Paper trails: Competitive threats are expected to hinder industry revenue growth
Paper Product Manufacturing in the US Operators in the Paper Product Manufacturing 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. Over the five years to 2019, the industry has grappled with negative publicity surrounding the environmental risks of using disposable paper products, prompting consumers to switch to sustainable containers and packaging over industry items. Furthermore, rising competition from low-priced imports has added to the industry’s decline. In addition to revenue, industry profit growth has been stifled due to fluctuating raw material and energy costs. The primary materials used in paper production are paper, paperboard and wood pulp. Over the five years to 2019, the prices of wood pulp and paper have grown modestly, increasing purchase costs. Furthermore, during the five-year period, the prices of natural gas and crude oil dropped significantly, decreasing industry operating expenses since natural gas is the principal energy source used to convert raw wood and wood chips to paper products. Over the five years to 2024, industry operators will likely amend certain manufacturing practices in response to mounting environmental concerns from consumers and downstream industries. Paper product manufacturers are expected to increasingly use recycled materials and reduce energy consumption and waste output, lowering their carbon footprint.
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.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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Pulp And Paper
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