Going to waste: Reduced paper usage has caused operators to fold and revenue to fall

The Paper and Paperboard Manufacturing industry is crumpling under the pressure of the ongoing adoption of computers and other communication technology, which is reducing paper usage. This downward trend in demand has been compounded by strong competition from low-cost imports, as imports satisfy approximately 71.6% of domestic demand. Industry revenue has fallen for the majority of the past decade and is expected to decline at a compound annual rate of 2.9% over the five years through 2019-20. Over the past 10 years, many leading manufacturers have exited the industry, which has also contributed to its decline. The industry is consolidating, with major players acquiring smaller businesses.In 2019-20, revenue is forecast to decline by 2.7% to £2.5 billion...read more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Paper usage has fallen with the rise of computers, weighing on industry revenue
  • Growing environmental awareness has encouraged demand for paper-based packaging over plastic
  • Exports are expected to account for an increasing share of revenue over the next five-year period
  • Industry Report - Industry Investment Chapter

    The Paper and Paperboard Manufacturing industry has a high level of capital intensity. Applying wages as proxy for labour and depreciation for capital investment, the industry has a capital-to-labour ratio of 1:2.66 in 2019-20. This indicates that for every £1.00 spent on capital, industry operators will spend £2.66 on wages. Conversely, for every £1.00 spent on wages or labour, firms are expected to spend 38p on capital. Industry operators are required to make substantial investments in the machinery and equipment necessary for production. During the past decade, operators have increased their reliance on equipment and machinery in order to enhance productivity and reduce costs. The industry requires employees for production, administrative work and sales. How...purchase to read more.

    Additional Insights for the Paper & Paperboard Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Paper & Paperboard Manufacturing Industry are

  • Economies of scale
  • Having links with suppliers
  • Ability to accommodate environmental requirements
  • IBISWorld analysts also discuss how external factors such as IT and telecommunications adoption and Demand from newspaper printing in the Paper & Paperboard Manufacturing industry impact industry performance..

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    What's in this report

    What is the Paper & Paperboard Manufacturing Industry?

    Firms in this industry manufacture paper and paperboard products from wood pulp and recycled materials. A large proportion of the industry’s output is intended for further processing by downstream manufacturers (e.g. to make cardboard packaging), although the industry also supplies finished products such as newsprint, writing paper and paperboard liner.

    Industry Products
  • Uncoated paper and paperboard
  • Newsprint
  • Coated paper and paperboard
  • Other speciality paper products
  • Self-adhesive and gummed paper and paperboard
  • Creped paper, toilet paper and facial tissue stock
  • Uncoated testliner
  • Industry Activities
  • Manufacturing paper and paperboard for further processing
  • Manufacturing newsprint, magazine paper and other writing paper
  • Coating, covering and impregnating paper and paperboard
  • Manufacturing creped and crinkled paper
  • Manufacturing laminates and foils
  • Manufacturing handmade paper
  • Manufacturing carbon paper or stencil paper in rolls or large sheets
  • Manufacturing cellulose wadding and webs of cellulose fibres
  • Manufacturing paper liner for plasterboard
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • IT and telecommunications adoption
  • Demand from newspaper printing
  • Demand from cardboard packaging and paper bag manufacturing
  • Business confidence index
  • Real effective exchange rate
  • World price of wood pulp

  • Current Performance
  • Slashing demand
  • Trade sheet
  • Green papers
  • Marginal cuts
  • Chart: Revenue Growth

  • Industry Outlook
  • Developing demand
  • International markets
  • Folding profit
  • Sustainable packaging
  • Table: Paper & Paperboard Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Paper & Paperboard Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cardboard Packaging & Paper Bag Manufacturing
  • Sanitary Product Manufacturing
  • Paper Stationery Manufacturing
  • Newspaper Printing
  • Printing

  • Key Selling Industries
  • Electricity, Gas, Steam and Air Conditioning Supply
  • Gravel, Sand & Clay Extraction
  • Inorganic Basic Chemical Manufacturing
  • Waste & Scrap Wholesaling
  • Water Supply; Sewerage, Waste Management and Remediation Activities

  • Products & Services
  • Uncoated paper and paperboard
  • Coated paper and paperboard
  • Newsprint
  • Uncoated testliner
  • Self-adhesive and gummed paper and paperboard
  • Creped paper, toilet paper and facial tissue stock
  • Other speciality paper products
  • Chart: Paper & Paperboard Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Paperboard packaging manufacturers
  • Paper stationery manufacturers
  • Printers and publishers
  • Other paper converters
  • Chart: Major Market Segmentation for the Paper & Paperboard Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Paper & Paperboard Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Paper & Paperboard Manufacturing Industry

  • Industry Globalization
    DS Smith Paper Ltd, UPM-Kymmene (UK) Ltd, Iggesund Paperboard (Workington) Ltd,
  • Table: DS Smith Paper Ltd - financial performance
  • Table: UPM-Kymmene (UK) Ltd - financial performance
  • Table: Iggesund Paperboard (Workington) Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Paper & Paperboard Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Paper & Paperboard Manufacturing Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Low-cost continuous roll paper made mainly from mechanically ground wood pulp. It is most commonly used in print newspapers and other publications.
  • Paperboard
  • Cardboard produced by compressing layers of paper pulp. Various different grades are available.
  • Wood Pulp
  • Wood fibre that has been chemically or mechanically processed to form pulp. It is primarily used to manufacture paper and paperboard.
  • What Our Customers Say

    Why buy this report?

    The Paper & Paperboard Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Paper & Paperboard Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Paper & Paperboard Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Paper & Paperboard Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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