Five trends changing the corrugated packaging market

The corrugated packaging market is growing quickly, helped by the explosion of e-commerce and developments in digital printing technologies.

The global corrugated packaging market is growing faster than expected, confounding some predictions that forecast a slowdown in corrugated consumption. A downturn in demand in China and the banning of contaminated recycled paper stocks has not fully materialised.

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Smithers new report - The Future of Corrugated Packaging to - offers exclusive analysis on how this market is increasing, growing around 3.7% annually to reach $300 billion in . The report also reveals that the electrical goods end-use sector will see the highest levels of growth.



E-commerce

E-commerce retail sales are continuing to rocket, with estimates of around 20% annual growth in e-commerce trade in Europe.

Global online sales are expected to be over $5.5 trillion in . This will have a profound impact on packaging demand, especially in the corrugated industry as it represents 80% of demand in e-commerce.

The increasingly complex logistics chain for direct to consumer delivery &#; e-commerce packages are expected to be handled up to 20 times or more during standard distribution &#; means there is new demand for cost-effective secondary corrugated board packaging.  

Demands from brand owners are now being felt by the converting industry as many brands now require the secondary pack to carry their image into the home, not just the retail outlet. This increases the need for converters to produce high-quality graphic designs on the shippers themselves.

Fit-to-product

Born out of e-commerce has been the advent of fit-to-product (FtP) or box-on-demand systems, driven in particular by the needs of dedicated e-commerce sellers such as Amazon and Staples. This technology enables the production of customised secondary packaging based on the exact size of the product being packed, including irregular shapes. For the end-user this eliminates the need for large inventories of standard-sized boxes which often require copious amounts of filler material.

As FtP platforms become more popular, there will be more demand for boards sold as fanfold, as well as finishing equipment, such as printers, that can operate with them.

Major moves are being undertaken to capitalise on this growth market. WestRock for example acquired Plymouth Packaging. Based in Michigan it derives 70% of its sales from its BoD systems and corrugated fanfold, together with its equity interest in Panotec and exclusive right to distribute Panotec&#;s equipment in the US and Canada.

Sustainability

Corrugated board is proving popular in packaging as sustainability becomes a more important issue across the value chain &#; it is easy to recycle and the pulp and paper industry is already adept at converting these into new generations of containerboard. These qualities mean there has been a rise in popularity of corrugated protective formats over polymer based alternatives, such as expanded polystyrene (EPS) foams.

While lightweighting of board has long been affecting the corrugated industry, rightweighting, and rightsizing are playing an increasingly important role in this market, not only in response to consumer demand for efficient packaging, but also in response to the logistics chain&#;s adoption of dimensional weight (DIM) pricing. In some instances substituting to a heavier board grade can have a beneficial impact overall as it allows for the elimination of additional protective elements,

The desire to minimise the volume of air being shipped within all delivery channels means that in some instances there have been significant cost increases. For example a 32-pack of toilet rolls costs an estimated 37% more to ship using charges based on dimensions, rather than simple weight.

Lightweighting has been particularly successful in Western Europe, where box weights are now typically about 80% of US weights. The importance of lightweighting will continue to be felt over the coming years as retailers look to save costs as well as appealing to end users.

Retail changes

Retail-ready packaging has established itself as a major cost saver for retailers, especially in Western Europe. This ongoing profit pressure is providing an impetus to use more retail ready formats as a labour-saving solution, as it is estimated that these secondary packaging formats can reduce shelf restocking and handling costs by up to 50%. It is also particularly popular with sales into convenience stores or discount retailers such as Aldi and Walmart. For brands it gives the added bonus of giving them greater control over the presentation of their goods within the retail space.

The expansion of e-commerce trade into the grocery sector is likely to have a slight impact on retail-ready packaging use as online sales do not require these pack types.

Corrugated cases will still be used to ship goods to an online retailers warehouse or &#;fulfilment centre&#; but these do not need to be retail-ready formats. The emergence of subscription box and meal kit services &#; which offer direct-to-consumer delivery of specialist food using a weekly or monthly subscription &#; are providing some new opportunity for corrugated board suppliers with delivery-friendly formats containing goods within a die-cut interior.

Digital printing advancements

As the digital print market matures, the corrugated sector, while still in its infancy, has developed a growing appetite for adoption of the process, and systems are now being developed to address the demands of the high-volume liner and post-print markets.

The flexibility of run-lengths, savings in set-up costs, the ability to personalise either relating to brands, regions, stores or individuals, and the level of quality now available through the latest technologies all combine to create a &#;perfect storm&#; of growth opportunities for converters and printers.

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Brand owners are recognising the opportunities to grow dwindling brand loyalty through greater engagement with their customer base provided by these technological developments, and industry leaders see packaging as an important component in the creation of a memorable shopping experience that users will want to share via social media, which can drive marketing, encourage repeat business and attract new customers.

The Future of Corrugated Packaging to offers comprehensive market data for current and future demand for corrugated packaging, complemented with over 350 tables and figures delivering an unparalleled level of detail across all key segments. Download the market report brochure.

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A cardboard shredder is a device that is designed to process cardboard into smaller pieces or strips for recycling, reusing, or repurposing cardboard material. These machines are typically used by businesses, packaging departments, recycling centers, and environmentally-conscious people. While cardboard shredders are available in many different sizes and configurations, they all break down cardboard boxes and packaging materials into more manageable forms. These shredders have a positive impact on the environment through recycling, waste reduction, and sustainability. Here is why cardboard shredders are known to be eco-friendly:

1. Encourages Recycling

Cardboard shredders encourage recycling cardboard materials. Instead of throwing away used cardboard boxes and packaging, you can put these items into a cardboard shredder. The items will become cardboard shreds, which can be re-used as packaging material. For example, the cardboard shreds can be used as packaging peanuts, cushioning, and void-fill material for shipping. 

2. Waste Reduction

Waste reduction refers to the systematic efforts to minimize the generation of waste materials, whether its solid waste, hazardous waste, or cardboard waste. The goal of waste reduction is to reduce the amount of waste that ends up in landfills, incinerators, or the environment. Through converting used cardboard into packaging material, cardboard shredders help downsize the quantity of cardboard waste that ends up in landfills or incinerators. This minimizes the burden on waste management systems, and reduces the overall environment impact of waste disposal. 

3. Resource Conservation

Resource conservation is the sustainable and responsible management of natural resources to make sure they are available for current and future generations while decreasing negative environmental impacts. Cardboard shredders lengthen the life cycle of cardboard by repurposing it into packaging material. This decreases the demand for new cardboard production, and allows for the conservation of trees and water, which are resources that are used to produce new cardboard. This minimizes negative environmental impacts. 

4. Lowers Carbon Footprint

Lowering the carbon footprint of business operations involves reducing the amount of greenhouse gas emissions, particularly carbon dioxide (CO2). Production of cardboard is energy intensive and is often associated with higher carbon emissions. Recycling and reusing cardboard through shredding can reduce the carbon emissions that are associated with the production of new cardboard.

5. Minimal Energy Consumption

Minimal energy consumption, also known as energy efficiency, is the practice of using as little energy as possible to achieve a specific task or outcome. This practice reduces unnecessary energy waste and optimizes the use of energy resources to decrease energy-related costs and environmental impacts. Cardboard shredders run on electricity, but their energy consumption is low compared to other manufacturing or recycling processes. This lessens the environmental impact connected to energy consumption.

6. Local Recycling

Local recycling is the practice of recycling materials within a small community to reduce waste, conserve resources, and foster sustainability. It reduces the need to ship recyclable materials over long distances, which can lower fuel consumption and greenhouse gas emissions affiliated with transportation. Cardboard shredders allow businesses to recycle cardboard in-house, which diminishes the need to transport cardboard waste to recycling facilities. This saves on transportation emissions and expenses.

7. Custom Packaging Solution

Shredded cardboard can be used as a custom packaging solution. For example, the shreds can be used as protective packaging material for fragile items that need to be shipped. They can shield the fragile items from scratches and damage while being transported or stored. Cardboard shreds can replace less eco-friendly packaging materials like Styrofoam or plastic bubble wrap. 

8. Closed-Loop Recycling

The majority of cardboard shredders generate cardboard packaging material that can be recycled again after being used. This establishes a closed-loop recycling process, where the same material can be used and recycled multiple times. Closed-loop recycling is beneficial because it reduces the overall environmental impact of resource extraction and waste disposal. 

9. Sustainable Packaging Practice

Sustainable packaging practices are a set of principles and strategies that work toward reducing the environmental impact of packaging materials and processes throughout the entire lifecycle of a product. Integrating shredded cardboard into sustainable packaging practices aligns with the growing trend of using sustainable and eco-friendly materials. These practices can enhance your business&#; environmental image, and your business can appeal to environmentally conscious consumers.

10. Educational and Awareness Benefits

A cardboard shredder machine at a business can serve as an educational tool and promote awareness about recycling and waste reduction. In fact, businesses and individuals that use these devices can contribute to the expansive understanding of environmentally friendly practices.

By repurposing cardboard waste into packaging material, cardboard shredders play a role in encouraging a more sustainable and environmentally responsible approach to waste management and packaging. 

Our HSM ProfiPack C400 Cardboard Shredder

Our HSM ProfiPack C400 Cardboard Shredder is a portable and compact tabletop cardboard perforator that can shred cardboard into high-quality packaging material for economic and sustainable businesses. This shredder has a 16.3&#; throat feed which can accept 0.4" thick cardboard sheets. There is also a user-friendly intuitive operator control panel with LED indicators on a robust keypad that signals the operating status of the device. The cutting width can be easily adjusted. It runs on a 1.6 horsepower motor which can shred up to 36.4 feet of cardboard per minute. It is ideal for shipping departments, warehouses, and recycling centers.

Our Intimus PacMaster S Cardboard Shredder

Our Intimus PacMaster S Cardboard Shredder is perfect for businesses that want to reduce costs and waste by shredding obsolete and spare cardboard into packaging material to protect products during storage or shipping. The shredder replaces manually cutting and breaking down boxes, and saves time. It has patented cutting shafts that can tear through 2 to 3 layers of corrugated cardboard at once. The cardboard is cut into a packaging pad of up to 0.15&#; x 4.37&#;. All cardboard sizes fit into its 16.75&#; throat feed, and the cardboard strips that are not shredded are cut off. There is even a size guide on the work surface to ensure accurate cutting.

Our Intimus Vacuum Kit for Our Intimus PacMaster S Cardboard Shredder

Our Intimus Vacuum Kit for Our Intimus PacMaster S Cardboard Shredder is a vacuum system that keeps your shredding area clean and neat. It comes with a dust extractor to help the Intimus PacMaster S Cardboard Shredder reduce paper dust while it is being used. The dust extractor decreases the air pollution or contamination from the shredded cardboard particles. The Intimus Vacuum Kit for the PacMaster S Cardboard Shredder has a 1-year manufacturer&#;s warranty for solid and reliable performance.

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