The demand for folding carton packaging is expected to grow in India and Southeast Asia on the back of increasing consumption. The market is characterized by the presence of a few large players. Recycled-grade packaging is the largest segment, owing to its applications in non-contact categories like breakfast cereals and tea.
Increasing per capita income, growing urbanization, and a young population will drive the growth of the packaged food and beverage (F&B) segment in both India and Southeast Asia. This will support the growth of folding carton packaging applications in food retail and foodservice. Growing concerns around the sustainability of plastic packaging will also benefit paper packaging.
In the next five years, the folding carton segment is expected to grow at a 4.3% and 0.6% CAGR in India and Southeast Asia, respectively. In 2019, the F&B segment represent 54% of folding carton applications for India and Southeast Asia combined, compared to 44% in 2014. This percentage of F&B applications is expected to further increase to 59% by 2024 – an indication that F&B paper packaging is growing at a faster rate than non-F&B packaging.