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Paper Recycling January 10, 2018 01:30:41 PM

Recycled Paper Packaging Market Likely to Surpass $139 Billion in 2018

Paul Ploumis
ScrapMonster Author
Incidentally, consumer e-commerce shipments across the world have grown by nearly 33% between 2014 and 2016. The unprecedented growth has also resulted in new innovations in packaging technologies.
Recycled Paper Packaging Market Likely to Surpass $139 Billion in 2018

SEATTLE (Scrap Monster): A new report published by Smithers Pira- a world-leading market intelligence provider and consulting firm, states that the market for recycled paper packaging is expected to surpass $139 billion this year. The report foresees market growth of 5% in 2018, over the previous year.

According to the report, China and other emerging economies are likely to witness strong growth in demand for paper packaging. Estimates suggest that paper packaging accounts for nearly 65% of the total recycled packaging market. The demand for recycled paper is projected to exceed supply of recycled pulp by at least 1.5 million tonnes by the end of this year.

The report notes that recovered paper constitutes 37% of US pulp supply. The US and Canada has witnessed healthy growth in paper and paperboard recovery rates over the past several years. The paper recycling rate currently averages at 80% in Canada, whereas the US has a lower recycling rate of 70%. Meantime, the European region has reported an average paper recycling rate of 75%. The low recovery rates in Eastern Europe and the rest of the world are mainly attributed to lack of adequate modern recycling facilities.

ALSO READ: EU Envisions 74% Paper Recycling Target by 2020

The huge jump in overseas exports of goods, backed by the big boom in e-commerce transactions has led to dramatic jump in demand for paper packaging. Incidentally, consumer e-commerce shipments across the world have grown by nearly 33% between 2014 and 2016. The unprecedented growth has also resulted in new innovations in packaging technologies. Among world countries China has reported largest growth in paper packaging demand. The Chinese demand has recorded 6.5% CAGR growth since 2008.

Majority of the recycled paper packaging is used in the making of containerboard packaging. Data shows that nearly one-third of the paper and paperboard recovered in the US is utilized for containerboard production. The ever-increasing demand for sustainable packaging solutions in place of alternative packaging solutions such as plastics is expected to boost demand for paper packaging products. Consequently, one could see further new investments in the sector. Paper packaging solutions offer an environment-friendly solution in terms of recyclability.

Meantime, the global packaging market is expected to reach $1 trillion by 2021. The Smithers Pira study also reveals that the market for packaging services is estimated to report a CAGR growth of 3.5% from $2.4 billion in 2017 to $2.8 billion by 2022.

 

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