E-commerce and mail order have been booming for several years. They have received a further boost in the wake of the Corona crisis. Growing numbers in online and mail order are fuelling demand for packaging.

Almost unnoticed in everyday life, a secret success factor has become established. It comes along so inconspicuously that you certainly don't notice it consciously when ordering in the mail order business: Hardly any packaging is used for shipping without corrugated cardboard.

The lightweight pulp product has various properties that make it an ideal packaging product in the mail order business. Behind corrugated board is a complex production process, and the basic raw material is paper.

Therefore, it is not surprising that the topic of corrugated board also raises questions about sustainability and environmental compatibility. In this article, we take a closer look at the sustainability aspects of corrugated board.

Current relevance of the mail order business

In 2021, the entire mail order business (traditional mail order and e-commerce) generated over 100 billion euros in revenue. E-commerce accounts for by far the largest share of sales - at over 99 billion euros, modern online retailing is a significant economic factor in Germany.

Compared with the previous year, sales in the mail order business have risen again by almost 20 percent. A further increase in sales is also expected for 2022.

E-commerce now extends to many areas that previously played no role. Among other things, mail order companies are now also focusing on food and other everyday products for the end customer.

The importance of the mail order business can hardly be overestimated. E-commerce is primarily responsible for the strong growth in this retail segment.

How sustainable is corrugated board?

With the increased demand in the mail order business, packaging materials are moving further into focus. Every product that is shipped online requires outer packaging.

Corrugated board offers special advantages and is therefore the most important packaging base in shipping. More than 50 percent of shipping packaging and cartons are made of corrugated board. Why is this material so popular?

• Corrugated board is light
• it is appropriately stable and firm
• Corrugated board is flexible

What about the sustainability and environmental compatibility of corrugated board?

Corrugated board is made by a special manufacturing process in which at least two paper webs are glued together. One of them is smooth, the second is corrugated. Up to nine layers can form the basis of corrugated board.

This results in different strengths in the folding cartons made of corrugated board. The single and multiwall corrugated cardboard packaging proves to be resistant to shocks and falls during transportation. Corrugated board is made of paper. More than 80 percent of the paper processed into corrugated board in 2021 came from waste paper.

This is already one of the factors that makes corrugated board an environmentally friendly material. In summary, corrugated board has the following environmental advantages:

• The material is already made mainly from waste paper and is recyclable. Since corrugated board is not usually printed, it is free of cont amination or chemical pollutionafter use.
  The waste paper ratio in the production of corrugated board can be as high as 100 percent. The quality of the paper used is not important. The fresh fiber content can also come from wood residues and waste products from wood production.
• Cartons and packaging made of corrugated board can not only be reintroduced into the recycling cycle The folding cartons can be used several times in many cases. This aspect also underlines the sustainability of the material.
• Energy consumption in the production of corrugated board is comparatively low. Corrugated board manufacturers have already created a functioning logistics and structure that ensures short distances and the use of locally produced waste paper.
• The flexibility of the material is shown by the fact that very many packaging forms are possible. Here, new constructions are added all the time, so that there is a suitable corrugated packaging for every need. Corrugated board is a very effective packaging. In its single wall form, it can additionally be used to secure a product within the package with filler material.

Corrugated board is a sustainable packaging material. With environmentally conscious production in a closed-loop system, it reduces CO2 emissions.

Advantages of corrugated board as packaging for mail order business

For online trade in all its facets, corrugated board is an ideal packaging material. It can be made into foldable cartons of various shapes and sizes. Compared to its size, corrugated cardboard boxes have a low weight.

Nevertheless, the outer packaging is stable and tear-resistant. Until they are packed, corrugated cardboard boxes that have not yet been folded take up comparatively little storage space. Cartons made of corrugated board can be folded easily and quickly. A major advantage in an industry where fast delivery is essential.

During transport, corrugated cardboard outer packaging does not take offense to somewhat rough handling. Due to the different material thicknesses, the outer packaging made of corrugated board can be optimally adapted to the weight of the contents. Corrugated board can be purchased in large quantities.

The recent price development gives some cause for concern. As paper prices have risen in the past, further price increases are also expected for corrugated board.

As far as average revenues are concerned, a problematic trend has been emerging for corrugated board manufacturers since 2020. Although demand and thus sales are growing steadily in terms of volume, average selling prices are falling in some cases.

The figures for 2022 and subsequent years will show whether this trend will continue. In any case, the mail order business should expect prices to rise if the price of paper as a raw material continues to rise.

To what extent is corrugated board packaging used, and what proportion falls to the mail order business?

You only become aware of the great demand for corrugated board when you take a look at the shares of the individual economic segments in corrugated board consumption:

The mail order business accounts for only 6 percent of the corrugated board products sold. With over 40 percent, it is companies in the food and luxury food sector that are the biggest customers for corrugated board. Fast-moving consumer goods are still ahead of the mail order business with a share of over 9.1 percent. The intermediate goods and other sectors also demand relevant quantities of corrugated board.

Are there alternatives to corrugated board as shipping packaging?

At present, it is hardly conceivable to comprehensively replace corrugated board as a shipping material. Corrugated board itself is often an alternative to other, less sustainable and environmentally friendly materials such as films and other plastics.

At present, there is also no need to replace corrugated board as a shipping product. Waste paper still accumulates in larger quantities and can be processed into corrugated board via recycling in an almost closed cycle. 

As the call for sustainable packaging grows louder, corrugated board is the packaging material of choice.

Corrugated board worldwide

When it comes to corrugated board sales, Germany is the leader in Europe. However, demand is also steadily increasing in other European countries. Italy is currently in second place in terms of sales, followed by France, Spain and other countries.

In total, over 61,000 million m³ of corrugated board was sold in Europe in 2021. In the USA, the figure for the country as a whole was around 38,000 million m³. The world leader is China with sales of over 85,000 million m³.

Conclusion: Nothing works in Germany anymore without corrugated board

Corrugated board has a great importance for the mail order business and all economic sectors where goods and commodities have to be transported.

An even better alternative for packaging is currently not in sight. Corrugated board manufacturers are also struggling with increased energy prices and higher prices for paper as a raw material. How this development will continue cannot yet be clearly estimated.

More mail order business means more demand for corrugated board. As long as growth in this sector continues unabated, demand for corrugated board packaging will increase.

Here, the packaging industry will have to further improve the corrugated board cycle via recycling in order to secure the increasing demand at a reasonable price level.

Corrugated board is currently a vivid example of how to satisfy the demands for modern and environmentally compatible packaging in a relatively resource-friendly and sustainable way. Furthermore, the material is particularly flexible and can be adapted to different requirements.

FAQ

1. Will corrugated board remain a packaging material in demand in Germany over the next few years?

   For the mail order business, this question can be answered in the affirmative, but other sectors will not be able to do without corrugated board in the short term. Corrugated board has too many advantages and remains important.

2. Is the demand for corrugated board also increasing worldwide?
   

   This can also be assumed. Mail order also plays a major role in other countries. Likewise, many stakeholders are discovering their interest in sustainable packaging solutions. Above all, corrugated board can further push back plastic packaging, whose dependence on the valuable resource of crude oil in production is a limiting factor.

3. What challenges does the corrugated board industry face at present and in the near future?
   Rising raw material and energy prices are a burden on corrugated board manufacturers. For themselves, they must ensure that revenues are in reasonable proportion to rising sales volumes. Industry players will invest more in a circular economy that ensures even better utilization of recovered paper in production.
   
   

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