by Rise of South Korea Paper Packaging Market
South Korea has seen tremendous economic growth in the past few decades which has led to arise in consumerism and packaging waste. However, with increasing awareness about environmental protection, the packaging industry in South Korea is witnessing a shift towards more sustainable solutions. Many companies have started using eco-friendly Paper Packaging for their products to attract conscious customers and reduce their carbon footprint.
Paper being a renewable resource obtained from sustainably managed forests, its usage for packaging is considered more environment-friendly than plastic. According to a recent survey, over 70% of South Korean consumers said they prefer paper over plastic for packaging and are willing to pay more for eco-friendly options. This change in consumer behavior is compelling packaging manufacturers and brand owners to invest in paper-based packaging development.
Government Support for South Korea Paper Packaging Market
The South Korean government has also recognized the urgent need to promote sustainable packaging solutions and reduce plastic pollution. It has implemented several policies and programs to encourage the transition from plastic to paper-based packaging. Some of the key initiatives include landfill bans on select single-use plastic items, incentives for companies developing recyclable/compostable packaging, eco-label certification program, extensive recycling infrastructure and public education campaigns.
There are also stringent regulations around plastic packaging design to facilitate recycling and reuse. For example, plastic packaging needs to have resin identification codes and should be readily separable at the time of discarding. Such prohibition and policy-push by the government is directing packaging innovation towards more sustainable options like paper. According to industry experts, South Korea could emerge as a global leader in paper packaging if it maintains this focus on environmental protection.
Rising Popularity of Paper Bags and Wrapping Sheets
One of the fastest growing segments within the South Korean paper packaging market is paper bags and wrapping sheets. These are increasingly being used as an alternative to conventional plastic bags at retail stores, supermarkets and e-commerce channels. Major retailers like E-Mart and Lotte have already replaced thin-film plastic bags with paper bags at all their outlets nationwide.
The availability of a wide variety of paper bags like bio-degradable kraft paper bags, recycled paper bags, laminated paper bags etc. at affordable prices has boosted their acceptance. Branded food chains too have substituted plastic food wrappers/overwraps with paper-based solutions. Companies like Hyundai Department Store offer paper gift wrapping sheets printed with plant-based inks for customers. This has given packaged products an environmentally-conscious appearance.
Rise in Demand of Corrugated Boxes and Display Packaging
Another significant growth area is corrugated boxes and display-ready corrugated packaging for shipping and storage applications. E-commerce has been a major driver, with volumes of small parcels increasing exponentially during the pandemic. Food and beverage companies too require reliable packaging for transportation of goods as well as attractive point-of-purchase displays.
South Korean corrugated box makers like Dong Yang Paper and Goodpack Industries have seen a spike in orders as durable, reusable and 100% recyclable corrugated emerges as the packaging of choice. They offer customized designs, finishes, grades and recycling services to cater to unique brand requirements. Display ready corrugated boxes with printing and die-cutting are gaining popularity for secondary/tertiary packaging in the consumer goods sector.
Advances in Paper Processing and Converting Technology
To produce high quality paper packaging on a large scale, South Korean companies have heavily invested in latest paper processing and converting equipment. State-of-the-art paper machines, coating, laminating, printing and converting lines have been installed to achieve superior barrier properties, graphics and machinability.
Domestic manufacturers like Hansol Paper and Kolon Tissuegene develop specialized paper grades with added functionalities like moisture/grease resistance using nanotechnology. They also provide technical support to brand owners for product protection and shelf-appeal. Novel finishing techniques involving acrylic, PE or bio-polymer coatings enhance the shelf-life and performance of paper packaging.
Future Outlook
As environmental sustainability gains precedence, the market for paper packaging solutions in South Korea is projected to grow at over 7% annually till 2030. Both international packaging giants and local entrepreneurs are laying the ground for commercializing innovative paper-based products. Brands are collaborating with designers for developing more attractive and responsibly-sourced packaging.
In Summary, government incentives and public-private R&D initiatives would aid further technology upgrades. With the existing packaging ecosystem and high recycling rates, South Korea is all set to become self-reliant in paper packaging manufacture. Sustainable fibers from agricultural/forest waste could supplement virgin wood fibers. If this momentum continues, South Korea will solidify its position as the leader in eco-friendly paper packaging globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
