Despite being the most commonly used packaging, cardboard manufacturing posted losses during the recession.
Los Angeles, CA (PRWEB) August 25, 2012
The Global Cardboard Box and Container Manufacturing industry is expected to gain $452.9 billion in revenue in 2012. Over the past five years to 2012, industry revenue has declined at an average annual rate of 0.7%. Given its ubiquity in packaging, trends in industry revenue are correlated with global demand from manufacturing and retail sectors. According to IBISWorld industry analyst Caitlyn Moldvay, as a result, industry revenue was adversely affected by the global downturn, with decreased demand from manufacturing sectors in developed markets, such as the United States and Europe, outweighing strong performance in China, India and other emerging markets. Although the United States was previously the world's leading producer of cardboard, in 2002 China overtook the United States as the top industry producer, and currently accounts for an estimated 33.9% of global production. Meanwhile, the United States is in a distant second with 15.4% of the world's production, according to data from the Food and Agriculture Organization.
There are an estimated 15,843 companies operating in the Global Cardboard Box and Container Manufacturing industry. This represents an average annual growth of 0.2% over the past five years. The majority of the industry's companies operate locally providing cardboard and other packaging to companies within a 150- to 200-mile radius of their facilities. As a result, the industry is fragmented, with the world's top companies accounting for just 8.0% of the global industry's revenue. Over the five years to 2017, the Global Cardboard Box and Container Manufacturing industry is expected to experience moderate growth. During the five-year period, growth in developing markets is expected to outpace the US and European markets. This will be primarily due to rising packaging requirements as improving wages cause increases in per capita consumption. The industry will, however, face continued competition from plastic packaging, which is the second-most used form of packaging.
The Global Cardboard Box and Container Manufacturing industry has a low level of concentration, with the top four major players holding only a minority of the global market share. Considering that cardboard is needed in every country and is expensive to ship, production tends to be localized. “As such, there are many medium-sized companies operating in the industry, none of which have any significant market share,” says Moldvay. Over the five years to 2012, the level of concentration has decreased slightly, as major companies based in Western countries have struggled against localized manufacturers in regions with access to low-cost labor and emerging economies. Many major players also took significant hits to revenue during the economic slowdown in 2008 and 2009. For more information, visit IBISWorld’s Global Cardboard Box & Container Manufacturing industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry convert paper, paperboard and old corrugated containers into cardboard boxes, containers and similar packaging solutions. The industry produces corrugated and solid cardboard packaging for a wide range of industries, including manufacturing, agriculture, wholesale, shipping, retail and others. Flexible packaging like paper bags and plastic sacks are excluded.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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