Paper thin: Profit margins will fall marginally due to rising competition

The Paper Product Manufacturing industry in Canada produces numerous paper products, including crepe paper, cigarette wrappers, food trays and paper novelties. While long-term trends have been toward diminished paper consumption in developed economies, consumption of such products is still high relative to office paper and many other paper products that have gone digital. The industry is becoming increasingly globalized, and over the past five years, it has benefited significantly from a depreciating domestic dollar. The industry is projected to remain subdued over the next five more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Profit margins are likely to fall in response to rising competition and wood pulp prices
  • Paper demand across the developed world has been falling
  • International trade will have a large effect on industry performance
  • Industry Report - Industry Key Buyers Chapter

    The Paper Product Manufacturing industry in Canada has a low level of market share concentration, with the three largest operators accounting for under an estimated 30.0% of industry revenue. Given the wide variety of products in this industry, manufacturers typically specialize in a few types of paper products, rather than participate across all product segments, a factor that contributes to overall market fragmentation. While the industry does include several large operators such as Cascades Inc. and Sonoco Products Company, both of which generate billions in annual revenue, the majority of the revenue that they generate is not industry relevant, and the vast majority of operators are small businesses. In fact, over 80.0% of industry establishments employ less than 20 employees...purchase to read more.

    Additional Insights for the Paper Product Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Paper Product Manufacturing Industry are

  • Having a large supply contract
  • Access to efficient technology and techniques
  • Vertical integration
  • IBISWorld analysts also discuss how external factors such as World price of wood pulp and Canadian effective exchange rate index in the Paper Product Manufacturing industry impact industry performance..

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    What's in this report

    What is the Paper Product Manufacturing Industry?

    This industry manufacturers paper products such as labels, playing cards, wrapping paper, cigarette paper, paper filters, egg cartons, food trays and other miscellaneous paper products. This industry generally produces all paper products that are not included in other paper converting industries.

    Industry Products
  • Converted paper and paperboard products
  • Paper party goods and accessories
  • Moulded pulp goods
  • Nonprocessed paper pulp goods
  • Industry Activities
  • Cigarette paper
  • Confetti
  • Paper dish
  • Moulded paper product
  • Photograph folder
  • Egg case and carton
  • Paper florists pot
  • Other miscellaneous moulded paper product
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of wood pulp
  • Canadian effective exchange rate index
  • Per capita disposable income
  • Demand from paper and paper product wholesalers

  • Current Performance
  • Global competition
  • Paper trends
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer preferences
  • Global scope
  • Manageable costs
  • Table: Paper Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Paper Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Chicken Egg Production in Canada
  • Cigarette & Tobacco Manufacturing in Canada
  • Auto Parts Wholesaling in Canada
  • Supermarkets & Grocery Stores in Canada
  • Accommodation and Food Services In Canada

  • Key Selling Industries
  • Cardboard Box & Container Manufacturing in Canada
  • Electric Power Transmission in Canada
  • Logging in Canada
  • Paper Mills in Canada

  • Products & Services
  • Other
  • Nonprocessed paper pulp goods
  • Moulded pulp goods
  • Paper party goods and accessories
  • Converted paper and paperboard products
  • Chart: Paper Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Wholesalers
  • Manufacturing
  • Retailers
  • Other
  • Chart: Major Market Segmentation for the Paper Product Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Paper Product Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Paper Product Manufacturing Industry

  • Industry Globalization
    Cascades Inc.,
  • Table: Cascades Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Paper Product Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Paper Product Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World price of wood pulp (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cellulose Insulation
  • A product created from recycled paper and paperboard and used in wall and roof cavities to thermally and acoustically separate the inside of the building from the outside.
  • Die-Cut Paper
  • A product converted from roll stock and cut into specific shapes.
  • Pulp
  • A dry, fibrous material prepared by chemically or mechanically separating the fibres that make up wood. It is most commonly used to make paper or moulded pulp products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Paper Product Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Paper Product Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Paper Product Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Paper Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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