Tuesday, February 02, 2010

Paper Industry in North America

The paper industry continues to produce fewer tons each year. Not a healthy trend!

The last decade has not been friendly for the North American packaging paper producers, considering the demand peaked in 1999 at nearly 56Million tons. Several believe the market will have fallen below 46Million tons in 2009, when the final numbers come out. Meanwhile, the producers for graphic papers last witnessed very good growth in 1970 and the 80s and than 90s- but the market topped out at 50Million tons in 2000. In 2001, the demand fell to about 46Million tons – and managed to stay at this level until 2007. Between 2007 and 2008, demand fell 15% to 39Million tons and most forecast 2009 will end up at slightly under 32Millions tons (19% down).
The biggest element in this decline was lack of advertising (especially for Auto, Financial, and Real Estate). It is predicted that the next few years will generate a flat demand, and than decline, beyond 2011. One study indicated that this segment might be down to 25Million tons by 2024. Newsprint could well be the largest component of this decline.

4 comments:

Anonymous said...

I am amazed at this decline. I have been living through reductions over the past decades - but never saw the trees through the forest to identify an absolute figure for the drop off in tonnage. I would assume much of the lost tonnage will never return.

Anonymous said...

Agree, I had no idea that demand was settling in at such a depressed tonnage level. I imagine the ereader, smart phones, world wide web, etc. will forever take market share from paper publications. Current generation illustrates limited interest in browsing printed pieces ..... let alone paying for it.

Anonymous said...

Less paper, more electronic communication AND archiving - not good for the paper industry.

Heather W said...

This iis a great post thanks