IBISWorld Market Research
Paper consumption per capita in Australia has declined significantly over the past five years
Melbourne, Australia (PRWEB) December 22, 2014
The Paper Product Wholesaling industry is in a bad position. It sells a product that people use less and less, and is unpopular among many consumers. According to IBISWorld industry analyst Jem Anning, “paper consumption per capita in Australia has declined significantly over the past five years.” This decline has been influenced by increasing rates of people going online for their news, reading books on e-readers and receiving bills via email. In such conditions, it is unsurprising that the industry is declining at a rapid rate. In addition, the industry's position within the paper products supply chain is under pressure. Wholesalers are often regarded as an unnecessary and costly step between the manufacturing and retailing processes. The industry has played a decreasing role in the paper product supply chain over the past five years, accelerating revenue declines. Key indicators such as industry revenue, value added, profitability, participation, employment and capital expenditure have all either stagnated or declined over the past five years, and are expected to do the same in the near future. Industry revenue is projected to decrease by 3.8% in 2014-15 to be worth $5.3 billion. Revenue is expected to decline at a compound annual 5.4% over the five years through 2014-15.
Industry profitability has been declining due to a host of factors, the main one being the large drop in demand for paper and paper products by consumers and businesses. Merger and acquisition activity has been strong over the past five years, with the total number of enterprises declining at an estimated 2.9% annualised to 1,247 in 2014-15. “Pressure on the bottom line has forced many companies to sell their businesses or exit the industry altogether,” says Anning. The industry will face various challenges over the next five years, including contending with wholesale bypass, strong internal competition among industry participants and competition with substitutes. The five-year period through 2019-20 is likely to be characterised by slightly better conditions than the previous five years, but revenue is still expected to decline.
The Paper Product Wholesaling industry has a low level of market share concentration, with no one company holding a dominant market share. Concentration has increased over the past five years, largely due to prominent merger and acquisition activity. Several significant acquisitions have occurred and several giant global firms have entered the industry. Within the industry, the degree of concentration varies by product segment. For example, in the fine paper product segment, PaperlinX commands the majority of the market (through its Spicer Paper and Dalton Fine Paper businesses). Corporate Express Australia and Avery Dennison are expected to dominate the paper stationery market.
For more information, visit IBISWorld’s Paper Product Wholesaling industry in Australia report page.
Paper wholesalers purchase a wide range of paper and paper products from domestic and foreign manufacturers and distribute them to retailers, downstream manufacturers, businesses, government departments and other industries. Industry products include paper rolls, cardboard containers, sanitary paper products, paper stationery, paper bags and sacks, and other paper products.
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IBISWorld industry Report Key Topics
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
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Products & Services
Major Markets
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Market Share Concentration
Key Success Factors
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Revenue Volatility
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Annual Change
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