Austrian corrugated board under pressure

The Austrian corrugated board industry recorded solid growth of 3.9 per cent in the first quarter of 2022. However, high energy costs and the shortage of raw materials are also impacting the industry in Austria.

The Austrian corrugated board industry recorded solid growth of 3.9 per cent in the first quarter of 2022. However, high energy costs and the shortage of raw materials are weighing on the industry.

The Austrian corrugated board industry has also been in constant operation for two years: first the enormous demand for corrugated board packaging during the pandemic, then months of extreme jumps in the price of base paper, and now the corrugated board industry is under strain. the tense situation on the energy and raw materials market the industry once again.

„This situation demands all our strength. The pandemic plans have proven their worth and are also helping us in the current situation. We have secured our supply chains in the best possible way.“

Stephan Kaar, Spokesman of the Forum Wellpappe Austria

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The demand for corrugated board packaging continues unabated. This is also shown by the current figures for the first three months of 2022: in terms of volume sales in millions of square metres, the five member companies of the Forum Corrugated Board Austria solid growth of plus 3.9 per cent. In absolute figures, this is an area of 270 million square metres. In tonnes, there was an increase of 4.5 percent (129,600 tonnes).

Transport packaging no. 1

„Without corrugated cardboard packaging, modern goods transport would not be possible today,“ says Kaar. „Since the coronavirus pandemic at the latest, it has become clear that we are systemically relevant.“ Over two thirds of all goods transported in Austria are packaged in corrugated cardboard. „This makes corrugated board the number one transport packaging,“ says Kaar.

Increased demand from the food, beverage and consumer goods industry (54 per cent), followed by furniture, electronic parts, machinery and vehicles (19 per cent), as well as logistics and online retail (12 per cent) played a significant role in this. Ongoing problems with supply chains and price surges for raw materials are currently putting companies under massive pressure. Since the beginning of 2021, the price of base paper - the most important raw material for corrugated board - has jumped by up to 70 per cent.

Added to this are the extremely sharp increases in prices for electricity, gas, logistics, starch, colours and pallets due to the current tense situation on the international energy market. „This is exacerbating the price pressure enormously. We are challenged like never before, to ensure the supply of corrugated board packaging,“ says Stephan Kaar. Due to the ongoing price increases for raw materials, there have also been adjustments to the price of corrugated board. There is currently no improvement in sight“, says Kaar.

IKEA says goodbye to plastic packaging by 2028

The Swedish furniture company announced this in a joint press conference with Ikea Austria, Completely dispense with plastic packaging by 2028 at the latest to want to. Ikea is taking this measure step by step: Plastic packaging for new product ranges will be phased out by 2025 and replaced in the existing product range by 2028. The sales packaging of Ikea products is an essential part of the Swedish company and an important aspect in terms of sustainability and safe handling.

Even today, less than ten per cent of all Ikea packaging materials used each year are made of plastic.

„Dispensing with plastic in sales packaging is the next major milestone on our way to making packaging more sustainable. Our focus will be on paper and corrugated cardboard as recyclable and renewable materials.“

Florian Thalheimer, Sustainability Manager Ikea Austria

Source: Forum Corrugated Board Austria

 

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