Corrugated and 2022

It’s been another exciting year in the corrugated sector with demand continuing to surge and prices remaining high.

Gareth Stell, Logson Group Sales Director looks at what he thinks 2022 will bring for the industry.

With paper prices soaring in the last twelve months, production has not been without its challenges. However, the teams across the Logson Group have responded with their usual positivity and tenacity, placing the business in a strong position as it enters 2022.

Looking at the size of the industry from a global perspective, the global Corrugated board market was valued at 3842.86 million USD in 2020 and predicted to grow further with a Compound Annual Growth Rate (CAGR) of 2.78% between 2020 and 2027. The demand for corrugated, and the sustainability that it brings to packaging solutions, is not set to diminish any time soon.

So, as we expect the market to remain strong across all elements, what trends will we see in the boxes and packaging that we are being asked to design and manufacture.

Sustainability is king

There is still a long way to go in removing single use plastics and non-recyclable materials from packaging sources, however businesses are becoming ever more obliged to do as part of their own Corporate Social Responsibility (CSR) policies.

Just a short time ago COP26 was held, and the Environmental Packaging Summit took place, and their aims and objectives ultimately impact on the decisions made by business leaders from where they source their energy to what packaging they choose.

Furthermore, from April 2022, 1300 of the largest businesses in the UK will have to legally disclose climate related financial information to report on climate related risks and opportunities which also has the potential to influence packaging buying decisions amongst many other things.

Interactive packaging

Another area where we expect demand to shift as a result of changing global supply chain demands, is the increased use of interactive packaging. This allows businesses to ensure products are protected and that necessary information is communicated both inside and outside the box. Inside, is perfect for enhancing a customer journey, or explaining vital information or instructions about the product. Outside, QR and bar codes, and stock and warehouse control info can be presented to ensure it is disseminated in the most appropriate way and that supply chain agreements are efficiently delivered.

This type of interactive packaging is proving to be hugely successful as the age of automation continues to grow and consumers rely heavily on accessing information digitally. With almost 83% of the UK population having a mobile phone in 2022, using this to an advantage is key to packaging success for the 21^st century.

Exploring all the options

Perhaps the biggest shift we expect to see is the continuation of customers who begin to question what they currently have. No longer is it acceptable to just carry on with what you have, business leaders are wanting to ensure packaging streams are effective, efficient, and sustainable.

This has meant that businesses are already ripping up the rule book with many discovering the benefits, capabilities, and sustainable qualities of corrugated for the first time. With input costs rising, global uncertainty continuing, and further and more significant interest rate rises expected, exploring all the options available where packaging is concerned is ultimately the most sensible option. And even if it’s corrugated you’ve got already; there may still be a solution that delivers improvements over and above what you have currently.

Suffice to say, as 2021 draws to a close, no one really knows what 2022 will bring, however, the Boxes and Packaging team and wider Logson Group are well placed to provide its customers with packaging solutions that really do make a difference.

Together, we can make it possible.