5 corrugated packaging industry trends on the rise

The corrugated packaging market is experiencing rapid growth, fueled by the explosion of e-commerce and advancements in digital printing technologies, and is projected to reach $400 billion by 2027*.

Despite concerns about a potential slowdown, the sector continues to thrive, adapting to evolving demands and embracing innovations.

*MarketsandMarkets Corrugated Packaging Market - Growth, Trends, and Forecast 2023-2028

Here are five key trends shaping the future of the corrugated packaging industry - understanding these trends is vital for staying competitive in the market.

Contents

• 1. E-commerce driving packaging demand
• 2. Fit-to-product (FtP) and box-on-demand technology
• 3. Sustainability and lightweighting
• 4. Retail-ready packaging
• 5. Advancements in digital printing
  
  

1. E-commerce driving packaging demand

The surge in e-commerce continues to be a significant force behind the growing demand for corrugated packaging. According to Forrester Research, e-commerce sales are estimated to increase by 8.9% annually, with global online sales expected to reach $6.8 trillion in 2028. Corrugated packaging is crucial for this growth, accounting for approximately 80% of the packaging used in e-commerce.

The increasingly complex logistics chain for direct-to-consumer delivery means packages are handled multiple times, necessitating durable and cost-effective secondary corrugated packaging. This shift has encouraged brands to adopt packaging that protects products and reinforces their brand image directly in consumers' homes, increasing the demand for high-quality graphic designs on shippers.

2. Fit-to-product (FtP) and box-on-demand technology

E-commerce has also spurred innovations like fit-to-product (FtP) packaging, which tailors boxes to the exact size of products, eliminating the need for excess filler material. This particularly benefits companies like Amazon, which require customized packaging for various product shapes and sizes.

The rise of FtP technology has led to increased demand for fanfold boards and finishing equipment that can print and cut boxes on demand. This innovation also contributes to reducing environmental impact by minimizing excess packaging. Companies like Smurfit WestRock capitalized on this trend, acquiring firms like Plymouth Packaging to expand their box-on-demand systems and corrugated fanfold capabilities.

3. Sustainability and lightweighting

Sustainability remains a driving factor in the corrugated packaging industry. With the rise in consumer awareness around environmental issues, corrugated board is increasingly favored for its recyclability and eco-friendliness. The pulp and paper industry is adept at recycling corrugated board into new containerboard, reducing the reliance on virgin materials.

Lightweighting, which involves using thinner yet stronger board grades, has been particularly successful in Western Europe, where box weights are now typically about 80% of U.S. equivalents. This trend meets consumer demand for more sustainable packaging and reduces shipping costs, especially with the logistics industry's growing adoption of dimensional weight (DIM) pricing.

4. Retail-ready packaging

Retail-ready packaging (RRP) continues to be a vital trend, especially in Western Europe, where it has established itself as a significant cost-saving measure. Retail-ready packaging involves pre-packed products that are easy to display and require minimal setup time. Retailers favor RRP as it reduces shelf restocking time and handling costs by up to 50%, providing greater efficiency in retail environments. This trend has gained traction with discount retailers like Aldi and Walmart and convenience stores that rely on fast restocking solutions.

As e-commerce grows, especially in the grocery sector, there may be a slight decline in RRP usage for online sales. However, corrugated cases will still be crucial in shipping goods to fulfillment centers and direct-to-consumer services, such as subscription meal kits, which benefit from corrugated packaging's flexibility and protective qualities.

5. Advancements in digital printing

The growing adoption of digital printing in the corrugated sector has opened new possibilities for customization and personalization. Digital printing offers flexibility in run lengths, reduced setup costs, and the ability to personalize packaging for specific regions, stores, or individual customers.

As brands look to enhance customer engagement and create memorable unboxing experiences, digital printing allows for high-quality, customized packaging that resonates with consumers. This technological advancement boosts brand loyalty and encourages social media sharing, driving organic marketing and repeat business.

The corrugated packaging industry is rapidly evolving, with e-commerce, sustainability, and digital printing at the forefront of these changes. Together, these trends meet current market demands and set the stage for a more sustainable and personalized future. Staying ahead of these trends will be critical for businesses looking to meet the growing demand for innovative and efficient packaging solutions.

Ready to embrace the trends shaping the future of corrugated packaging?

Our innovative solutions can help you enhance efficiency and sustainability in your corrugated packaging manufacturing processes. Let us guide you in optimizing your packaging strategies to meet the growing demands of e-commerce and consumer preferences while delivering the high-quality products your customers expect.