Paper Packaging Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Paper Packaging Market in 2025 is evaluated at USD 390.46 billion. The global Market size was more than USD 377.18 billion in 2024 and is anticipated to grow at a CAGR of more than 4.4%, reaching USD 660.17 billion revenue by 2037. Asia Pacific is projected to collect USD 290.47 billion by 2037, driven by surge in paper manufacturing, environmental initiatives, and government actions to protect the environment.
This boost is anticipated by the slated demand for eco-friendly and sustainable alternatives to packaging, as renewable, recyclable, biodegradable paper packaging attract more businesses and consumers to reduce their environmental footprints. According to a report, more than 64% of consumers in the UK are estimated to purchase a product if its packaging is sustainable. Consumers are also willing to pay more in this sector owing to the environmentally friendly process and packaging of these products.
Paper Packaging Market: Growth Drivers and Challenges
Growth Drivers
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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.
Paper Packaging Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
4.4% |
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Base Year Market Size (2024) |
USD 377.18 billion |
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Forecast Year Market Size (2037) |
USD 660.17 billion |
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Regional Scope |
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Paper Packaging Segmentation
Material Type (Corrugated Board, Specialty Paper, Box-board/Carton Board, Kraft Papers, Molded Pulp, Paper Bags & Sacks, Paper Pouches)
Corrugated board segment is estimated to hold paper packaging market share of over 28% by the end of 2037 owing to the consumer's support of the circular economy model, which reduces environmental pollution and carbon footprints by using cardboard. According to the Ellen MacArthur Foundation, demand for new business services would be created using a circular economy, such as reverse logistics collection, and reintroduction of end-of-use products into the system. Foundation projects using circular models could expand to 23% in 2030 from 3.5% in 2023.
Packaging Type (Corrugated Boxes, Cartons, Wrapping Paper, Inserts & Dividers, Bottle & Cup Carriers, Cups & Trays, Clamshell, Display Packaging, Bags & Sacks, Tapes & Labels)
The corrugated boxes segment in the paper packaging market is set to garner a notable share during the forecast period, impelled by its increasing usage in online retail & e-commerce propelled by its sturdiness which is necessary while transporting through handling and shipping. According to the International Trade Administration, the global B2B e-commerce sector expansion is expected to cross USD 5.5 trillion by 2027 with a CAGR of about 14.4%. Moreover, the lightweight property of corrugated boxes also helps in reducing the shipping cost.
End-User (Food & Beverage, Personal Care & Cosmetic, E-commerce, Healthcare, Electrical & Electronic, Automotive & Industrial, Homecare & Toiletries, Chemical & Fertilizers)
The food & beverage segment is projected to hold the highest influencing segment under the end-user of the paper packaging market. The reason behind this impact is projected driven by the increasing usage of paper packaging in fast foods, frozen foods, and fresh foods. According to a report, more than 52% of millennials are estimated to consume fast food a few times a week and about 24% consume it daily.
Additionally, innovations such as coated papers and wraps are increasing the demand in this sector as they prevent leakage of food while delivering, packaging, storing, and many more.
Our in-depth analysis of the paper packaging market includes the following segments:
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Material Type |
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Packaging Type |
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End-user |
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Source Type |
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Level of Packaging |
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Customize this ReportPaper Packaging Industry - Regional Synopsis
APAC Market Statistics
Asia Pacific industry is predicted to dominate majority revenue share of 44% by 2037. The landscape tremendous growth in the region is expected on account of the surge in the presence of paper manufacturers such as envelope paper, and several government initiatives and steps to protect the environment in the region. According to the World Customs Organization, an initiative- the Asia-Pacific Waste Project (APPWP) was implemented by the Japanese Government from April 2020 to June 2023, which aims to strengthen the customs administrations and to respond appropriately to environmental threats.
Nestle Japan is continuously evolving its packaging to make it refillable and reusable along with recycled packaging materials. This helps them make it a bio-based and high-performance barrier paper, which is easily biodegradable and compostable.
According to a report, paper consumption in India is predicted to witness an annual fuel of more than 6% & is expected to cross 30 million tons by 2027.
North American Market Analysis
The North American region will also encounter a huge influence on the paper packaging market demand during the forecast period with a size and will account for the second position attributed to the consumers being more aware regarding their packaging choice, and becoming highly aware of the environmental impacts because of it. According to a report, about 13 environmental indicators reported that about 10% of the total life cycle emissions are caused due to plastic packaging.
Cascades in the United States, launched a cardboard container made up of 100% recycled fibers, especially from post-consumer sources. This tray is also resistant to humidity as it has a water-based barrier coating.
Companies Dominating the Paper Packaging Landscape
- WestRock Company
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Smurfit Kappa
- Napco National Paper Products Company
- Billerud
- Cascades Inc.
- Georgia Pacific LLC
- Pratt Industries, Inc.
- DS Smith Packaging Limited
- Stora Enso Oyj
- Mondi Group Plc
Most of these companies are continuously collaborating, expanding, making agreements, and joining ventures for the growth of this paper packaging market and are estimated to be the major key players in this landscape.
In the News
- Smurfit Kappa- acquired a packaging plant- PaperBox in Saquarema, which is about 70 km east of Rio de Janeiro, by this the company aims to meet the surging demand for innovative and sustainable packaging solutions.
- Billerud- the company acquired Verso, which is a producer of coated paper, for about USD 825 million. The aim is to strengthen Billerud’s position in the packaging material segments and virgin paper.
Author Credits: Abhishek Anil
- Report ID: 6141
- Published Date: May 10, 2025
- Report Format: PDF, PPT
