Global paper market to grow at a CAGR of 5.9%

The global paper market witnessed a steady growth over the past five years and is expected to continue this momentum through to 2017.

A compound annual growth rate (CAGR) of 5.9% is forecast over the next five years and by 2017 the global paper industry is anticipated to be worth a total market value of $256 billion.

A combination of factors such as demographic condition, economic condition, and environmental regulations has had a significant impact on the dynamics of the global paper industry.

The paper industry is the fourth largest contributor to greenhouse gas emissions among US manufacturing industries, and contributes 9% of the manufacturing sector's carbon emissions.

China, India and the rest of Asia are the fastest growing per-capita users of paper, but they still rank far behind Eastern Europe and Latin America (about 100 pounds per person per year), Australia (about 300 pounds per person per year) and Western Europe (more than 400 pounds per person per year).

APAC is emerging as the best growth prospect over the coming years as paper demand has increased rapidly as China and other Asian markets depict significant growth. However, Chinese companies are confronted with profitability challenges because of raw material cost and producer fragmentation.

In APAC, population growth and increasing business activity is expected to have a direct influence on the paper market. The increasing market share of APAC in world trade and the rapid industrialisation in its emerging economies will boost demand of paper in this region.

On an international scale, profitability of companies within the global paper industry has been relatively weak over the past few years. Overcapacity has led to falling prices and this, coupled with rising production costs, is gnawing at the sector's profitability.

For more information on the global paper market, see the latest research: Global Paper Market Report

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