The Importance of Corrugated Boxes for Retail Giants

Many of the biggest retailers in the world rely on corrugated boxes to keep their businesses running. Imagine how Amazon would cope if there was a packaging shortage and they were unable to ship their billions of products. Their business model would collapse and they would lose a lot of profit. Corrugated boxes are an essential component on the modern retail environment and they are something that major retailers heavily rely on. Brown Packaging specializes in manufacturing corrugated containers and we offer our expertise to all of our clients.

How Major Retailers Use Corrugated Boxes

Whether a business is small or large, corrugated boxes are a key component through every stage of business. When a business orders materials to manufacture an item, they receive those materials in corrugated boxes. Once they have manufactured their specific item, they ship them to retailers in corrugated boxes. Lastly, when an item is purchased online, major retailers must then ship their items to the consumer in corrugated boxes. The whole process may seem redundant, but it shows the importance of the corrugated box and how it helps the shipping process run flawlessly.

However, with mass consumption of corrugated material comes the need for recycling initiatives. For example, Walmart and Amazon have cut down on plastic packaging and have required their suppliers to use retail-ready packaging. In addition, Walmart has developed the “Remove, Reduce, Reuse, Recycle, Renew, Revenue, and Read” plan.

Typical End Users for Corrugated Boxes

Corrugated boxes provide a lot of utility to businesses. They are frequently used to ship beverages, fresh fruit and vegetables, meat, dairy, frozen foods, sugar, bakery products, paper, textile, clothing, raw materials, furniture, electrical equipment, and other miscellaneous items. In 2010, corrugated box consumption overcame an 8 percent decline that started in 2007. Estimates suggest that they will continue to rise over time with slight declines based on environmental concerns and material shortages. Average growth rates across major industries suggest that consumption will rise over time.

Regardless, major retailers will always rely on corrugated boxes to ship their goods as they are an intangible asset that cannot be replaced by other means in an affordable manner. Plastic containers are a valuable replacement to corrugated boxes, but they suffer from contamination problems and they are not a renewable or easily recycled like corrugated boxes.

The highest growth industries for corrugated boxes are the major food, beverage, retail, and shipping industries, while annual growth in electrical equipment, computers, and mineral products may continue to decline as a result of poor performance in those specific industries.

Major retailers like Amazon and Walmart will continue to rely on corrugated boxes through every step of their business model. Focusing on Amazon, they need corrugated boxes for products shipped through FBA and MF. E-commerce models will always need corrugated containers to ship products to their customers as there is no potential for in-person sales. As other large retailers like Ali Baba continue to grow and ship from international destinations, they too will need corrugated containers that are reliable and able to survive the arduous shipping process. Corrugated packaging will continue to meet the needs of all major retailers and it is highly unlikely that the industry will decline any time soon, environmental concerns or not.

Brown Packaging specializes in corrugated boxes of all shapes and sizes. We have been manufacturing corrugated containers for many years and we take pride in what we do. We offer our products and services to clients in Toronto, Burlington, the Golden Horseshoe, the GTA, and all of Ontario. If you have any questions about our business, please feel free to contact us today. We would be more than happy to answer any questions that you may have.