Uncoated Recycled Paperboard: Introduction
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Paperboard is the broad name that refers to different qualities or grades of paper-based packaging material. It is generally thicker than writing paper. Grades differ from one another based on what percentage is produced from recycled content, what surface coatings it has, and what color it is.
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Uncoated recycled paperboard, a multiply material, is produced from recovered paper collected from paper manufacturing and converting plants and post-industrial sources. During production, the surface is not coated for printing purposes. However, depending on the end purpose of packaging, a top layer of white recovered fiber can be added or the material can be mass dyed to desired colors.
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Rise in Building & Construction Activities to Drive Uncoated Recycled Paperboard Market
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Paperboard packaging is made from a renewable resource, i.e. trees that are replanted to ensure a sustainable supply and recovered paper. The U.S. grows more wood than it harvests. Currently, the U.S. has 20% more trees than that in 1970. According to the U.S. Environmental Protection Agency (EPA), paper and paperboard packaging accounts for nearly three-quarters of packaging materials recovered for recycling in the U.S. That is more than any other packaging material.
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Applications of Uncoated Recycled Paperboard
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Paperboard is used to package various products. The grade of paperboard used depends on the products’ needs and requirements. Uncoated recycled paperboard is used in shoeboxes, composite cans & fiber drums, and coated paperboard.
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Uncoated recycled paperboard is also used in consumer products such as school and office supplies, game boards and boxes, hard-bound book covers, pressurized laminates for flooring and countertops, and household products
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It is also employed in consumer packaging (skin/blister packaging, interior packaging partitions), retail displays (point-of-purchase display cases, set-up boxes) and industrial supplies (fiber drums, air filter frames, thermo coupling testing device rods)
Impact of Covid-19 on Uncoated Recycled Paperboard Market
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The COVID-19 pandemic and the subsequent halt in manufacturing activities is expected to adversely affect the supply of various raw materials. Furthermore, current disruption in trade is anticipated to hamper the availability of various products including uncoated recycled paperboard in import-dependent countries.
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On April 16, 2024, Greif, Inc., a global leader in industrial packaging products and services, announced that it will implement a US$ 50 per ton price increase for all grades of uncoated recycled paperboard effective with shipments beginning May 18, 2024. Increase in the prices is in response to cost pressures in labor, recycled fiber, transportation, and chemicals.
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Rise in Prices of Uncoated Recycled Paperboard to Hamper Market
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On April 16, 2024, the U.S.-based packaging firm Sonoco announced plans to implement a US$ 50 per ton price increase for all grades of uncoated recycled paperboard in the U.S. and Canada. The price increase would be implemented as the firm has experienced inflation on input costs that include starch and other papermaking chemicals, labor and fringes, repair costs and repair materials, as well as increase in recycled fiber costs.
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Sonoco made the difficult decision to shutter two paper machines in the U.S. and Canada due to the high operating costs. The cost to maintain these assets exceeded the return earned from operating them. Thus, high operating costs are likely to hamper the global uncoated recycled paperboard market.
North America to Hold Major Share of Global Uncoated Recycled Paperboard Market
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In terms of region, the global uncoated recycled paperboard market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
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In terms of value, Asia Pacific dominated the global uncoated recycled paperboard market in 2019. This can be ascribed to growth in the food & beverages sector in developing countries such China and India in the region.
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Europe is anticipated to create immense opportunities for the uncoated recycled paperboard market due to the usage of the uncoated recycled paperboard in various end-uses such as soap and laundry detergent packaging, cookie and cracker packaging, and paper goods packaging (facial tissue and napkins)
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The uncoated recycled paperboard market in Latin America and Middle East & Africa is projected to expand at a sluggish pace during the forecast period
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Key Players Operating in Global Market
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The global uncoated recycled paperboard market is fragmented, with market players focusing on incorporating advanced technologies to gain higher share. These players offer a complete portfolio of products and focus on different business strategies to strengthen their position.
Key players operating in the global uncoated recycled paperboard market include:
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Greif
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Cascades Inc.
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Recycled Paperboard Alliance
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Sonoco
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WestRock Company
Global Uncoated Recycled Paperboard Market: Research Scope
Global Uncoated Recycled Paperboard Market, by Application
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Shoeboxes
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Composite Cans & Fiber Drums
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Coated Paperboard
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Others