Duplex Paper and Board Market Report

The opportunity for the Duplex Paper and Board Market has been anticipated due to the rising demand for biodegradable and eco-friendly packaging. According to the report of the National Library of Medicine in 2019, the total global market for biodegradable plastic packaging summed at US$ 4.65 billion and is expected to boost the market by experiencing a CAGR of 17.04% amounting to 12.06 million. Thus, due to more awareness regarding the environment, the rise in the use of biodegradable plastic is expected, and at the same time, the demand for duplex paper and board is also expected to rise as it is also considered a biodegradable option.

Also, due to the rising e-commerce industry, sales for the Duplex Paper and Board Market are expected to grow due to its rigid and lightweight features. According to the International Trade Administration, China is considered the largest market for e-commerce, where at least 50% of world transactions take place. Also, online retail transactions in China have reached the mark of US$ 2.29 trillion in 2020 and have over 710 million billion buyers. According to the forecast, the number of transactions may reach new heights of US$ 3.56 trillion in 2024., when China becomes the largest market for e-commerce, placing ahead of the United States by generating over a revenue of US$ 1.5 trillion.

Despite having huge demand and advantages, the duplex paper and board market still faces challenges. The challenge of the durability of recycled duplex paper and board remains a problem for various manufacturers as the strength of the fiber decreases after the recycling process, and the damage due to the low rigidity decreases the sale of recycled products made of duplex paper and board, which indirectly affects the sale of the duplex paper and board market. The major problem faced is regarding the alternatives present in the market, such as kraft paper, which is being preferred by various manufacturers due to the cost differences. Manufacturers prefer kraft paper as it is considered a cost-effective alternative and provides better durability in some cases. Also, due to technological advancement, inventions such as bio-plastic and bio-based materials are considered to be a challenge, and the duplex paper and board manufacturers should be imaginative enough to outstand all the alternatives.

In October 2023, Nine Dragons Paper (Holdings), the largest recycled packaging board producer in China, started virgin fiber-based carton board production at its mills in Dongguan City, Guangdong Province, and Chongqing Municipality. The company launched trial production of cup stock and coated ivory board on the sole carton board machine at its mill in Chongqing municipality. Dubbed PM 33, the machine has been dedicated to producing recycled fiber-based coated duplex boards since its commissioning in 2012, with a capacity of 550,000 tons/yr. In March 2022, Genus Paper & Boards successfully commenced commercial production of duplex paper from one of the production lines at the company's new unit located in Muzaffarnagar, Uttar Pradesh. The Muzaffarnagar unit had manufacturing facilities for the production of Kraft Paper and Duplex Paper.

The demand for duplex paper and board is generally high in the United States and can be considered a lucrative alternative due to the rising food and beverage demand, especially in the ready-to-cook industry. According to the Economic Research Service, citizens of the United States spent an amount of $2.6 trillion on the food and beverage sector, where the major spending was done on the ready-to-cook sector. The rising demand of the food industry will boost the market for duplex paper and board. Also, according to the Natural Resources Conservation Service, the United States holds the second position in global ice cream consumption, where the United States ice cream makers approximately contribute US$ 13.1 billion to the United States economy.

Also, the Asia Pacific market shows some promising opportunities as the Indian market can be focused on children-centric goods and toys. According to Invest India, the toy market in India reached the value of US$ 1.5 billion in 2022 and is projected to reach US$ 3 billion by 2028, achieving a CAGR of 12.2% for the period 2023-2028. Also, the electronic market in Japan can be seen as a lucrative opportunity, as according to the International Trade Administration in 2021, Japan sourced the largest foreign direct investment into the United States market with an FDI stock of US$ 721 billion, which makes Japan more lucrative as big cartons are used for packing big electronic items for delivering them safely.