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E-commerce and regulations drive paper packaging growth

There is an increasing consumer awareness regarding sustainable packaging.

The Asia-Pacific paper packaging market is set to reach $245 billion by 2029, driven by the increasing demand for sustainable solutions, particularly in countries like China and India. 

According to Rohan Khade, Lead Analyst, ICT at Mordor Intelligence, this growth is propelled by a combination of consumer awareness, government regulations, and the booming e-commerce industry.

Khade said that as consumers become more environmentally conscious, companies are shifting toward paper and paperboard products to meet the demand for eco-friendly packaging. Governments are also stepping in to limit the consumption of single-use plastics by introducing regulations aimed at reducing packaging waste.

"E-commerce companies such as Amazon and Alibaba are adopting lightweight, cost-effective packaging, which is driving the demand for corrugated boxes and folding cartons," Khade added.

However, fluctuating raw material prices and high production costs pose significant obstacles to the market’s growth. "Paper packaging materials tend to be marginally expensive compared to plastic packaging materials," Khade noted. 

Another challenge is the insufficient recycling infrastructure in the region. Despite investments from governments and companies, the current systems are unable to keep up with the growing influx of packaging waste.

China and India, which account for over 50% of the region’s paper packaging demand, are leading the way in innovative packaging formats. "Established players are coming up with biodegradable and compostable packaging materials," said Khade. 

FMCG and retail chains are also adopting rigid paper packaging for marketing and brand recognition, while raw material producers and packaging companies collaborate to develop durable, water-resistant paper packaging.
 

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