The markets for cartonboard and folded boxes were difficult during 2008 and 2009. This applied to the packaging industry in general as well as for most converters. But positive signs are on the increase: Cadbury will use folded boxes for the first time for one of their major brands.

Sustainabilty is also making inroads with retailers - with promising long-term opportunities for cartonboard. The Austrian Aldi subsidiary Hofer, for example, provides carbon footprints for selected bio products on their website www.zurueckzumursprung.at. The German Metro Group has created a Sustainability Board to develop and implement binding company standards for the sustainable practices - to increase their competitive advantage.

Confidence in the future
These are just some of the examples which have given the cartonboard and folded box industry greater confidence in the future. "We expect cartonboard packaging to play a greater role in the future for branded products and in the retail trade" stated Stéphane Thiollier, President of Pro Carton. Not only because the packaging industry expects greater promotional advantages at the POS (Point of Sale), but also because the raw material is convincing in terms of sustainability.

During 2007 and 2008 the use of cartonboard dropped by 3.8 per cent in Europe. This trend varied by country, with Germany increasing by 0.5 per cent. 2009 came off to a poor start, but improved during the year. Whilst turnover decreased during the first nine months of 2009, orders have started to pick up and a further increase is expected toward the end of the year.

There were major differences by market segment. The food and pharmaceutical sectors performed relatively well, but luxury goods were hard hit by the recession. However, industry is confident for the next 15 months and beyond.

Good prospects for cartonboard
Production capacities in the cartonboard industry were consolidated during 2009. Two production plants were shut down completely, and one plant (in Italy) was closed for the year. Exports from Europe were satisfactory, sales to the Far East declined, not only due to the strong Euro, but also due to local production expansion, especially in China. This was one of the reasons why imports from China increased. However, the imports are on the decline again as the Chinese need the local capacities themselves.

Sales to Eastern Europe continued to increase and further growth is expected. At present consumption in Eastern Europe is at 30% of levels in Western Europe, a level of 50% is expected by 2015. The cartonboard manufacturers expect positive impulses over the next few years, as most importing countries are expected to show continued growth and sustainability issues are on the increase.