Demand for fiber-based packaging to rise to US$503.4B by 2027, Smithers report

GLOBAL – Worldwide demand for fiber-based packaging is set to rise to US$503.4 billion in 2027 at a compound annual growth rate (CAGR) of 3.4%, Smithers’s study reveals.

According to the study, the total weight of fiber packaging is set to rise to 316.3 million tonnes from 2022’s 264.4 million tonnes at a CAGR of 3.7%.

According to Smithers, the rise can be attributed to sustainability commitments made by retailers and FMCG companies, worldwide legislation aiming to phase out single plastics, and consumers’ understanding that paperboard and other fiber formats tend to be recyclable.

Its report takes stock of innovations that are currently on the market or in development and highlights the technical difficulties still impeding their development.

The food sector has reportedly seen an uptake in functional barrier coatings to preserve perishable goods and resist grease, oil, and water damage, notes Smithers.

Specialty barrier paper grades are being utilized in pouch packaging and food service applications, and while they are currently gaining momentum to package fresh produce and confectionary, improvements in coating performance are expected to further expand their range of applications.

Meanwhile, removing aluminum barrier layers and trialing fiber-based bottles are innovations that the report attributes to the beverage industry.

It is still facing the stumbling block of relying on polymer-based barrier layers, with the expectation being that future developments will find ways to remove them in material recovery streams without damaging the recovered fibers.

Fiber-based packaging materials are also thought to be taking off in the personal care sector, which seeks to replicate the ‘premium’ visual and tactile experience of existing polymer packaging.

According to the report, industrial and transit packaging is also seeing an uptake in fiber-based solutions – in dunnage for direct-to-consumer e-commerce channels, for instance.

In addition, molded pulp and fiber are anticipated to see a strong growth trajectory in the run-up to 2027, although all fiber packaging types are expected to grow in demand.

This is currently being accommodated by multiple ongoing line expansions, according to Smithers.

This report follows the firm’s previous recognition of recovered pulp, metal, and glass as positive progress within the packaging industry in a report outlining long-term solutions to improving the sourcing, manufacture, use, disposal, and recovery of packaging over the next decade.

For all the latest packaging and printing industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook, and subscribe to our YouTube channel.