Paper Packaging

Corrugated boxes, paper container, paper cup, paper carton, paper bag, molded pulp

For packaging materials, users' priority is in environmental friendliness in recent years. Triggered by the Plastic Resource Circulation Act taken effect, users started propelling environmentally conscious activities within the whole supply chain. Alongside this, package converters are required to suggest sustainable packaging materials that enable reductions of emission and plastic use, and resource circulation. In such a status, paper packaging has been in the spotlight once again as one of sustainable packaging. 
The report includes various paper packaging types (corrugated fiberboard, paper container, paper cup, paper carton, paper bag, and molded pulp), and compiled the respective market trends, reality, and marketability.

I    Status and Perspectives of Paper Packaging Market

• Paper packaging market worths 1,800 billion yen
• Use of paper has slowed down due to soaring raw material costs, but pass-through in prices has contributed to continuous market expansion.
• While brand owners have a wider option in sustainable packaging, the necessity for paper materials to suggest new environmental values has heightened.
• Paper packaging market for FY2030 is projected to expand to a double-digit growth from FY2022.
• Waning population and diminishing wrapping behaviors have the market to slow down once again, but the market is likely to gradually grow along with the paper demand.

II    Corrugated Fiberboard Market Trends

• Demand for corrugated fiberboard that once decreased amid the pandemic was on the recovery but fallen again since Autumn 2022.
• In the situation where demand hike led by the "stay-at-home consumption" has faded and no external demand has connected to corrugated fiberboard demand, commodity price hike hit the market. Though commodity price rise and other factors were expected to affect the market, the demand for corrugated fiberboards seemed to have room to grow further from the medium-term perspective.

III   Paper Container Market Trends

• Paper container market heavily dropped in FY2020 due to the pandemic but had been on the way to recovery in FY2021 and FY2022. FY2023 also shown a rise to reach the level before COVID, boosted by full recovery of inbound demand.
• Micro flute paper container market re-expanded in FY2022.
• Though the "stay-at-home consumption" slowed down, it managed to keep the growth, contributed to customer convenience and plastic reduction promotions.
• Limited or smaller wrapping behaviors are likely to deter the market growth after FY2024.

IV   Paper Cup Market Trends

• Growth trend of the paper cup market has somewhat settled down in 2023, after recovery from pandemic. Food and yogurt applications shrank, while soup cup applications were favorable. Ice cream application showed a double-digit growth in 2023 due to extreme heat.

V     Paper Carton Market Trend

• Price revisions by paper carton manufacturers continue for FY2024.
• Domestic market sees downswing.
• Some companies that see business opportunities in overseas embark on exporting and collaborations.
• Milk carton with pourer to differentiate with other milk to appeal the quality milk did not spread, as more consumers demanded low-cost milk.
• Meanwhile, small beverage carton with pourer has established as one of soft-drink package variations.

VI    Paper Bag Market Trends

• While influence of pandemic and charging system started for paper bags, rectangle-bottomed paper bags have been in demand backed by food takeaway demand.
• While plastic reduction efforts and charging of carrying bags at stores have invigorated the demand for paper bags, it has been offset by brisk ecommerce and charging of paper bags.
• By FY2026, paper bag is projected to exceed rectangle-bottomed paper bags backed by plastic reduction initiatives. The paper bag market is on the road to recovery to the level before COVID.

VII   Molded Pulp Market Tremd

• Smooth texture that is different from that of dry mold materials, attracts attentions mostly for packaging applications.
• The market size in FY2022 increased by 8% from the previous year, driven by food takeaways and plastic reduction efforts.
• The market expects its expansion for FY2023 and onward. If European legislation spreads to Japan, it may see rapid expansion.