Despite challenges like inflation as well as economic uncertainty, the 2023-2024 Trends Industry Outlook & Market Data report rolled out by the Paperboard Packaging Council goes on to forecast positive but slow growth when it comes to folding cartons. Apparently, the market is slated to take advantage of the opportunity of an annual growth of 0.4% through the next three years, thereby reaching 5.4 million tons by 2027.
Economic Issues
Carton manufacturers, specifically the independent converters, happen to be facing pricing challenges since paperboard prices consistently go on to outpace actual folding carton prices. The report goes on to offer a detailed analysis when it comes to economic dynamics that happen to be affecting the industry.
Sustainability Triumphs
Plastic substitution, along with environmentally friendly packaging trends, must go on to offer a tailwind when it comes to carton growth through the forecast. As a matter of fact, the recent decisions made by some of the largest fast-food companies as well as the municipalities throughout the country suggest that paperboard packaging materials are all set to benefit by way of their environmentally friendly profile.
Decreased Capacity in Canada
The macroeconomic environment across Canada throughout the forecast period will go on to support the progress made in carton shipment. But the planned closure when it comes to a carton board mill in 2026 will as well decrease Canadian folding carton board capacity by almost 30%. This will, as a matter of fact, incredibly lessen the number of folding cartons that can be generated and also shipped in Canada.
Apart from the forecasts for the entire folding carton market, the report goes on to evaluate 17 key end-use segments, such as confectionery, beverage, dairy, pharmaceuticals, cosmetics, dry foods, and retail carry-out. In 2024, around four categories happened to get classified as growing markets, nine as mature ones, and four as the ones that are declining.
According to the PPC President, Ben Markens, the 2023-2024 Trends Report offers their members as well as the industry critical insights into the present market landscape along with future trends. He adds that as they navigate the intricacies when it comes to economic recovery along with changing consumer behaviors, this report goes on to equip converters with the knowledge required so as to make strategic decisions and also drive innovation in the paperboard packaging landscape.
