World Corrugated Boxes to 2013

Global corrugated box demand to rise 3.4% annually through 2013
World demand for corrugated boxes is forecast to increase 3.4 percent per year to 213 billion square meters in 2013, in line with real (inflation-adjusted) gains in GDP. Factors contributing to rising box demand will include growth in industrial activities, particularly the manufacturing sector, which often requires corrugated packaging to protect and transport goods. In addition, ongoing developments in small flute and high-quality graphic board will allow corrugated boxes to penetrate traditional folding carton applications, especially in the developed world. Greater interest in corrugated packaging as a point-of-sale display in retail applications will also boost demand for value-added corrugated boxes.

However, gains will be limited by the mature state of the corrugated box industry in developed areas such as the US, Western Europe and Japan, where boxes are essentially commodity items used in well-established markets. Corrugated boxes also face competition from reusable plastic shipping crates and other types of plastic packaging. Nonetheless, corrugated boxes will benefit from their environmentally friendly image, as well as certain cost advantages compared to plastics crates -- especially considering that old corrugated boxes can often be sold to recycling companies, whereas the usage of plastic crates typically involves cleaning and returning costs.

China, India to be fastest growing national markets
The fastest increases will occur in the world’s developing regions, although growth rates will moderate from the 2003-2008 period. The Asia/Pacific region, Eastern Europe and the Africa/ Mideast region will all outpace the global average. Some of the best gains are expected in China, which will surpass the US as the world’s largest corrugated box market by 2013; and India, which will benefit from strong growth in industrial output and consumer product markets, as well as greater investment in state-of-theart manufacturing equipment, resulting in improved product quality. Greater urbanization and industrialization, and expanding international trade will support advances in these regions’ generally underdeveloped packaging sectors. Rising consumer income levels and expanding middle-classes will also generate robust internal demand for packaged consumer goods like processed foods, beverages and personal care items, supporting increases in corrugated box consumption.

Recycled board to lead containerboard demand
Global containerboard demand growth will trail box production as trends toward the use of higher-performance, lighter board continue. In addition, recycled board will continue to capture market share at the expense of virgin kraft liner and semichemical corrugated medium (fluting), accounting for over 70 percent of board by 2013. Advances for recycled board will be bolstered by consumer, industry and regulatory pressures for environmentally friendly products and practices, rising virgin board prices and rapid demand growth in Asia, which is heavily reliant on recycled liner and fluting.

         INTRODUCTION                           

     I.   EXECUTIVE SUMMARY

     II.   MARKET ENVIRONMENT
         General
         World Economic Overview
           Recent Historical Trends
           Macroeconomic Outlook
         World Demographic Outlook
         World Personal Consumption Expenditures
         World Manufacturing Overview
         World Paper & Paperboard Outlook
         Competitive Technologies
         Environmental & Regulatory Issues
         Pricing Trends
         International Trade Patterns
           Corrugated Boxes
           Containerboard

    III.   RAW MATERIALS
         General
         Containerboard
           Recycled Board
           Kraft Linerboard
           Semichemical Board
         Other Materials
           Adhesives
           Inks
           Waxes

     IV.   WORLD CORRUGATED BOX OVERVIEW
         General
         Regional Overview
           Demand
           Production
         End-Use Markets

    V.   NORTH AMERICA
         North America: General
           North America: Corrugated Box Trends
           North America: Containerboard Trends
         United States
         Canada
         Mexico

     VI.   WESTERN EUROPE
         Western Europe: General
           Western Europe: Corrugated Box Trends
           Western Europe: Containerboard Trends
         Belgium
         France
         Germany
         Italy
         Netherlands
         Spain
         United Kingdom
         Other Western Europe

    VII.   ASIA/PACIFIC
         Asia/Pacific: General
           Asia/Pacific: Corrugated Box Trends
           Asia/Pacific: Containerboard Trends
         Australia
         China
         India
         Indonesia
         Japan
         South Korea
         Taiwan
         Thailand
         Other Asia/Pacific

     VIII.  OTHER REGIONS
         Latin America
           Argentina
           Brazil
           Other Latin America
         Eastern Europe
           Poland
           Russia
           Other Eastern Europe
         Africa/Mideast
           South Africa
           Turkey
           Other Africa/Mideast

     IX.   INDUSTRY STRUCTURE
         General
         Corrugated Box Market Share
         Containerboard Market Share
         Acquisitions & Divestitures
         Cooperative Agreements
         Manufacturing
         Marketing & Distribution

         Company Profiles
           Abbey Corrugated, see DS Smith
           Allard Emballages, see Alliabox
           Alliabox SAS
           Amcor Limited
           Belisce, see Constantia Packaging AG
           Bourquin, see Alliabox
           Brookfield Asset Management Incorporated
           Calpine Corrugated, see Smurfit-Stone Container
           Carter Holt Harvey Limited
           Cartonagens de Mozambique, see Nampak
           Cascades Incorporated
           Cheng Yang Paper Mill, see Nine Dragons Paper
           Constantia Packaging AG
           Corporacion Durango SAB de CV
           DS Smith plc
           Durango International, see Corporacion Durango
           Duropack, see Constantia Packaging
           Eastern Box, see DS Smith
           Emin Leydier SA
           Empaques de Carton Titan, see Corporacion Durango
           Georgia-Pacific, see Koch Industries
           Gissler & Pass, see Alliabox
           Hunyani Holdings, see Nampak
           Induspac Packaging Group Incorporated
           International Paper Company
           Klabin SA
           Koch Industries Incorporated
           Kunert Group, see Alliabox
           Lee & Man Paper Manufacturing Limited
           Longview Fibre Paper and Packaging, see Brookfield Asset Management
           M-Real, see Metsaliitto Group
           MeadWestvaco Corporation
           Metsaliitto Group
           Mondi Group
           Mosburger, see Alliabox
           Nampak Limited
           Niagara Sheets, see Cascades and Smurfit-Stone Container
           Nine Dragons Paper Holdings Limited
           Norampac, see Cascades
           Oji Paper Company Limited
           Otor SA
           Packaging Corporation of America
           Packaging Industries Malawi, see Nampak
           Peterson, see Alliabox
           Pratt Industries, see Visy
           Premier Boxboard, see Temple-Inland Incorporated
           Rengo Company Limited
           Rigesa Celulose Papel e Embalagens, see MeadWestvaco
           ROSSMANN SAS
           SA Industrias Celulosa Aragonesa
           SAICA, see SA Industrias Celulosa Aragonesa
           Saica Embalaje, see SA Industrias Celulosa Aragonesa
           San Miguel Corporation
           SCA, see Svenska Cellulosa
           Smurfit Kappa Group plc
           Smurfit-Stone Container Corporation
           St. Regis Paper, see DS Smith
           Stora Enso Oyj
           Svenska Cellulosa AB
           Tegrant Corporation
           Temple-Inland Incorporated
           THIMM Group
           TRM Packaging, see Alliabox
           Visy Pty Limited
           VPK Packaging Group NV
         Additional Companies Mentioned in the Study

LIST OF TABLES

         SECTION I -- EXECUTIVE SUMMARY
         Summary Table

         SECTION II -- MARKET ENVIRONMENT
      1   World Gross Domestic Product by Region
      2   World Population by Region
      3   World Personal Consumption Expenditures by Region
      4   World Manufacturing Value Added
      5   World Paper & Paperboard Production by Region & Type
      6   World Corrugated Box Net Exports
      7   World Containerboard Net Exports

         SECTION III -- RAW MATERIALS
      1   World Containerboard Demand by Region & Grade

         SECTION IV -- WORLD CORRUGATED BOX OVERVIEW
      1   World Corrugated Box Demand by Region
      2   World Corrugated Box Shipments by Region
      3   World Corrugated Box Demand by Market

         SECTION V -- NORTH AMERICA
      1   North America -- Corrugated Box Supply & Demand
      2   North America -- Containerboard Supply & Demand
      3   United States -- Corrugated Box Supply & Demand
      4   United States -- Containerboard Supply & Demand
      5   Canada -- Corrugated Box Supply & Demand
      6   Canada -- Containerboard Supply & Demand
      7   Mexico -- Corrugated Box Supply & Demand
      8   Mexico -- Containerboard Supply & Demand

         SECTION VI -- WESTERN EUROPE
      1   Western Europe -- Corrugated Box Supply & Demand
      2   Western Europe -- Containerboard Supply & Demand
      3   Belgium -- Corrugated Box Supply & Demand
      4   Belgium -- Containerboard Supply & Demand
      5   France -- Corrugated Box Supply & Demand
      6   France -- Containerboard Supply & Demand
      7   Germany -- Corrugated Box Supply & Demand
      8   Germany -- Containerboard Supply & Demand
      9   Italy -- Corrugated Box Supply & Demand
     10   Italy -- Containerboard Supply & Demand
     11   Netherlands -- Corrugated Box Supply & Demand
     12   Netherlands -- Containerboard Supply & Demand
     13   Spain -- Corrugated Box Supply & Demand
     14   Spain -- Containerboard Supply & Demand
     15   United Kingdom -- Corrugated Box Supply & Demand
     16   United Kingdom -- Containerboard Supply & Demand
     17   Other Western Europe -- Corrugated Box Supply & Demand
     18   Other Western Europe -- Containerboard Supply & Demand

         SECTION VII -- ASIA/PACIFIC
      1   Asia/Pacific -- Corrugated Box Supply & Demand
      2   Asia/Pacific -- Containerboard Supply & Demand
      3   Australia -- Corrugated Box Supply & Demand
      4   Australia -- Containerboard Supply & Demand
      5   China -- Corrugated Box Supply & Demand
      6   China -- Containerboard Supply & Demand
      7   India -- Corrugated Box Supply & Demand
      8   India -- Containerboard Supply & Demand
      9   Indonesia -- Corrugated Box Supply & Demand
     10   Indonesia -- Containerboard Supply & Demand
     11   Japan -- Corrugated Box Supply & Demand
     12   Japan -- Containerboard Supply & Demand
     13   South Korea -- Corrugated Box Supply & Demand
     14   South Korea -- Containerboard Supply & Demand
     15   Taiwan -- Corrugated Box Supply & Demand
     16   Taiwan -- Containerboard Supply & Demand
     17   Thailand -- Corrugated Box Supply & Demand
     18   Thailand -- Containerboard Supply & Demand
     19   Other Asia/Pacific -- Corrugated Box Supply & Demand
     20   Other Asia/Pacific -- Containerboard Supply & Demand

         SECTION VIII -- OTHER REGIONS
      1   Latin America -- Corrugated Box Supply & Demand
      2   Latin America -- Containerboard Supply & Demand
      3   Argentina -- Corrugated Box Supply & Demand
      4   Argentina -- Containerboard Supply & Demand
      5   Brazil -- Corrugated Box Supply & Demand
      6   Brazil -- Containerboard Supply & Demand
      7   Other Latin America -- Corrugated Box Supply & Demand
      8   Other Latin America -- Containerboard Supply & Demand
      9   Eastern Europe -- Corrugated Box Supply & Demand
     10   Eastern Europe -- Containerboard Supply & Demand
     11   Poland -- Corrugated Box Supply & Demand
     12   Poland -- Containerboard Supply & Demand
     13   Russia -- Corrugated Box Supply & Demand
     14   Russia -- Containerboard Supply & Demand
     15   Other Eastern Europe -- Corrugated Box Supply & Demand
     16   Other Eastern Europe -- Containerboard Supply & Demand
     17   Africa/Mideast -- Corrugated Box Supply & Demand
     18   Africa/Mideast -- Containerboard Supply & Demand
     19   South Africa -- Corrugated Box Supply & Demand
     20   South Africa -- Containerboard Supply & Demand
     21   Turkey -- Corrugated Box Supply & Demand
     22   Turkey -- Containerboard Supply & Demand
     23   Other Africa/Mideast -- Corrugated Box Supply & Demand
     24   Other Africa/Mideast -- Containerboard Supply & Demand

         SECTION IX -- INDUSTRY STRUCTURE
      1   Selected Acquisitions & Divestitures
      2   Selected Cooperative Agreements

LIST OF CHARTS
                     
         SECTION III -- RAW MATERIALS
      1   World Containerboard Demand by Grade, 1998-2008

         SECTION IV -- WORLD CORRUGATED BOX OVERVIEW
      1   World Corrugated Box Demand by Region, 2008
      2   Corrugated Box Demand/Manufacturing Value Added
           Relationship, 2008
      3   World Corrugated Box Demand by Market, 2008

         SECTION VI -- WESTERN EUROPE
      1   Western Europe -- Corrugated Box Demand by Country, 2008

         SECTION VII -- ASIA/PACIFIC
      1   Asia/Pacific -- Corrugated Box Demand by Country, 2008

         SECTION IX -- INDUSTRY STRUCTURE
      1   World Corrugated Box Market Share, 2008
      2   World Containerboard Market Share, 2008