The global micro flute paper market size is expected to surge at a CAGR of 5.1% during the forecast period 2023 to 2033. The market value is projected to increase from US$ 2,658 million in 2023 to US$ 4,370 million by 2033.
The total sales of micro flute paper were valued at US$ 2,526 billion globally at the end of 2022. It is anticipated to exhibit a y-o-y growth of 5.2% in 2023. The food & beverage segment by end-use is poised to account for over 60% of market share in terms of value by the end of 2022 globally.
E flute micro flute papers, occupying around 2/3rd of the market, are anticipated to dominate the global micro flute paper industry based on product type. The segment is expected to rise at a CAGR of about 4.9% over the forecast period.
The market for micro flute paper is expected to experience a lucrative growth outlook during the assessment period. A new estimation predicts that sales of the micro flute paper market will rise from 2023 to 2033 and are projected to create a total financial potential of US$ 1,844.3 million. The market is predicted to expand 1.6x times the current value during the forecast period.
Micro Flute Paper Market Trends and Analysis
· Rising demand for lightweight and recyclable packaging solutions amid growing awareness of environmental pollution is a leading trend.
· The booming e-commerce industry is projected to augment demand as it requires affordable packaging materials with lightweight properties.
· The surging demand for customized and creative packaging designs among marketers and brand owners with advancements in printing technology would drive growth.
· Surging consumer spending, changing lifestyles, and rapid urbanization are anticipated to propel the packaging sector.
· Companies are expected to print high-quality graphics on micro flute paper to provide unique products, convey apt brand messages, and enhance visibility
Key Dynamics of Micro Flute Paper Market
· Increasing Demand for Shelf-ready Packaging to Push Sales
· Retail-ready packaging (RRP), shelf-ready packaging (SRP), and point-of-purchase (POP) displays are increasingly being preferred in supermarkets, hypermarkets, and retail stores.
· Products that are packed in SRP or RRP can be easily placed without the need for additional packaging or repackaging, and hence, it proves to be cost-effective.
· Eye-catching product presentation through SRP enhances the visibility of the product.
· It helps to increase sales of the product by around 70%, as it is a complete approach for the replenishment of the shelf and improvement in supply chain efficiency.
· Retail-ready packaging is manufactured from micro fluted corrugated paper shipping boxes, which have less thickness but high rigidity.
· Most of the RRP packaging consists of E, F, or N-type flute, which has a good printing surface quality and caters to most end-users.
· Owing to several benefits, such as lightweight packaging and superior surface quality, the increasing demand for SRP or RRP is anticipated to drive growth in the global micro flute paper market.
Country-wise Insights
The section below highlights the CAGRs of the leading countries in the ultraflute paper market. The three main countries in the region include India, China, and the United States. According to the micro corrugated board analysis, India is set to lead the demand for the micro flute paper market by showcasing a CAGR of 6.9% in the forecast period. The country is anticipated to be followed by China and the United States, with CAGRs of 6.6% and 5.1%, respectively.
Food and Beverage Firms in the United States Demand Corrugated Cardboard
The growth of the micro flute paper market will likely increase at a CAGR of 5.1% during the forecast period in the United States, in contrast to the CAGR of 4.1% exhibited during the historical period.
The growth is mainly driven by the consistent packaging innovations in the food & beverage industry across the United States. An increasing number of businesses and consumers looking for eco-friendly packaging solutions would also augment demand.
For instance, in a study conducted by the World Wildlife Fund (WWF), searches pertaining to sustainable goods increased by over 70% in the last five years. The demand is estimated to be further driven by regulatory changes aimed at reducing the use of non-recyclable packaging materials. The growing awareness of environmental issues among consumers is expected to drive demand.
Corrugated Paperboard Demand Surges in India with Strict Packaging Norms
India’s micro flute paper market is estimated to showcase a CAGR of 6.9% in the assessment period. It expanded at a decent CAGR of 4.8% in the historical period.
The growth is mainly in conjecture with the flourishing food & beverage industry in India. It is expected to consistently grow in the forecast years, driven by factors such as population growth, rising disposable income, and changing dietary habits. According to data from the National Restaurant Association of India (NRAI), the country’s food & beverage industry is growing at over 10% per annum.
The government of India has also implemented regulations aimed at reducing the use of single-use plastics. It will likely boost demand for alternative packaging materials such as micro flute paper.
E-commerce Boom in China Calls Out for Environmental Paper Products
China’s micro flute paper market is expected to witness a CAGR of around 6.6% from 2023 to 2033. It grew at an average CAGR of 4.8% from 2018 to 2022.
The demand for micro-corrugation paper in China is projected to surge at a fast pace through 2033. This growth is attributed to the ongoing e-commerce activities in the country. The rising shift of modern consumers toward online shopping is set to augment the need for lightweight corrugated paper as it is environmentally friendly and lightweight.
As per the International Trade Administration, China surpassed the United States as the top e-commerce market in 2021, bringing in US$ 1.5 trillion in revenue. In 2021, the nation’s cross-border e-commerce imports and exports reached US$ 273 billion, a 15% rise.
Canada Shows High Demand for Eco-friendly Paper from Retail Sector
The growth of the micro flute paper market will likely increase at a CAGR of 4.9% during the forecast period in Canada, in contrast to the CAGR of 2.5% exhibited during the historical period.
Ongoing expansion of the retail sector in Canada, including the development of shopping malls and brick-and-mortar stores, is projected to drive demand for fluted paper products. As the retail sector provides a wide range of products with varying packaging needs, micro flute paper demand would surge. Increasing demand for consumer goods and electronics is expected to push the need for sustainable packaging, such as lightweight corrugated paper.
Recycling Infrastructure in Germany Pushes Paperboard Packaging Demand
Germany’s micro flute paper market is projected to accelerate at a CAGR of 3.1% in the estimated period. The country expanded at a CAGR of 3.0% during the historical period.
Consumers across Germany are anticipated to mainly focus on using organic and sustainable packaging solutions. Hence, they are moving toward paperboard packaging, including micro flute paper, as it helps attract more eco-conscious consumers.
Germany also has an efficient and established recycling infrastructure, which would accelerate micro flute paper sales. Government agencies in the country are encouraging companies to use paper-based packaging solutions as these can be easily recycled.
Competitive Landscape
The global micro flute paper market is highly competitive, with the top players accounting for only 8 to 12% of the share. In order to maintain their position and gain a competitive edge in the market, key players are implementing several strategies. They are expanding their reach globally, diversifying their product portfolio, upgrading their supplier & distributor networks, and making rapid product developments.
Their actions are not only helping the key players maintain their market share but are also creating a ripple effect that is shaping the entire industry. With a highly competitive paper market, the pressure is on manufacturers to constantly innovate and improve their products, which is driving advancements in the micro flute paper business.
The implementation of growth strategies by key companies is resulting in a highly competitive and innovative industry. It is helping to deliver more advanced and sustainable packaging solutions for consumers worldwide.
Paperboard Packaging Market Developments
· In May 2023, DS Smith plc announced an investment of around US$ 12 million for the expansion of its production plant in A Pobra do Caramiñal. The expansion will add 6,000 square meters to the site, taking the overall capacity to 17,000 square meters.
· In July 2023, Smurfit Kappa Group announced the inauguration of its first corrugated plant in North Africa, in Rabat, Morocco. The group invested over US$ 35 million in the new facility, which is around 25,000 square meters.
· In July 2023, Mondi Plc announced the acquisition of the Hinton Pulp mill in Canada, which boasts of an annual capacity of around 250,000 tons.