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Global Paper & Pulp Mills

Global pulp mills market: $726.5 billion industry forecast by 2018


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2014-01-29 00:31:02 - Global Paper & Pulp Mills - a new market research report on companiesandmarkets.com

Pulp and paper mills are big business around the world, generating $563.6 billion in revenue during 2013. Over the past five years, revenue from the Global Pulp and Paper industry is expected to increase at an average annual rate of 0.4%, driven by strong performance in paperboard packaging and tissue products. During the global economic downturn in 2009, however, industry revenue dropped a sharp 19.2% due to a severe drop in pricing and shipment volumes.

Demand for printing and writing paper dropped due to a structural change towards digital media and lower advertising spending due to the global recession, particularly in mature markets in Europe and North America. Furthermore, decreased consumer spending and industrial production resulted in lower demand for paperboard

 

 

from the packaging sector. Even revenue from tissue products, a staple consumer product, declined as consumers shifted towards more inexpensive varieties.

Following the end of the global downturn, however, the Global Pulp and Paper industry has recovered strongly. A boom in manufacturing in rapidly developing Asian economies and the corresponding need for packaging materials has increased demand for packaging paper and paperboard. Tissue products have also been a strong growth segment, primarily due to rising consumption in Asia. The industry is expected to continue recovering in 2013, aided by a projected 12.0% increase in pulp prices during the year. IBISWorld expects that revenue for the Global Pulp and Paper industry will increase 3.0% in 2013.

Over the five years to 2018, IBISWorld projects that revenue will increase at an annualized rate of 5.2% to total $726.5 billion. Rising industrial production, particularly in Asia and South America, will boost demand for paperboard products. Furthermore, overall industry growth in developing markets is expected to outpace growth in the US and European paper markets. This trend is largely due to the ongoing decline in newsprint and fine paper production as a result of the continued transition to digital media.

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