Corrugated Packaging Industry Analysis
Spend growth of this industry has the potential to touch a value of over USD 50 billion with spend momentum that will accelerate at a CAGR of more than 4% between 2019-2024. With the regulatory bodies tightening their noose around the business sectors, enterprises are compelled to use packaging solutions that are sustainable and leave a lesser environmental footprint. Corrugated packaging companies cater to such sustainability goals by manufacturing packaging solutions that are made from natural materials such as paper and use adhesives from natural sources such as maize or wheat. This will continue to bring significant investments in the corrugated packaging industry during the forecast period.
Top Spending Regions in the Corrugated Packaging Industry
According to the forecasts, APAC and North America will be among the dominant regions in the global corrugated packaging industry.
North America
In countries like the US, corrugated packaging is one of the highly preferred packaging solutions by buyers from the e-commerce industry which is posting an impressive growth in their year-over-year sales volumes. This will act as a major driving force in the corrugated packaging industry in North America.
APAC
A high demand for white goods will drive procurement of corrugated packaging solutions in this region. Factors such as cost-effectiveness, customizability, ease of branding, and the ability to offer protection to goods will continue to make these solutions as some of the highly preferred modes of packaging white goods.
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What are the Key Price Trends in this Industry?
- Fluctuations in the prices of some of the primary raw materials that are used while manufacturing corrugated packaging solutions such as paper and paper products will significantly increase supplier’s overall operational cost. This will be ultimately compensated by buyers in the form if excess procurement spend.
- However, the supply market of the corrugated packaging industry is concentrated with global and regional suppliers. This is intensifying the competition in the supply market that will witness the top corrugated packaging companies resort to aggressive pricing strategies to appeal to more buyers. Consequently, this will limit the possibilities of any drastic rise in the procurement price.
- Buyers can expect a further rise in their procurement price which is a direct impact of the rising costs of oil and gas. This is increasing corrugated packaging supplier’s logistics costs which tend to have an inflationary impact on the industry price.
Download the free sample of this report to know what the key corrugated packaging procurement best practices that you must adopt to address price dynamism in this industry.
Insights Offered in this Corrugated Packaging Industry Report
- Global and regional spend potential for the corrugated packaging industry for the period of 2019-2024
- Supplier relationship management practices in the corrugated packaging industry
- Supplier margins and selection criteria in the corrugated packaging industry
- Top corrugated packaging suppliers and their cost structures
- Top corrugated packaging suppliers in the US and their cost structures
- Corrugated packaging industry spend analysis in the US
- Corrugated packaging price trends, and forecasts
- Cost drivers influencing the corrugated packaging prices
Insights into Corrugated Packaging Supply Industry
- Buyers are advised to engage with suppliers over the volume-based pricing model. This will help buyers with better negotiation opportunities based on their purchase volumes. Engaging this pricing model will also aid buyers to reduce their logistics costs while procuring in large quantities.
- Global corrugated packaging suppliers have well-established supply chain associations with stakeholders such as raw material suppliers and transport and logistics providers. This enables them to provide an uninterrupted supply of corrugated packages to their buyers while ensuring cost control.
- Buyers are advised to perform supply chain audit on a periodic basis to ensure the efficiency of their operational processes and compliance with policies.
Insights into Some of the Leading Banking Service Providers
This corrugated packaging industry procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top corrugated packaging suppliers. The top suppliers highlighted in this report include:
- Mondi Group
- Smurfit Kappa Group Plc
- DS Smith Plc
- International Paper Co.
- WestRock Co.
- Oji Holdings Corp.
Criteria to select suppliers in this dynamic corrugated packaging industry is subject to change based on the day-to-day industry outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
