The Global "Paper Core Market" is expected to grow at a CAGR of 5% during the forecasting period (2022-2029).
Paper core is the strong cardboard tubes or cylinders used as a sturdy base to wind materials for storage or distribution in various industries such as fabric, adhesive, electrical, paper industries.
The global paper core market is driven by the rising demand for paper core in various industries such as textile, paper mills, adhesive tapes, polyester film and others due to their characteristics such as recyclable, reusable, and environmentally friendly.
High growth in the beverage industry shall positively impact the market as the paper core is widely used for packaging alcoholic and non-alcoholic beverages. Moreover, the paper core manufacturers focus on recyclable paper and sustainable production due to the various government restrictions imposed by the regulatory bodies such as the United States Environmental Protection Agency, U.S. Food and Drug Administration (FDA), and others. The companies follow stringent quality control procedures with sophisticated testing equipment to deliver consistent quality products and at the most competitive prices.
Market players are also providing industrial options for customizing the paper core as per their requirements. It is further stimulating market growth. For instance, Konfida manufactures synthetic yarn, fabric, flexible packaging, non-woven paper & board and hygienic paper. It provides customized paper core solutions to industrial manufacturers.
However, the availability of smaller and lighter packages and other substitutes in place of the paper core, such as plastic cores, could negatively impact the market.
COVID-19 Impact Analysis
The COVID-19 pandemic has disrupted the global economy and halted the key processes of almost all companies. Consequently, the global paper market was also affected. The disturbances in supply chain management and transportation of goods and services had a negative impact on the growth of the market. Many manufacturing and production units were disrupted due to the government enforced lockdowns and curfews across the world which led to losses and wastage of many paper core products. The paper industry, the adhesives industry and the beverages industry, in which paper core is used, also faced losses during the pandemic. The pandemic also significantly changed the consumer demand and behaviour. Consumers refrained from purchasing non-essential products amid the pandemic thereby impacting the sales of paper core products. The uncertain and unexpected situation caused by the pandemic significantly impacted the market hence, slowing its growth. However, the post-pandemic scene has improved and the global paper core market has recovered. The market is set to grow at a high rate.
The global paper core market is segmented on thickness as less than 8mm, 8-16mm, 16-20mm, 20mm and above
20mm and above paper core segment accounts for the significant market due to an increase in the demand for using paper core in the winding of 20mm and above in packaging papers, hygiene papers, laminated papers, coated and impregnated papers, decoration and technical papers, carpet and textile fabrics.
The 16-20mm paper core segment shall have positive market growth due to the rising demand for the paper core of 16-20mm for winding foils, films and flexible packaging materials for industrial and consumer packaging. The majority of players are producing products of thickness 16-20mm.
Further, the market is also classified based on application into beverage packaging, paper industry, textile, adhesive tapes, metal industry, foil industry, construction, etc.
Beverage packaging accounts for the highest market share due to growing advancement and rising investment in research and development activities. Changing consumers’ preferences is also fuelling the market demand.
Paper core is widely used in the paper industry for packaging papers, printing and writing papers, hygienic papers, recycled and corrugated board raw papers, and all paper-converting operations. According to IBIS World Industry Report, the revenue of paper mills was USD 43.8 billion in 2017. Over the forecasted period expected to increase, and this would have a positive impact on the market. There is high consumption of aluminum foils in households and industries for packaging foods.
By region, the global paper core market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East and Africa
Among all of the regions, Europe accounts for the highest market share due to the rising demand for paper core in the food and beverage industry. Rising e-commerce platforms in the food industry also boost the paper core market size.
According to the Association of Corrosion Engineers (NACE), the food and beverage services sector generated EUR 143.2 billion of value-added. Paper core is widely used in textile and non-woven. There is a rise in the number of paper exports to other countries. The United Kingdom, Germany, and France account for the significant market share in the European Countries.
Asia is expected to be the fastest-growing market due to increasing industrial expansion with rising urbanization, technological advancements, economic growth, high consumption of food and beverage products and transportation. The packaging industry is witnessing high growth owing to the high usage of fast-moving consumer goods. According to the PMMI, Association for Packaging and Processing Technologies, the packaging industry has a market size of 1,431.5 billion units sold in 2018. There is a shift in focus towards eco-friendly and sustainable packaging due to the growing demand for large and small packages with rising travel or outdoor activities.
The global paper core market is fragmented with the presence of several local and international players. The product diversification and opportunities for market growth through new product launches intensify the competition among companies. Kunert Group, Smurfit Kappa, Sonoco Alcore, Thanh Cong Paper Tube Co., Ltd, Phu Tung Paper Trading and Manufacturing Co., Ltd are the leading market players the prominent market share.
Newmarket players are entering the market as this industry requires low investment with high volume production. Manufacturers can easily achieve its break-even at the early stage of the business cycle as the investment, and operating cost is low compared to the other industries.
The companies enter into collaborations, mergers, strategic partnerships, and acquisitions to increase Paper Core's demand and expansion across the globe. For instance, in February 2019, VPK Packaging Group acquired Corenso’s European and Chinese scoreboard and tube businesses, including two core board mills and 13 core converting plants. This acquisition would broaden the geographical spread to regions where VPK is not active. Important new markets are Finland, Spain, and China. It would help VPK to meet global demand. In August 2019, Ox Industries had acquired Arlington. This acquisition enables Ox Industries to broadens its offering in the Dallas area by expanding its protective packaging and tube and core capacity.
Overview: Sonoco Alcore is part of Sonoco, a global provider of consumer packaging, industrial products, protective packaging and supply chain services.
Product Portfolio: Sonoco Alcore products include paper mill cores, textile cores, film cores, speciality cores, tapes and labels.
Key Developments: In January 2020, Sonoco, completed the acquisition of Thermoform Engineered Quality, (TEQ) which manufactures thermoformed packaging, serving healthcare and medical devices.
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**The global paper core report will provide access to approximately 53 market data tables, 44 figures, and 178 pages
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