U.S. Cut Size Paper Market Forecast and Distribution Channels: 2005-2010

InfoTrends’ new forecast on U.S. cut size (copy paper) paper distribution channels indicates that while paper merchants, office superstores, and contract stationer divisions will remain power houses for moving paper, the Internet, computer superstores, and mass merchandisers are expected to gain more presence as a source for paper
General merchandise stores and mass merchandisers will increase the amount of paper that they sell due to the sheer number of stores and the convenience of being able to purchase paper along with other goods.
The Internet and companies such as Paper.com, however, is the only channel expected to show double-digit growth in terms of cut size tons distribution between 2005 and 2010. In 2010, 73% of all cut size tons will be sold through non-retail channels. This is largely because supply chain management is an area of proficiency for non-retail channels, especially when it comes to delivering truckloads and pallets of paper.

Quick printers have also emerged as a source of cut size paper. As a complement to their traditional business, quick printers including FedEx/Kinkos are emphasizing their ability to capture supplies business at retail and on-line due to their number of store locations and access to product. Staples is also opening stand-alone quick printer locations that stock a limited number of office products SKUs including paper.
Cut size paper is a low margin, high volume market that is very competitive and price sensitive. Heavy cartons of paper can be expensive to move efficiently, and this has forced channels such as office machine dealers, forms distributors and manufacturers, and small storefronts to reconsider their roles in selling paper.