The Corrugated Packaging Industry Is on the Rise
The corrugated packaging industry is growing. People use it almost every day, but few people ever give it much thought. New studies show that this industry is in the middle of a boom thanks, in part, to a growing e-commerce industry. Corrugated boxes are cheap and easy to make. They also happen to be one of the most reliable ways for electronic manufacturers to ship their goods. The end result is a cheap packaging material that is used around the world. By 2020, this industry could be worth as much as 172.6 million dollars.
Growing Industries Mean Bigger Profits for Suppliers
The corrugated packaging industry really thrives on other industries doing well. The more products that other industries ship, the more corrugated boxes are sold. Thankfully for corrugated packaging manufacturers, there are several booming industries that use corrugated boxes, including those that ship medicine and food. However, it's a growing demand for electronics that really adds to profits for corrugated packaging manufacturers. Smartphones, tablets and gaming devices all ship in corrugated boxes. Corrugated box manufacturers get double the profits because they make the display boxes for these units as well as the boxes that ship them.
Increased Demand in Developing Countries
In regions that are developing, the need for cheap packing material is even bigger. It's countries like this where corrugated boxes are also seeing a high increase in sales. Indonesia is one example of an emerging economy with a need for corrugated packaging. With the need to ship large amounts of food, Indonesia needs corrugated boxes more then ever before. China is also in the middle of an industry boom with its food sector growing nearly 10 percent. With growth in food production comes an increase in packaging needs.
The Packing Industry
Due to corrugated boxes having a stranglehold on the market, there aren't many other industries that are looking to compete. Instead, companies are focusing on working alongside corrugated boxes by selling the tape and filler used during shipping. It's hard to imagine when another industry will be able to take the limelight away from corrugated packing materials.
On the surface, it doesn't appear that the corrugated packaging industry would be extremely profitable. After all, the amount of profit made from each sale isn't much. The goal for the industry, however, isn't to turn a huge profit by selling just a few products. It's to make a profit by selling a large volume of materials at a low price.