prices. Despite this, the reseachers remain optimistic about the folding carton market’s growth trajectory.
The report, delving into in-depth analysis across 17 end-use markets, reveals a significant influence from sustainability concerns. Fastmarkets RISI's researchers suggest that trends such as plastic substitution and environmentally friendly packaging will act as a catalyst for the growth of folding cartons. Noteworthy decisions by major fast-food companies and municipalities nationwide also endorse the environmentally friendly profile of paperboard packaging materials.
While the forecast brings mostly sunny news, a shadow looms over capacity in Canada. The report acknowledges the overall positive macroeconomic environment in Canada, yet it cautions about the planned closure of a paperboard mill in 2026. This closure is anticipated to reduce Canadian folding paperboard capacity by nearly 30%, impacting the production and shipment of folding cartons in the region.
Remarking on the report, Ben Markens, president of PPC, said in a written comment, "As we navigate the intricacies of economic recovery and evolving consumer behaviors, this report empowers converters with the insights necessary to make strategic decisions and foster innovation within the paperboard packaging sector.”
PPC members can access the full 140-page report and explore detailed findings at paperbox.org/trends. A free summary is also available for non-members.
