Live Chat The history of the cardboard box and the markets of today
We have the Chinese Han Dynasty of the second century to thank for the popularity of paper, and the very early origins of the cardboard box. Fibers from many different plants, the stems of grasses, vegetable matter, hemp, tree bark were used to make paper and it was used for many different purposes, for example packaging, and later for money. As time went by, the methods of making paper were refined and the paper became thinner and finer. In the early 1800’s paper board and variations of it were used to make hats in the UK, as a board game in Germany and to transport the Bombyx mori moth and its eggs by silk manufacturers in France. The cardboard box that we know today was officially patented by Albert S. Jones on 20 December 1871. The first machine for manufacturing corrugated boarding was made in 1874 by G. Smyth, and Oliver Long improved on Jones’s invention by adding liner sheets on both sides of the board in the same year. By the early 1900’s wooden crates were being replaced by cardboard boxes and the terms corrugated paper-board and corrugated cardboard were in common use in the industry.
The current market
The cardboard box industry, or more formally known as the corrugated and converting industry, is big and growing. The global market has grown at an annualized rate of 1.2% to $329.3 billion over the past five years, with an increase of 10.6% in 2021. Cardboard boxing in the US today is worth $77.8bn and has grown on average by 2.2% year on year, with a growth rate of 4.7% expected for this year. It is ranked as the 14th manufacturing industry by market size in the US. Due to the lockdowns of the past few years, the way we shop has changed and there has been a huge increase in online shopping. Due to the increase in online purchases and the fact that most of the loot is shipped in cardboard boxes, there has been this massive growth and the industry is now one to watch.
Beige Gold
So popular and in demand is the good old cardboard box, that it has been coined beige gold and has its own black market that is set to be worth $5.4 billion in 2024, up from $4.3 billion in 2017. The value of the illegitimate trade lies in the recycling of boxes. They would usually be used and then shipped to China for recycling. The route is intercepted and the boxes are stolen, recycled and resold, going for $108 per ton and at a cost of millions to the legitimate industry.
The shortage from demand
The huge growth in e-commerce that the recent lockdowns brought, caused a high-demand for cardboard boxes for shipping and with it, a supply problem. This was a short lived problem, but has left the industry dependent on the recycling of boxes. The industry is scrambling to keep up with the e-commerce boom and this has resulted in them having to raise prices and cap orders. The biggest problem in the industry is keeping up with demand, which is a challenge but the industry is rising up to it and thriving.
Looking to the future
Going forward the market is expected to go from strength to strength, e-commerce is growing in popularity and the average person’s life operates in the digital world. We socialize, work and shop online, the plastic shopping bag is a thing of the past and the cardboard shipping box is the way of the future. The US e-commerce industry is expected to cross 1 trillion dollars for the first time in 2022, that’s quite a market to harness. As identified by consulting group, Smithers, there are five primary trends that will affect the industry going forward, namely: E-commerce: The global e-commerce market is set to be worth in the trillions by 2023, this translates to high demand for shipping boxes and a booming industry into the future. Fit-to-product (FtP) or box-on-demand systems: This technology sees boxes being customized to the exact size of the product being packed. For huge e-commerce operations this cuts costs in boxing and in shipping, as well as eliminates the need for fullers. Sustainability: Corrugated boxing is popular due to its sustainability and light weight, for ease of handling. Rightweighting and rightsizing is taking this further by ensuring efficient packaging and in response to the logistics chain’s adoption of dimensional weight (DIM) pricing, to reduce costs. It is vital to reduce the amount of air being shipped to reduce costs and for the environment. Retail changes:The manufacture of retail ready packaging is on the rise as a cost saver. It is estimated that this format can reduce handling and shelf-restocking costs by up to 50%. Digital Printing advancements: The concept of personalizing packages for brand, region or store to boost loyalty and increase conversions is growing in popularity. It offers a great growth and brand awareness opportunities to sellers and an opportunity for repeat purchases. Waiting for your package is tough, when your loyal brand delivers it offers a great window to push them up the brand awareness ladder. You can find everything you need for your corrugated and converting business on CorroGo, an e-commerce store that’s packed with corrugating and converting products to suit any need. Make sure you keep up now and into the future, get a reputable supplier and friend on your side.