Market niche: demand for paper packaging grows in the pandemic

Market advanced 4.2% at the end of 2020 compared to the same period in 2019

The paper and corrugated cardboard packaging market is one of the industry's production level thermometers. These materials are essential for delivering products to customers. Therefore, when demand increases, it means that the production of different segments also grew. According to the Brazilian Association of Paper Packaging (Empapel), the shipment of corrugated cardboard boxes and sheets rose 3.7% in the comparison between the first eight months of 2019 and 2020. Only in November last year, this market added up 337,515 tons, which shows an increase of 4.2% compared to the same month in 2019.

The main reflection of this growth is the increase in e-commerce. During the new coronavirus pandemic, 11.5 million people made their first online purchase between April and September 2020, according to the Brazilian Electronic Commerce Association (ABComm). The organization points out that, before the pandemic, Brazil represented just over 5% of total retail sales, and now accounts for 12%.

Valmet, the world leader in the development and supply of technologies, automation and services for the pulp, paper and energy sectors, analyzes that, in addition, sustainable packaging is becoming increasingly important in e-commerce and other markets – creating new opportunities for fiber-based, recyclable and biodegradable packaging materials. A promising future is also predicted for the use of paperboard in liquid packaging, as many companies want to replace plastic as the packaging material for food products. According to the director of Valmet's paper business line in South America, Rogerio Berardi, “pulp for packaging is a growing area and we are realizing this in our daily lives. Many customers are investing in the production of kraftliner, corrugated board and board for liquid packaging and, as a result, demand for printing and writing papers is decreasing. We supply complete fiber lines and manufacturing lines for packaging paper and board, from wood raw materials to packaging paper and ready-to-use cardboard. Our offer includes new machines and reforms, process technologies, automation, industrial internet solutions and services, both for the fiber line and for the machines for manufacturing paper packaging and cardboard”, he explains.

Environmental and sustainability aspects are strong drivers

According to the report “The future of corrugated cardboard packaging by 2023” by Smithers (UK), this market is expected to grow by around 3.7% per year, reaching US$300 billion in 2023, with estimates of an annual growth of about 20% in e-commerce in Europe. As the corrugated industry accounts for 80% of demand in e-commerce, projected online sales (of more than $5.5 trillion in 2023) will have a profound impact on demand for packaging. Furthermore, sustainability and the environment are also strong drivers of this trend, mainly because consumers and businesses want to see new green alternatives to plastic. The Valmet specialist explains that there is a strong demand for fiber-based renewable materials to replace plastics. “The future looks very promising for products such as packaging paper and cardboard for liquid packaging. The advantage is huge. For example, the food industry is looking for new ways to produce packages that are neutral in terms of taste and odor, minimizing or completely replacing the use of plastic, ie with minimal environmental impact. Companies are willing to invest in organic packaging, mainly because consumers are expecting more and more. We will see many new packaging solutions in the future. The power of innovation is impressive and it seems that there are almost no limits to what we can achieve”, he concludes.

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About Valmet – Valmet, which in 2020 completed 60 years of activities in Brazil, is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. Its technology activities include pulp mills, paper, card and paper production lines, in addition to power plants for the production of bioenergy. Automation services and solutions improve reliability, process performance, and improve raw material and energy utilization. Source: https://empreendedor.com.br/noticia/embalagensdepapel/