In recent times, companies like Paperlinx UK and Tullis Russell have attributed their downfall to the declining demands for graphic papers. As a result, they have decided to increase the prices of their products. Sappi Europe calls this decision a response to “unsustainable” margins in the market of graphic paper.
Sappi Europe has said they would try to innovate at least one new paper-based packaging every year so that they are known as innovators in the packaging industry.
It will soon create a division of specialty papers at its Germany-based Alfeld Mill. At present, this is a 100% specialty paper mill, after a reconstruction of its PM2 paper machine worth £60m was finished last year.
According to Thomas Kratochwil – the sales and marketing director of Speciality Papers, the company wants to get away from being a pure substrate supplier to emerge as a pioneer in packaging solutions.
Asia Pulp and Paper (APP) echoes a similar sentiment, as said by Lee Henderson – UK & European sustainability director. However, he adds that one has to offer advancement, technological expertise and value for money to survive in the market.
According to a recent report, paper along with board contributes to 35% of international packaging sales at present. The report also mentioned that container board and carton board constitute 31% of the packaging market.
Experts predict that paper-based packaging will grow over the years due to a number of reasons.
Will Paper-Based Packaging Steal the Packaging Crown
The factors that will foster growth in paper-based packaging include changing demographics, technological advancement, growing GDP, security, higher number of single packs being served, recycling concerns and added innovations in luxury packaging.
Dominic Cakebread – a packaging consultant with Smithers Pira, has said that till some time back, board and paper was not a preferred option for packaging as much of the focus of R&D was given to plastic.
However, he said that board and paper are slowly evolving as a more attractive and sustainable packaging option, with innovations in coatings paving way for them to be used in more applications.
The growth rate of paper-based packaging is the highest in Central and South America at 9%, while in Western Europe and North America, it stands at around 3%. Another important factor that is making companies choose paper packaging is the environmental concern. It has been noticed that even consumers prefer to buy products with recycled packaging.
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