Prospect of folding color box Market in America in 2020

According to the latest data, the demand for folding color boxes will increase significantly by 2023. In the U.S. region, total shipments of folding color boxes rose from an estimated $8.5 billion in 2018 to $9.3 billion in 2023. In addition, the average value of folding boxes per ton has been declining from 2015 to 2017, and only recovered in 2018, which is expected to increase by 1.7% over the forecast.
Challenges in folding box Market
From the perspective of various end-use markets, folding color box market is facing a series of challenges while experiencing different growth trends:
01. Growing demand for frozen food
The frozen food market has struggled for years as consumers tend to choose healthier and anytime, anywhere food. However, with the increase of color box shipments, demand has recently begun to thaw.
Several factors contributing to the rebound in frozen food purchases include:
1. Higher employment rate. More work means less time to cook at home, so consumers are looking for quick and easy food choices;
2. The lifestyle of the Millennials. Young consumers are waiting to set up families and often don’t like to spend too much time making fresh meals;
3. Changes in diet. The American public tends to eat better, including higher protein and vegetable content options, and is more receptive to today’s healthier frozen options.
Taking all these factors into account, in the next five years, the shipment volume of folding color boxes in the frozen food market is expected to grow at a healthy rate of 1.2% per year.
02. Sustainability of retail industry
Sustainable and renewable cardboard packaging will fill this gap as consumer demand for disposable plastic packaging in restaurants drops.
To provide a convenient preparation for busy families, it can replace Hotel takeout. For example, in the United States, McDonald’s plans to use renewable, recyclable or certified sources in all packages by 2025. Dunkin (doughnut) began to eliminate polystyrene foam cups from its global supply chain in spring 2018, and plans to complete them in 2020, and they are all replaced. Five layer paper cup. This step is in line with the company’s commitment in the United States to have 80% of its fiber-based packaging by the end of 2018, certified to SFI standards; recently, Taco Bell announced that it will ensure that all its packaging is recyclable or compostable by 2025.
Considering these changes, as well as more changes that may occur in the future, retail transport of folding color boxes will become the fastest growing end use area in the future, with an expected growth of about 1.7% between 2019 and 2023.
03. Changes in the digital market
With the continuous development of e-commerce market, packaging manufacturers will need to consider digital customers and their buying habits, especially in the dry food and home supply market.
People have become more and more used to the digital retail mode, and Amazon has provided more impetus for the acquisition of whole foods supermarket. In addition to groceries, consumers are turning to e-commerce household tools and appliances. The convenience of online shopping, competitive prices and diversified products all improve the sales volume of e-commerce.
That is, manufacturers may not necessarily find the benefits of doing so. E-commerce sales in the grain and household products market will limit the growth of folding color box shipments and increase the share of corrugated boxes in the long run. In the next five years, due to the shift of packaging demand to e-commerce rather than in store shelf demand, the volume of color box shipments in these industries may shrink.
A bold opportunity
How can folding carton manufacturers take advantage of the market growth trend? Bold designs can differentiate them from other products. Striking appearance and sustainable recyclable structure are a strong starting point, but new ideas and innovative design methods can bring greater benefits.
Every year, the PPC Association of the United States holds the “North American cardboard packaging competition”, not only to promote the design and development of carton color boxes, but also to keep up with the latest trends in this field.
In recent competitions, there are many bold design elements, such as:
1. Expanded digital printing capabilities, including the ability to print, die cut and paste 24 unique SKUs within 24-48 hours per week
2. Significant shift from plastic and shrink packaging to color box based high decorative multi packaging solutions for bottled and canned beverages
3. Novel and sustainable concepts, such as “virtual window”, which uses plastic windows instead of descriptive graphics of internal products 4. Innovative packaging solutions are designed to protect retail food from tampering during transportation.
The new method itself carries risks, but it may mean the advance of folding box packaging industry.

2020.3.12-2


Post time: May-08-2020

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