Carton, Folded Box Markets Improving into 2010

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The carton board and folded box industries are expecting growth this year, with sustainability and promotional efforts being the key innovation drivers, according to a report by Pro Carton, the European association of carton and carton board manufacturers, Zurich, Switzerland.

In the report, Pro Carton notes that the markets for carton board and folded boxes were difficult during 2008 and 2009. This applied to the packaging industry in general as well as for most converters. But positive signs are "on the increase," it adds, pointing out that Cadbury will use folded boxes for the first time for one of their major brands.

Sustainability is also making inroads with retailers, Pro Carton continues, with promising long-term opportunities for carton board. The Austrian Aldi subsidiary Hofer, for example, provides carbon footprints for selected bio products on their website The German Metro Group has created a Sustainability Board to develop and implement binding company standards for the sustainable practice, to increase its competitive advantage.

"We expect carton board packaging to play a greater role in the future for branded products and in the retail trade," said Stéphane Thiollier, president of Pro Carton., adding that "not only because the packaging industry expects greater promotional advantages at the POS (point of sale), but also because the raw material is convincing in terms of sustainability."

During 2007 and 2008, the use of carton board dropped by 3.8% in Europe. This trend varied by country, with Germany increasing by 0.5%. The year 2009 got off to a poor start, but improved during the year. While turnover decreased during the first nine months of 2009, orders picked up. There were major differences by market segment. The food and pharmaceutical sectors performed relatively well, but luxury goods were hard hit by the recession. However, the industry is "confident" for the next 15 months and beyond, the report emphasizes.