The cardboard sector on the rise

Let's take a look at the keys that this sector is experiencing and its excellent future projection.

Europe is a leader in paper and board recycling.

Europe leads the way in recycled paper and board production, far ahead of the chasing pack. North America. It has done so for more than a decade. And there is no sign of it changing. Did you know that on average paper is recycled 3.5 times a year? Production in Europe is so high that domestic consumption is not enough to make use of it. That is why it is exported to other continents, especially Asia.

Corrugated board consumption is growing worldwide.

The use of corrugated board has become increasingly widespread in recent years. Sectors as diverse as agriculture, food and beverage production, automotive and industrial products, among others, use it. But it is probably the increase in e-commerce that has led to the greatest increase in the consumption of this type of cardboard. More than 95% of the world's packaging for transporting goods is made of corrugated board.  Online retailing grew by 27.6% in 2020. It is expected to continue to do so throughout the decade. The forecasts for 2022 are very good. And that's good news for cardboard producers.

It is just one of the reasons why the cartonboard sector is on the rise and is expected to stay that way for a long time.

Corrugated board consumption is growing worldwide.

Many countries are taking measures to improve sustainability and limit the consumption of single-use plastics. Plastic packaging, containers and bags will no longer be produced and other sustainable materials will be used on a massive scale. And cardboard is the preferred choice for many of the former uses of plastic. The EU has already taken action. In 2021, the European law putting an end to single-use plastics came into force. This has created an opportunity that the cardboard sector is making good use of.

The price of paper has soared due to the increase in the price of raw materials.

The shortages the world is experiencing have caused the price of paper and cardboard to skyrocket in recent months. Globally it is straining the supply chain. And in some countries the situation is much worse than in others. For example, the world's main raw material supplying countries: the Scandinavian Peninsula, Finland and the Canadian region of British Columbia. In all of them, in just one half of 2021, the price increased by more than 30%. And order delays currently exceed 45 days. A price and lead time that looks set to increase further in 2022. Did you know that this is one of the reasons why paper mills have seen their raw materials become 48% more expensive in the past year?

Global shortages and the rise of the cardboard sector.

Getting cardboard is difficult. The shortage is noticeable. Whoever pays more, keeps it. And those who can't afford the extra cost or increase their final prices, can't compete and are left out of supply. Many sectors are already feeling this. In several European countries, small and medium-sized publishers have postponed the launch of publications. And sectors such as the agri-food industry have had to raise prices because of the increased cost of packaging.

Warehousing, key for producers, suppliers and large consumers.

The cartonboard sector is on the rise. But for other sectors, dealing with it is one of their big challenges for 2022. And warehousing is the first step to minimise the problems that the rising cartonboard sector is causing in other economic sectors. Producers try to buy raw material before the next price increase. With the cartonboard sector on the rise, it is time to generate profits. They cannot miss the opportunity to produce as much as possible.

And what about their customers?

Whoever gets cardboard places large orders. Especially if it arrives by sea, because freight costs have also risen dramatically in the last two years. So the one who gets it tries to stock what he needs in order not to stop his production. Or so that it doesn't cost them more and kill their profit margin, or hinder their competitiveness in the market.

And distributors try to stock as much raw material as possible to remain competitive and not lose customers.

At VALL we have been helping to store paper and cardboard for years. Removable logistics centres are a quick solution for storing the cardboard that many companies need to stay in business. And to save the constant increase in the prices of this material. The storage of paper and cardboard needs to meet a number of requirements to ensure optimum preservation. The high degree of insulation and watertightness of removable paper and cardboard storage buildings is essential, as this material is very sensitive to humidity. Ask us about our solutions for the storage and logistics of cardboard and paper. We will take your needs into account and one of our sales representatives will contact you to discuss the real solutions that VALL offers.

Sources:

https://www.residuosprofesional.com/europa-reciclo-el-717-del-papel-y-carton-usado-en-2012/ https://blog.durst.es/oportunidades-en-el-futuro-de-los-envases-y-embalajes-de-carton-ondulado/ https://www.antena3.com/noticias/economia/escasez-materias-primas-como-carton-papel-plastico-hacen-temer-subida-precios-infinidad-productos_20211028617aa4b2c1b52e0001321789.html