Global market for recycled paper packaging to reach $139 billion in 2018, says study

ALBANY (Scrap Monster) : As per latest research report published by Smithers Pira, the overall recycled paper packaging market is expected to grow at CAGR of 5% to touch $139 billion in 2018. The report further states that the demand growth for paper packaging is likely to remain strong in China and other emerging countries.

Smithers Pira notes that the recycling rate in the US and Canada have reached 70% and 80% respectively. In fact, the paper and paperboard recovery has surged higher by more than 81% over the past fifteen years. The average recycling rate in the Europe is nearly 75%, whereas that in the UK stands higher at 80%. Belgium and Austria have successfully achieved a recycling rate of nearly 90%.

The research firm predicts surge in demand for paper pulp in Asian countries, especially China and India. The packaging demand has reported a steady growth of 6.5% per annum since 2008. The Chinese demand growth for packaging is the strongest among world countries. The rising consumerism in the region may boost the demand for paper.

The research report indicates a sharp rise in demand for recycled paper. The demand for recycled paper will exceed supply by 1.5 million tonnes by 2018. To meet the increased demand for recycled paper, the industry must focus on setting up packaging facilities in developing economies. Smithers Pira also notes that the advancements in technology could lead to significant cost reduction in the paper recycling sector.