PPC’s Trends Report Predicts Measured Progress For Folding Cartons Over Next Four Years

PPC's Trends Report analyzes the trends in 17 key market segments of the paperboard packaging industry.

The Paperboard Packaging Council (PPC) recently released its annual Trends: 2013 Industry Outlook and Market Data Report, a complete breakdown of what’s in store for the paperboard packaging industry over the coming five years, and a crucial guide to interpreting upcoming market obstacles and prospects.

Produced through a partnership between PPC and RISI, the report analyzes the trends in 17 key market segments of the paperboard packaging industry, such as confectionery, dairy, dry foods, cosmetics, pharmaceuticals, recreational products, soap and detergent, and others. This year, four categories were classified as growth markets, five as mature (relatively little or no growth), and eight as declining.

“Understanding which end use markets hold the most promise for growth over the coming years is central to developing a successful strategic business plan,” explains Brian Chaisson, Director of Industry Benchmarking. “The PPC Trends Report provides the insight needed to set in motion the most prudent decisions for executives in the folding carton industry.”

As predicted in last year’s report, after four years of decline, 2012 saw the first positive growth in the folding carton industry — a 1.2% increase in tons shipped. While moderate growth is expected to continue through 2015, 2012 shipments still fell approximately 537,000 tons short of the total reached in 2007.

Slow growth in tons of cartons shipped is expected to continue, averaging 0.8% per year between 2013 and 2017, PPC said.

According to the report, cumulative folding carton shipments remained 9.2% below the 2007 peak. Historically, carton demand has lagged approximately 2% behind overall growth in consumer spending on nondurable goods, a pattern that was fairly consistent throughout the macroeconomic cycles of the last decade. In 2008-09, folding carton shipments plummeted 6.6%, which was in line with the 3.0% decline in consumer spending on nondurables. However, in 2010-11, carton demand continued to decline 4.1% while nondurable spending increased 4.6%. The Great Recession’s impact on the industry will be felt for years to come.

“This thorough analysis is an invaluable tool for converters and suppliers,” remarked Ben Markens, President of PPC. “We’re glad to be able to offer this important study as part of membership in our association.”

For more information on the 2013 Trends Report, visit paperbox.org/trends.

SOURCE: Paperboard Packaging Council