AICC slams 63% market dominance as three containerboard packaging hikes in five months hit

USA – The Association of Independent Corrugated Converters has condemned the latest containerboard packaging price hikes from PCA, International Paper and Smurfit Westrock, arguing the three increases within five months are unsupported by raw material costs or box demand and reflect a 63 percent market dominance by a small group of producers.

PCA announced a US$140 per tonne increase for liner and medium effective 1 September 2026, with International Paper setting a US$80 per tonne rise and Smurfit Westrock a US$100 per tonne increase, all within a three-day period. 

AICC stated that the hikes are not supported by current raw material costs or wider economic data, noting that producers have pointed to economic pressures, high operating rates and factors such as inflation, fuel, labour and insurance, as well as tight supply to justify the increases. 

The association said it is “skeptical” of those explanations in the present containerboard packaging market, arguing that the moves may instead point to a “small group of producers having market dominance”.

Market Concentration and Vertical Integration Concerns

According to AICC, PCA, Smurfit Westrock and International Paper together account for about 63 percent of the containerboard and linerboard supply market. 

PCA is 95 percent vertically integrated, meaning only 5 percent of its mill capacity is sold on the open market, while International Paper and Smurfit Westrock have significant open-market sales, although AICC said independent operators represent only 10 to 12 percent of the market. 

The association said three price rises in one year are “unusual, but not unprecedented,” pointing to 1994 and 2010, though it noted that conditions in those years were more severe and unpredictable. 

Even so, the increases announced this year are larger than those seen in either of those years.

Impact on Independent Packaging Converters and Industry Dynamics

AICC argued that the announced hikes disproportionately affect independent packaging converters, with none of the three increases appearing to be linked to box demand, which it said is currently at 2016 levels. 

The association further outlined that producers’ prices have increased over the past five years in down market conditions. 

The three latest announcements were made within a three-day period, with the association highlighting that producers have pointed to economic pressures, high operating rates and factors such as inflation, fuel, labour and insurance, as well as tight supply to justify the increases. 

The association said it is “skeptical” of those explanations, arguing that the moves may instead point to market dominance by a small group of producers.

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