Report Overview

An increasing demand for carton paper from the e-commerce sector and stringent regulations on controlling plastic packaging are expected to boost the growth of Vietnam paper packaging market during the forecast period between 2023 and 2029.

Vietnam Paper Packaging Market - Industry Trends & Forecast Report, 2029

Vietnam paper packaging market size was estimated to be worth USD 1.59 billion in 2022. During the forecast period between 2023 and 2029, the Vietnam paper packaging market size is projected to grow at a CAGR of 3.58%, reaching a value of USD 1.96 billion by 2029. Major growth factors for the Vietnam paper packaging market include the flourishing e-commerce sector in the country and the rising demand for eco-friendly packaging. Increasing consumer awareness of the negative impact of plastic packaging is prompting retailers to switch to paper packaging, which is anticipated to offer growth opportunities to the Vietnam paper packaging market during the forecast period.

Vietnam Paper Packaging Market – Overview

Paper packing is a type of packaging manufactured from paper. This kind of packaging is used to pack, store, and transport items, helping to protect the product within from the effects of transit and storage. There are three main categories of paper packaging: corrugated boxes, boxboard or paperboard cartons, and paper bags and sacks. Packaging made of paper (and cardboard) has several advantages, including the ability to be reused, ease of storage, substantial bulk discounts, and superior printing and branding.

Vietnam Paper Packaging Market

Growth Drivers

Rising Demand for Eco-friendly Packaging

According to the International Bar Association, due to their lengthy decomposition times, plastic bags have a significant negative environmental impact. Additionally, as plastic bags decompose under sunlight, hazardous compounds are released into the soil, and when plastic bags are burned, a poisonous material is discharged into the air, contributing to ambient air pollution. As a result, retailers are shifting towards eco-friendly packaging, including paper packaging. Paper packaging is biodegradable, making it simple to recycle and dispose of in an ecologically responsible manner, which contributes to the overall growth of the Vietnam paper packaging market.

Restraints

Poor Barrier Properties and Limited Recycling

Compared to alternative packaging materials like plastic, paper provides less of a barrier to air, light, and germs. As a result, when stored in mostly paper packaging, the products it holds—food products in particular—have a lower shelf life. Furthermore, paper packaging is not waterproof like its plastic equivalent and is also comparatively expensive. They are also significantly heavier and take up more storage space than plastic bags. Moreover, although highly recyclable and reused, paper still contributes to landfills.

Impact of COVID-19 on Vietnam Paper Packaging Market

The unprecedented COVID-19 pandemic proliferated the growth of the Vietnam paper packaging market. Although Vietnam was among the least affected countries, the market witnessed significant demand from the food and beverages and e-commerce sectors. Consumers rapidly shifted towards online stores for their daily grocery needs and other products, such as clothes, which resulted in a significant spike in e-commerce shipments, boosting the overall market demand for paper packaging in Vietnam. Furthermore, the market also gained traction owing to the rising demand for paper packaging in the healthcare sector.

Vietnam Paper Packaging Market

Segmental Coverage

Vietnam Paper Packaging Market – By Type

Based on type, the Vietnam paper packaging market is segregated into folding cartons, corrugated boxes, and other types. The corrugated boxes segment accounts for the highest market share and is projected to register growth at the highest CAGR during the forecast period. The growth of the segment is mainly attributed to the expanding e-commerce sector in Vietnam. Corrugated cardboards can be recycled and used up to six or seven times before the fibers become too frail to be utilized. This reduces trash output and the number of items that are dumped in landfills.

Vietnam Paper Packaging Market – By End-User Industry

Based on the end-user industry, the Vietnam paper packaging market is segmented into food & beverages, healthcare, personal care & household care, industrial, and other end-user industries. The food & beverages industry dominates the Vietnam paper packaging market. Paper and paperboard packaging is prominently used for various purposes, such as milk cartons, baking papers, ice cream cups, and others. It is gaining popularity among major fast food chains, such as McDonald’s or Domino's, due to increasing consumer awareness.

Competitive Landscape

Major players operating in the Vietnam paper packaging market include Song Lam Trading & Packaging Production Co. Ltd, Huhtamaki Oyj, Minh Viet Packaging one member Co. Ltd (Dongwon Systems), Tetra Pak International SA, Oji Interpack Vietnam Co. Ltd, Khang Thanh Co. Ltd, Hanh Packaging Co. Ltd, New Asia Industries Company (SCG), Binh Minh Pat Co. Ltd, Bien Hoa Packaging Joint Stock Company (Rengo Co. Ltd), and HC Packaging VN Company Limited.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2023 – Tetra Pak South East Asia, with headquarters in Singapore, hired Andritz to supply a beverage carton recycling system to its board manufacturing facility in Vietnam's Binh Duong Province.

Scope of the Report

By Type

• Folding Cartons

• Corrugated Boxes

• Other Types

By End-user Industry

• Food and Beverage

• Healthcare

• Personal Care and Household Care

• Industrial

• Other End-user Industries