Staying stationery: Growth in wood pulp prices will sustain industry revenue growth

Over the past five years, domestic Wood Pulp Mills industry operators have seen strong growth in revenue driven by a depreciating domestic dollar, stimulating exports, alongside rising prices worldwide in response to supply constraints. Over the five years to 2019, industry revenue is expected to grow. Over the next five years, industry revenue is expected to slow somewhat. While anticipated growth in wood pulp prices will be beneficial to industry revenue, the continued struggles of downstream paper mills worldwide will constrain growth. Meanwhile, an appreciating Canadian dollar will make domestic goods less competitive in international markets, tempering export growth, and as a result, industry exports are expected to slow during the outlook period...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 14-19
6.7%
Forecast Growth 19-24
Profit
Employment
9,600
Businesses
33

Industry Threats & Opportunities

  • The continued struggles of downstream paper mills worldwide will constrain growth
  • Technological trends can also have a significant effect on downstream markets
  • The Canadian timber industry is vital to the international manufacture of paper-based products
  • Industry Report - Industry Products Chapter

    Pulp is a generic term used to describe the processed fibrous raw material needed to manufacture paper and paperboard products. Wood pulp has a variety of different uses depending on the type of wood and the production process involved. The type of wood is generally defined by the geographical sources and by the tree species. Globally, wood fibre makes up about 90.0% of pulp production, with the remaining 10.0% composed of bagasse, linters, straw, bamboo, kenaf, cotton, flax, recycled paper and others. Environmental benefits of nonwood fibres have become more popular over the past five years and may cause these proportions to change.Chemical sulphate pulpSulphate refers to the kraft process, where sulphate is used to break down wood into wood pulp. Che...purchase to read more.

    Additional Insights for the Wood Pulp Mills Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wood Pulp Mills Industry are

  • Guaranteed supply of key inputs
  • Automation - reduces costs, particularly those associated with labour
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Canadian effective exchange rate index and World price of wood pulp in the Wood Pulp Mills industry impact industry performance..

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    What's in this report

    What is the Wood Pulp Mills Industry?

    Wood pulp mills primarily manufacture pulp from organic materials without processing it into paper or paperboard. The pulp is made by separating the cellulose fibres from impurities in wood or other materials such as used or recycled rags, linters, scrap paper and straw.

    Industry Products
  • Chemical sulphate pulp
  • Dissolving pulp
  • Chemical sulphite pulp
  • Semichemical wood pulp
  • Industry Activities
  • Manufacturing chemical, mechanical, dissolving or semichemical wood pulp
  • Manufacturing pulp from organic materials such as bagasse, linters, rags, straw and wastepaper
  • De-inking recovered paper to make de-inked pulp
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian effective exchange rate index
  • World price of wood pulp
  • Demand from sanitary paper product manufacturing
  • Demand from paper mills
  • Demand from paperboard mills

  • Current Performance
  • Industry structure and profit
  • Growth in demand abroad drives performance
  • Domestic demand
  • Chart: Revenue Growth

  • Industry Outlook
  • Trade growth slows
  • Profit remains high
  • Table: Wood Pulp Mills Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wood Pulp Mills Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Paper Mills in Canada
  • Sanitary Paper Product Manufacturing in Canada
  • Paper Product Manufacturing in Canada
  • Paperboard Mills in Canada

  • Key Selling Industries
  • Coal Mining in Canada
  • Logging in Canada
  • Plastic & Resin Manufacturing in Canada
  • Sand & Gravel Mining in Canada

  • Products & Services
  • Chemical sulphate pulp
  • Semichemical wood pulp
  • Dissolving pulp
  • Other
  • Chemical sulphite pulp
  • Chart: Wood Pulp Mills Industry Products and Services Segmentation

  • Demand Determinants
  • Domestic demand
  • Foreign markets

  • Major Markets
  • Exports to China
  • Exports to the United States
  • All other exports
  • Domestic manufacturing
  • Chart: Major Market Segmentation for the Wood Pulp Mills Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesRent and utilitiesDepreciationWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Wood Pulp Mills

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wood Pulp Mills Industry

  • Industry Globalization
    Domtar Corporation, Canfor Corporation, West Fraser Timber Co. Ltd., Rayonier Advanced Materials Inc., Resolute Forest Products Inc.,
  • Table: Domtar Corporation - financial performance
  • Table: Canfor Corporation - financial performance
  • Table: West Fraser Timber Co. Ltd. - financial performance
  • Table: Rayonier Advanced Materials Inc. - financial performance
  • Table: Resolute Forest Products Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wood Pulp Mills 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 Wood Pulp Mills Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • World price of wood pulp (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bagasse
  • The fibrous residue remaining after sugarcane or sorghum stalks are crushed to extract their juice.
  • Effluent
  • Waste water expelled by a building or manufacturing facility.
  • Kenaf
  • An annual or biennial herbaceous plant that is used to produce rope, twine, coarse cloth and paper.
  • Kraft
  • A strong and relatively coarse paper produced from the chemical pulp of softwood processed by the kraft process.
  • Linter
  • The short fibres that cling to cottonseeds after the first ginning.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wood Pulp Mills market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Wood Pulp Mills:
    • 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 Wood Pulp Mills 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 Wood Pulp Mills, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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