State of the Folding Carton Industry 2016: Possibility Becoming Reality

It wasn’t long ago that the idea of a digitally printed folding carton was just that — an idea. Nor has a substantial amount of time passed since finishing applications were relatively simple, or when laser diecutting would have seemed like something out of science fiction. Today, however, techniques and technologies that were once nonexistent or wildly cost-prohibitive are becoming industry norms. What was only a possibility for folding cartons in the past has now become reality.

This technological “coming of age” comes at a great time, as demand for folding cartons remains stable and strong. According to the upcoming 2016 Trends: Industry Outlook and Market Data Report, prepared by RISI exclusively for Paperboard Packaging Council (PPC) members, carton shipments are expected to grow 0.7% in 2017 and then accelerate to 1.7% in 2018. Looking to the long term, average annual shipment growth should clock in at a steady 0.5% between 2016 and 2020.

In a market with slow yet steady growth, carton converters must do all they can to increase efficiencies and produce exemplary packaging that not only protects but also markets consumer goods. Technology is helping on both fronts. Here is how we see cartons and carton converting changing and growing through 2016 and beyond.

Champion the Brand

Brand owners and marketers in today’s cluttered retail environment are leaning on packaging to allure consumers more than ever before. Because brands are trying to reach consumers on a personal level, cartons are being designed so that they speak directly to them with playful, colorful design and casual messaging. Although cartons are still fulfilling their duties in terms of product protection and efficient shipping, it seems clear that their marketing capabilities are being leveraged most in today’s retail space, meaning the idea of the plain brown box is long gone.

For example, during this year’s North American Paperboard Packaging Competition we saw many entries that utilized multiple finishing effects on the same carton. An entry may have had lush, vat dyed board, soft touch coating and embossing. These finishing combinations made for stunning, complex cartons that amped up the “wow” factor and blurred the distinction between packaging and art. Now more than ever, the folding carton is a brand champion, enticing consumers and driving sales.

So, where will cartons fly off the shelves? According to Trends, the demand for folding cartons is slated to grow at least 1% per year in four end-use segments.

The beverage market is predicted to be a growth area for the folding carton industry.

Cosmetics will see growth as consumers continue to recover and spend more on luxury items. Largely fueled by the Millennial preference for on-the-go eating, demand for retail carryout cartons will also see an uptick. The large aging population of baby boomers will increase demand for cartons in the pharmaceuticals category. And finally, beverage — a tried and true category for cartons — will also grow.

Going Mobile

One needn’t look further than the recent Pokémon Go phenomenon to see just how mobile technology has impacted our culture. Gamers are taking to the streets where they can capture the iconic creatures, superimposed onto the real landscape by their smartphones. An increasingly ubiquitous phenomenon, mobile technology is also changing the carton industry, both for consumers as well as converters.

Some converters are incorporating cut-away paperboard viewers into their designs that give consumers a virtual reality experience with Google’s Cardboard mobile app. With the app running, consumers slide their phones into the viewer, and when wearing it, are transported into stunning virtual worlds. This allows for a level of interactivity between paperboard and the consumer never quite seen before.

Mobile is also changing quality control and machine monitoring during the converting process. Thanks to new cloud-based reporting programs integrated into equipment’s quality assurance monitoring systems, converters can receive real-time data to their mobile devices on almost any aspect of the converting process from production machine speeds to defect alerts. Even when away from the shop floor, carton converters are ensuring product quality and machine effectiveness. This means less down time, more productivity and happier customers.

Enter Digital

A recent PPC Technical & Production workshop featured panel discussions from carton converters who were already using digital technology and those who purchased technology at drupa 2016. The overall sentiment: digital is giving carton converters more flexibility to take on new jobs as well as a new avenue for servicing current customers.

For example, only a few years ago, start-ups and other innovators who required a small amount of high quality folding cartons would have had a hard time finding a supplier. However, today is a different story as digital printing, which doesn’t require a new plate for each job, is increasing throughout the industry. Today, small businesses, such as microbreweries, may be able to purchase as few as 50 cartons per order. Since the demand for short-run orders is only increasing, digital printing should allow converters to profitably take on many new jobs over the coming years.

Digital, however, doesn’t come without its own complications. Many converters on PPC’s technical panel stated that with the influx of new, small jobs, they experienced bottlenecks in postpress after adopting digital. Additionally, converters may also need to consider new ways to manage prepress processes like order intake and scheduling.

Another complexity to consider when it comes to digital is that cartons are now being produced by more than just traditional converters. With the help of digital technology, commercial printers and contract packagers are entering the folding carton space. Although they will likely have difficulty — carton converting is a complex craft that traditional carton manufacturers have mastered — this increased competition should ultimately force innovation and open up even more possibilities in the carton market.

From the converting plant to the store shelf, folding cartons are evolving and processes are becoming more complex yet more efficient. Here at PPC, we see no stop to such advancement, and we are eagerly awaiting the next big step. It truly is an exciting time for folding cartons.