Pulp, Paper and Paperboard Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

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Downstream printing and publishing industries have steadily lost market share to electronic alternatives, driven down total consumption of paper products. For this reason, industry research firm IBISWorld has updated its report on the Pulp, Paper and Paperboard Manufacturing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The repeal of the carbon tax will offer industry operators some reprieve over the next five years.

The performance of the operators in the Pulp, Paper and Paperboard Manufacturing industry in Australia has deteriorated over the past decade, largely due to a decline in the downstream consumption of industry products. According to IBISWorld industry analyst Jem Anning, “while paperboard and cardboard packaging and building products have fought hard to maintain market share, the downstream printing and publishing industries have steadily lost market share to electronic alternatives such as e-books and tablets.” This has driven down total consumption of paper products, particularly newsprint.

Industry revenue has fluctuated dramatically over the past five years, due to volatility in the world price of wood pulp and the domestic price of paper products and paperboard. Consumption of paper products in Australia has declined over time and any revenue growth has been solely due to higher prices. Overall, industry revenue is estimated to grow at an annualised 3.3% over the five years through 2014-15, to $3.2 billion. This includes a drop in revenue of 0.6% over 2014-15 due to a contraction in prices for industry products. Domestic demand is projected to decline marginally over the five years through 2014-15, with an estimated 40.6% of domestic demand being satisfied by imported goods. Compared with revenue, industry profit has remained relatively stable over the past five years, as operators have passed on increases in operating costs. “However, the strong Australian dollar over much of the past five years has put downward pressure on profit, as industry operators have reduced prices to remain internationally competitive,” says Anning. As pulp and paper manufacturers are heavy carbon emitters, the introduction of the carbon tax put further pressure on profit over the past two years. The carbon tax was repealed in July 2014, which will offer industry operators some reprieve over the next five years.

The industry exhibits high levels of market share concentration. Major players include Pratt Holdings Proprietary Limited, Paper Australia Pty Ltd and Norske Skog Industries Australia Limited. Facility upgrades will increase the efficiency of pulp and paper mills in Australia over the next five years. Australian paper manufacturers are expected to boost exports of pulp to China, South Korea and Japan, but the ongoing trend towards the use of non-paper substitutes (particularly electronic media) will contain the performance of the Pulp, Paper and Paperboard Manufacturing industry.

For more information, visit IBISWorld’s Pulp, Paper and Paperboard Manufacturing industry in Australia report page.

The industry consists of businesses that mainly manufacture wood pulp, paper or paperboard from a variety of inputs including woodchips, clay, lime, dyes, chemical resins and recycled paper.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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