Cardboard Box and Container Manufacturing in the US Industry Market Research Report from IBISWorld has Been Updated
Los Angeles, CA (PRWEB) July 14, 2013 -- The Cardboard Box and Container Manufacturing industry, the largest paper-converting industry in the United States, is a true barometer of domestic economic conditions. A significant consumer of paper, paperboard and old corrugated containers, this industry services nearly every sector of the economy. Additionally, only an estimated 2.8% of domestic demand is met by imports, a much lower proportion than that experienced by similar US paper-converting industries. While cardboard is one of the most widely used forms of packaging, the industry could not avoid the adverse effects of the recession. Such effects contributed to slow growth over the five years to 2013, during which revenue is estimated to increase at an annualized rate of 0.6% to $57.5 billion. “Demand from food manufacturing remained stable, which helped offset declining demand from paper, automotive, electronics and other manufacturing industries during the recession,” says IBISWorld industry analyst Stephen Hoopes. In light of improving economic conditions, demand is expected to rise during 2013, resulting in a 4.9% revenue increase.
Despite a recent recovery, weak operating conditions have forced companies in the Cardboard Box and Container Manufacturing industry to restructure and downsize operations over the past five years, while some operators have exited the industry or merged with their competitors. Over this period, the number of establishments operating in the industry has decreased at an annualized rate of 1.9%, leaving 2,128 in 2013. “The industry has a low level of market share concentration,” adds Hoopes. “The largest industry participant, International Paper, acquired Weyerhaeuser's containerboard, packaging and recycling business in 2008.” Furthermore, International Paper increased its market share with the 2012 acquisition of Temple-Inland, the third-largest company in the industry at the time. There is sufficient competition in the industry to ensure that no single operator has the ability to take a large share of the market.
Over the five years to 2018, the industry is projected to experience moderate growth. Food and beverage manufacturing will continue to provide a stable source of demand for industry products. Furthermore, automobile manufacturing is anticipated to return to growth, which will boost sales for the industry. Disappointingly for industry operators, offshoring of manufacturing facilities is forecast to continue over the next five years, which will reduce domestic demand for cardboard required for packaging and transportation. As a result, there will be a strong emphasis on servicing the food and beverage industry, including agricultural producers, through 2018. For more information, visit IBISWorld’s Cardboard Box and Container Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry converts purchased paper, paperboard and old corrugated containers into cardboard boxes, containers and similar packaging solutions. The industry produces corrugated and solid cardboard packaging for a range of sectors and industries, including manufacturing, agriculture, wholesale, shipping and retail, among others.
Industry Performance
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Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
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Cost Structure Benchmarks
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Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, 310 866 5042, [email protected]
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