ASEAN’s massive growth in the corrugated cardboard and carton industry is predicted to continue
27 June 2018
ASEAN is a diverse community of 10 countries. Located in the central hub of Asia Pacific, where over two-thirds of the world’s population resides, it is a dynamic economic hub of over 630 million people, generating Gross Domestic Product (GDP) of US$2.5t and international trade of US$2.3t.
ASEAN’s growth is represented by a real GDP growth rate of 6.7% forecast year-on-year to 2021. The region is increasingly being thought of as the next global investment destination of choice by both regional and global investors.
The global packaging market will reach $1020 billion by 2020, developing at an annual growth rate of 4%. The Southeast Asia region accounts for 15% of the global corrugated box demand, with the Africa/Mideast region offering the fastest growth among the six world regions.
The growth is fueled by the massive and ever increasing number of young middle class residents. This booming demographics’ demand for products from the electronic, auto, textile, food, construction, and healthcare sectors has a direct effect on the corrugated and cardboard supply chain.
Demand will be driven by the increasing use of corrugated boxes for transportation and product packaging in developing countries, especially those in Southeast Asia and the Africa/Mideast region. The growth will be more robust in part because the boxes are still gaining market share from wood crates.
Meanwhile, due to the increase in internet and mobile penetration, along with the rise in the acceptance of online payments, the strong growth of e-commerce is driving corrugated box usage, as well as the popularity of retail-ready packaging in nearly all regions.
Retail-ready packaging is becoming popular in more affluent countries because of the time and labor cost savings it offers. Corrugated boxes will continue to benefit from their sustainability, good environmental image, and low cost compared to competitive products.