LATAM Corrugated Board Market Segments and Growth by 2028

LATAM corrugated board market was valued at US$ 14,447.12 million in 2020 and is projected to reach US$ 19,799.39 million by 2028; it is expected to grow at a CAGR of 4.2% from 2021 to 2028.

Corrugated board are used in the secondary and tertiary packaging of durable and nondurable goods while shipping them. This packaging type provides a cost-efficient and versatile packaging solution, as it helps protect, preserve, and transport a wide range of products. They are used across industries such as food and beverages, consumer durables, electrical and electronics, paper, chemicals, personal care and household products, agriculture, forestry fishing, and plastic and rubber industries. Corrugated board are categorized under green packaging solutions. With the growth of industrial sectors and significant investments by businesses in expanding their geographic reach through diversified distribution channels, e-commerce platforms have gained significant momentum.

In 2020, Brazil accounted for the largest share in the LATAM corrugated board market. Brazil is the largest country in South America. The demand for corrugated board is rising with the increasing application in food and beverages, e-commerce, consumer durable, and electrical and electronics industries, among others. The Brazilian food and beverages sector is a prime contributor to the economic growth of the country; it alone contributes to ~9–10% of the nation’s GDP. Moreover, corrugated board manufacturers are continuously focused on continuous research and development to diversify the application range.

Impact of COVID-19 Pandemic on LATAM Corrugated board Market

Brazil has been ranked to be the third-most affected economy due to the COVID-19 pandemic globally. In South and Central America, Brazil has the highest number of COVID-19 cases, followed by Ecuador, Chile, Peru, and Argentina, among others. The governments in South and Central America have taken an array of actions to protect their citizens and combat the spread of the COVID-19 virus through lockdowns, trade bans, and travel restrictions. This may have a direct impact on the growth of the corrugated board market. The ongoing pandemic has drastically altered the status of the chemical & materials sector and negatively impacted the growth of the corrugated board market. The implementation of measures to combat the spread of the virus has aggravated the situation and affected the demand for corrugated boards. The operations of several industries have been impacted during the pandemic period, which has ultimately impacted the delivery cycle and increased import-export tariffs. The sudden distortion in operational efficiencies and disruptions in the value chains attributable to the sudden closure of national and international boundaries, as well as temporary closures of manufacturing bases due to indefinite lockdowns and temporary quarantines, have impacted the growth of the market during the pandemic. The disruption in the supply chain and volatility in raw material pricing and sourcing in the initial weeks of lockdown have impacted the industrial products and processes.

However, as the economies are planning to revive their operations, the demand for corrugated board is expected to rise globally. The growing need for corrugated board for packaging essential goods such as food and other consumer products, medical and pharmaceutical products, and tissue and hygiene products is expected to positively impact the demand for corrugated board in the region. Also, the significant growth in the e-commerce industry is further expected to proliferate the growth of the corrugated board market in the LATAM economy. Further, corrugated cardboard producers are strongly committed to continuing to operate box plants, along with complying with the guidelines of the Centers for Disease Control and Prevention (CDC) and the Occupational Safety and Health Administration (OSHA) to ensure a continuous supply of product in the market. Although the focus on just-in-time production is another concerning factor hindering the market growth. Further, significant investment by prominent manufacturers in the advancement of corrugated board is expected to drive the corrugated board market.

Market Insights

Growing Demand for Corrugated board in Diverse Application Range

Corrugated packaging materials are used in secondary and tertiary packaging of nondurable and durable goods, including food and beverages, consumer durables, electrical and electronics, paper, chemicals, personal care and household products, agriculture products, forestry and fishing products, and plastic and rubber products. Corrugated board are among the cost-efficient and versatile packaging solutions that help protect a wide range of products, especially during transport. These boards are lightweight, rigid, biodegradable, and recyclable, which makes them an integral component in the packaging industry. A substantial rise in the demand for fast-moving consumer goods (FMCG) and branded consumer durables in LATAM economies is bolstering the demand for corrugated board packaging.

Corrugated board are extensively used across the food and beverages industry to pack processed food items such as bread, snacks, ready-to-eat (RTE) meals, and meat products; fruits; durable food products; beverages; and so on. The shift in consumer lifestyle, along with the rise in demand for convenience food, is driving the need for catering as well as high-quality packaging services, thus contributing to the corrugated board market growth. The corrugated board packaging protects packaged goods from moisture; it also boosts their tolerance during long shipping times.

Application Insights

Based on application, the LATAM corrugated board market is segmented into food and beverages, e-commerce, consumer durables, electrical and electronics, and others. The food and beverages segment accounted for the largest market share in 2020 and the e-commerce segment is expected to register the highest CAGR in the market during the forecast period. Corrugated board are widely used across the food and beverages industry in the packaging and shipment of various food products. They are used to manufacture cartons and boxes that provide a stable cushion for products while shipping and handling fresh fruits and vegetables, meat products, eggs, and bakery products; and they are among the safest and most hygienic packaging alternatives available in the market. Corrugated board are clean and hygienic since they are made under extreme temperature conditions. They maintain appropriate moisture levels and restrict the growth of bacteria, which provides favorable conditions for transporting perishable food products. As a result, food products remain fresh throughout long transportation durations. The FEFCO/ESBO International Good Manufacturing Practice (GMP) Standard states that corrugated board products meet the quality, safety, and hygiene criteria required in the food packaging sector since 2003. The growing demand for sustainable and cost-effective packaging solutions is one of the primary factors contributing to the corrugated board market growth in the food and beverages industry. 100% recyclability of these boards makes them a sustainable packaging option. Food delivery mobile apps are among the key industries that are extensively using corrugated board for delivering food to consumers. In Latin America, food delivery services compete in a competitive marketplace with Rappi, iFood, Mercadoni, Glovo, Kiwii, PedidosYa, and UberEats among the leading participants. The rising number of catering and takeout services, as well as food delivery platforms, in Latin American countries such as Brazil, Mexico, Argentina, and Chile is presenting considerable opportunities for corrugated board providers.

LATAM Corrugated board Market, by Application – 2020 and 2028

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LATAM Corrugated Board Market: Strategic Insights

Market Size Value in	US$ 14,447.12 Million in 2020
Market Size Value by	US$ 19,799.39 Million by 2028
Growth rate	CAGR of 4.2% from 2021-2028
Forecast Period	2021-2028
Base Year	2021

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The key players operating in the LATAM corrugated board market include International Paper; Nippon Paper Industries Co., Ltd.; Smurfit Kappa; Larsen Packaging Products, Inc.; Cougar Packaging Solutions; Western Container Corporation; Irani; Grupo Arcor; Westrock; and Klabin S.A. The key market players are focused on strategies such as mergers and acquisitions and research and development to expand their geographic reach and consumer base in LATAM.

Report Spotlights

• Progressive industry trends in the LATAM corrugated board market to help players develop effective long-term strategies
• Business growth strategies adopted by developed and developing markets
• Quantitative analysis of the LATAM corrugated board market from 2019 to 2028
• Estimation of regional demand for LATAM corrugated boards
• Porter’s five forces analysis to illustrate the efficacy of buyers and suppliers operating in the industry
• Recent developments to understand the competitive market scenario
• Market trends and outlook as well as factors driving and restraining the growth of the LATAM corrugated board market
• Assistance in the decision-making process by highlighting market strategies that underpin commercial interest, leading to the market growth
• The size of the LATAM corrugated board market size at various nodes
• Detailed overview and segmentation of the market, as well as the LATAM corrugated board industry dynamics
• Size of the LATAM corrugated board market in various regions with promising growth opportunities

Based on application, LATAM corrugated board market is segmented into food and beverages, e-commerce, consumer durables, electrical and electronics, and others.

Company Profiles

• International Paper
• Nippon Paper Industries Co., Ltd.
• Smurfit Kappa
• Larsen Packaging Products, Inc.
• Cougar Packaging Solutions
• Western Container Corporation
• Irani
• Grupo Arcor
• Westrock
• Klabin S.A