It’s the best and worst of times for paper manufacturers

Download the Document

Paper Sector Risk Report

Overview

Paper production grew in 2017, although the global picture is patchy. The rise is mainly due to increased household consumption of sanitary paper, as hygiene habits change around the world, and to the growing use of cardboard packaging driven by e-commerce. This offsets the rapid decline in traditional uses of paper, such as newspapers, driven by the advent of digital technology and media.

 

Coface Regional Sector Risk Assessment

Strengths and weaknesses

Paper is the world’s most recycled material, and this is perhaps its biggest strength for the future. The pressure to use recyclables can only increase. In particular paper products can provide sustainable alternatives to plastics. In 2018 Coface analysts predict that paper production will increase in Europe, but fall in the USA. In Germany, which is Europe’s biggest market, demand for industrial packaging will be particularly strong. Overall, traditional pulp production will continue to fall, with mills closing, whereas paper tissue and paper packaging production are on the rise.

When dealing with an industry that is such a mix of thriving and declining businesses, there’s a clear argument for protecting your own bottom line. World-leading credit insurance from Coface comes with built-in business intelligence: two essentials in this increasingly uncertain world.

Sign up for the latest news

Resources

Are corporate balance sheets in Spain and Italy ready for the covid-19 shock?

Although the second quarter of 2020 is shaping up to be the most challenging period of the year, there are now good reasons to think that the road to recovery will be long and arduous. Despite immediate tax deferrals, liquidity

View Resource
Resources

Focus: corporate insolvencies in Europe – June 2020

The economic consequences of the COVID-19 pandemic are of unprecedented scale in Europe. The double shock of supply and demand has resulted in the halting – at least partially – of production in many companies due to the

View Resource
Resources

Country & sector risk barometer: Q2 2020 quarterly update

A few weeks after the first containment easing measures, economic activity seems to be picking up in most European countries. However, about two months after China, this gradual and partial recovery will not erase the effects of

View Resource