Vietnam Paper Core Market: Industry Trends & Forecast

Increasing paper core demand in various industries and its influence in Vietnam Paper Core Market

The paper cores market is expected to grow due to the growing paper and paper board industry in the present scenario. Adding to this, increasing demand for paper cores by various industries such as textile, paper mills, adhesive tapes, wire, etc. during the forecast period. One of the significant factors which contribute to the growth of the paper cores market is the increasing demand for the product by various industries such as textile, adhesive tapes, and wires, etc. 

Paper cores are used for the packaging of material as well as the winding of products for storage and distribution. Based on the application type paper cores are available in different diameters, lengths, and thicknesses. On the basis of the intended use, paper cores are made by different materials such as less durable cardboard or paper used for manufacturing paper cores for toilet paper, winding of films or paper towels, whereas heavy-duty thick cardboard used for electrical, textile or fabric industry.

In General, the paper cores market majorly depends on the packaging industry. It increases popularity in the packaging of beverages such as alcoholic as well as non-alcoholic rather than it is used for winding and rewinding of products such as textile, fax rolls, toilet tissue paper, newsprint, kraft paper, polyester films, metalized films, etc. If the demand for the above-listed products increases it directly affects the Vietnam paper cores market positively.

Paper cores have a huge potential for growth in the packaging market for providing the compact packaging of beverages including alcoholic and non-alcoholic. Plastic cores can affect the tremendous growth of the global paper cores market. Trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Việt Nam-EU FTA would open up opportunities for industries that use a lot of paper products, like garment and textile, and footwear, as well as export opportunities for the paper industry itself. According to the association, per capita, paper consumption in ViệtNam is around 51kg per year compared to the world average of 58kg. So demand would continue to increase by 8-10 percent annually which acts as a key factor for the growth of the paper core market in Vietnam.

Increasing consumption of paper for packaging in Vietnam is one of the major opportunities for market growth. The total consumption of paper for packaging in Vietnam in 2018 reached an output of 3,818 million tons, accounting for 77.2% of the total consumption of paper types, up 20.0% over the same period, the growth rate of the highest quality in Vietnam's paper industry history. In particular, consumption of uncoated packaging paper reached 3.17 million tons, accounting for 83.0%; chalkboard paper reached 648,400 tons (not including coated paper used for liquids such as milk, wine, juice).

Rising the pulp and tissue market in Vietnam is the other key opportunity for market growth

Exports for tissues: Total volume reached 55,160 tons, an increase of 20% over the same period, the main export markets are still Asian regions such as Laos, Cambodia, Thailand, Malaysia, Hong Kong, USA, and the market. Imported pulp for the Vietnam market in 2018 is very diverse from 16 countries. In which countries in North America have the largest supply of 137,451 tons, accounting for 40.5%; Latin America region supply 112,000 tons, accounting for 33.0%; European region supply 45,138 tons, accounting for 13.3%; Asian region supply 45,477 tons, accounting for 13.4%; in Australia and Africa.

The paper industry has the potential for growth, but businesses need to avoid investing in products that have excess supply. Free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Vietnam-EU FTA would open up opportunities for industries that use a lot of paper products, like garment and textile, and footwear, as well as export opportunities for the paper industry itself.

According to the Vietnam Pulp and Paper Association, Vietnam’s paper industry has seen strong growth during the 2016-2019 period, with paper and cardboard production capacity growing by 31% annually, the output of paper and cardboard by 25.7% annually, and consumption by 12.3%. Exports also grew by 65.1% per year.

On the other hand, domestic pulp production capacity only increased by 1.9% a year, meeting only 35% of domestic demand. It is projected that the demand for paper will increase by 8-10% per year over the next 5-10 years, with demand for cardboard expected to grow by 15-18%. Exports of paper materials and finished paper products last year were worth nearly 1.1 billion USD, an increase of 50 percent from 2017.

In the domestic market, demand for packaging, tissue, writing, and printing papers could increase by 10-20% because of huge demand from various industries. But paper firms face fierce competition both at home and abroad. Printing and writing paper production in China has gone up sharply this year, but it faces difficulties in exporting due to the US-China trade war, and so would increase exports to other countries, including Vietnam.

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