The Global Paper and Pulp Mills Industry Market Research Report from IBISWorld Has Been Updated

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Despite an increasing transition to digital media in mature markets, the Global Paper and Pulp Mills industry is expected to benefit from increased consumption of industry goods and rising industrial production in emerging markets in Asia and South America, as well as surging pulp prices. For these reasons, industry research firm IBISWorld has updated a report on the Global Paper and Pulp Mills industry to its growing report collection.

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Demand from developing markets, especially Asia and South America, will support industry growth

The Global Paper and Pulp Mills industry generates significant business around the world, generating $563.6 billion in revenue during 2013. Over the past five years, revenue from the Global Pulp and Paper industry is expected to increase at an average annual rate of 0.4%, driven by strong performance in paperboard packaging and tissue products. During the global economic downturn in 2009, however, industry revenue dropped a sharp 19.2% due to a severe drop in pricing and shipment volumes. “Demand for printing and writing paper dropped due to a structural change towards digital media and lower advertising spending due to the global recession, particularly in mature markets in Europe and North America,” according to IBISWorld industry analyst Caitlin Moldvay. Furthermore, decreased consumer spending and industrial production resulted in lower demand for paperboard from the packaging sector. Even revenue from tissue products, a staple consumer product, declined as consumers shifted towards more inexpensive varieties.

Following the end of the global downturn, however, the Global Pulp and Paper industry has recovered strongly. A boom in manufacturing in rapidly developing Asian economies and the corresponding need for packaging materials has increased demand for packaging paper and paperboard. “Tissue products have also been a strong growth segment, primarily due to rising consumption in Asia,” says Moldvay. The industry is expected to continue recovering in 2013, aided by a projected 12.0% increase in pulp prices during the year. IBISWorld expects that revenue for the Global Pulp and Paper industry will increase 3.0% in 2013.

Rising industrial production, particularly in Asia and South America, will boost demand for paperboard products. Furthermore, overall industry growth in developing markets is expected to outpace growth in the US and European paper markets. This trend is largely due to the ongoing decline in newsprint and fine paper production as a result of the continued transition to digital media. The industry is spread out across the globe, but is mainly concentrated in North Asia, Europe and North America. Not surprisingly, the top four companies in the industry (i.e. International Paper Company, Oji Paper Co. Ltd, Procter & Gamble and Stora Enso Oyj) are based in these three regions. There is a low level of market share concentration among the top four companies, however, and IBISWorld estimates that these companies combined generate less than 10.0% of industry revenue. All four companies are global enterprises with locations in many countries, but competition in the industry is high, preventing them from gaining a greater share of the market. Furthermore, competition is fierce in countries with emerging economies, such as China and Brazil. Merger and acquisition has been a common trend over the past five years; in particular, companies have acquired paperboard and other packaging companies in order to bolster their revenue in this high-growth sector.

For more information, visit IBISWorld’s Global Paper and Pulp Mills industry report page.

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IBISWorld industry Report Key Topics

Paper mills produce pulp, bulk paper and bulk paperboard from a variety of purchased inputs, including woodchips, clay, lime, dyes, chemical resins and others. This includes the manufacture of paper from any fiber and the production of pulp from recycled paper. Some companies may manufacture paper and/or paperboard from purchased pulp while others produce their own pulp.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on nearly every US and Global industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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