The industry is working with government agencies to ensure tough new air, water, and soil quality regulations are achieved. Increasing digitalization and shift in grocery store's preference towards electronic shelf labels are a primary factor hindering the growth of the United States and Canada market for pulp and paper during the forecast period. Chemical pulp is a category of wood pulp chemically treated wood fibers used in the manufacturing of better grades of paper. It is a raw material derived from raw material to produce cellulose/man-made fibers and man-made industries. Because paper is recycled, the solid waste sent to landfills has dropped dramatically. More paper containers are recycled than all the glass, plastic and aluminum combined. A healthy industry keeps land growing trees rather than converting land to other uses. The industry provides outstanding career opportunities for chemical engineers, computer experts, foresters and many more.
The U.S. tissue market to be worth $31 billion according to the three biggest paper product producers in the U.S. to task: Procter & Gamble (PG), Georgia-Pacific and Kimberly-Clark (KMB). The Key players operating in United States and Canada pulp and paper market includes The International Paper Company, Georgia-Pacific LLC, Graphic Packaging International, Inc., KapStone Paper & Packaging, Domtar Corporation, are among many other companies.
Market Dynamics
Drivers
- Rising demand for paper-based packaging
- Paper consumption is increasing gradually in US and Canada
Restraints
- Growing trend for electronic paper
- Increase in the price of raw materials
Rising demand for paper-based packaging
Increasing demand for paper-based packaging from communities and government organizations to reduce plastic usage is the primary factor driving the United States and Canada's Pulp and Paper market during the forecast period. Increased federal regulations to promote the usage of paper-based packaging across e-commerce sites to reduce the environmental effect of plastic is contributing to the growth of paper usage across the US and Canada during the forecast period. Increased e-commerce sales across both countries coupled with growing usage of paper-based packaging in processed food, electronics and others are additionally contributing to the growth of paper consumption in the United States and Canada during the forecast period. These paper-based packaging materials are currently being used in processed foods, electronic goods, vegetables, groceries, liquid beverages, and other food and non-food applications.
Additionally, changing environmental conditions, a shift in interests among the food packaging companies towards utilization of paper-based technologies in the packaging activities is further expected to boost the market for pulp and paper market in the US and Canada pulp and paper market during the forecast period. Increasing international demand for paper-based packaging material is expected to boost huge production demand for pulp and paper in the US and Canada during the forecast period. As more US and Canadians start to make their fast food choices not only on what is in the packaging but also the packaging itself, there is a tremendous opportunity for the paper industry in these countries.
Companies are focusing to invest in pulp mills due to the increasing demand for paper packaging in the US and Canada. For instance, In the US, on December 2018, Sun Paper, under the name Sun Biomaterials, is in the permitting process for a US $1.8 billion virgin fiber pulp and paper mill in Arkadelphia, Arkansas, that will make lightweight and heavyweight liner board for packaging, using nearly 4 million tons of wood per year.
Additionally, In Canada, in May 2018, Resolute has announced a $52.3 million strategic investment plan for its Saint-Félicien pulp mill, located in the Lac-Saint-Jean region of Quebec. The significant investments at Saint-Félicien are expected to improve several areas of the operation, increasing the average daily production capacity by 76 metric tons and reducing greenhouse gas emissions from the use of fossil fuels by 20%. Adding to this, On April 30, 2018, Resolute announced a $13 million investment in its La Doré (Quebec) wood products facilities, also located in Lac-Saint-Jean. Furthermore, in 2016, the company inaugurated Toundra Greenhouse, located adjacent to the Saint-Félicien pulp mill, a $100 million joint venture project with local investors.
Competitive Landscape
The US and Canada Pulp and Paper market is competitive with regional and international players. The companies are competing based on the price, product specifications, and market presence. Many companies are focusing on expansion, investments, agreements and new product launches in order to extend their market presence. Major industry participants are based in the USA. Major companies include International Paper, Georgia-Pacific, Packaging corporation of America, Domtar, Graphic packaging international, Sappi, Canfor Corporation and others. The major focus of these companies is to achieve superior quality products at lower operational cost and their investments are driven in the same direction.