Rising input costs have led to marginal price growth over the past three years, but falling demand from print advertising has mitigated price growth.
Los Angeles, CA (PRWEB) March 05, 2014
Buyers in the coated paper market have a relatively high level of purchasing power, indicated by a buyer power score of 4.0 on a scale of 1 to 5. Low market share concentration due to the wide network of regional and national suppliers of coated paper is a key reason for favorable buying conditions, says IBISWorld analyst Hayk Muradyan. In addition, the commoditized nature of the product contributes to low product specialization and minimal differentiation across coated paper supplies. Consequently, there is a wide range of suppliers capable of satisfying specific buyer requirements. Major players in this market include Avery Dennison Corporation, International Paper Company and Bemis Company Inc. Furthermore, there are low monetary costs for buyers to switch suppliers, contributing to greater purchasing power on the part of buyers.
Small price growth and minimal volatility have also contributed to a positive market for buyers. Although major prices of inputs such as paper and resin have increased steadily, price growth for coated papers has been limited over the past three years. Suppliers have increasingly attempted to mitigate input price growth by investing in more cost-effective production processes, thereby increasing labor productivity and cutting down on costs, continues Muradyan. In addition, suppliers have responded to decreased demand for paper products by reducing operations and limiting supplies.
Despite rising input costs over the next three years, price growth will be minimal. Buyers should expect low price volatility over the period as the economy improves. Nevertheless, buyers can respond to future price increases by seeking to arrange long-term contracts at current prices. In addition, with the large number of suppliers offering this commoditized product, buyers can lower per unit costs through bulk purchases. For more information, visit IBISWorld’s Coated Papers procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of coated papers used in paper packaging, such as beverage and food boxes, as well as in labeling, printing and publishing services. Coated paper is used in printed materials requiring high-gloss sheets, including annual company reports, high-end brochures, catalogues, magazines, direct-mail advertisements and labels. These products can also include paperboard.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement 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.