SpendEdge has been monitoring the global corrugated packaging industry and the industry is poised to experience spend growth of more than USD 50 billion between 2018-2023 at a CAGR of over 4% during the forecast period. Request Free Sample Pages.
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SpendEdge, a global procurement market intelligence firm, has announced the release of its Global Corrugated Packaging Industry – Procurement Intelligence Report. (Graphic: Business Wire)
Read the 134-page research report with TOC and LOE on “The Global Corrugated Packaging Industry – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
Corrugated packaging is among the highly preferred packaging types by buyers from the e-commerce industry because of its resilience against moisture and the ability to carry a wide range of weights. Exponential growth of the e-commerce industry will pave the way for steady demand growth in the corrugated packaging industry. With the increase in the stringency of environmental regulations, sustainability has become a priority in business infrastructures. This is driving the manufacturing of packaging solutions that are made of natural materials such as paper and use adhesives from natural sources such as maize or wheat. This availability of sustainable packaging materials and the steadily growing demand for the same will contribute to spend growth in the corrugated packaging industry during the forecast period.
In terms of regional spend share, North America will have the largest contribution to the corrugated packaging industry. This spend growth will be majorly favored by the exponential growth of the e-commerce industry in the US. Buyers from this industry will exhibit a high demand for corrugated packaging solutions that are strong, durable, and can be recycled. The overall spend growth in this industry can also be traced in the APAC where the growing frequency of manufacturing coupled with a high demand for white goods will drive the procurement of corrugated packaging solutions.
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Insights into the industry pricing trends
Prices of the primary raw materials such as paper and paper products that are used to manufacture corrugated packaging solutions are expected to fluctuate during the forecast period. This will significantly increase supplier’s overall operational cost which will have a consequent inflationary impact on buyer’s procurement spend.
Forecasts of an increase in the prices of oil and gas will propel suppliers’ logistics expenses. This will increase the possibility of further inflation of buyer’s procurement expenditure in the corrugated packaging industry.
What are the strategies to adopt to optimize procurement spend in this industry?
The corrugated packaging price trends imply a substantial increase in supplier’s OPEX which will result in a gradual decline in their profit margin. To compensate for this, suppliers are expected to increase the market price. In view of this, this procurement intelligence report has listed the top corrugated packaging suppliers, SLA agreement insights, and the selection and negotiation strategies that buyers must undertake to achieve optimal procurement in this industry.
Engage with vertically integrated suppliers
Considering the impact of inflationary prices of raw materials, it is prudent of buyers to partner with corrugated packaging suppliers who own their raw material vendors such as pulp and paper vendors. This will help suppliers to minimize the cost associated with vendor and contract management. Also, through vertical integration, buyers can reduce their supply chain risk and ensure an uninterrupted supply of corrugated packages. Vertical integration also enhances the just-in-time delivery capabilities of suppliers.
Engage with suppliers who facilitate reengineering of corrugated packages
Reengineering is defined as redesigning a product to increase its efficiency and reduce the cost associated with its management. Buyers should engage with suppliers who facilitate reengineering of corrugated packages to save costs in terms of raw materials and minimize the generation of waste in their facilities. It also helps in package optimization by reducing the weight and size of the corrugated package.
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Some of the key topics covered in this report are:
Corrugated packaging industry spend segmentation by region
Total cost of ownership analysis in the corrugated packaging industry
Regional spend opportunity for corrugated packaging suppliers
Corrugated packaging suppliers cost structures
Corrugated packaging pricing models analysis
Corrugated packaging procurement best practices
Category management objectives
Cost saving opportunities in the corrugated packaging industry
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