Paperboard Market to Worth USD 71 billion by 2030, with Booming E-commerce Industry
NEW YORK, Jan. 17, 2023 (GLOBE NEWSWIRE) -- IndexBox's recent report on the global paperboard market highlights the following key points.Global Paperboard Market OverviewThe global paperboard market…
NEW YORK, Jan. 17, 2023 (GLOBE NEWSWIRE) -- IndexBox's recent report on the global paperboard market highlights the following key points.
Global Paperboard Market Overview
The global paperboard market is expected to grow from $53B in 2022 to $71B in 2030 at a CAGR of around 3.7% during the forecast period. The growing popularity of e-commerce platforms and the increasing number of online shoppers are some of the key factors driving the growth of the paperboard market. In addition, the growing demand for sustainable and recyclable packaging is another factor fueling the market growth.
However, the high cost of raw materials is a major challenge restraining the market growth. In addition, volatile prices of raw materials such as pulp and paperboard are another challenge faced by paperboard manufacturers.
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The Asia-Pacific region is the largest market for paperboard, with China being the largest consumer. The region is expected to witness the highest growth during the forecast period owing to the expanding food & beverage and e-commerce industries in countries such as India and China. North America is another major market for paperboard, with the US being the largest consumer in the region.
Paperboard Industry Value Chain
The paperboard industry value chain consists of suppliers of raw materials such as wood pulp and recycled fiber, paperboard manufacturers and converters, and end-use industries. The suppliers are responsible for providing the raw material for the production process. The paperboard manufacturers produce the paperboard through mechanical pulping and chemical pulping processes. The converters then convert the paperboard into various shapes and sizes for different applications. Finally, the end-users use the converted product in various industrial applications such as packaging, printing & writing, wall coverings/laminates etc.
Porter's Five Forces Analysis
Porter's Five Forces Analysis is a framework developed by Michael Porter in order to assess the attractiveness of an industry. The five forces are the following.
Threat of new entrants is low. The paperboard market is not highly open to new entrants due to the high capital requirements for entry. Companies need to have access to large amounts of capital in order to purchase the necessary equipment and raw materials needed for production. Additionally, there are significant advantages that existing players have that make it difficult for new entrants to compete.
Bargaining power of buyers remains high. Buyers of paperboard typically have a lot of bargaining power as they can easily switch suppliers if they are unhappy with their current supplier's prices or services. This puts the buyers in a strong position when negotiating with suppliers.
Bargaining power of suppliers is moderate. Suppliers typically do not have much bargaining power as there are many different suppliers available and buyers are able to switch between suppliers if they are unhappy with their current supplier's prices or services. However, suppliers may be able to gain some bargaining power by controlling certain key inputs such as specialized machinery or raw materials needed for production.
Threat of substitute products is low. There is currently no real threat from substitute products as paperboard is used in a wide variety of applications and has significant advantages over other materials. Additionally, paperboard is often used in combination with other materials such as plastic or metal, making it difficult for substitute products to compete.
Rivalry among existing players is high. The paperboard market is highly competitive as there are many players in the market. Many of these companies have similar products and services, which makes it difficult for one company to differentiate itself from the others. Additionally, there is a race to the bottom when it comes to prices as companies are trying to undercut each other in order to win customers.
The paperboard market is currently attractive as it has a low threat of new entrants, high bargaining power of buyers, moderate bargaining power of suppliers, and high rivalry among existing players. The only force that is not currently in favor of the paperboard market is the threat of substitute products.
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
International Paper Company (U.S.), Georgia-Pacific LLC (U.S.), Smurfit Kappa Group plc (Ireland), WestRock Company (U.S.), Sappi Limited (South Africa), Nippon Paper Industries Co., Ltd. (Japan), Stora Enso Oyj (Finland), Nine Dragons Paper Holdings Ltd. (Hong Kong), UPM-Kymmene Oyj (Finland), and ITC Ltd. (India)
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