Summary of Research Findings

In the paper & paperboard market, the demand was sluggish throughout 2023 as the price revision in the preceding year stunted the demand. Shipment of graphic papers such as newsprints and printing & communication papers declined further, while the shipment of paperboard also turned to worse as the drive for stay-at-home demand (rise of ecommerce) decelerated and consumer spending slumped due to repeated price hikes. In addition, paperboard exports decreased considerably due to the drop in demand and market deterioration in Asian regions. Under the circumstances, the paper and paperboard shipment (as a total of domestic shipment and export) are forecasted to fall significantly.

Noteworthy Topics

What is The Future of The Paper & Pulp Industry in Post-Corona Era?

On the whole, it can be said that the demand for paper and paperboard deteriorated in 2023. There is no doubt that price revisions carried out by paper manufacturers in the previous year several times precipitated the downturn. However, the price revision was indispensable for paper manufacturers to go through ongoing structural reforms and reinforce their business foundation. In this sense, the demand decline in 2023 was an inevitable “pain” associated with transformation.

Nonetheless, the deterioration may continue on in 2024. At this point, a biggest concern is the negative impact of rising prices. Considering the anticipation that labor cost and logistics cost will swell, the situation may drive inflation further.

Companies using papers and paperboards are likely to continue embarking on holding down costs and expenses from various perspectives, including that of sales promotion, packaging, equipment, etc. Moreover, it is highly probable that consumers may curtail spending as they become thriftier.

Is the drop in demand temporary or the start of a long-term recession? The resilience of the paper and pulp industry are being tested.

Research Outline