The pulp and paper industry dominates in North America, Northern Europe and East Asian countries. In 2019, industry leaders will be pressed to innovate as the market shifts. While many may think that, in our increasingly digital world, the pulp and paper industry is dying, reality tells the opposite story—the industry is adapting and thriving. Read on to learn more about what has been projected for the pulp and paper industry during the year ahead of us.
The industry is projected to remain stable, with profits even predicted to expand through 2019. The United States and European countries will sustain existing production levels while China and Japan increase production efforts.
Demand for cardboard and other packaging products will continue to increase globally into this year. By the year 2020, paper and paperboard will be pushing 490 million tons in terms of production.
Strengths of the Industry
The greatest strength of the industry is the increasing demand for packaging products. As more people around the globe turn to online shopping or ecommerce, the demand for cardboard and other packing materials will remain strong. Other factors driving the success of the pulp and paper industry are the demand for hygiene products—like paper towels, toilet paper and disposable makeup wipes—and increased economic participation of the global middle class. As the global middle class swells, their access to paper materials increases, and they are taking advantage of this.
New Developments for Pulp and Paper
As you might imagine, the digital revolution has been a factor for pulp and paper, but this is not a new phenomenon. To adapt, pulp and paper companies have shifted production from print paper to packaging materials. Market reports indicate that the pulp and paper industry is adapting well to the digital surge by capitalizing on intelligent packaging and personalization. Additionally, new technology is revolutionizing the manufacturing process, which helps increase production and productivity.
Overall, the pulp and paper industry is projected to remain healthy.