Pulp And Paper Industry In Digital Era
The impact of digital disruption has less impact across the paper and packaging industry. Tissue, hygiene, and packaging segments are doing well and achieving healthy growth. The segments that have been impacted more are newsprint, graphic paper and printing paper. They have to create their value in the increasingly digital world as the magazine print.
The innovation in the paper and packaging industry leverage the market size by increasing the different perspectives of using the paper. If one door closes the other gets opened, in the same way pulp and paper industry is collaborating with digital market excavating for the new production capabilities.
Is digital era is a threat to the paper industry?
The structure of the pulp and paper industry remains the same, but the usage of the produced paper differs. The produced paper is used in various segments like tissue and towel, fine paper, packaging paper, and newsprint. With an increase in digital advertisements, the newsprint lost its growth in the digital era. But the digital era is also adding new segments or scopes to the pulp and paper industry. Pulp and Paper's industry sees no threat from digital upsurge.
In the revolution of digital transformation, the future of the pulp and paper industry is safe acquiring the minimal growth rate.
- Printing and Writing segment demand is expected to grow at a CAGR of 4.2% and reach 5.3 million tons in FY19
- Demand for Packaging Paper and Board segment is expected to grow at a CAGR of 8.9% and reach 9.7 million tons in FY19
- Newsprint demand is expected to reach 2.7 million tons in FY19.
- The vast awareness of plastic decomposition brought a change in the packaging materials, it increased 5.0% of the growth rate pushing the market to about US$11.9 billion worldwide in under 4.0 million metric tons of paper.
The Future of Pulp and Paper Industry:
In the next decade, the paper and board products demand will grow, along with the increasing paper market. Global pulp and paper market size will increase to US$ 86,700 million by 2025,at a CAGR of 4.6% from US$ 63,300 million in 2019
Global Pulp and Paper Industry Market Outlook by Region
Top 5 paper manufacturing countries in the world:
In recent years, the Chinese market of paper production is rapidly increased addressing the environmental hazards posed by the obsolete capacity. In 2015 the Chinese paper industry is doubled to 107.100 million metric tons of paper production to that of 2005. The large scale paper manufacturers in China gained 46.1% production rate.
United States of America:
The United States America has strong cost control ability that stabilizes their profitability, but the product line diversification puts some traditional paper business under pressure due to profitability differentiation. With 72.397 million metric tons of paper production U.S. stands second in the paper production. It is also a major consumer of the paper the recycled paper fibre accounts for the 66.8 % of the consumed paper.
Japan stands third in the paper production, the technology deployed traditional papermaking and reduced the paper production to 26.228 million metric tons in 2015. The Japanese traditional paper makers are treated as national treasurers, their art papers like Chiyogami, Unryu, or Ito-iri looks beautiful. The average operating income of companies represents an upward trend, (which has increased by about 27% in the first half of 2017 compared to the year earlier).
Germany produces 22.608 million metric tons of paper per year. Germany is the leading paper exporter. It mainly exports paper for the increasing demand of packaging paper in various countries.
REPUBLIC OF KOREA:
The Republic of Korea Produced 11.569 million metric tons of paper in 2015 with a slight increase to that of 11.653 in 2014.
The pulp and paper industry is a complex one with many different kinds of mills, products and processes. the complex requirements of water and effluent treatment at the different points of the manufacturing process vary significantly. However, the market and the future of the pulp and paper is rising, limiting pollutants according to the environmental legislation.