The demand for both corrugated and paperboard boxes in the U.S. is forecast to increase 2.6 percent per year, reaching $41.2 billion in 2020.

Here’s the breakdown – the demand for folding cartons will rise to $10.1 Billion in 2020; while the demand for corrugated and solid fiber boxes will reach $30.5 billion.

In addition, the demand for set-up boxes is expected to expand 2.0 percent per year to $540 million in 2020.

These and other trends are presented in Corrugated & Paperboard Boxes, a new study from The Freedonia Group, a Cleveland-based industry research firm.

What’s Driving Growth?

E-commerce and retail-ready applications will drive growth for corrugated boxes while folding carton demand will be sustained by the foodservice, carryout and pharmaceutical markets.

The demand for set up boxes is bolstered by continued growth in cosmetics and toiletries, and durable goods such as silverware and medical instruments.  

Value gains for corrugated and paperboard boxes will be stimulated by the increased adoption of value-added features such as high-quality printing, easy-open tear strips, and special coatings. Volume growth, however, will be held back by lightweighting trends and market maturity.

More Details

Corrugated and solid fiber boxes will continue to hold the largest share of demand, comprising 74 percent of the total in 2020 and reaching $30.5 billion on growth of 3.0 percent per year. 

Corrugated boxes benefit from advantages in terms of cost and strength capabilities and will remain the default shipping container throughout the foreseeable future, despite some competition from reusable containers, flexible packaging, and film covers.

“Moreover, as the e-commerce market continues to expand, so too will demand for boxes to ship products to consumers,” notes analyst Katie Wieser.  Additionally, demand for shipping containers that can also act as retail displays will boost value growth as this application typically requires the use of high-quality printing and the integration of features that allow the box to be opened without tools.

Folding carton demand is forecast to increase 1.5 percent per year to $10.1 billion in 2020, posting slow growth as these containers face significant competition from flexible packaging formats such as stand-up pouches. 

However, the environmental advantages of folding cartons compared to foam or plastic clamshells for the restaurant carryout market will help to sustain gains.