The global packaging market

The global packaging market value is approximately $1,175 billion, of which paperboard packaging accounts for roughly a third. Paperboard is estimated to grow slightly faster than the total packaging market in the coming years. More than half of the world's packaging is used in the packaging of consumer products, such as food and hygiene products. From the perspective of packaging, the consumption of convenience goods is fairly independent of economic cycles.

Main function of packaging

The most important function of packaging is to ensure a product's safety to consumers. Packaging protects products during transport, prolongs their useful life and even conveys vital information about the product's composition and use. Well-designed packaging facilitates the role of good transport and shelving and helps reduce waste throughout the supply chain.

Depending on the packaging end use, paperboard can be produced either from fresh or recycled fibre. The decision is based on quality, product safety and hygiene requirements.

Metsä Board uses only fresh fibre for the production of paperboard. Global demand for high-quality fresh fibre paperboards has been growing by 2–3% annually.

Global packaging market: Size and growth

The global packaging market value is approximately $1,175 billion, calculated on the value of finished products. The estimated annual growth rate during 2023–2028 is on average +4%.

Estimated annual growth rates during 2023–2028 for packaging material segments are: Paperboard: 4.2%, other fibre based packaging materials: 3.2%, plastic: 4.2%, metal: 2.9% and Glass 2.8%. (Source: Smithers Information Ltd, AFRY Management Consulting)

Global packaging market, total $1,175 billion

Sources: Smithers Information Ltd, Industry consultant