Packaging Corporation of America reported fourth quarter 2020 net income of $124 million, or $1.30 per share, and net income of $127 million, or $1.33 per share, excluding special items. Fourth quarter net sales were $1.7 billion in both 2020 and 2019. Full year 2020 net income was $461 million, or $4.84 per share, and net income of $550 million, or $5.78 per share, excluding special items. Full year net sales were $6.7 billion in 2020 and $7.0 billion in 2019. In the Packaging segment, total corrugated products shipments with one less workday were up 9.9%, and shipments per day were up 11.7% over last year’s fourth quarter. Containerboard production was 1,174,000 tons, and containerboard inventory was down 13,000 tons from the fourth quarter of 2019 and up 40,000 tons compared to the third quarter of 2020. In the Paper segment, sales volume was down 80,000 tons compared to the fourth quarter of 2019, and down 17,000 tons from the third quarter of 2020.
Packaging leader Smurfit Kappa has launched a unique range of circular packaging solutions for the rapidly growing online health and beauty market. The customisable eHealth & Beauty portfolio includes sustainable, paper-based packaging solutions ideal for shipping vulnerable products, such as fragrances, cosmetics, and skin and hair care products, as well as tamper proof packaging designed for vitamins, supplements and sports nutrition.
The health and beauty eCommerce market in Europe is one of the largest and fastest growing categories, valued at €17.6 billion in 2020. As online purchasing continues, with double digit growth both in Eastern Europe (37%) and Western Europe (22%) , this growth presents a significant opportunity for retailers to capitalise on, with the overall eCommerce retail market estimated to be worth €380 billion.
As demand in the health and beauty eCommerce market expands, so do consumer expectations for higher quality and sustainable packaging, in addition to delivery protection. Recent research carried out by Smurfit Kappa shows consumers are continuing to push for higher standards in delivery. The research found:
*80% expect their parcel to arrive in perfect condition
*59% prefer parcels that are easy to open
*74% say that easy return is important for their convenience
*69% prefer paper-based packaging for sustainability reasons
The new portfolio addresses the key challenges for the eCommerce supply chain, including product damage, void fill, and sustainability, to ensure an improved consumer and brand experience. Importantly, the entire portfolio has been designed to meet the International Safe Transit Association (ISTA) standards, thereby facilitating Amazon’s packaging certification process for specific products.
Commenting on the announcement, Arco Berkenbosch, Vice President of Innovation and Development at Smurfit Kappa said: “In the health and beauty segment the speed to market needs to be combined with a unique consumer experience. Our new eHealth & Beauty product range offers exciting, fit-for-purpose and bespoke packaging solutions, that are suited to different size businesses from entrepreneurs to globally recognised brands. This packaging range is the best way to boost your eCommerce sales approach.”
One of the portfolio innovations is the Tamper Evident Pack, which has a double self-locking mechanism that does not require tape, and is easy to return. An additional solution is the Beauty Sleeve which has been specifically designed to protect small products, such as skin care and cosmetics, while the curved edges create a unique look enhancing the brand experience. The distinctive design of the Hammock Fit delivers a premium unboxing experience while adding extra protection to the products through the supply chain.
Alongside the eHealth & Beauty range, Smurfit Kappa also offers a host of automated solutions to optimise the packaging process and accelerate growth for businesses. The launch of this new portfolio is the latest addition to Smurfit Kappa’s range of Better Planet Packaging solutions which seeks to make a positive impact on billions of supply chains and consumers by reducing the environmental footprint of packaging and its traces on the planet.