Consumer electronics to provide renewed growth to corrugated packaging and particularly microflute
The growing online retailing has fuelled demand for electrical goods and supported demand for corrugated boxes for the shipments of these fragile goods. The consumer electronics sector has been using folding cartons, rigid boxes and corrugated packaging. More expensive and high-end devices are using rigid/set- up boxes, while folding cartons have now been replacing microflute boxes. Previously, folding cartons were used due to its premium look and high printing quality compared to corrugated packaging. However, microflute has now been penetrating into the market and taking share from folding cartons in categories such as small digital devices which include tablets and projectors.
Consumer electronics is highly driven by demographical factors such as high working-age population and high ratios of the young population. Most emerging and developing countries will see these supportive demographical developments. As a result, there will be high demand for corrugated packaging in the consumer electronics sector, while the growth will be mainly shifting from more matured countries such as Western Europe to less developed markets such Eastern Europe.
The availability of electricity and internet infrastructure in developing countries will help increase demand for electrical goods. Moreover, the rising per capita income will also underpin the buying power of consumers and support the industry. Given the technological know-how and huge investment involved most developing countries will depend on imported electrical goods which in other words would not fully benefit their domestic corrugated packaging industry.
However, we will see some huge investment coming from major electronics companies in developing and emerging markets which will directly develop the local corrugated packaging industries. For instance, some Japanese consumer electronics companies are likely to build manufacturing and assembly plants outside Japan, particularly in South East Asia.
Microflute packaging will be more benefited in the matured markets where brand owners and packaging suppliers are under enormous pressure to reduce excessive packaging, reduce carbon footprints and cut packaging costs.
This article is based on our recently publish report “A Strategic Outlook for the Global Microflute Market to 2028”.