Executive Summary

The global Tubes and Core Market size was projected to be US$ 9.6 billion in 2023. By the end of 2024, the industry is likely to reach a valuation of US$10.1 billion. During the forecast period, the global market for Tubes and Core Market is expected to garner a 6.5 % CAGR and reach a size US$ 17.2 billion by 2034.

The increasing demand for paper tubes is being driven by the robust growth in the construction and cosmetics market. Urban dwellers often show a preference for cutting-edge and inventive products, as evidenced by their willingness to spend more on eco-friendly and innovative items. Manufacturers produce paper tubes using a variety of materials such as wood pulp, cardboard, recycled paper, and water-resistant or waterproof cardboard.

Paper tubes have a readily available supply of raw materials and can be used multiple times, resulting in significant cost savings. Various industries and segments rely on paper tubes for a range of purposes, such as packaging food products and transporting goods. Additionally, the market offers a variety of paper tubes that can be tailored to meet customers' specific requirements. High paper tube demand is expected in North America and Europe due to the growth of the cosmetics, automotive, and healthcare sectors. The increasing demand for paper tubes is expected to be driven by the growing population and a rising preference for sustainable products over the next decade.

The tube and core market is expected to experience rapid growth, thanks to its outstanding strength, convenient size, and ability to resist crushing. The demand for tubes and cores has reached an unprecedented level, largely driven by the textile industry's adoption of these products. Tube and core producers are actively implementing strategies to reduce waste in order to enhance their market position.

The global paper core market is fueled by the increasing demand for paper core in a wide range of industries, including textile, paper mills, adhesive tapes, polyester film, and more. This is primarily due to the attractive qualities of paper core, such as its recyclability, reusability, and eco-friendliness.

The market is expected to benefit from the strong growth in the beverage industry, as the paper core is extensively utilized for packaging both alcoholic and non-alcoholic beverages. In addition, manufacturers of paper cores prioritize recyclable paper and sustainable production in response to government restrictions set by regulatory bodies like the United States Environmental Protection Agency, U.S. Food and Drug Administration (FDA), and others. Companies prioritize strict quality control procedures and utilize advanced testing equipment to ensure the delivery of consistent, high-quality products at competitive prices.

Market players are also offering industrial solutions to customize the paper core according to their specific needs. It is driving market growth even more. As an example, Konfida specializes in producing a wide range of products including synthetic yarn, fabric, flexible packaging, non-woven paper & board, and hygienic paper. Our company specializes in providing tailored paper core solutions to industrial manufacturers.

Nevertheless, the market may face potential challenges due to the emergence of smaller and lighter packages, as well as the introduction of alternative substitutes like plastic cores.

Definition

There are various emerging trends in the global paper tubes and cores market. One trend that stands out is the increasing demand for eco-friendly packaging solutions in the e-commerce industry. With the increasing popularity of online shopping, there is a growing need for packaging materials that are environmentally friendly, like paper tubes and cores.

 Another trend that has emerged is the adoption of modern industrial technologies, such as automation and robots. These technologies have proven to enhance production efficiency and reduce labor costs. Furthermore, there is an increasing focus on product innovation and customization to cater to the varied requirements of customers. The projected growth of the global paper tubes and cores market is expected to be boosted by these rising trends in the coming years.

Trend

The technological advancements are a primary trend in the tubes and cores market.  

The tube and core markets are evolving due to advancements in technology. Advancements in technology are revolutionizing manufacturing processes, leading to increased efficiency and cost savings. Thanks to technological advancements, there have been exciting developments in tube and core designs, such as the telescopic Core, Multi-Layered Core, and Composite Core material. Therefore, the forecast period will see a significant boost in market growth due to the increasing market consolidation.

In addition, new materials offer various features to address the growing need for eco-friendly packaging. Manufacturers are also exploring the use of ecotoxic materials such as Bio-Based Polymers to meet this demand. Furthermore, the production processes of tube and core manufacturers are now integrating collaborative robots. The incorporation of these manufacturing processes, utilizing cutting-edge technology by vendors in the global tubes and cores market, has resulted in improved efficiency, cost reduction, enhanced quality, sustained growth, and a surge in demand for these products. Thus, the market in focus is expected to experience significant growth during the forecast period due to these technological advancements.

Drivers

The growing demand for transparent barrier film is a riving growth in the tubes and cores market.

Transparent barrier films play a significant role in packaging as they allow food manufacturers to use packaging material that can extend the shelf life of their products. In addition, there is a shift in consumer food preferences due to the increasing awareness of healthier lifestyles. The demand for high-barrier packaging film, which can extend the shelf life of food products, is on the rise due to these changes.

On the other hand, the United States is projected to play a significant role in driving growth due to the increasing need for packaging in the snack, confectionery, and other product sectors. Manufacturers of biscuits often opt for high barrier properties films for their packaging due to their superior resistance to moisture and vapor. The surge in demand for transparent barrier film is projected to boost the need for cores, as they are utilized for packaging the film. This, in turn, fuels the market growth during the forecast period. 

Restraints

Limited Use and Deforestation to Hamper the Market Growth.

Due to the limited usage of paper core in packaging heavy materials, industries have no choice but to turn to plastics and polymers as an alternative. However, this substitution could potentially have a negative impact on market growth.

In addition, the future growth of the paper core market may be hindered by factors such as deforestation, environmental concerns related to raw material acquisition, and the release of toxins during paper production.

Opportunities

Exploring growth in the North American Tubes and Cores Market

The potential shift of manufacturing operations from countries with lower labor costs, like Mexico, India, and China, to the United States presents opportunities for expansion in the tubes and cores market. It is anticipated that this change will result in a more diverse market in various US industries, thereby increasing the need for tubes and cores. These cylindrical materials are vital for packaging, supporting, and winding functions in a wide range of industries, making them indispensable for various applications.

Furthermore, the growing focus on environmentally-friendly and sustainable packaging solutions opens up possibilities for innovation in the tubes and cores market. With the increasing importance of eco-friendly practices, there is a promising opportunity to create tubes and cores using materials that can be recycled or naturally decompose. This is in line with the worldwide shift towards sustainability and has the potential to position manufacturers in North America to cater to the changing demands of the market.

In addition, the ongoing advancements in manufacturing processes for tubes and cores offer a chance to enhance efficiency and reduce costs. Advancements in materials, production techniques, and customization capabilities have the potential to boost the competitiveness of North American manufacturers in the global tubes and cores market.

Challenges

The high price of kraft papers is a major challenge in the tubes and cores market. 

Kraft paper plays a crucial role in the manufacturing of tubes and cores. The material used to make these kraft papers is wood pulp.  Since 2015, the price of wood pulp has reached its peak. The surging demand for paper-based packaging products, particularly corrugated boxes, driven by the booming e-commerce sector, is causing a rise in the cost of wood pulp and kraft paper.

Tube and core manufacturers are facing challenges with their profit margins due to the increased cost of kraft paper. However, they have the option to pass on this price burden to the end users. Transferring the full burden of raw material prices to the end user may have a detrimental impact on product demand. However, users can mitigate this by exploring alternatives like plastic tubes and cores. Proper hedging instruments in the commodity derivative market can help the tubes and core manufacturers mitigate this risk. Several factors impede the market's growth during the projected timeframe.

Impact of COVID-19

The global economy has been greatly impacted by the COVID-19 pandemic, causing significant disruptions to the operations of companies worldwide. As a result, the paper market on a global scale was impacted. The disruptions in supply chain management and transportation of goods and services had an adverse effect on the market's growth. Numerous manufacturing and production units experienced significant disruptions as a result of government-enforced lockdowns and curfews worldwide. Unfortunately, this led to substantial losses and wastage of various paper core products. During the pandemic, the paper industry, the adhesives industry, and the beverages industry, which rely on paper cores, also experienced significant losses.

The pandemic had a profound impact on consumer demand and behavior. The sales of paper core products were negatively affected as consumers chose to prioritize essential purchases during the pandemic. The market growth was significantly affected by the uncertain and unexpected situation caused by the pandemic. Fortunately, the post-pandemic situation has shown signs of improvement, leading to a recovery in the global paper core market. The market is poised for significant growth.

Segmentations

By Material Type

Various industries heavily rely on paperboard, Kraft paper, and other composite materials such as fibreboards. These materials have distinct characteristics that make them indispensable for specific purposes. Paperboard is a versatile material that is commonly utilized for various packaging needs due to its durability and adaptability. Kraft Paper, on the other hand, is well-known for its exceptional strength and durability, making it highly suitable for a wide variety of applications, such as packaging and construction. Composite materials like fibreboards have a wide range of properties that make them highly adaptable for various applications.

• Paperboard
• Kraft Paper
• Others (Composites & Fibreboards)

By Product Type

When it comes to the different product types, spiral wound and parallel wound configurations are designed to meet various requirements. Spiral wound products are renowned for their exceptional strength and stability, while parallel wound options provide distinct benefits in particular applications. These different options allow industries to select based on their specific requirements, enhancing the overall efficiency and effectiveness of the materials.

• Spiral Wound
• Parallel Wound

By Shape

Various configurations, such as cylindrical, square, oval, hexagonal, triangular, and others, provide versatility to cater to different applications. The wide range of shapes allows for customization, ensuring that the materials are perfectly suited for specific purposes in packaging, construction, and various other industries.

• Cylindrical
• Square
• Oval
• Hexagonal
• Triangular
• Other

By Application:

Applications of these materials are broad, ranging from packaging to forming and construction. Packaging, a fundamental use, leverages the properties of these materials to ensure the safety and preservation of products during transportation and storage. Forming and construction applications benefit from the strength and structural integrity provided by these materials. Additionally, insulating and dampening properties make them valuable in industries where temperature control and noise reduction are crucial. Spacing, supporting, holding, and winding and carrying functions further showcase the adaptability of these materials in various contexts.

• Packaging
• Forming & Construction
• Insulating & Dampening
• Spacing
• Supporting & Holding
• Winding & Carrying

By end-users

Various industries heavily depend on these materials, such as food and beverages, consumer goods/retail, construction, healthcare and pharmaceuticals, cosmetics, automotive, electronics, textiles and printing, and others. The food and beverages industry, for instance, relies on these materials for packaging solutions that guarantee the safety and quality of their products. Similarly, these materials are widely used in the construction industry due to their strong structural capabilities. The healthcare and pharmaceutical sectors find value in utilizing them for packaging and insulating purposes, while the cosmetics industry appreciates their aesthetic appeal and protective properties.

• Food & Beverages
• Consumer Goods / Retail
• Construction
• Healthcare & Pharmaceuticals
• Cosmetics
• Automotive
• Electronics
• Textiles and Printing
• Others

Geography Chapter

The strategic impact of North America in the global market

The growth of the global market is expected to be significantly influenced by North America, which is projected to contribute 37% during the forecast period. Our analysts have provided detailed insights into the regional trends and factors that influence the market throughout the forecast period.

In 2021, the consistent corporate tax rate in the US compared to 2020 had a favorable effect on the diverse end-user manufacturing industries, such as textile and plastic film, in the region.

 Several industrial undertakings with production sites in countries like Mexico, India, and China have proposed relocating their manufacturing activity to the United States. As a result, the end-user industries in the US are projected to become more fragmented compared to the tubes and cores market. This, in turn, will drive up the demand for tubes and cores.


Thriving Market for Growth in the Asia-Pacific Region

Asia is poised to experience rapid market growth, driven by expanding industries, urbanization, technological progress, economic development, and a strong demand for food, beverages, and transportation.

The packaging industry is experiencing significant growth due to the widespread use of fast-moving consumer goods. Based on data from the PMMI, Association for Packaging and Processing Technologies, the packaging industry recorded a significant market size of 1,431.5 billion units sold in 2018. There has been a noticeable shift in attention towards environmentally-friendly and sustainable packaging, driven by the increasing demand for both large and small packages in light of the growing interest in travel and outdoor activities.

Company Landscape  

The market research report covers the entire adoption lifecycle of the market, from the early stages of innovation to the later stages of adoption. It examines the rates of adoption in various regions, taking into account the level of penetration. In addition, the report provides essential purchase criteria and factors influencing price sensitivity, enabling companies to assess and enhance their growth strategies.

Recent Market Developments

• In April 2020, Smurfit Kappa Group and KHS collaborated to introduce the TopClip multipack solution, which bundles canned beverages.
• In August 2020, Sonoco Products Company completed the acquisition of Can Packaging for over US$ 50 million to utilize cutting-edge technology in creating high-performing, recyclable paper packaging.