US box demand to top US$36bn

Paperboard and corrugated box demand in the US will reach US$36.5 billion in 2016 as the country’s economy recovers from the 2007-09 recession, and expansion in key markets occurs.
 
Industry market research firm Freedonia said demand for corrugated and paperboard boxes in the US will increase 2.3 percent annually to reach the US$36.5 billion total, figures from its Corrugated & Paperboard Boxes study reveal. Demand will be boosted by an overall strengthening of the US economy following the 2007-09 recession, with notable growth in food, beverage and durable goods output. Food and beverages accounted for around 50 percent of total US box demand in 2011.
 
Moreover, Freedonia said gains will be helped by a trend toward more expensive folding cartons that offer high-quality graphics and printing. A rebound in construction spending will also stimulate growth due to demand for goods and materials and the boxes they require.
 
By item type, solid fiber and corrugated box demand is forecast to climb 2.5 percent per year through to 2016, when it will be worth US$26.1 billion. Folding paperboard boxes will grow 1.7 percent each year to US9.8 billion in 2016, gaining at a slower rate due to strong competition from flexible packaging and mini flute corrugated alternatives, and source reduction efforts.
 
Set-up paperboard box demand will increase modestly due to inroads by less costly options like folding cartons and plastic containers, according to the Freedonia study, but benefit from use as upscale packaging for premium confectionery products and cosmetics.
 
All box types will see higher annual growth rates between 2011 and 2016 than they recorded between 2006 and 2011, Freedonia’s report predicts.