Such an intensive competition is mainly present due to innumerable players existing in the market. Most players are fiercely focusing on implementing innovative techniques to develop paper packaging products in order to expand their product portfolio. This is further expected to make them maintain a concrete stronghold in the market from a geographical perspective too. From an overall perspective, enhancing product portfolios, introducing product differentiation, and participating in valuable mergers & acquisitions, partnerships, and collaborations are key strategies implemented by most companies working in the paper packaging materials market.
Georgia-Pacific Corporation, DS Smith PLC, Holmen AB, International Paper Company, Hood Packaging Corporation, OJI Holding Corporation, MeadWestvaco Corporation, Stora Enso Oyj, Smurfit Kappa Group Plc., and The Mayr-Melnhof Group, are key players operating in the global paper packaging market. The competitive intensity is projected to rapidly increase in the next few years owing to numerous new players making their foray in the global paper packaging materials market on a regular basis.
This market had registered revenue valued at $254.8 billion in 2012, which is further projected to reach a valuation of $344.4 billion this year. This growth is expected to occur at a strong CAGR of 4.4% during the forecast period. In terms of volume, the demand for paper-packaging materials stood at 181.48 billion tonnes in 2012.
Highly Progressing Packaging Industry Spurs Growth in Market
Paper packaging materials are witnessing mammoth demands in the pharmaceutical, foods and beverages, and cosmetics industries, consequently driving growth in the associated market. A growing need for flexible packaging materials too is making the paper packaging materials market pick up extensive pace in recent times.
Moreover, rising concerns about harmful effects caused by deforestation to the environment have encouraged production of eco-friendly paper packaging materials. This factor too is expected to highly contribute towards exemplary growth in the global paper packaging materials market. Lastly, the packaging industry as a whole is witnessing outstanding progress, especially due to a surge in the production of objects, items, and commodities meant to be packaged and shipped. This factor is greatly propelling growth in the global paper packaging materials market.
Strict Regulations Prohibiting Environmental Harm Stunts Expansion
However, stringent regulation regarding deforestation for production of paper and other packaging materials is highly restraining the global paper packaging materials market. Moreover, lack of skilled workforce in remote and underdeveloped regions needed to operate high-tech equipment and machinery for manufacturing paper packaging materials too is hindering this sector. Nonetheless, many companies are expected to introduce cost-effective paper packaging solutions in the near future. This certainly is expected to dilute some of the restraints affecting the global paper packaging materials market up to a certain extent.
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