A Closer Look At The Paper And Packaging Industry In The Digital Era

Published on Tue, Jun 11, 2024 4:00 PM GMT

The paper industry is changing. Documents, books, games and everyday communication all flow much faster without paper, and print magazines and newspapers have gone digital and their paper busienss has been in decline for years. With all the attention around the shift toward a paperless environment, you might believe the pulp and paper industry is disappearing fast, but this hasn’t been the case.


Industry growth may have slowed, but it’s far from declining.

The rise in e-commerce activity during the course of the pandemic saw a huge increase in demand for packaging materials that are expected to top $100 billion by 2027. At the same time, a larger focus on health and safety among consumers brought high demand for tissue products that are expected to reach over $120 billion by 2029.

The global pulp and paper market was valued at 351.53 billion U.S. dollars in 2021, and was expected to increase in value in 2022. The market is projected to register a compound annual growth rate (CAGR) of 0.72 percent from 2022 to 2029 to reach a value of roughly 373 billion U.S. dollars.

Growth in paper packaging demand

The increasing demand for e-commerce and growing concerns about plastic packaging pollution is set to drive paper packaging consumption in the coming years. The global demand for containerboard, which is the most consumed paper type worldwide, is projected to grow 27 percent from 2021 through 2032 to reach 226 million tons. Containerboard, also known as corrugated case material, is used in the production of corrugated boards.

Pulp consumption for paper production

The amount of recycled paper pulp consumed for paper production totaled 203 million tons in 2021. That same year, some 171 million tons of pulp for paper production came from virgin wood species such as eucalyptus trees. Of this total, 40 percent was market pulp made up mostly of Bleached Chemical Pulp (BCP).

The global consumption of paper and paperboard totaled 417 million tons in 2021. Consumption is projected to continue rising over the coming decade to reach 476 million tons by 2032. Packaging accounts for the largest share of global paper and paperboard production.


Most consumed paper and paperboard type

Containerboardwas the most consumed paper and paperboard type in 2021, at 178 million tons. Global containerboard demand is expected to increase to more than 220 million tons by 2031. Containerboard is an important paperboard type used in the manufacturing of corrugated boards.

Which country produces the most paper and paperboard?

The United States was the world’s largest producer of paper and paperboard up until the mid-2000s. Since then, China has become the leading producer, with an output of 117 million metric tons in 2020. Other leading paper and paperboard producers include Japan, Germany, and India.

The paper industry contributes to global logistics and transportation in several ways:

Packaging: Packaging materials, including cardboard boxes andslip sheets, are essential for shipping goods. The packaging industry, closely tied to paper production, ensures safe transport of products across the world.

Pulp and Hygiene Products: Pulp, used in tissue papers and hygiene products, plays a critical role. From toilet paper to medical supplies, these products rely on the paper industry for their raw materials.

Exports and Imports: Paper companies export their products via road, sea, or rail. For instance, Portugal’s paper exports significantly impact its economy. Additionally, the industry imports necessary resources like cardboard, pulp, and timber.

Resource Utilization: The industry continually explores new applications for wood and its components. Research labs and development centers seek innovative ways to maximize wood utilization.


How Can Hammond Paper Help You?

Our mission is to bring quantifiable value to each customer’s operations, providing the best possible solutions through products and services. Our goal is to be more than just a distributor.

We care about the quality of our product and the concerns of our customers, which has led us to take a thoughtful, customer-first approach towards all matters. Our selection of high-quality products reflects the quality of the services that we provide and the standards we hold ourselves to; it reflects our value as a business partner.

At Hammond Paper, we are here to help, we have the resources and willpower to meet our customer’s needs, providing a source of reliability amidst an unpredictable market.