Los Angeles, CA (PRWEB) September 14, 2012
The Coated and Laminated Paper Manufacturing industry experienced a moderate decline over the five years to 2012, with revenue decreasing at an average annual rate of 1.8%. “During the recession,” says IBISWorld industry analyst Nikolas Hulewsky, “weak output in downstream industries such as cement manufacturing, label making, printing and publishing hampered demand for coated paper and flexible packaging.” One customer market that remained relatively unchanged, however, was the food and beverage sector, to which paper manufacturers sell a significant portion of their products. Tempered by the food and beverage industry and bolstered by renewed demand from the industry's key downstream markets, revenue is expected to grow 3.5% in 2012 to $21.4 billion.
Furthermore, the depreciated US dollar has aided industry exports, which has led to growth opportunities for some operators. According to Hulewsky, “As a result, exports increased from 16.6% of industry revenue in 2007 to an estimated 21.1% in 2012, representing average annual export growth of 3.1%.” Also, renewed business and consumer spending after the recession has led to rising demand for packaging, print-based advertising and specialized paper products.
Market share concentration within the Coated and Laminated Paper Manufacturing industry is low, with the top four producers accounting for about one-third of total industry revenue in 2012. The level of concentration within the industry rose over the past five years. For example, industry player Bemis gained a significant market share over the five-year period through aggressive acquisitions. Bemis acquired the Food Americas operation of Alcan Packaging in 2010, which substantially boosted its sales. The industry is characterized by a large number of medium-size businesses. The number of industry companies fell slightly over the past five years; in 2007 there were 696 enterprises. There is sufficient competition in the industry to ensure that no single operator has the ability to take a large share of the market. However, the industry is in the decline stage of its economic life cycle, as indicated by high levels of competition, poorer returns on investment and low profitability for most companies. Consolidation in the industry is expected to accelerate over the five years to 2017 as larger firms buy smaller struggling ones or merge with other major players.
Over the five years to 2017, the US dollar is forecast to continue depreciating, making exports relatively more competitive in the global market. Furthermore, environmental concerns are expected to drive industry growth as states consider banning plastic bags at grocery stores. To improve growth in the industry, companies will increasingly develop and sell innovative and higher-value products to attract sales in niche markets. As a result of these trends, IBISWorld expects revenue to increase marginally in the five years to 2017.
For more information, visit IBISWorld’s Coated & Laminated Paper Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry purchase raw materials, such as paper and paperboard, and process them with plastic, clay, latex and metal to create products that include coated or laminated paper and packaging, paper and multiwall bags and laminated aluminum foil for flexible packaging. This industry does not include firms that manufacture paper from pulp, photosensitive paper, textile bags or plastic laminated bags.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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