According to this analysis of industry growth trends, carton shipments will increase at an average annual rate of 0.5% through 2019, and the market will climb to $8.9 billion over the same period.
The Trends Report offers forecasts for the future as well as insights into past performances. 2016 proved challenging for the carton market, as competition from other substrates remained strong and consumers sought out fresh food products not generally packaged in paperboard. However, the report predicts that overall consumer spending, along with other solid underlying fundamentals of the U.S. economy, will help to grow demand for folding cartons through the remainder of the current decade.
About the 2016 report
The 2016 report reveals several overall trends that should further benefit the market. On the consumer side, some of the largest fast food companies and municipalities across the country have made decisions to use paper products over other substrates. Paperboard packaging is currently poised to benefit widely from its environmentally friendly character.
On the supply side, a challenge for the carton industry has been the increasing cost of paperboard, which has put pressure on profitability. Trends reveals that board prices should break in the next year, as substantial tonnage is currently ramping up in Europe. Furthermore, excess board from oversupplied Chinese markets is spilling into export markets, which should further decrease board prices in the near term.