PAPER CONE MARKET Challenges and Opportunities

The global paper cone market has been facing challenge of fluctuating raw material prices which has been affecting production costs for manufacturers. Paper cones are predominantly made from paper, which is derived from wood pulp. However, prices of wood pulp and other raw materials used in paper production such as chemicals have been unstable and fluctuating frequently over past years. This instability in prices of these key raw materials results in inconsistent production costs for paper cone manufacturers. With margins already being low in the competitive market, fluctuating raw material costs have dampened profits of manufacturers. The uncertainty in material pricing makes it difficult for players to implement long term strategies and quote competitive prices to clients. This pricing volatility of inputs is a major area of concern for paper cone producers.

Market Opportunity - Expansion of e-commerce driving packaging needs in the market

The global paper cone market has been presented with major growth opportunity in the form of expansion of e-commerce sector. Over the past few years, there has been a rapid growth in online shopping across various regions of the world. More products are now being bought and sold online rather than through physical retail stores. In order to ship and deliver products safely to online customers, proper packaging plays a very important role. This is where paper cones have found widespread applicability in protecting and packing various items ordered online. The continuous surge in e-retail has translated into increased demand for paper cones from logistics and packaging companies. The online retail boom has thus opened new avenues for paper cone manufacturers to tap into. This trend is expected to drive the paper cone market substantially in the coming years.