Corrugated boxes are one of the most-common packaging materials today. A lot of the stuff ordered online, including consumer electronics, books, and even processed food, is shipped in such packages. Hence, with the e-commerce industry spreading its wings, aided by the increasing internet and smartphone penetration, the demand for corrugated boxes is only going to rise. Moreover, online shopping websites allow people to compare a multitude of similar products, avail of lucrative discounts and offers, pay electronically, and have the products delivered at their homes.
Thus, with the growing e-commerce industry, the corrugated boxes market size is set to increase to $284.6 billion by 2030 from $180.9 billion in 2019, at a 4.3% CAGR between 2020 and 2030. The COVID-19 pandemic has only helped the e-commerce juggernaut, as the widespread lockdowns and movement restrictions made a large chunk of the population shift to online shopping. Since packaging is the cornerstone of any supply chain, the demand for corrugated boxes boomed in 2020 and booming still.
Moreover, in the past, e-commerce companies have organized several large shopping fiestas to boost their sales, or as a promotional strategy. For instance, during the Amazon Prime Day of July 2019, 175 million orders were received by this retail giant. Similarly, other online shopping portals, such as Amazon.com and Flipkart, host the Great Indian Shopping Festival and Diwali-special shopping festivals each year, which drastically increases the number of orders and, in turn, the consumption of corrugated boxes.
As a result of all these factors, Asia-Pacific (APAC) has led the corrugated box market till now, and it will keep doing so in the years to come. China and India, driven by their huge population, growing e-commerce industry, and rapid urbanization, are driving the demand for all kinds of packaging materials in the region. Moreover, the large manufacturing base of these countries and of Japan and South Korea leads to a high demand for corrugated boxes.
Hence, with the boom in online and store-based shopping activities, the consumption of corrugated boxes will keep going up.
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