Research Finds Folding Carton Market Set for Steady Growth
In the face of economic challenges including inflation, the North American folding carton market is poised for positive, albeit gradual, expansion, as outlined in a recent report released by The Paperboard Packaging Council (PPC). The forecast anticipates a steady annual growth rate of 0.4% over the next three years, propelling the market to an impressive 5.4 million tons by 2027.
The 2023-2024 Trends Industry Outlook & Market Data Report highlights the resilience of carton manufacturers, particularly independent converters. These players grapple with pricing challenges, as paperboard prices consistently outpace actual folding carton prices. Despite this, the reseachers remain optimistic about the folding carton market’s growth trajectory.
The report, delving into in-depth analysis across 17 end-use markets, reveals a significant influence from sustainability concerns. Fastmarkets RISI's researchers suggest that trends such as plastic substitution and environmentally friendly packaging will act as a catalyst for the growth of folding cartons. Noteworthy decisions by major fast-food companies and municipalities nationwide also endorse the environmentally friendly profile of paperboard packaging materials.
While the forecast brings mostly sunny news, a shadow looms over capacity in Canada. The report acknowledges the overall positive macroeconomic environment in Canada, yet it cautions about the planned closure of a paperboard mill in 2026. This closure is anticipated to reduce Canadian folding paperboard capacity by nearly 30%, impacting the production and shipment of folding cartons in the region.
Remarking on the report, Ben Markens, president of PPC, said in a written comment, "As we navigate the intricacies of economic recovery and evolving consumer behaviors, this report empowers converters with the insights necessary to make strategic decisions and foster innovation within the paperboard packaging sector.”
PPC members can access the full 140-page report and explore detailed findings at paperbox.org/trends. A free summary is also available for non-members.
As editor-in-chief of Packaging Impressions — the leading publication and online content provider for the printed packaging markets — Linda Casey leverages her experience in the packaging, branding, marketing, and printing industries to deliver content that label and package printers can use to improve their businesses and operations.
Prior to her role at Packaging Impressions, Casey was editor-in-chief of BXP: Brand Experience magazine, which celebrated brand design as a strategic business competence. Her body of work includes deep explorations into a range of branding, business, packaging, and printing topics.
Casey’s other passion, communications, has landed her on the staffs of a multitude of print publications, including Package Design, Converting, Packaging Digest, Instant & Small Commercial Printer, High Volume Printing, BXP: Brand Experience magazine, and more. Casey started her career more than three decades ago as news director for WJAM, a youth-oriented music-and-news counterpart to WGCI and part of the Chicago-based station’s AM band presence.
