Paperboard & Packaging Papers Procurement Category Market Research Report Now Available from IBISWorld

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The movement away from paper-based products has resulted in weaker demand for suppliers of paperboard and packaging papers, but the abundance of suppliers provides buyers with multiple options and creates leverage during the procurement process. To help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of paperboard and packaging papers to its growing collection of procurement category market research reports.

IBISWorld industry market research
Renewed industrial activity and rising consumer spending will fuel growth in market prices, and low price volatility is expected during the next three years

Paperboard and packaging papers have a buyer power score of 3.8 out of 5.0. This score reflects the widespread availability of substitute packaging materials that enable buyers to gain leverage in the negotiation process. “The movement away from paper-based products has given way to the growing adoption of plastics, metal and other packaging substrates,” according to IBISWorld procurement analyst Jesse Chiang. As a result, suppliers are experiencing weaker demand from primary end users that provide buyers with negotiation leverage during the purchase process.

There is a moderate price range for differing paperboard grades. “Declining paperboard and packaging paper prices have been favorable to buyers during the three years to 2013, but IBISWorld expects prices to rise during the three years to 2016, which will hurt negotiating leverage for buyers,” says Chiang. The standardized nature of paperboard grades affords buyers limited leverage in price discussions because commoditized raw materials account for the largest expenditure by suppliers. Nevertheless, buyers should seek out volume purchases to reduce list prices, or long-term supply agreements that give suppliers guaranteed purchases in exchange for a discounted or capped rate throughout the duration of the contract.

Though there is a moderate level of market share concentration, transportation inefficiencies surrounding paperboard have led to substantial fragmentation and a sizeable number of local and regional suppliers. The abundance of paperboard suppliers provides buyers with multiple options when entering the procurement process, creating leverage during negotiations. Major suppliers include Graphic Packaging Holding Company, International Paper Company, MeadWestvaco Corporation and Rock-Tenn Company. Additionally, low switching costs give buyers flexibility when contracting with paperboard suppliers that have supply or distribution interruptions; therefore, the purchasing environment for paperboard is advantageous to buyers. Short lead times make the paperboard purchase process relatively quick, giving buyers the ability to source paperboard from a number of suppliers.

For more information, visit IBISWorld’s paperboard and packaging papers procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of paperboard and packaging papers. Paperboard and packaging papers are made from layered paper and include bleached and unbleached paperboard, boxboard, containerboard, packaging paper and fiberboard, which are used as primary materials for conversion into finished packaging products. This report excludes tissue, laminated paper and finished packaging products, such as cardboard boxes. Suppliers include manufacturers of paperboard and paper-related 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
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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