Post on 09-Feb-2018
PSSMA…Multiwall, The Natural Packaging Choice 1
Trends in Global Markets for Corrugated Packaging
FPPA 16th Annual Convention
March 4, 2013
Dick Storat, President, PSSMA& President, RSA, Inc.
PSSMA…Multiwall, The Natural Packaging Choice
Paper Shipping Sack Manufacturers’ Association (PSSMA)
National trade association of multiwall sack and bag producers.
Members represent over 90% of US production Industry sales of $1.2 BillionComprehensive statistical programStrong Associate & International Member ProgramVisit www.pssma.org
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PSSMA…Multiwall, The Natural Packaging Choice
Richard Storat & Associates, Inc.Economic consulting services for the paper packaging
and allied industries• Focus on industry level analysis of
– Containerboard and corrugated– Kraft paper and multiwall sacks
• Support Trade Associations in statistical programs and analysis
Publish Scoring BoxesTM, a monthly analysis of containerboard markets
• Timely delivery of key industry statistics• Extensive graphs highlight current industry trends• Quick-read incisive analysis of market conditions• Tools to make informed decisions
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PSSMA…Multiwall, The Natural Packaging Choice
Scoring BoxesTM
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PSSMA…Multiwall, The Natural Packaging Choice
Agenda
Global Corrugated Market Profile and Growth Projections
US Corrugated Market Trends
PSSMA…Multiwall, The Natural Packaging Choice
PSSMA…Multiwall, The Natural Packaging ChoiceSource: ICCA
9% of World Total or 18 billion square meters
PSSMA…Multiwall, The Natural Packaging Choice
Top 15 Country Ranking by Corrugated Output 2010
2 2 2 2 2 2 3 3 3 3 3
5 7
19 24
- 5 10 15 20 25 30
CanadaPoland
ThailandUK
IndonesiaSpain
South KoreaBrazil
FranceIndiaItaly
GermanyJapan
USAChina
% Share
Top 1 = 25% of Global ProductionTop 3 = 50% of Global ProductionTop 15 = 80% of Global Production
Source: ICCA
PSSMA…Multiwall, The Natural Packaging Choice
Factors Affecting Global Corrugated Demand
Economic Growth Industrial ProductionPopulation GrowthPer Capita Income and GrowthPer Capita Corrugated ConsumptionCorrugated Construction (Basis Weight)
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PSSMA…Multiwall, The Natural Packaging Choice 10
PSSMA…Multiwall, The Natural Packaging Choice 11Source: RSA, Inc.
PSSMA…Multiwall, The Natural Packaging Choice
Industrial Production vs. Corrugated Production(2005-2010)
-100
102030405060708090
NorthAmerica
Europe PacificRim
China Rest ofAsia
C & SAmerica
World
Perc
ent
Ind. Prod.Corr'd Prod.
Source: ICCA
PSSMA…Multiwall, The Natural Packaging Choice 13Source: RSA, Inc.
PSSMA…Multiwall, The Natural Packaging ChoiceSource: RSA, Inc.
PSSMA…Multiwall, The Natural Packaging Choice
Source: World Bank, RSA, Inc.
PSSMA…Multiwall, The Natural Packaging ChoiceSource: World Bank, RSA, Inc.
PSSMA…Multiwall, The Natural Packaging ChoiceSource: RSA, Inc.
PSSMA…Multiwall, The Natural Packaging ChoiceSource: ICCA, RSA Inc.
Africa = 2)
PSSMA…Multiwall, The Natural Packaging Choice 19
Source: ICCA
*(21%)
*(5%)
*(6%)
*(9%)
*(25%)
*(10%)
*(24%)
*2011 shares
PSSMA…Multiwall, The Natural Packaging Choice 20Source: ICCA
PSSMA…Multiwall, The Natural Packaging ChoiceSource: ICCA
PSSMA…Multiwall, The Natural Packaging ChoiceSource: ICCA
Source: ICCA
PSSMA…Multiwall, The Natural Packaging Choice 23Source: ICCA
PSSMA…Multiwall, The Natural Packaging Choice 24Source: ICCA
PSSMA…Multiwall, The Natural Packaging Choice 25Source: ICCA
PSSMA…Multiwall, The Natural Packaging Choice 26Source: ICCA
PSSMA…Multiwall, The Natural Packaging Choice
Global Corrugated Trends Summary
Per capita corrugated output will grow by 30-35% in Asia, but marginally elsewhere
Better packaging productivity and environmental awareness will drive more packaging reduction
Corrugated’s share of packaging should not change significantly Global corrugated demand will grow at an average annual rate of 3-
4%, compared to 2.8% average growth over the past 5 years. China holds a 25% share of global corrugated output and will
contribute half of global corrugated growth. Retail Ready Packaging will grow share of corrugated packaging Microflute continues to offer above average growth potential Decorative print will grow faster than the overall rate of corrugatedSource: RSA, Inc., ICCA
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PSSMA…Multiwall, The Natural Packaging Choice
Factors Affecting US Corrugated Markets
Economic ActivityConsumption of Nondurable GoodsManufacturing ActivityContainerboard Consumption Inventory Changes
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PSSMA…Multiwall, The Natural Packaging Choice 29
PSSMA…Multiwall, The Natural Packaging Choice 30Source: BEA
PSSMA…Multiwall, The Natural Packaging Choice 31Source: BEA
PSSMA…Multiwall, The Natural Packaging Choice 32
PSSMA…Multiwall, The Natural Packaging Choice 33
PSSMA…Multiwall, The Natural Packaging Choice 34Source: US Federal Reserve
PSSMA…Multiwall, The Natural Packaging Choice 35
PSSMA…Multiwall, The Natural Packaging Choice 36
PSSMA…Multiwall, The Natural Packaging Choice 37
PSSMA…Multiwall, The Natural Packaging Choice 38
PSSMA…Multiwall, The Natural Packaging Choice 39
PSSMA…Multiwall, The Natural Packaging Choice
Unmade: 89
Containerboard Flows – January 2013(000 Tons)
Capacity: 3,067
Production: 2,979@97.1% Op. Rate
Consumption:2,533
Corrugators
Made for Export: 365
Other Sources(Imputed): 66
Mills
2013 Richard Storat & Associates, Inc.
Liner: 2,122Medium: 857
Made ExportedJan Dec
Liner 323 371Medium 43 49
PSSMA…Multiwall, The Natural Packaging Choice 41
PSSMA…Multiwall, The Natural Packaging Choice 42
PSSMA…Multiwall, The Natural Packaging Choice
+
Monthly Change in Containerboard FlowsDecember 2012 January 2013
(000 Short Tons)
37581
= ++Change inUS Mill
Shipments
Change inExports
Change inImputed
Other Uses
Change inBox Plant
Domestic Receipts1
1 Box Plant Domestic Receipts = Corrugator Consumption + Inventory Accumulation - Imports
= +158 385
Source: RSA, Inc.
PSSMA…Multiwall, The Natural Packaging Choice
THANK YOU
Thank you for the opportunity to participate!What are your questions and feedback?
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Dick StoratDick.Storat@pssma.org
847-867-1521www.pssma.org