Paper & Paper Products
Companies in this sector manufacture pulp, paper, and packaging products derived from wood fibers and recycled materials for commercial and consumer use.
Why it exists
This industry turns wood fiber and recycled material into paper, packaging, tissue, and board products.
Why it’s necessary
Packaging is critical for e-commerce, food safety, and logistics. Tissue and hygiene products are basic necessities. Even as printing paper declines, packaging and specialty grades remain vital.
Key components
Pulp (virgin and recycled)
Paper machines (for packaging, printing, tissue)
Converting facilities (boxes, cartons, labels)
Collection and recycling systems
How to evaluate businesses
Evaluate grade mix (packaging vs printing), integration (own pulp vs purchased), energy costs, and proximity to customers. Watch for exposure to secular decline (newsprint, office paper) vs growth (corrugated for e-commerce). Capital intensity is high, so ROIC and capacity discipline matter.
How the industry could be improved
Shifting capacity from declining to growing grades faster, boosting fiber recycling rates, improving box and packaging design to use less material, and digitizing the interface with brand owners and retailers for just-in-time packaging.