Packaging and Labeling Services NAICS 561910

Sep 26, 2025 - Cardboard Box Demand Drops

• A decline in cardboard box consumption may signal reduced demand for packaging and labeling services. Industry insiders suggest box demand has fallen amid economic uncertainty among businesses, the impact of tariffs on trade, and softening consumer spending, according to The Wall Street Journal. A weak housing market has also reduced demand for boxes used in moving and packaging for construction materials and appliances. In August, International Paper said it would permanently close two containerboard mills in Georgia by the end of September, reducing the firm’s containerboard production capacity by 9%.
• A new survey by logistics firm Ryder identified consumer ecommerce packaging preferences, according to Packaging Dive. By a significant margin, consumers prefer boxes over bags for ecommerce packages, with the top reasons including better product protection (36% of survey respondents), potential to re-use or repurpose boxes (29%), and the belief that boxes are friendlier to the environment (14%). Consumers also expressed preferences for premium packaging that offers unique unboxing experiences. Such experiences can improve customer loyalty and increase the likelihood of consumers posting product and packaging photos or videos to social media.

• Mergers and acquisitions activity in the packaging manufacturing sector saw little year-over-year growth in the first half of 2025, as shifting US trade policy led to economic uncertainty, according to PwC. Amid ongoing tariff uncertainty, destocking trends, weaker packaging volumes, and high interest rates, M&A activity in the second half of 2025 is expected to remain at levels seen in the first six months of the year. However, PwC expects packaging-related M&A deals to pick up in Q4 and into 2026, as the impact of tariffs becomes clearer and interest rates begin to move lower.
• The global packaging labels market is valued at $48.3 billion in 2025 and is forecast to post average annual growth of 3.6% through 2030 to reach $57.5 billion, according to market research firm Smithers. Label and packaging sleeve volumes are projected to increase from 83 billion square meters in 2025 to 99.1 billion square meters by 2030. Growth will be driven by brand owner investments in new printing technologies, more sustainable label and film stocks, and smart packaging. With a market share of nearly 62%, pressure-sensitive labels are the most popular product category, followed by wet glue labels. Printed sleeves are the leading alternative to labels, and their use is growing, primarily among soft drink producers. Food, soft drinks, and alcoholic beverages are the largest users of labels, accounting for two-thirds of the market.