The carton packaging market - France (2024)

1.2 The global and European carton packaging market: current situation and main characteristics

The global market:

The value of the global packaging market is estimated at $**** billion in ****, of which paperboard accounts for **.*%, i.e. around $*** billion in **** [***]. Over the period ****-****, annual growth in the carton packaging market is estimated at *.*%. Global production of carton packaging reached *** Mt in ****, mainly from China (***).

Breakdown of global packaging market by type World, ****, % (***) Source: ****

The global corrugated board market is estimated at $***.** billion in ****, and should reach a value of $***.** billion by ****, with a CAGR of *.**% over the period [***]. Itshould be noted that this market experienced a significant decline in **** , due in particular to the recent slowdown in demand and rising energy costs in North America and Europe, after several prosperous years for this industry.

Worldwide sales of corrugated board World, billions m* Source: ****

On a global scale, Asia dominates the corrugated board market, with nearly **% of sales in billions of m* of corrugated board. Europe comes second with **% of sales volume, followed by North America with **% of sales.

The European market :

Main European packaging paper and board producing countries Europe, ****, % sales Source : Cofepac In ****,Germany was Europe's leading producer of packaging paper and board, with a national output of around **.* Mt, or **.*% of total European ...

1.3 Sustained growth for the French carton packaging market

The French cardboard market :

Production value of cardboard and corrugated cardboard boxes and cartons France, ****-****, billions of euros Source: ****

national cardboard production is experiencing a growth dynamic over the ****-**** period, despite a slight decline in **** at the time of the Covid-** crisis. The value of the market has in fact increased over the entire period observed, rising from around *.* billion euros in **** to *.* billion euros in ****.the CAGR over the period ****-**** is therefore positive and approximately equal to **%, with an average market value of *.*** billion euros over the same period.

It should also be noted that national cardboard production held up rather well in **** despite the crisis caused by Covid-**: between **** and ****, the sector saw a decline equal to just *%. The recovery was spectacular:between **** and ****, the value of the market rose by almost **%.

The French corrugated board market:

In ****, sales in the French corrugated board industry will total *.* billion euros, representing growth of **. *% compared to ****. Sales volumes, however, are slightly down, with *.* billion square meters of cardboard produced in ****, *% less than in ****.

sales trends in the French corrugated board market France, ****-****, billions of euros

1.4 Cartonboard foreign trade

Trade balance for corrugated paper, flexible packaging paper and board (***) :

Evolution of the volume of French imports and exports of Packaging (***). France, in thousands of tons,

Despite a slight rebound in ****, mainly due to containment measures, France's trade balance in volume terms in the corrugated base paper, flexible packaging paper and cardboard markets has been in deficit for several years. The deficit has tended to widen in ****, with a coverage rate of just **%.

French paper and board imports :

Main origins of cardboard and paper imports France, ****, %, % Source: ****

In ****, France's main partner for paper and cardboard imports is Germany, accounting for **.*% of French imports. The other two main partners are the Netherlands and Sweden, accounting for **.*% and **.*% of imports respectively. While these three countries will account for almost **% of French paper and board imports in ****, i.e. just over half, almost all French imports will come from European Union countries (***).

French paper and board exports :

Main destinations for paper and board exports France, ****, % of total Source: ****

As far as French paper and board exports are concerned, Germany is once again France's leading partner, with **.*% of French exports going there in ****. Spain comes second, with **.*% of French exports. Italy is also among France's ...

2.1 Demand for cardboard and paper packaging on the rise in France

Breakdown of paper and cardboard production by type France, ****-****, % Source: ****

The trend in the breakdown of paper and board usage by type of use, shown in the graph above, indicates a clear increase in demand for paper and board packaging. In fact, in ****, **.*% of paper and board production was destined for packaging production, compared with **% in ****.

2.2 Demand for corrugated packaging

Corrugated cardboard packaging has become particularly popular in Europe in recent years, and France is no exception. Indeed, corrugated cardboard offers many advantages, the main ones being[***] :

it is a biosourced, biodegradable, recyclable and recycled material; it combines lightness and strength; it can be used for many purposes (***); it is infinitely adaptable (***); it can be made watertight by means of specific treatments; it can be printed.

Breakdown of corrugated sales France, ****, % (***) Source: ****

The breakdown of corrugated sales shown in the graph above indicates a very clear trend towards the use of this material as packaging. Indeed, in ****, **% of corrugated board sales in France were destined for the creation of converted board for packaging, compared with just **% used in rolls or sheets.

Corrugated board packaging: breakdown by type of use

Destination of corrugated packaging Europe, ****, % (***) Source: ****

If we look at the breakdown of corrugated packaging according to its use in Europe, we can see that the food and beverage sector stands out as the most demanding sector for such packaging, with more than one in two corrugated packaging used by this industry (***). Consumer goods packaging is the second most important sector when it comes to the use of corrugated packaging, with **% of ...

2.3 The weight of the food industry in demand for cardboard packaging

The agri-food sector is a major consumer ofcorrugated packaging, particularly for displaying products in fruit and vegetable departments. In fact, corrugated trays offer a number of advantages that cannot be underestimated:

lightness and strength ; traceability ; hygiene ; ergonomics ; low cost; respect for the environment.

The significant impact of cardboard packaging on consumers:

While marketing studies have long demonstrated theimpact of packaging on consumer choice, the choice of packaging for food products distributed in supermarkets and supermarkets follows a perfectly similar logic [***]. In fact, corrugated packaging has several positive effects:

a customer spends between **% and **% more time in front of fruit and vegetable stalls when these are presented in open corrugated trays (***); customers can cover up to **% more shelf space when corrugated packaging is preferred to plastic (***); finally, when products are presented in corrugated trays, over **% of customers pay attention to the products rather than the price (***), reducing interest in price by **%.

Last but not least, according to the FAO, over **% of food products are spoiled or destroyed worldwide every year due to lack of packaging, making this a major issue for food distribution.

2.4 Recycling-related demand for cardboard packaging

Consumption of recycled paper and cardboard for recycling by sector of use France, ****, % Source: ****

The collective awareness of environmental issues and the recycling of materials and products consumed is perfectly reflected in the breakdown of paper and cardboard to be recycled in France. Cardboard packaging is the leading sector of use, far ahead of all others, with **% of national use of paper and cardboard to be recycled in ****. The second most demanding sector is graphics, with **.*% that year.

Cardboard packaging production and the environment :

Today, the cardboard packaging industry is one of the most circular industries in France, with almost * out of ** packages recycled and transformed into new packaging via a material reuse system[***]. The recycling rate for paper and cardboard packaging in France was **% in ****. As a result, the average rate of integration of recycled material in this packaging reaches **%, for only **% of new fiber, which is necessary for production to guarantee and maintain product quality and the smooth running of this recycling loop.

2.5 Cardboard packaging: the right answer to the challenges of e-commerce

After a record year in **** - thanks to the Covid crisis - for the e-commerce sector, with growth of **% compared to ****, representing an evolution from a total capital of *** billion in ****, to *** billion in ****[***].

While this new trend is generally positive for the cardboard packaging market, as shown in the following graph, we note that the volume of parcels distributed in France and abroad fell by *% in one year to ****. This trend is mainly due to successive confinements in China, which have drastically limited the number of imported parcels, and to the introduction of VAT for e-commerce products purchased outside the European Union costing less than €**.

Volume of parcels delivered in France and abroad ****-****, France, in millions of items

With an increase of almost **% in the number of parcels distributed in France and for export between **** and ****, e-commerce is currently driving this activity and, by repercussion, currently represents *% to *% of corrugated board market share, thus becoming a growth driver for the cardboard packaging industry. To keep pace with the growth of e-commerce and meet the new challenges it presents, corrugated board, a century-old material, is fulfilling all the wishes of operators in this new market: it manages the feat of ...

3.1 French carton packaging value chain

Source: ****

3.2 Market and business structure

Competitive structure :

Competition in the paper and cardboard packaging production market is fairly concentrated, with only ** groups operating ** production sites in France. Cardboard production is an industry that currently employs **,*** people directly. If all employees are taken into account, i.e. direct, indirect and induced, the total number rises to **,***[***].

Business structure :

We consider here the data provided by INSEE under two activity codes (***):

- **.**Z Manufacture of paper and paperboard[***]

- **.**B Manufacture of cardboard[***]

Manufacture of paper and cardboard :

In ****, there were *** establishments registered under activity code **.**Z (***); a figure slightly up on **** after a downward trend in the number of sites since ****. The associated workforce has also seen a sharp decline, from ***** in **** to ***** in ****.

Establishments registered under activity code **.**Z France, ****-**** Source: ****

Headcount registered under activity code **.**Z

sales grew by around *% between **** and ****, then collapsed by **% in **** relative to ****. It then rebounded spectacularly between **** and ****, before returning to its pre-Covid level in **** with an index close to ***.

Sales index for activity **.**Z France, ****-****, base *** in **** Source: ****

Geographical breakdown of paper and cardboard production :

Source: ****

In France, the Grand Est and Bourgogne-Franche-Comté regions are the main producers of paper and cardboard packaging, with no less ...

4.1 Typology of the cardboard packaging offer

Corrugated board:

A "sandwich" material, corrugated cardboard is made by gluing together flat liner papers, held together by corrugated fluting papers. The thickness of this fluting paper can vary from * to * millimeters. The average weight of corrugated board is ***g/m². Each part plays a different role: the liners provide the product's mechanical strength, as well as the packaging's climatic resistance. It is also these (***) parts that serve as communication and/or information media. Corrugated paper, on the other hand, ensures the rigidity and elasticity of the packaging, acting as a shock absorber in the event of impact. Several types of corrugated board exist:

Also known as boxboard, corrugated board as packaging is generally used to transport goods to warehouses before they are distributed by wholesalers and retailers. Individuals may come into contact with this type of packaging when shopping online, but also when purchasing heavy and/or bulky items (***).

Around ** billion m* of corrugated cardboard are produced every year in Europe (***), used to package and protect over **% of European products[***].

Boxboard:

Boxboard is the thinnest and lightest container, used to pack cereals, shoes, toys and many other objects. It is also used for purposes other than packaging: for the top ...

4.2 The price of cardboard packaging

PPI corrugated paper and board and paper or board packaging France, ****-****, base *** in **** Source: ****

From **** onwards, we see a significant increase in the paperboard production price index. This is primarily due to the recovery in economic activity following the crisis triggered by Covid-**. Demand for cardboard was very high, driven in particular by e-commerce, and this was also reflected in the raw materials required for cardboard production. Prices of raw materials (***) have risen with the post-Covid recovery, reflecting the effects of demand outstripping supply. The general selling price index for standing timber in private forests will also rise by **% in **** compared with ****[***].

Furthermore, the**% increase in productionprices between **** and **** was also caused by the shock of the war in Ukraine and the inflationary context that has since set in. The corn starch needed to produce the glue used in corrugated board has seen its price soar, as Ukraine accounted for **% of global exports before the outbreak of the conflict. Finally, producer prices have been strongly impacted by rising energy costs. By ****, Copacel was already estimating that energy costs would account for *% to **% of a paper and board mill's production costs[***].

The environmental impact of corrugated packaging production on prices:

The ...

4.3 Innovations in packaging from cardboard/cellulose

Paper and cardboard are both materials made from wood fibers: cellulose. With the trend to reduce plastic packaging, innovations in the paper/cardboard sector are being developed to find materials that can replace plastic, while retaining its advantages.

Two innovations to watch in the paper and cardboard market:

Transparent paper

To replace plastic packaging, laboratories are developing transparent paper forfood packaging. The Finnish company Ahlstrom, for example, offers a transparent food film made from cellulose.

Cardboard has the same properties as metal: resistance to water and oxygen

Cilkoa, a Grenoble-based start-up, has developed a cardboard that is resistant not only to the effects of water, but also to those of oxygen, making it the ideal solution for more eco-responsible food packaging. Its products are **.*% cellulose and plastic-free. Its manufacture using *D printers also makes it possible to design the desired packaging. What's more, this company offers high-performance food packaging that avoids the use of plastic.

5.1 Current regulations for corrugated fruit and vegetable trays

The CFQ label:

This label guarantees a number of commitments to the users of these products, in terms of quality, economics and the environment:

Logistical efficiency guaranteed by the flexibility of the product ranges and compliance with European technical specifications for tray dimensions and stacking devices; Guaranteed compliance with load-bearing, storage, transport and handling requirements for trays; Palletization recommendations; Annual certification, supplemented by bi-annual inspections; Penalties for non-compliance; Packaging adapted to the product, storage conditions and logistics circuit; Standardized bases and variable heights to make the most of space, so that more fruit and vegetables can be transported on a pallet and in a truck, using less fuel.

5.2 A trend towards regulatory changes in the legal framework in favor of growth in the carton packaging market

The AGEC (***) law, which came into force on January *, ****, has put in place a number of measures, such as the end of plastic packaging for the press, or a ban on the State purchasing single-use plastic. Added to this is a target to reduce plastic packaging by **% by ****[***].

This trend towards regulating the use of plastic packaging can also be observed at European Union level. In proposing the Green Pact for Europe, the European Commission aims to reduce net greenhouse gas emissions in the EU by at least **% by ****, compared with **** levels. These measures also aim to put the packaging sector on the road to carbon neutrality by ****. The Commission also wants to oblige polluting industries to create five-year eco-design plans; the companies concerned will have to use materials made from recycled or more easily recyclable materials.

Similarly, the Commission wants ***% of packaging put on the market to be recyclable by ****, in an economically viable way. It is also committed to raising the mandatory levels of recycled plastics in plastic packaging[***]. We can therefore expect a positive substitution effect between plastic and cardboard packaging.

6.1 Positioning the players

• Smurfit Kappa
• DS Smith
• SAICA
• International Paper
• Europac (DS Smith)
• VPK packaging
• Cartonneries de Gondardennes
• Papeteries et cartonneries Lacaux
• Guillin Groupe - Guillin Emballages
• Mayr-Melnhof Karton
• Raja
• VKP
• Rossman Groupe
• Gascogne Papier
• Carton Service- Inapa
• Elopak
• Cartonnage de Vaucanson (Sentosphère Groupe)
• Barry Wehmiller
• Schubert Group
• La Cartonnerie Moderne
• CEE Schisler Packaging Solutions
• Allard emballages
• Ondulys (VPK Pachaging)
• Edely (VPK Packaging)
• Cartonnage Bretagne Service
• PCM Cartonnage
• Duni Group