Changing The Industry Composition of Pulp, Paper, and Packaging

Changing The Industry Composition of Pulp, Paper, and Packaging

Laura Davis, Editor- In-Chief, Manufacturing Technology Insights | Tuesday, May 12, 2020

The paper and the forest-products industry as a whole are growing. Although at a slower pace than before—other products are filling the rift left by the shrinking graphic-paper. The packaging is growing all around the world, along with tissue papers and pulp for hygiene products.

FREMONT, CA: The year 2015 saw universal demand for graphic paper drop for the first time, and the fall in the market for the products over the past five years has been more prominent than even the most pessimistic forecasts. The article outlines the changes happening across the industry.

The paper and the forest-products industry as a whole are growing. Although at a slower pace than before—other products are filling the rift left by the shrinking graphic-paper. The packaging is growing all around the world, along with tissue papers and pulp for hygiene products. Even though a relatively small market so far, pulp for textile applications is still growing. Besides, a broad hunt for new tools and uses for wood and its components is happening in several development centers and labs.

The paper and forest-products industry is not fading—far from it but is changing, morphing, and developing. One would argue that the industry is going through the most considerable transformation it has seen in many decades.                                                                                     

Changing Industry Structure

The structure of the industry landscape is altering. The changes are not remarkable individually, but the buildup of developments over the long term has now arrived at a period where they are making a difference.

Consolidation has been a critical factor in a lot of segments of the industry. The big have now become bigger in their selected areas of focus. At the collective level, the most extensive paper and forest-products businesses have not grown much, and several others have reduced in size. The firms have focused their efforts on fewer sections. Therefore, concentration levels in specific segments have generally increased.

In some sections like North America, coated fine paper and containerboard, ownership concentration, as determined by conventional approaches to drawing segment margins are reaching new levels. The occurrence makes it difficult for businesses to find further acquisition opportunities, which could be accepted by rivalry authorities.

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