Segmentation by Material (Kraft Paper and Paper Board); by Diameter (Less than 3 inches, 3-6 inches, and Greater than 6 inches); by Application (Winding & Re-Winding, Canboards, Decoration & Specialty Paper, Hygiene & Tissue Paper, Shipping Tubes, and Printing & Coating) and by End User (Packaging, Textile, Construction, Food Manufacturing, and E-Commerce) – Global Demand Analysis & Opportunity Outlook 2029
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Our in-depth analysis of the paper core market includes the following segments:
By Material
By Diameter
By Application
By End User
By Region
On the basis of regional analysis, the global paper core market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market for paper core in North America is anticipated to hold the largest share in the market on account of the presence of leading market players in the region which manufacture and market paper core. Moreover, the increasing application of paper core in end user industries such as food & beverages, healthcare, consumer durables, building and construction in this region, is further anticipated to drive the growth of the market in North America. On the other hand, the market in Asia Pacific is predicted to grow at the highest rate during the forecast period as a result of increasing demand for paper pulp along with the growing packaging production to ensure low cost, safety and sustainability of packaged products. Additionally, expanding fast-moving consumer goods and e-commerce industries owing to the easy availability of raw material and labor, especially in the countries such as China and India, is further anticipated to raise the demand for paper core in Asia Pacific.
The global paper core market is further classified on the basis of region as follows:
Rapid growth of fast-moving consumer goods and delivery-on-demand services along with the increasing consumer awareness for eco-friendly paper core products as well as strict regulations imposed by various environmental protection agencies across the globe are some of the significant factors that are anticipated to boost the market growth. The paper core market is anticipated to record a significant CAGR over the forecast period, i.e., 2021-2029. The market is segmented by material into kraft paper and paper board. Among these segments, the segment for kraft paper is anticipated to hold the leading share in the market on account of its cost-effective and eco-friendly attributes combined with the ability to resist temperature, water, and chemicals. Further, kraft paper are lightweight and can be molded in various shapes, which is anticipated to drive the growth of the segment in the global paper core market during the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT
Growth Drivers
Versatile Applications of Paper Core in Different Industries to Boost the Market Growth
The demand for paper core is influenced by the reusability, recyclability, and flexibility feature of the paper. It is environment-friendly and increases the convenience of consumers without any concerns regarding waste dumping. Further, with the increase in the number of hypermarkets, supermarkets and retail stores in recent years, there has been an increase in the application of paper core as a crucial material for product storage, packaging and delivery. Additionally, the market growth is attributed to the increased demand for paper core in various industries such as food & beverages, logistics, cosmetics & personal care, building & construction, clothing, freight forwarding, and pharmaceuticals owing to their ability in providing protection from damage to goods and products and for offering easy handling features, along with the reduction in packaging expenses. Also, they are necessary for keeping materials in good condition, preventing knotting, crinkling and tearing. Such factors are anticipated to significantly expand the paper core market in the coming years.
Declining Plastic Use and Government Regulations to Drive the Market Growth
The stringent government policies and limitations imposed on increasing plastic waste and difficulty in its dumping have increased the requirement of paper core and related paper-based products which helps to curb the burden on the ecosystem. Moreover, several countries have imposed a ban on single-use plastics, while some have banned the worldwide import of plastic raw material. Furthermore, owing to harmful effects of plastic on the environment and the increasing awareness for the environmental pollution, consumers are shifting towards environment and eco-friendly durables and packaging solutions, which is anticipated to propel the market growth. On the back of such factors, the paper core market is predicted to grow rapidly over the forecast period.
Restraints
Limited Use and Deforestation to Hamper the Market Growth.
As there is a limited usage of paper core in packaging of very heavy materials, industries are forced to use plastics and polymers as a substitute which may negatively affect the market growth. Further, deforestation and environmental concerns on account of acquiring raw material as well as release of toxins during paper production is estimated to hinder the growth of paper core market in the future.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Growing use of environment-friendly paper goods is one of the major factors driving the market growth.
Ans: The market is anticipated to attain a significant CAGR over the forecast period, i.e., 2021-2029.
Ans: The major players in the market are DS Smith, Sonoco Products Company, International Paper, Menasha Packaging Company LLC, Paramount Tube, Westrock Company, Mondi Group, Ace Paper Tube, Chicago Mailing Tube Co. and Heartland Products Group, LLC.
Ans: The company profiles are selected based on the revenues generated from segments, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The paper core market is majorly segmented by material, diameter, application, end user and by region.
Ans: The kraft paper segment, which is a sub-segment of the material segment, is anticipated to hold the largest market share during the forecast period.
Ans: Concerns for the environment during the process of paper core production is one of the major factors estimated to act as barriers to the growth of the market.
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