Wood Pulp Procurement Category Market Research Report from IBISWorld has Been Updated

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The low level of substitutes for wood pulp limits buyer power somewhat; there are a number of substitutes to wood pulp, such as waste paper or inorganic fibers, but each of these alternatives alters certain qualities of the end-product. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Wood Pulp in its growing collection of procurement category market research reports.

IBISWorld procurement market research
Growing demand for wood pulp is forecast to allow suppliers to increase prices due to rising construction activity and consumer spending

Buyers in the wood pulp market have a buyer power score of 3.4 out of 5.0, which indicates a medium level of purchasing power for buyers during the negotiation process. “Buyers have benefited from declining prices and low switching costs, which have enabled them to cut more costs,” according to IBISWorld business research analyst Jesse Chiang.

In the three years to 2014, the price of wood pulp has decreased due to declining demand from key markets. Paper providers, in particular, have struggled in recent years as demand has diminished for newspaper, magazine and other publishing markets. Demand for wood pulp has, consequently, declined, thereby forcing suppliers to decrease prices to attract potential consumers. Buyers also benefit from low switching costs due to the commoditization of wood pulp products, which vary minimally in terms of quality and functionality across suppliers. “Buyers can use low switching costs as leverage in negotiations with suppliers and, if their supplier is unwilling to negotiate, find a new supplier with little difficulty,” Chiang says.

However, this market's low level of substitutes limits buyer power somewhat. There are a number of substitutes to wood pulp, such as waste paper or inorganic fibers, but each of these alternatives alters certain qualities of the end-product. Buyers must consider the effects these alternatives have on smoothness, consistency and other factors because they can affect the marketability or usability of their end-product. Buyers should also be aware of the higher costs of these substitutes. The low viability of substitutes in the market means that buyers have few realistic alternatives to use as leverage in negotiations, which consequently lowers buyer power. Major vendors include Weyerhaeuser Company, International Paper Company, Domtar Corporation and Sappi Limited. For more information, visit IBISWorld’s Wood Pulp procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of wood pulp. Wood pulp is made when cellulose fibers are separated from impurities in wood or other materials, such as used or recycled rags, scrap paper and straw. About 90.0% of pulp production is sourced from wood and the remaining 10.0% from annual plants. This report does not include pulp produced from waste paper or other scrap products.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

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.

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Gavin Smith
IBISWorld Inc.
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