According to current research reports, the global carton industry is forecast to grow at a CAGR of 5% till 2033 to perhaps more than US$ 770 billion from the 2023 figure of approximately US$ 400 billion. In India we see growth coming from eCommerce, food and beverages, FMCG, household products, and white goods. The variety of cartons keeps increasing from the simple monocarton, liquid packaging laminates, solid board luxury boxes, litho-laminated corrugated cartons and plain and white or bleached liner corrugated cartons. The litho-laminated e, f, and g-flute or micro-fluted cartons that incorporate recycled liners are seen as an economical solution providing a combination of better compression and protection while retaining their stand-out value on the shelf.
There is a perception that paper-based packaging or cartons are more sustainable than flexible packaging and there is some movement in this direction in the country too – although some of the special papers and coatings required to create barrier properties are not yet locally available as off-the-shelf inputs. Additionally, some of the uses of these cartons with barrier properties come from start-ups, niche and boutique products with volumes too low to justify the procurement and logistics costs of importing specialty papers.
Notably, Jitendra Rohilla of Komori India says, “Right now, many of our 6 and 7-color automated offset press installations are taking place at packaging converters as that industry is growing and will continue to grow. There are multiple factors for this growth including our small packaging consumption per capita, and the increasing wealth, young population, and the increasing focus on hygiene and shelf impact and shelf life.”
Venugopal Menon of Bobst India points out that the growth in packaging machinery is now driven by automation. He attributes the current growth to an increasing number of converters seeking automation solutions. Discussing Bobst Inda’s performance in 2023, Menon noted that except for the corrugated segment, the company witnessed positive outcomes across the folding carton, flexible, and label segments. “We hope that the investment cycle in the corrugated board cycle will come back in 2024.”
In light of the changing needs of carton converters globally, Bobst has recently enhanced the automation and connectivity of its folder gluer portfolio by introducing a new generation of Expertfold, Visionfold, and Novafold machines.
TCPL, a packaging converter that produces both cartons and flexible packaging, recently entered the rigid box segment after acquiring a 100% stake in Creative Offset in late 2023. It commissioned three Zhongke automatic rigid box-making lines for manufacturing rigid and luxury boxes for mobile phones, smart watches, wearables, and the speciality gift packaging segment. Stating India has a lot of cell phone manufacturers and exporters, Pooja Rajpal, director of Zhongke India comments that business is good in India since the cellphone technology is changing fast, and everybody wants the latest phones – and the manufacturers need boxes for these.
One could see some of the impetus or energy in the local carton industry at Pamex 2024 in Mumbai, where companies like Komori, DGM, Bobst, and others announced several deals at the show. DGM India announced ten deals for its die-cutters, folder gluers, and flute laminators at Pamex. This businesslike optimism persists even in the face of currently flat top-line growth among converters because of the benign price of raw materials. While converted carton tonnage has increased in the past year, the soft prices of paperboard have led to modest increases in top-line revenues.
While research reports forecast a carton industry boom in the coming decade, the Asia Pacific region is emerging as a particularly lucrative market due to its high population, rapid industrialization and increasing consumer goods demand. Compact, modular and increasingly automated cartoning machines with quick changeover capabilities will gain traction with the need for flexibility and adaptability in handling diverse product lines.
