All companies want the same things. Profit. Growth. Liquidity. OK. We’ve just exhausted the entirety of the business lesson portion of today’s blog.
When it comes to the corrugated packaging industry, and which sectors will be growing at the fastest rates for the next 3-4 years, we thought it would make sense to take a closer look.
According to consulting firm Smithers, predicting exact growth in this market is increasingly difficult and the forecasted slowdown never happened.
So where is the growth happening, and why does it matter?
It will probably come as no surprise that electronics products are seeing the biggest growth rate of more than 5.5 % CAGR (compound annual growth rate). In a world where technology moves faster than the speed of light, there seems to be a gadget for everything. And all those new gadgets must live somewhere before they arrive in your hands.
Close on the heels of electronics is household and personal goods. You can look no further than your Facebook feed to see that subscriptions for cleaning products, cosmetics and grooming are big business (Hello Dollar Shave Club?)
Convenience seems to be a huge factor for many busy people today, so they idea that processed foods is on the rise will come as no surprise to anyone. People value the grab and go concept, and there is no indication that it’s going to change any time soon. If you can make a tasty product and make it easy to consume on the go, chances are you’ll be successful.
The textile industry forecast growth is a fascinating and complicated subject that will warrant us to cover in more detail in a future blog post. But suffice it to say that technology, innovations like non-woven fabrics, sustainability and the demand for domestic production are all relevant factors. Stay tuned for lots more on this.
The top 5 is rounded out by vehicle parts. The simple answer to why this is so is that China is now the world leader in automotive growth. There will be a lot of market growth and demand in that region for the next decade and as such, the packaging of parts in China, Europe and North America will remain strong.
Staying on top of the trends is important to better plan and decide what markets you want to stay in, invest in, or in some cases leave behind. We will always make it our business to keep you informed and help you make the best choices for your packaging needs. We stand by ready to assist you in any way that we can.