The packaging industry is experiencing a rebound in prices, ending the “cardboard box recession” that began last year when demand for cardboard packaging hit lows not seen since 2009. According to Bank of America, the industry is now expecting a 3% growth outlook for the upcoming quarters.
Initially, concerns arose when the drop in demand for cardboard packaging was seen as an indicator of a broader consumer spending pullback. However, recent surveys conducted by Bank of America show a surge in growth outlook for the packaging industry, putting to rest fears of a prolonged recession.
While inflation has played a part in the increase in packaging prices, the survey also indicates that demand expectations are driving the growth. Over the next six to twelve months, 62% of respondents believe demand will be either “better” or “much better,” a significant increase from previous surveys.
The positive outlook for the packaging industry is a good sign for the broader economy, as it suggests that consumer spending remains strong. This resurgence in packaging prices marks a turnaround from the so-called “cardboard box recession” that was feared to impact everything from labor markets to equities last year.
