Paper and cardboard

Paper and cardboard

The global paper and cardboard industry is in the middle of an industrial transformation brought about by the simultaneous rise in demand for packaging, toilet paper and hygiene products against a steady decline in demand for newsprint and book printing among others. The drivers of this transformation include fast rising demand (and matching supply) of paper-free information via the internet, the emergence of new long-term trends in personal, government and corporate behaviour sped up by the Covid-19 pandemic (notably the rising use of work from home is having a significant long-term impact on demand for printing paper) or the fast growth in demand for packaged goods in the world’s most populated regions. Some companies have moved to flexible workspaces after positive experiences with remote work during the pandemic, a move that will reduce the overall space they need and bring fewer workers into offices each day. A survey of 278 executives by McKinsey, a consultancy, made in August 2020, found that on average, the executives planned to reduce office space by 30 percent. Today it is likely that this may well have been an underestimate as many companies have established remote work as an established long-term compromise, allowing more personal flexibility for staff, enabling a reduction of commuting time whilst reducing office and management costs. This established trend is clearly being observed in large cities such as London. Well established remote work may also put a dent in business travel as its extensive use of videoconferencing during the pandemic has led to a new acceptance of virtual meetings and other aspects of work, which once again means a significant increase in the use and distribution of electronic documents rather than office printed reports, documents or emails. The industry in numbers: global paper pulp (cellulose) production was estimated by the Confederation of European Paper Industries, CEPI at 183 million tonnes in 2019, down -2.3% on 2018, and led in volume by North America with 33% of the volumes produced, followed by Europe at just over 25%, Asia at 23% and Latin America at 16%. Global pulp consumption in the same year was dominated by Asia at 38% of the total, followed by North America at 28%, Europe at about 26% and Latin America at around 5%. In Europe the consumption of paper and board by newsprint and other graphic papers contracted by nearly -18% year on year in 2020, while sanitary and household consumption crept up by nearly 4% and consumption by packaging sector was largely flat year on year. The European pulp and paper industry provides 180 000 jobs in Europe directly. It has a turnover of 83 billion euros and adds 18.5 billion euros to the EU GDP. It is strong in export markets, with an export rate of 23% of its paper and board production. The U.S. forest products industry is one of the largest manufacturing industries in the U.S. It includes loggers, wood products facilities, pulp and paper mills, paper-based packaging plants and paper mills. Some of the products made by the industry include cardboard boxes, toilet paper, copy paper, food packaging, magazines, paper towels, medical supplies, plywood and lumber and baby diapers. In the U.S. the industry employs nearly 950,000, and an additional 2 million jobs are supported through the supply chain. The forest products industry is a major contributor to the U.S. economy, representing approximately 4% of U.S. manufacturing GDP.

Keywords

Keywords: paper and cardboard industry, paper industry, pulp, cellulose, paper mills, timber, paper, cardboard, paper board, newsprint, pulp and paper mills, packaging plants, printing paper, food packaging, newspapers, magazines, paper towels, toilet paper, hygienic products, plywood, baby diapers, medical supplies, corrugated packaging, packaged goods, fast moving consumer goods, FMCG