Paper packaging industry is an integral part of the packaging industry. Paper packaging only takes into accounts the packaging products that are made of paper and paperboard as the only raw material. The overall packaging industry uses many other raw materials such as glass, plastic, metal, fiber and many more to produce the final product.
The paper board packaging industry in the US encompasses production of paper packaging goods such as corrugated boxes, folding carton, paper bags and other paper board packaging products. The paper packaging industry in the US largely operates under the organized system. There are many large and medium players in the industry. The paper packaging industry caters to the needs of many sectors in the economy such as Food & Beverages, Automobile, Fast-Moving Consumer Goods (FMCG), Pharmaceuticals, Durable goods, Tobacco and many more. Rising retail sector in US and robust growth in the e-commerce industry from past five years had driven the market of paperboard packaging industry in the country.
The industry had made significant investments in the past few years which contributed robust growth of the industry in the US. The acquisition of number of small and medium size companies by the dominant companies have increased their market share in the country. The companies are continuously investing in technologies and up gradation of mills to increase their manufacturing and production capacity.
Paperboard packaging production cost can be brokendown into labor charges, energy required, Freight packaging, chemicals and raw materials. Labor cost had contributed majorly in the production cost followed by raw materials cost.
Rising industrial activities in the country had driven the size of the manufacturing cluster in the country. The major manufacturing cluster of the US paper board industry lies in South region of US. The states of Georgia, Florida, Alabama, South Carolina encompasses of major manufacturing plants of the Paper board packaging in the country. The region is known for its established transport network and energy infrastructure, as well as competitive rates for land and labor costs and an attractive business climate. Attractive government initiatives, research hubs, access to trade ports have encouraged number of paperboard manufacturers to expand in states of Southern Region.
Kraft paper had contributed majorly in the revenues of overall paperboard packaging industry in 2015.Kraft papers are majorly used for making corrugated boxes. They are strong and can handle heavy weights easily. Duplex Board is the second largest contributor in the revenues of paperboard packaging industry. Duplex board is used to manufacture paper packaging products for goods having light or medium weight. This type of paper has as a high tensile strength and does not get fractured easily as the other boards.
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