U.S. Paperboard Demand to Witness 4% Per Annum Growth Through 2022

SEATTLE (Scrap Monster): The recent study conducted by industry research firm The Freedonia Group states that the overall U.S. demand for folding cardboard boxes is expected to register a growth of 3.9% per annum through 2022. According to the study, the paperboard sector is expected to produce $12.8 billion worth of goods in 2022.

The Freedonia Group study notes that any further rise in tariffs may boost domestic production of paperboard cartons. Furthermore, it may result in increased acceptance of alternatives, including flexible packaging formats. It must be noted that imports of folding cartons from China were levied a tariff of 10%. The tariff, which was supposed to increase further to 25%, has been kept unchanged, following an agreement between the two countries.

According to the study, Canada is the primary supplier of folding cartons by the U.S., mainly on account of its geographic proximity and the rich forest resources and paper mills in that country. Incidentally, Canada accounted for more than 50% of the folding cartons imported by the U.S. China is the second largest supplier of folding cartons, the study says. The extremely low manufacturing costs have played a major role in the country emerging as the second largest source of supply- in terms of both value and volumes.

Meantime, the demand for all types of corrugated and paperboard boxes are expected to increase by 2.6% per annum through 2022. The food and beverage market will constitute nearly 50% of all new demand, the study report says.