Paper & Paper Products Manufacturing Industry Overview

Excerpt from Paper & Paper Products Manufacturing Report

Companies in this industry make paper and converted paper products, including paperboard, corrugated containers, coated papers, and paper bags. Major companies include Georgia-Pacific, International Paper, Kimberly-Clark, MeadWestvaco, Neenah Paper (all based in the US), as well as Domtar (Canada), Oji Paper (Japan), and Stora Enso (Finland).

Competitive Landscape

Demand is driven by general commercial activity and population growth. The profitability of individual companies depends on efficient operations, as products are sold mainly based on price. Big companies have advantages in distribution and can supply large customers. There are few economies of scale in manufacturing; large and small producers operate the same kinds of plants -- large producers just have more of them. Small companies can compete successfully by making specialty products or serving a small geographical market.

Products, Operations & Technology

Major product categories are paperboard, paperboard and corrugated containers, coated papers, tissue products, stationery, and paper bags. Paperboard and corrugated containers account for more than 25 percent of industry revenue, paperboard mills account for about 15 percent, coated papers nearly 10 percent, and sanitary paper products about 5 percent. Tens of thousands of different paper products are produced, but most manufacturers concentrate on a very limited product line.