Paper Market Intelligence

Paper Market Description

The paper industry has witnessed a decrease in the demand, wherein the P&W paper will decline at a CAGR of 2.2-2.9 percent until 2020, and the newsprint will decline at a CAGR of 4-5 percent. The rapid development of the internet and e-commerce business models are the major reasons behind the drop in the demand for paper. Regions like Asia, LATAM, and MEA have a positive growth in paper consumption. The major cost driving factors for paper include raw material which constitutes 60-65 percent of the total production cost, and cheap labor cost due to an abundance in manpower.

The paper industry trends include premium and high-quality papers products which are developed to meet higher print performance, durability, etc. Moreover, a range of papers are designed to be compatible with the industry’s latest printing technologies and advancements. The report covers various types of innovations made in the paper industry ranging from heavyweight Coated Papers, Premium Digital Tough Tear Coated Paper, and New Dry Coated Paper. The Newsprint paper with 66 percent brightness and the world’s first LWC for web-based inkjet presses are also the most talked about innovations in paper products.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Global Capacity–Demand Analysis
Global Trade Dynamics
Regional Market Snapshot-North America, Europe, Asia
Cost Structure Analysis

Paper Market Trend, Analysis & Forecast

Category Intelligence on Paper covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Paper Executive Summary

1.1 Global Paper Market Outlook
1.2 Global Paper Demand Growth by Grades (2016–2019F)
1.3 Major Product Trends and Innovations

2. Paper Market Analysis

2.1 Value Chain
2.2 Global Paper Market Analysis
2.3 Global Paper Industry Trends
2.4 Paper Price Drivers
2.5 Regional Paper Market Analysis: NA
2.6 Regional Paper Market Analysis: Europe
2.7 Regional Paper Market Analysis: Asia
2.8 Regional Paper Market Analysis: LATAM

3. Paper Supplier Analysis

3.1 Key Regional Supplier Profile
− NA
− Europe
− Asia
− LATAM

4. Paper Innovations in Paper

4.1 Recent Global Innovations in Graphic Papers – Innovations by Verso, UPM, Mondi, Kruger, Nippon Paper, Appleton coated, Arjowiggins and Volga

Global Paper Market Outlook

The global paper market is witnessing decline, except for Asia and LATAM. Digital media usage has enormously increased globally and driven down by the demand for both newsprint and printing and writing paper grades
The most affected grades are newsprint and office paper. Newsprint has been most severely affected, due to loss of advertising and readership. Office paper has been affected, due to the electronic exchange and storage of information
NA and Western Europe are well matured regions, showcasing declines of 3–4 percent, characterized by slow demand, closure of mills, consolidation and conversions, while LA and Asia showcase a modest growth of 0–1 percent

paper-market-size

Global Paper Market Overview

Global demand for papers has been declining and among this, printing and writing paper demand is expected to decline at a CAGR of 2.2-2.9 percent until 2020, whereas Newsprint is expected to decline at a CAGR of 4–5 percent
Demand for North American and European Printing and Writing paper is expected to decrease by about 5 percent/year, due to the rapid development of the internet and e-commerce business models
Asia, LATAM, and MEA are the only regions witnessing positive growth in paper
In 2017, pulp witnessed a robust growth in the global demand as well as low pulp and paper inventories of Chinese paper and cardboard manufacturers, which, together with limited supply, created favorable conditions for price increas

Paper Price Drivers

Raw Material Cost

Raw material is one of the key cost drivers for paper. This is because it constitutes 60–65 percent of the total cost of production. In case of paper, the cost of procuring pulp is an essential element to determine cost structure of different grades of paper. Different quality of paper have different requirements of either virgin pulp or recovered pulp, according to which the final cost is arrived

Labor Cost

The impact of the labor cost is moderate. However, during bulk production, it might have a significant impact on the overall cost. Labor cost varies from region to region depending upon the availability and skills. Countries like India and China would have cheap manpower due to abundance. On the other hand, countries like NA and Europe would have expensive manpower. Therefore, labor cost is one of the cost drivers for paper production

Energy and Chemical Cost

Utility cost including electricity, maintenance, fuel and other related cost which directly impacts the cost of production. This is considered to be the driver as these cost are added to the total cost in order to determine the overall cost of production. Though these are considered to be the variable cost, it has enough affect on the spend of the company for producing the product

Demand and Supply Dynamics

Supply-demand is one of the key and foremost drivers of price in the paper industry. Any increase/decrease in demand from the end-user segment will lead to manufacturers announcing price changes, even without an movement in the other costs
Supply disruptions like down time, mill closures by manufacturers or natural disasters would lead to shortages or a tight supply, attributing to price fluctuation. Similarly, weak demand could lead to price declines.
Key Drivers: Downtimes, closures, new capacity, order backlogs, lead time

Exchange Rate and Inflation

China, being the major exporter of paper, has large demand for pulp which it generally procures from North/LATAM but due to recent fluctuations in the US dollar, production costs are expected to vary. Therefore, this cost of procuring the pulp from a foreign country in terms of foreign exchange value indicates as to how much would be the total spend of the company to produce paper

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