Paper market research An important gap in the honeycomb cardboard market segment In 2018, the market potential for honeycomb paperboard in the UAE was estimated to be around 60,000 tons a year; and this is a market that remains largely unfulfilled. This market segment presents a great opportunity because, internationally, demand for honeycomb paperboard is exploding due to the boom in e-commerce and online retail. Market definition Honeycomb paperboard packaging will appeal to any and all industries where end-buyers are targeted and shipments require protection to prevent damages. Honeycomb paperboard is an innovative and unique alternative to the wood and plastic packaging. Honeycomb paperboards have 95% air and 5% material, resulting in lower cargo weight, less loading time, efficient transportation, and reduced cost when used. In fact, the use of honeycomb paperboard products can reduce the overall cost of packaging by a maximum 30%. But honeycomb paperboard is not a well-known packaging solution among consumers, therefore vendors need to apply special sales force to sell their honeycomb paperboard products. Initially, this can result in extra cost but will give better return in the long run. Cardboard market research Our paper market research suggested that corrugated cardboard constitutes around 60% of global production and consumption of paper, or paper consumption per capita. Out of that, honeycomb paperboard represents a minimum 20% that’s increasing exponentially (up to 40%) because of the sharp increase in e-commerce and logistics. The value of packaging used in e-commerce is rising at 25% per year in the UAE because of e-commerce. UAE Paper consumption per capita in 2018 Our paper market research shows that the UAE paper consumption per capita is 139 Kgs (or the equivalent of 1.3 Million tons of paper), Corrugated cardboard constitutes an average 55% of total paper consumption per capita, or the equivalent of 76 Kgs (=139 Kgs x 55%), Out of that 76 Kgs, honeycomb paperboard is estimated to constitute around 6.3 Kgs/Capita (or 8 % of the corrugated paper market). For a UAE population of 9.5 Million, total honeycomb paper market size in the Emirates is expected to be around 60,000 tons (= 9.5 Million x 6.3 Kgs/Capita). Market segments By type Type Percentage of Sales Interior packaging 36% Exterior packaging 32% Pallets 12% Other types 20% By end-user industry Food and beverageFurnitureElectronicsPersonal careChemicalsAppliancesHome carePharmaceuticalsRubber and plasticsHealthcareAgriculture and floricultureElectricsRetailConstruction (clay board, cement ducts and doors etc.)PesticidesLogistics and freightOil and lubricantsTextilesCourier and e-commerceAutomobileIndustrial partsConfectionery, crisps and snacksDiary and juicesPoultry and fishFrozen foodsPet foodsGlass productsRelocations and movers By special characteristics Water-repellent honeycomb paper Fire-resistant honeycomb paper Graphic honeycomb paper Continuous honeycomb paper Expanded honeycomb paper Blocks honeycomb paper Historical sales breakdown analysis – Manufacturer A Description Percentage of total Sales – boxes 48% Sales – edge boards 24% Trading Items: slip sheets, donnage bags 13% Sales-HCB 8% Sales – pallets 6% Sales-pall runs 1% Sales-flat board 1% Sales-Honey core 0% Sales-wrap round 0% Total sales 100% Pricing analysis – Manufacturer A Description Historical Data Selling price 6,400 AED/Ton Honeycomb paperboard manufacturers Key manufacturers Market research in MENA and the GCC Description Country Dopack Egypt Andalus Group KSA Manufacturer A UAE Key manufacturers International Tetra Laval International Paper Company Rengo WestPack Graphic Packaging International Corporation Sappi Limited DS Smith Amcor Mondi Group Oji Paper Smurfit Kappa Metsa Group Yoj Pack-Kraft Amcor Limited Grief, Inc.Westrock CompanyMauser GroupInternational Paper CompanyWuxi Sifang Drums Limited CompanyBemis Company, Inc.Orora LimitedSigma Plastics GroupTekni-Films, Inc.Honicel, Cartoflex Sealed Air CorporationB.A.G. Corp.Nefab GroupRDA bulk packagingCascades Inc.Corint GroupGrigeo klaipedos kartonasAxxion IndustriesForlitHoneycomb CellpackBestemDufaylite DevelopmentsL’HexagoneTivuplast, QK Honeycomb ProductsEmin LeydierAxxorRebul Custom PackagingHonECOre Paper Honeycomb SolutionsHoneycomb Products anc.Multi-Wall Packaging Download
