The paperboard partition market size is estimated to be worth USD 1,291.5 million in 2024 and is anticipated to reach a value of USD 1,769.7 million by 2034. Sales are projected to rise at a CAGR of 3.2% over the forecast period between 2024 and 2034. The revenue generated by paperboard partition in 2023 was USD 1,238.3 million.
Among the product types, brown kraft partition is used on a large scale in various industries, including food and beverage, cosmetics, electronics, and more, capturing a market share of 67.8% in 2024 in the paperboard partition market.
This rise is amid its excellent strength and durability which allows safe transport and shipping of delicate products over long distances. Also it possess the ability to be formed in different size and shapes, offering customized packaging solutions in several end use industries.
Paperboard Partition Industry Forecast
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 1,238.3 million |
| Estimated Size, 2024 | USD 1,291.5 million |
| Projected Size, 2034 | USD 1,769.7 million |
| Value-based CAGR (2024 to 2034) | 3.2% |
The food and beverage industry compared to other end-use industries finds major applications for the paperboard partition. The food and beverage industry is set to capture more than 29.3% of the total market share in the assessment period.
This rise is because the food and beverage industry involves various fragile items like glass bottles, jars, and delicate food products and the capability of paperboard partition to offer the necessary secured separation of these individual items in packaging solutions such as cartons or boxes. This leads to the safe transport of products and reduced risks of damage and breakage.
Out of two grades within the paperboard partition market, the bleached segment is dominating the market with a market share of 57.6% in 2024. This is due to the clean look offered by bleached paperboard partitions which leads to increased consumer preference for high-quality packaging solutions.
The clean and white appearance of bleached partitions enhances the visual appeal of packaging and conveys a sense of cleanliness among the customers. The paperboard partition market is set to experience profitable growth during the forecast period. It is projected to create an incremental opportunity of USD 531.4 million and is predicted to rise 1.42 times the current value through 2034.
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The below table presents the expected CAGR for the global paperboard partition market over several semi-annual periods spanning from 2024 to 2034.
| Particular | Value CAGR |
|---|---|
| H1 | 3.0% (2023 to 2033) |
| H2 | 3.4% (2023 to 2033) |
| H1 | 2.8% (2024 to 2034) |
| H2 | 3.6% (2024 to 2034) |
In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 3.0%, followed by a slightly higher growth rate of 3.4% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 2.8% in the first half and remain relatively moderate at 3.6% in the second half. In the first half (H1) the market witnessed a decrease of 20 BPS while in the second half (H2), the market witnessed an increase of 20 BPS.
Alcoholic Beverage Industry Growth Spurs Demand for Protective Paperboard Partitions
Paperboard partitions are extensively used in the packaging of food & beverages, chemicals, consumer goods and pharmaceuticals. The beverage packaging industry holds major applications for the paperboard partitions market.
Paperboard partitions are used for packaging various beverages, especially alcoholic beverages made of glass such as wines, beers and spirits that require extra care during shipping and transit. Packaging partitions are used to package two or more wine or spirits bottles together so that the bottles do not collide with each other during transportation and handling making them less prone to breakage.
High consumption of alcoholic beverages in both developed and emerging economies in the Asia Pacific region is expected to fuel the demand for paperboard partitions. As per the study from the Indian Brand Equity Foundation, the alcoholic beverage industry in India experienced a 20% year-on-year growth with a valuation of USD 312.4 million in 2023.
The high consumption of alcoholic beverages, especially in the emerging economies in the Asia Pacific region is one of the prominent factors that are driving the paperboard partitions market.
Growing Preference for Sustainable and Ecofriendly Packaging to Drive the Market
With rising concerns regarding the waste generated by packaging solutions and its impact on the ecosystem, the need for recyclable packaging products is on the rise. Various government organizations have banned the use of non-recyclable materials like plastic and created awareness for the use of paper and paperboard because of their minimal impact on the environment.
Due to the rising awareness of sustainable packaging products, consumers and companies have shifted from paperboard partitions to plastic partitions. By using such packaging materials, manufacturers engaged in the making of paperboard partitions are focusing to reduce the dependency on finite resources and also reduce the amount of pollution created by traditional packaging materials.
Paper as a packaging material has the highest recycling rate in comparison to other packaging materials, as stated by the European Commission. Many food and beverage, automotive spare parts and electronic goods companies are using paperboard packaging materials as their contribution and highlight their commitments towards sustainable development, which leads to attention seeking from environment-conscious consumers.
Due to the primary focus on sustainable packaging practices in terms of its production and disposal and to minimize the use of material the demand for eco-friendly packaging products like paperboard partition is experiencing burgeoning demand.
Product Visibility Hurdles May Hinder Paperboard Partition Market Growth.
Intending to have a competitive edge over their competitors, the end-use manufacturers are inclining towards visually communicative packaging. Although the usage of paperboard partition enables the packaging of multiple products in one box or carton, it doesn’t offer visibility of the products which affects the branding and advertising of those products.
As maintaining a good brand reputation gets tougher due to ever-increasing competition in the market, manufacturers and brands prefer packaging solutions that offer brand-building and product differentiation across the supply chain. The paperboard partition market may therefore face challenges due to the development and growing trend of using packaging solutions that enable product protection, at the same not compromising on product visibility.
Principal Consultant
The global paperboard partition market recorded a CAGR of 2.3% during the historical period between 2019 and 2023. Market growth of paperboard partition was positive as it reached a value of USD 1,238.3 million in 2023 from USD 1,131.2 million in 2019.
The paperboard partition market is experiencing growth due to its increased usage for food and beverage, medical, cosmetics and personal care, electronic goods and automotive industries because of their characteristic features to safeguard the products from any type of damage at the time of storage, warehousing, domestic and international transport.
Paperboard partitions are used in packaging to create compartments or divisions within boxes or containers. They are made from bleached or unbleached paper and available in different product types such as brown kraft paperboard partition and white kraft paperboard partition, each of them having peculiarities and applications in the above-mentioned end-use industries.
The partitions are known for packaging multiple product configurations in one single box, for space optimization, protecting and organizing products during transit, and preventing damage from collisions or shifting.
Paperboard partition improves the visual presentation of products by creating a neat and orderly appearance, which is crucial for enhancing brand perception and customer experience.
These beneficial characteristics encourage paperboard partition manufacturers to innovate among the materials used for making paperboard portions with improved strength and minimal impact on the environment. The rise in demand for safe packaging options from several end users is expected to create opportunities for the market.
Tier 1 companies comprise market leaders with a market revenue of above USD 40 million capturing significant market share of 15% to 20% in global market. These market leaders are characterized by high production capacity and a wide product portfolio. These market leaders are distinguished by their extensive expertise in manufacturing across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including recycling and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include Mondi plc, DS Smith plc, International Paper, WestRock Company, Stora Enso Oyj, Nippon Paper Industries Co., Ltd, Smurfit Kappa Group plc and NEFAB GROUP.
Tier 2 companies include mid-size players with revenue of USD 10 to 40 million having presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong market knowledge. These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach.
Prominent companies in tier 2 include RTS Packaging, LLC., M & M Box Partitions Co., Mil-Spec Packaging of GA, Inc., Innerpak Of Wisconsin, Inc., Multicell Packaging Inc., Micor Packaging Pty Ltd and Cactus Corrugated Containers Inc.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 10 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the future forecast for the paperboard partition market in terms of countries. Information on key countries in several parts of the globe, including North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe and MEA is provided. USA is anticipated to remain at the forefront in North America, with a CAGR of 1.6% through 2034. In South Asia and Pacific, India is projected to witness a CAGR of 5.5% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 1.6% |
| Germany | 1.4% |
| China | 4.7% |
| UK | 1.7% |
| Spain | 2.9% |
| India | 1.8% |
| Canada | 1.6% |
The paperboard partition market in the USA is projected to grow at a CAGR of 1.6% compared to other countries in the North American region by 2034.
Paperboard partitions are used widely for the packaging of multiple glass bottles containing wine and other alcoholic beverages like beers, spirits, etc. According to WineAmerica, USA accounts for 12% of the world’s wine production with more than 10,000 wineries producing 900,000,000 gallons of wine every year. These partitions are used for packing multiple wine bottles such as 12, 20 and 25 into boxes and cartons to optimize packaging efficiency.
Instead of single packaging, these partitions offer gathered packaging which is efficient in transporting the glass wine bottles to various locations from production unit to warehouse, distributors and domestic and international export. Paperboard partitions possess the essential strength and sturdiness for securely organizing and protecting wine bottles during transportation and storage.
They ensure breakage due to collision and chances of spoiling from external factors such as high temperature and other factors. Thus, the growth of wine production in the USA will augment the demand for paperboard partition in the assessment period.
The paperboard partition market in UK offers a lot of opportunities amid expansion and growing retail sales in cosmetics & personal care industry. The country is anticipated to record a CAGR of 1.7% during the evaluation period.
The rising cultural influence for personal care products in the UK is spurring the demand for various cosmetics and personal care products through the retail sales channel. As per the survey from, CTPA (the Cosmetic, Toiletry and Perfumery Association), the UK exhibited 5.4% growth in the personal care products industry generating £8.9 billion in 2022.
Protective packaging solutions are required for the transport of lotions, creams, shampoos, perfumes and many other personal care products from the production sites to warehouses and retail stores. The ability of paperboard partitions to store numerous products into a single large box or container offers retailers with improved space efficiency during its storage, which leads to abundant availability of stock and fulfilling the ever-increasing demand of the customers.
These partitions are used for brand marketing strategies such as combo packaging of products such as perfumes, shower gels, lotions, etc. in packs of threes, packs of five, etc. with discounts that convince the consumers to purchase the products.
Another benefit provided by paperboard partitions is that, due to their less occupancy and more product storage, it also reduces the transportation activities consequently reducing the use of fuel and minimizing environmental impact. Due to these factors, the growing retail sales of personal care and cosmetic products the paperboard partition is gaining impetus demand.
The section contains information about the leading segments in the industry. In terms of product, brown kraft is estimated to account for a share of 67.8% by 2034. By end use, the food and beverage segment is projected to dominate by holding a share of 29.3% by the end 2034.
| Product | Brown Kraft |
|---|---|
| Value CAGR (2034) | 2.9% |
Of the two products, brown kraft is expected to lead the paperboard partition market during the forecast period. Brown kraft is anticipated to rise at a CAGR of 2.9%, and hold for 67.8% of the total market share till the end of 2034.
Brown kraft paper is generally made from natural unbleached wood pulp. As these materials are environmentally friendly and recyclable, brown kraft paper significantly contributes towards environmental sustainability. This is one of the key reasons for its high preference over other products from end-use industries like food and beverage, pharmaceuticals, personal care and electronics.
Additionally, brown kraft paper is relatively inexpensive, becoming an affordable packaging solution for companies looking to minimize packaging costs. The natural fibers in the brown kraft paperboard provide a certain level of resistance towards moisture and grease which offers additional protection to the products.
Although it is made from natural sources it possesses the required strength and durability for providing the necessary protection during storage and transport, especially for commercial and industrial applications. Due to these benefits, brown kraft paperboard partitions are expected to experience huge demand in the upcoming years.
| End Use | Food and Beverage |
|---|---|
| Value CAGR (2034) | 3.4% |
The food and beverage industry among other end users like pharmaceuticals, automotive, electronic goods, personal care products is estimated to lead the paperboard partition market with a CAGR of 3.4% till 2034.
Paperboard partitions are used widely in the food and beverage industry for packaging numerous products including glass bottles containing beers, wines, carbonated drinks, spirits, etc. and jars of jams, pickles, and sauces to prevent breakage during transportation and storage, bakery products like cupcakes, pastries, and macaron to maintain their shape and prevent it from being crushed.
Paperboard partitions provide better organization and stacking of products within a package ensuring safe and hygienic packaging by maintaining food hygiene standards optimizing space usage and improving the efficiency of storage and shipping.
Their barrier and thermal insulations protect the food from contaminants and temperature-sensitive food items from external temperature variations during transportation. These ideal properties for protective food and beverage packaging solutions are propelling the paperboard partition market.
Key players of paperboard partition industry are developing and launching new products in the market. They are integrating with different firms and extending their geographical presence. Few of them are also collaborating and partnering with local brands and start-up companies for new product development.
Key Developments in Paperboard Partition Market
A few of the grades in the paperboard partition market include bleached and unbleached.
In terms of product, the paperboard partition market is divided into brown kraft and white kraft.
Some of end users related to paperboard partition market include food and beverage, personal care, electronic goods, automotive, pharmaceuticals and other industrial.
Key countries of North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe, Middle East and Africa are covered.
The paperboard partition industry is projected to witness CAGR of 3.2% between 2024 and 2034.
The global paperboard partition industry stood at USD 1,238.3 million in 2023.
Global paperboard partition industry is anticipated to reach USD 1,769.7 million by 2034 end.
North America is set to record a CAGR of 2.1% in assessment period.
The key players operating in the paperboard partition industry are Mondi plc, DS Smith plc, International Paper, WestRock Company, Stora Enso Oyj, Nippon Paper Industries Co., Ltd, Smurfit Kappa Group plc, NEFAB GROUP.
1. Executive Summary 2. Industry Introduction 2.1. Market Taxonomy 2.2. Market Definition 3. Market Trends and Success Factors 4. Market Background 4.1. Macro-economic and Industry Outlook 4.2. Market Dynamics 4.3. Value Chain Analysis 4.4. List of Key Market Participants (Manufacturers/Channel Partners) 4.5. Analysis of Key Industry Matrices 4.6. Industry Development Roadmap 5. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034 5.1. Historical Market Volume Analysis 5.2. Future Market Volume Projections 6. Pricing Analysis 7. Global Market Value (USD) Analysis 2019 to 2023 and Forecast 2024 to 2034 7.1. Historical Sales Analysis 7.2. Future Market Size and Growth Projections 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Grade 8.1. Bleached 8.2. Unbleached 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Product 9.1. White Kraft 9.2. Brown Kraft 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End Use 10.1. Food and Beverages 10.2. Personal Care 10.3. Electronic Goods 10.4. Automotive 10.5. Pharmaceuticals 10.6. Other Industrial 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 11.1. North America 11.2. Latin America 11.3. Eastern Europe 11.4. Western Europe 11.5. South Asia and Pacific 11.6. East Asia 11.7. Middle East and Africa 12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market and Country 13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 14. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 15. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 17. South Asia and Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 18. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 19. Sales Analysis 2024 & 2034 by Key Market Segments for 30 Countries 20. Competition Outlook including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 21. Company Profile 21.1. Mondi plc 21.2. DS Smith plc 21.3. International Paper 21.4. WestRock Company 21.5. Stora Enso Oyj 21.6. RTS Packaging, LLC. 21.7. M & M Box Partitions Co. 21.8. Mil-Spec Packaging of GA, Inc. 21.9. NIPPON PAPER INDUSTRIES CO., LTD. 21.10. Smurfit Kappa Group plc 21.11. Innerpak Of Wisconsin, Inc. 21.12. Multicell Packaging Inc. 21.13. NEFAB GROUP 21.14. Micor Packaging Pty Ltd 21.15. Cactus Corrugated Containers Inc.
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Paperboard Partition Market
