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 2017. Demand for paper products used to package food service items limits revenue volatility for the industry, as these are relatively nondiscretionary products. As a result, the industry's performance has fallen over the five years to 2017. While economic growth is expected to boost discretionary spending during the outlook period, the industry will continue to grapple with rising competition from imports and continued offshoring. Moreover, the industry will also be challenged by heightened environmental awareness, which will decrease demand for disposable paper products...purchase to read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 12-17
-2.0%
Forecast Growth 17-22
Profit
Employment
14,921
Businesses
398

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 Products Chapter

    Nonprocessed paper pulp articles and resalesThe largest product segment, this segment includes articles of pulp that are not molded or pressed as well as industry products that are sold without further manufacturing or specification. These articles require minimal labor and, as a result, have been less affected by competitively priced imports that benefit from lower labor costs. Furthermore, demand for nonprocessed paper pulp articles has increased considerably in China and exports of this segment have surged over the past five years. This segment has therefore increased to account for 19.9% of total industry revenue over the five-year period.Molded pulp goodsAt 14.4% of revenue, molded pulp products make up the second-largest product segment. Mol...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's in this report

    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
  • Profit
  • Purchases
  • Wages
  • Other 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
    Huhtamaki, Reynolds 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
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • World price of wood pulp (2008-2022)

  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Paper Product Manufacturing provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    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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