March 18, 2019
Corrugated boxes, on the back of its key characteristics including recyclability, customizability, and cost-effectiveness, are gaining immense popularity in the packaging sector. Corrugated boxes provide a stable cushioning for the packaged products, thereby ensuring complete product protection, which is driving a massive demand for corrugated boxes amongst end-user industries which include food and beverage, textile, healthcare and pharmaceuticals, e-commerce, building and construction, and others.
Furthermore, the continual evolution witnessed in the packaging sector is expected to create major growth opportunities for the manufacturers of corrugated boxes. The increasing emphasis given to sustainability and recyclability has triggered various activities such as new government initiatives to boost the recycling activities of paper packaging products such as corrugated boxes. This is expected to have a major influence on the corrugated boxes market.
Companies Recognize Major Potential of Corrugated Boxes Business
The corrugated boxes market is experiencing a significant upsurge owing to its wide range of favorable attributes. Companies are recognizing the potential of the corrugated boxes business, in light which, they are further aligning their future business strategies. For instance, a leading packaging company, DS Smith stated that with respect to its trading update, after November 2018 the trade continually reflected strong results.
Furthermore, the company also witnessed good volume growth in corrugated boxes with constant gains in market share that were driven by their products’ quality delivered to their huge customer base of e-commerce and FMCG. The company has reflected continual focus on the corrugated boxes business, with a recent strategic implementation.
In May 2018, the company announced the acquisition of a North America-based high-quality corrugated packaging company, Corrugated Container Corporation (CCC). The acquisition of the CCC’s manufacturing sites that produce corrugated boxes, DS Smith would be able to boost its box-manufacturing capacity in North America, further foiling its present North American market footprint.
Leading Companies Focus on Improving Supply Chain Control
The increasing demand for corrugated boxes has stirred key developments in the production technology for effective manufacturing of corrugated boxes. Visible Supply Chain Management, a company providing effective supply chain services for packaging introduced a new corrugated box technology. This new technology— 3-color Flexo-Folder-Gluer, set to launch in August 2019, would allow SMB clients to strive with large competitors by providing them with a high-speed and highly flexible production of corrugated boxes. Flexo-Folder-Gluer provides high-quality printing that would allow the company’s clients to maintain a high-quality inventory of products and materials.
Various manufacturers of corrugated boxes are involved in similar strategies to boost the production of corrugated boxes. This is expected to boost the production of corrugated boxes and enable companies to meet the increasing demand.
There are more such developments witnessed in the corrugated boxes market which would bring major profitability to providers. To gain an insightful overview of the corrugated boxes market and uncover the key aspects that could help emerging companies to sustain in the corrugated boxes market, click here.