Market Overview
Microflutes are durable, lightweight corrugated boards with minimum thickness, made from a fluted corrugated sheet and one or two inner and outer sheets. According to AICC (Association of Independent Corrugated Converters) micro-flute packaging makes up 5-7% of total US corrugated shipments. The micro-flute packaging material can be cut or folded into any shape or size as per the design requirements. The demand for micro-flute packaging materials is anticipated to increase supported by the growth of e-commerce packaging and food & beverage segments, with companies focused on expanding production capacities to meet the growing demand. For instance, in December 2017, DS Smith Plc opened a new PackRight Centre in Germany, to develop innovative and creative display and packaging concepts and increase sales. Moreover, the higher penetration of internet shopping in consumer behavior has led to the development of innovative solutions for the packaging industry, improving the quality of microflute packaging materials. The extensive application of microflute boards have resulted in a reduction of shipping costs as the material is lightweight, thus cost saving is the key motivator of growth for the market. In addition, the rise in demand for recyclable and eco-friendly packaging materials would also propel market growth, especially in the packaging of delicate products. The evolution of digital printing on micro-flute boards has also positively impacted the retail packaging industry, further driving market growth.
Micro flute market is likely to reach USD 90.58 billion in 2027, from its recorded value of USD 58.87 billion in 2019, growing with a CAGR of 5.35% during the forecast period.
Micro flute, especially the F and N types bestow advanced features and attractive aesthetics over traditional plastic and metal packaging solutions. Overcoming the limitations of plastic on the printing front, F and N-type have an excellent surface quality that facilitates printing with ease and makes direct offset printing possible. F-flute is quickly gaining recognition for its stacking strength, low weight, stiffness, insulation and shock absorbing properties. The advances in automation and high speeds give F-flute the ability to gain widespread attention as the material of choice for the carton industry. F-flute has all the benefits of a folding carton combined with the strength of corrugated. F-flute provides greater protection since the corrugated structure of F-flute offers a stiffer and more rigid package. In terms of box performance, F-flute packaging offers superior compression strength in addition to greater bulge resistance. Moreover, F flute offers an exceptional surface for printing and is impressively strong thus creating a versatile decorative packaging material. It is suitable for printing by screen, flexo and can be processed by new generation litho machines.
Market Dynamics
Drivers
- Growing demand for sustainable packaging
- Rise of online retail sales channel
- Technological advancements in micro-flute packaging
Restraints
- Low aesthetic performance and printing complexities of test paper
GROWING DEMAND FOR SUSTAINABLE PACKAGING
Economic growth, consumer trends, packaging technology and product branding were the key trends shaping the global packaging industry. Consumers and manufacturers of goods are moving alike towards sustainable, economic and environmental packaging solutions The rising demand for paper and cardboard packaging coupled with its economic and environmental benefits over other materials is the primary driver for growth of the global flute market.
Cardboard evolved as the most sustainable packaging solution over plastic, wood and metal. Also, corrugated cardboard made of layered flute offers high protection against mechanical impact, thus dominating the paper packaging products
Corrugated cardboard has been witnessing significant demand from the food and beverages industry owing to food safety, quality and hygiene that can be attained by corrugated cardboard. According to a research conducted by the University of Bologna in 2018, corrugated flute packaging is the most effective packaging material that offers food safety and prevent microbial infections
Corrugated containers also offer cushioning, ventilation and mechanical protection to support transportation of fresh farm produce. Also, the growth of the processed food industry and food service sectors led to new growth venues for the flute market. Pizza boxes, fruit and vegetables packages are the major applications of flutes in food and beverage packaging
Flute increases the durability of cardboard carton and is widely in packaging applications across several other industries including healthcare personal care, textiles and small industrial supplies
Geographical Analysis
North America is growing at the fastest CAGR of 5.0% during the forecast period (2020-2027)
North America is the most lucrative regional market in the global flute market, estimated to witness a CAGR of 5% in dollar sales during the forecast period.
Corrugated products are deeply penetrated into packaging applications across a wide range of industries in the region. Flute market in North America valued USD 18.59 billion in 2019, and is growing at a CAGR of 5.04% during the forecast period.
Corrugated packaging products including conventional corrugated containers, honeycomb protective structures and multi-color boxes has been widely used in the region with well-established industrial, consumer products and commodity activities The U.S. flute market has been rapidly growing with significant demand for corrugated packaging in food, healthcare, stationery and industrial supplies among other sectors. The U.S. is the world’s largest corrugated product manufacturing country in 2019. According to the International Corrugated Packaging Foundation, corrugated packaging and display market in the country valued USD 32 billion in 2018. Nearly 90% of total products are shipped or displayed in corrugated packaging. Food and beverage packaging evolved as the largest end use industry owing to large scale application of corrugated board in logistics and processed food categories.
Fresh fruits and vegetables, processed food, meat and beverages are the major categories experiencing large demand for flute based packaging Eco-friendly nature and ability to recycle are the primary factors spurring the growth of paper based flute packaging. Also, ability of corrugated boxes to provide sufficient physical and microbial protection is motivating the demand from food processors
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