Demand for Corrugated & Paperboard Boxes to Exceed $35 Billion in 2007

Demand for corrugated and paperboard boxes is projected to climb 2.8 percent per year to over $35 billion in 2007, rebounding from a low base in 2002. Advances will be stimulated by an expected upswing in shipments of nondurables, which account for more than three-quarters of total box demand. Continued strength in the bedrock food and beverages market will drive gains, as will an improvement in durable goods markets, which tend to use larger, more costly boxes. Gains will also be fueled by the ongoing shift toward greater usage of printed and other higher-value box types. These and other trends are presented in Corrugated & Paperboard Boxes, a new study from

The Freedonia Group, Inc., a Cleveland-based industrial market research firm. Corrugated and solid fiber boxes accounted for 71 percent of box demand in 2002, with folding boxes accounting for most of the remainder. Corrugated and solid fiber boxes will offer the best prospects through 2007, spurred by an expected rebound in the manufacturing sector while also benefitting from the increased emphasis on box appearance via upgraded materials and graphics.

Folding paperboard boxes will rebound from their low base in 2002, although faster growth will be restrained by competition from other packaging media and the elimination of some boxes due to source reduction efforts. The increasing level of offshore manufacturing in important markets like toys, sporting goods and hardware will also limit advances as these goods are generally imported with packaging. Demand for set-up boxes, a small, specialty niche in the industry, will remain flat due to their high cost. Inroads by less costly imports will lead to continuing shipment declines.

Food and beverages comprise the largest single end use for boxes , accounting for more than 40 percent of aggregate demand in 2002. Advances will be driven by expanding food and beverage shipments and the proliferation of processed, prepared foods that utilize visually appealing packaging to stimulate sales. Durable goods markets for boxes will be driven by healthy prospects for machinery and equipment shipments and an improved outlook for durables in general. The fastest gains are anticipated in the relatively small retail and carry -out market, fueled by robust growth for Internet shopping.

Corrugated & Paperboard Boxes (published 12/2003, 324 pages) is available for $3,900 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail [email protected] Information may also be obtained through www.freedoniagroup.com.

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