Paper trailing: Revenue is rising, but import competition will cut into growth

Rebounding consumer spending and rising paper product prices have buoyed revenue for the Paper Product Manufacturing industry over the five years to 2016. Demand for paper products used to package food service items limits revenue volatility for the industry, as these are relatively nondiscretionary products. However, the industry's performance has improved over the five years to 2016 relative to these recessionary declines, with revenue expected to rise. Over the five years to 2021, industry revenue is forecast to stagnate. While economic growth is expected to boost discretionary spending during the five-year period, the industry will continue to grapple with rising competition from imports and continued more.

Industry Statistics & Market Size
Annual Growth 11-16
Forecast Growth 16-21
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Industry Threats & Opportunities

  • Competition from foreign imports will surge as the industry adopts newer technologies
  • Both import penetration and exports as a share of revenue have been on the rise
  • Consolidation and company exits are anticipated to persist in the years ahead
  • Industry Report - Industry Locations Chapter

    Industry operators are located throughout the United States; however, nearly half of all manufacturing facilities are located in the Northeast, including the Great Lakes, Mid-Atlantic and New England regions. Over the previous five years, there has been a move into other areas of the country, which is consistent with other paper product manufacturing industries. Many companies have invested in manufacturing plants that are close to raw materials in the South, which has major ports for importing and exporting and emerging population centers with lower labor costs.SoutheastThe Southeast region is the fastest growing and largest region for industry operators; in 2016, the region is anticipated to account for 22.1% of total establishments. Man...purchase to read more.

    Additional Insights for the Paper Product Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Paper Product Manufacturing Industry are

  • Guaranteed supply of key inputs
  • Having a large supply contract
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from paper wholesaling and Consumer spending in the Paper Product Manufacturing industry impact industry performance..

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    What is the Paper Product Manufacturing Industry?

    Operators in this industry convert purchased paper and paperboard into a variety of products, including playing cards, wrapping paper, cigarette papers, paper filters, paper novelties, die-cut paper shapes and recycled paper insulation. Industry manufacturers also mold purchased pulp into egg cartons, food trays, cups and dishes, florists’ pots and other products. The industry generally produces all the products that are not included in the other paper converting industries.

    Industry Products
  • Molded pulp goods
  • Paper party goods and accessories
  • Converted paper and paperboard products
  • Cellulose insulation
  • Paper filters
  • Cigarette papers
  • Nonprocessed paper pulp articles
  • Industry Activities
  • Molding pulp into products (e.g. egg cartons, food trays, cups and plates)
  • Converting purchased paper into cigarette papers, party supplies, insulation and other paper products
  • Converting purchased paperboard into cards, folders and other paperboard products, excluding office use
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from paper wholesaling
  • Consumer spending
  • Trade-weighted index
  • World price of wood pulp

  • Current Performance
  • Rising input costs contrast improving profitability
  • Global focus
  • Chart: Revenue Growth

  • Industry Outlook
  • Consolidation continues
  • Consumer preference and trade trends
  • Table: Paper Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Paper Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Chicken Egg Production
  • Cigarette & Tobacco Manufacturing
  • Paper Bag & Disposable Plastic Product Wholesaling
  • Supermarkets & Grocery Stores
  • Accommodation and Food Services

  • Key Selling Industries
  • Electric Power Transmission
  • Paper Mills
  • Paper Wholesaling
  • Wood Pulp Mills

  • Products & Services
  • Other
  • Nonprocessed paper pulp articles
  • Molded pulp goods
  • Paper party goods and accessories
  • Converted paper and paperboard products
  • Paper filters
  • Cellulose insulation
  • Cigarette papers
  • Chart: Paper Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Household income
  • Consumer preferences

  • Major Markets
  • Wholesalers
  • Retailers
  • Other
  • Exports
  • Chart: Major Market Segmentation for the Paper Product Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Paper Product Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Paper Product Manufacturing Industry

  • Industry Globalization
    HuhtamakiReynolds Group Holdings Ltd.
  • Table: Huhtamaki - financial performance
  • Table: Reynolds Group Holdings Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Paper Product Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Paper Product Manufacturing Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Exports (2007-2021)
  • Imports (2007-2021)
  • Wages (2007-2021)
  • World price of wood pulp (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Cellulose Insulation
  • A product created from recycled paper and paperboard and used in wall and roof cavities to thermally and acoustically separate the inside of the building from the outside.
  • Die-Cut Paper
  • A product converted from roll stock and cut into specific shapes.
  • Molded Pulp
  • Material produced from recycled paperboard and/or newsprint, primarily used for packaging.
  • Pulp
  • A dry, fibrous material prepared by chemically or mechanically separating the fibers that make up wood. It is most commonly used to make paper or molded pulp products.
  • Why buy this report?

    The Paper Product Manufacturing industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

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    This report on Paper Product Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Paper Product Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Paper Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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