Corrugated Automotive Packaging Market

Corrugated Automotive Packaging Market Outlook

The FMI anticipates that the corrugated automotive packaging market is expected to capture a valuation of USD 2.0 billion in 2023. The market is projected to rise to USD 3.07 billion by 2033. The market is likely to secure a CAGR of 4.4% during the forecast period.

Factors Driving the Corrugated Automotive Packaging Market

• Growth in the Automotive Industry: The development of the automotive industry is one of the primary factors driving the demand for plastic corrugated automotive packaging. The automotive industry is constantly expanding, and the need for high-quality packaging solutions is also increasing.
• Environmental Sustainability: Corrugated automotive packaging is environmentally friendly and recyclable, which has increased demand for this type of packaging. Consumers and manufacturers are looking for packaging solutions that are sustainable and have minimal impact on the environment.
• Customizability and Flexibility: Corrugated packaging can be easily customized to meet the specific needs of different products and manufacturers. Corrugated packaging can be designed to fit any size and shape, making it a popular choice for automotive parts manufacturers.
• Cost-effective: Corrugated packaging is relatively cost-effective compared to other packaging materials like plastic, metal, or wood. It has led to an increase in demand for customizable corrugated packaging solutions among automotive parts manufacturers.
• Improved Protection: Corrugated automotive packaging provides excellent product protection during transportation and storage. The corrugated design of the packaging includes shock absorption, making it an ideal choice for transporting fragile automotive parts.
• Supply Chain Efficiency: Corrugated automotive packaging is lightweight, easy to handle, and transport, which helps to improve supply chain efficiency. It reduces the cost of transportation, handling, and storage, making it a popular choice for automotive parts manufacturers.

Challenges that Limit the Corrugated Automotive Packaging Market

• Competition from other Packaging Materials: Corrugated packaging faces stiff competition from other packaging materials like plastic, metal, and wood. These materials offer unique advantages, such as higher durability or better moisture resistance, which may not be present in corrugated packaging.
• Limited Design Capabilities: Although corrugated packaging can be customized to fit specific products, it has limited design capabilities compared to other packaging materials. It may limit its use in some industries, such as luxury automotive, where aesthetics play a crucial role.
• Cost Volatility: The cost of raw materials used to manufacture corrugated packaging can be volatile, making it difficult for manufacturers to estimate costs accurately. It can impact pricing strategies and overall profitability.
• Recycling and Disposal Challenges: While corrugated packaging is recyclable, it still faces challenges in terms of recycling and disposal. The recycling process requires specialized equipment and can be expensive. However, a significant amount of corrugated packaging still ends up in landfills.
• Transportation and Storage Limitations: Corrugated packaging can be bulky and may not be suitable for all types of transportation and storage. In a few cases, using other packaging materials that take up less space may be more cost-effective.

The market faces challenges such as competition from other packaging materials, limited design capabilities, cost volatility, and transportation and storage limitations. Manufacturers in this industry must be aware of these challenges and find ways to address them to remain competitive.

Attributes	Details
Market CAGR (2023 to 2033)	4.4%
Market Valuation (2023)	USD 2 billion
Market Valuation (2033)	USD 3.7 billion

Corrugated Automotive Packaging Market, 2018 to 2022 Historical Sales, Compared to 2023 to 2033 Future Outlook

According to Future Market Insights, the global corrugated automotive packaging market registered a healthy 4.4% CAGR during the forecast period. Historically, the market recorded a CAGR of 4.0% between 2017 and 2022.

• Short Term (2023 to 2026): Growing demand for high-quality, environmentally friendly, and flexible packaging is influencing the market growth in this time frame. Manufacturers developed this packaging solution to protect the environment from toxicity in countries including the United Kingdom, the United States, and China
• Medium Term (2026 to 2029): Growing industrialization, urbanization, and the automotive industry propel market growth. The manufacturers are improving quality by adopting advanced and co-efficient packaging solutions driving the market opportunities in this period.
• Long Term (2029 to 2033): Growing research & development activities, present manufacturers, new market entrance, and huge investments bolster market growth. Government initiatives and policies to maintain a healthy environment in various countries fuel market opportunities.

The market is estimated to reach USD 3.7 billion during the forecast period. Historically, the market stood at USD 1.92 billion from 2017 to 2022.

Top Segments Propel the Global Market

Corrugated Boxes Category Leading the Product Type Segment

Based on product type, corrugated boxes dominate the global market by capturing a CAGR of 4.5% during the forecast period. Corrugated boxes are one of the leading product types in the market. Several factors contribute to the popularity of corrugated boxes in this market which includes:

• Protection and Durability: Corrugated boxes offer excellent protection and durability for automotive parts during transportation. They are made of multiple layers of corrugated cardboard, which provide cushioning and prevent damage to the details.
• Customizability: Corrugated boxes can be easily customized to fit the specific requirements of different automotive parts. They can be designed to accommodate other components in various sizes, shapes, and configurations.
• Eco-friendliness: Corrugated boxes are made of recyclable materials and are themselves recyclable, making them an eco-friendly packaging option for the automotive industry.
• Cost-effectiveness: Corrugated boxes are a cost-effective packaging option compared to other materials such as plastics, metals, or wood. It is particularly important for the automotive industry, which requires large volumes of packaging materials.
• Lightweight: Growing demand for automotive lightening packaging solutions to reduce the overall weight of shipments and transportation costs.

Overall, corrugated boxes offer excellent protection, customizability, and cost-effectiveness in the market.

Double Wall Layer Dominates the Global Market

Based on layer type, the double wall layer type is one of the popular types of corrugated packaging used in the automotive industry. The double wall layer category is leading the global market by securing a CAGR of 4.3%. There are several reasons why double wall layer type is leading the corrugated automotive packaging market:

• Enhanced Protection: Double wall layer type corrugated packaging provides enhanced protection compared to single wall layer type. The extra layer of corrugated cardboard offers great cushioning and shock absorption fueling the market size.
• Increased Durability: Double wall layer type corrugated packaging is more durable than single wall layer type. It can withstand heavy loads and is less likely to tear or puncture during transportation, which reduces the risk of damage to automotive parts.
• Customizability: Double wall layer type corrugated packaging can be customized to fit the specific requirements of different automotive parts. It can be designed to different sizes, shapes, and configurations to accommodate other components, providing great flexibility in packaging design.
• Cost-effectiveness: Double wall layer type corrugated packaging is more economical than other materials such as plastics, metals, or wood. It is particularly important for the automotive industry, which requires large volumes of packaging materials.
• Eco-friendliness: Double wall layer type corrugated packaging is made of recyclable and is itself recyclable, making it an eco-friendly packaging option for the automotive industry.

The Top Countries Influencing the Global Market are

Sustainable Packaging Influence the United States Market Growth

The United States is anticipated to dominate the global market by capturing a CAGR of 3.9% with a valuation of USD 455.1 million by 2033. Several factors influence the United States corrugated automotive packaging market are:

• Strong Automotive Industry: The United States has a strong automotive industry, a leading consumer of corrugated automotive packaging. The industry's demand for high-quality, durable packaging to protect automotive parts during transportation has boosted market size.
• Growing E-commerce Industry: E-commerce growth of e-commerce has led to increased demand for corrugated packaging in the United States. The rise in online sales of automotive parts has also contributed to the development of the corrugated automotive packaging market in the country.
• Sustainable Packaging: The United States strongly focuses on sustainable packaging solutions, which has led to an increased demand for eco-friendly corrugated packaging in the country. Corrugated packaging is a popular choice for sustainable packaging due to its recyclability and biodegradability.
• Technological Advancements: The United States has a highly advanced and innovative packaging industry. Manufacturers develop new and improved corrugated packaging solutions for the automotive industry. These advancements have improved the durability, strength, and customization of corrugated packaging, making it a popular choice for the automotive industry.

Overall, the United States has a strong and growing market, driven by a focus on sustainable packaging and technological advancements in the packaging industry.

Technological Advancements Propel China Market Growth

China is significantly growing the global market by capturing a relevant share by 2033. Several factors propel China's corrugated automotive packaging market are:

• Growing Automotive Industry: China is the world's leading automotive market and has a prominently growing automotive industry. The industry's need for high-quality and durable packaging to protect automotive parts during transportation has boosted the demand for plastic corrugated automotive packaging.
• E-commerce Growth: The rapid growth of e-commerce in China has also contributed to the demand for corrugated automotive packaging. The rise in online sales of automotive parts has increased the need for durable and secure packaging for transportation, which corrugated packaging can provide.
• Favorable Government Policies: The Chinese government has implemented several policies to promote sustainable packaging materials, including corrugated packaging. These policies have boosted the demand for eco-friendly corrugated packaging in the country.
• Technological Advancements: China has a highly advanced and innovative packaging industry, which has led to the development of new and improved corrugated packaging solutions for the automotive industry. These advancements have improved the durability, strength, and customization of corrugated packaging, making it a popular choice for the automotive industry in China.

Overall, the strong and growing automotive industry, increasing e-commerce sales, and favorable government policies upsurge the market in China.

Startup Ecosystem

How are Startups Performing in the Global Corrugated Automotive Packaging Market?

Several startups have been active in the industry in recent years, contributing to its growth and innovation. Here are a few examples:

• Ecovative Design: This startup uses mushroom-based technology to develop biodegradable and sustainable packaging materials. The company's innovative approach to packaging has the potential to reduce waste and environmental impact significantly.
• Packsize: Packsize is a startup developing custom box-making machines to create boxes on demand. These box-making machines reduce the amount of corrugated packaging material required and increase efficiency in the packaging process.
• Zume: Zume is a startup using artificial intelligence and robotics to improve the efficiency of the packaging and delivery of food products. While not specifically focused on the automotive industry, Zume's technologies could be adapted for use in automotive packaging.
• Smurfit Kappa: This startup uses advanced digital printing technologies to create customized corrugated packaging solutions for various industries, including automotive. The company's innovative packaging design approach can potentially improve protection and reduce costs.

Competitive Landscape

The global corrugated automotive packaging market is highly competitive, with many companies operating. The competitive landscape is characterized by multinational corporations, regional players, and small startups. A few of the key players in the market include:

• Smurfit Kappa Group: Smurfit Kappa is one of the world's prominent producers of paper-based packaging, offering a range of corrugated packaging solutions for the automotive industry.
• Mondi Group: Mondi is a global packaging and paper company that produces various corrugated packaging solutions for the automotive industry, including pallet boxes and another specialized packaging.
• DS Smith: DS Smith is a leading provider of corrugated packaging solutions, including customized solutions for the automotive industry. The company has a global presence and operates in over 40 countries.
• International Paper: International Paper is a multinational packaging company that produces a range of corrugated packaging solutions for the automotive industry, including boxes, containers, and specialized packaging.
• WestRock: WestRock is a leading producer of corrugated packaging solutions with a range of offerings for the automotive industry. The company operates globally and serves customers in a wide range of industries.
• Cascades Inc.: Cascades is a North American packaging and paper company that produces a range of corrugated packaging solutions, including those for the automotive industry. The company has a focus on sustainability and eco-friendly packaging solutions.
• Packaging Corporation of America: Packaging Corporation of America is a leading producer of containerboard and corrugated packaging solutions, including those for the automotive industry. The company operates in the United States and serves customers in various industries.

Other players in the industry include regional and local players and smaller startups that are bringing innovation and new technologies to the market.

Other Essential Players in the Market are

• International Paper Company
• WestRock Company
• Greif Inc.
• DS Smith Plc
• Smurfit Kappa Group Plc
• Nefab Group
• Elsons International
• Orcon Industries
• Sonoco Products Company
• Mondi Group Plc
• Sealed Air Corporation

Scope of Report

Attribute	Details
Forecast Period	2023 to 2033
Historical Data Available for	2017 to 2022
Market Analysis	USD billion for Value
Key Countries Covered	The United States, Canada, Germany, The United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Türkiye, Northern Africa, and South Africa
Key Segments Covered	Product Type, Layer Type, Automotive Part, Region
Key Companies Profiled	International Paper Company; WestRock Company; Greif Inc.; DS Smith Plc; Smurfit Kappa Group Plc; Nefab Group; Elsons International; Orcon Industries; Sonoco Products Company; Mondi Group Plc; Sealed Air Corporation
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing	Available upon Request

Corrugated Automotive Packaging Market by Category

By Product Type:

• Boxes
• Crates
• Trays
• Partitions
• Pallets
• Octabins
• PoP Displays

By Layer Type:

• Single Face
• Single Wall
• Double Wall
• Triple Wall

By Automotive Part:

• Automotive Filters
• Batteries
• Engine Components
• Lighting Components
• Underbody Components
• Electrical Components
• Cooling Systems

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• The Middle East & Africa (MEA)

Frequently Asked Questions

What is Current Valuation of the Market?

The market may reach a potential value of USD 2 billion in 2023.

What is the Market's Growth Prediction?

Through 2033, the market may accelerate progressively at a CAGR of 4.4%.

How Huge is the Market Envisioned to be in 2033?

The estimated value of the global market in 2033 is USD 3.07 billion.

What Was the Historical CAGR of the Market?

Sales on the market surged between 2017 and 2022 at an HCAGR of 4%.

What is the CAGR for The United States Market?

The United States market is anticipated to accelerate at a CAGR of 3.9% by 2033.

What is the CAGR of the Leading Layer Type Segment?

The double wall layer category dominates the global market with a CAGR of 4.3%.