Paper Packaging Market Trends

Growth Drivers

• Rising recyclability of paperboard and paper - With the lucrative global population along with the boosting economies, there is also a significant increase in paper waste. Most of the papers are made up of pulp which can easily be recycled, which also decreases the need for the disposal of solid waste. According to the Bureau of International Recycling, paper recycling in Europe increased to 72% in 2017 from 69% in 2020. In addition, the government is also taking initiatives that aim at reducing waste and promoting recycling.

• Demand for plastic-free packaging - As the innovations in sustainable packaging are as surge, manufacturers are also trying to meet the consumer demand for such eco-friendly products. Companies are exploring a wide range of packaging products such as renewable. Plastic-free, along with plant-based packaging. According to a report, there is an increase of about 90% for plastic-free products.
   
• Increasing usage in the pharmaceutical sector - Strong and effective paper packaging is becoming substantially necessary due to the continuous increase in projects in a variety of industries, including healthcare & pharmaceuticals, beverage packaging, Personal Care & Cosmetics, and many more. As there is a high focus on the reuse of recycled material and sustainable packaging solutions. According to a report by Invest India, the pharmaceutical industry is estimated to gain a paper packaging market share of about 65 billion USD and is projected to cross more than 130 billion USD till 2030.
  
  In addition, packaging companies are highly emphasizing counterfeiting measures, sustainable material, coupled with administration aids in the packaging to enhance their safety and functionality, thus there is increasing use of such products in the pharmaceutical industry.

Challenges

• Risk from water and moisture - Paper packaging is not resistant to water and moisture, and this is challenging in the food and beverage sector, where the food must be protected from external elements and moisture. When compared to other packaging of plastics and metal, paper becomes a less selected option by consumers, as it’s more susceptible to damage and fragile during handling and transportation as compared to other rigid packaging materials. 
   
• The inability to carry and package heavy goods can augment its demand - When the subject is rough and heavy, it can cause the paper packaging to tear, credited to its limited strength and durability as compared to other materials such as plastic and metals. Manu paper packaging is flimsy which is less environmentally friendly and lacks support.