0 items USD 0.00Brief Outlook on Global Paper and Paperboard Industry
Global paper and paperboard production is a vital industry that plays a crucial role in the world economy. It is used in a wide range of products, including books, newspapers, cardboard boxes, packaging materials, and tissue products. The industry has seen significant growth in recent years, driven by increasing demand for paper and paperboard products in developed and developing countries.
1 . Paper and Paperboard Market Outlook
The global paper and paperboard market had total revenues of $359.8bn in 2021, representing a compound annual rate of change (CARC) of -0.8% between 2016 and 2021. Market consumption volume increased with a compound annual growth rate (CAGR) of 0.3% between 2016 and 2021 to reach 403.1 billion units in 2021. The value of the global paper and paperboard market witnessed strong growth by 6.8% as the restrictions were lifted, and the economies recovered from the impact of the pandemic.
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2 . Paper and Paperboard Industry Drivers
Growing demand for packaging materials
With the rise of e-commerce and online shopping, there has been a significant increase in the use of cardboard boxes and other packaging materials for shipping and delivery. This has led to an increased demand for paper and paperboard products, and many manufacturers have responded by expanding their production capabilities to meet this demand.
Increasing use of paper and paperboard products in the construction industry
Many builders and architects now use paper and paperboard products as a sustainable alternative to traditional building materials. For example, paper-based insulation and drywall are becoming increasingly popular, as they are made from renewable resources and are more environmentally friendly than traditional materials.
Technological advancements
Many manufacturers are now using digital printing and other advanced technologies to improve the quality and efficiency of their production processes. This has led to a reduction in costs and an increase in productivity, making paper and paperboard products more affordable and accessible to consumers.
3 . Paper and Paperboard Industry Inhibitors
Increased competition from other materials
The paper and paperboard industry faces increased competition from other materials, such as plastic and digital products. Plastic packaging materials are becoming more popular due to their durability and cost-effectiveness, while digital products such as e-books and online newspapers are reducing the demand for traditional paper products.
Environmental concerns and regulations
The paper and paperboard industry is facing increased pressure to reduce its environmental footprint and become more sustainable. Consumers are becoming more environmentally conscious and demanding products from renewable resources with a lower environmental impact. Increased regulations and environmental standards are designed to reduce the industry's environmental impact. This can increase the costs of production and make it harder for manufacturers to compete in the market.
Rising Costs
The cost of raw materials, energy, and labor is increasing, putting pressure on the industry's profitability. Manufacturers are also facing increased competition from low-cost producers in developing countries, further reducing their profitability.
To address these challenges, many manufacturers are now focusing on developing more sustainable and eco-friendly production processes. For example, many companies are now using recycled materials, such as old newspapers and cardboard boxes, to produce new paper and paperboard products. Others are investing in renewable energy and reducing their carbon footprint to minimize their impact on the environment.
4 . Leading Players in the Paper and Paperboard Market
The global paper and paperboard industry is dominated by a few leading players that produce a wide range of products. Some of the leading players in the industry include:
International Paper:
International Paper is one of the world’s leading producers of renewable corrugated packaging and cellulose fibers. The company's majority of revenue is generated in North America; it exports approximately 90% of this volume, primarily to Asia and EMEA, with a smaller portion going to Latin America.
WestRock:
WestRock Company provides innovative, sustainable, fiber-based packaging solutions for consumer and corrugated packaging markets. In fiscal 2022, WestRock’s business remained strong. On a year-over-year basis, net sales increased 13% to $21.3 billion, net income increased 13% to $945 million, Consolidated Adjusted EBITDA increased 15% to $3.5 billion, and earnings per diluted share increased 15% to $3.61. Adjusted Earnings Per Diluted Share increased 40% to $4.76.
Georgia-Pacific:
Georgia-Pacific LLC is an American pulp and paper company based in Atlanta. Georgia-Pacific is part of Koch Industries’ group of companies. Koch estimated annual revenues have exceeded $125 billion with businesses that employ 120,000 people worldwide across more than 70 countries.
Mondi plc:
Mondi plc is a leading paper and paperboard product producer in the United Kingdom. The company was formed in 2007 due to a merger between Mondi Limited and Mondi Packaging and is now one of the world's largest paper and paperboard manufacturers.
DS Smith Plc:
DS Smith Plc is a leading European manufacturer of paper and paperboard products in the United Kingdom. The company was founded in 1940 and has grown to become one of the largest paper and paperboard manufacturers in Europe.
Kruger inc:
Kruger Inc. is a Canadian-based paper and paperboard manufacturer that produces a wide range of products, including newsprint, specialty papers, and tissue products. The company was founded in 1904 and operates several pulp and paper mills across Canada and the United States.
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