PAPER SECTOR UPDATE
CONTINUED
Iain Kindness, head of sales, at Calington UK, agrees that the outlook for the packaging and paper market is looking positive, but adds a note of caution. “Although the first quarter of 2023 is proving slow across all grades, we expect more stability during coming months,” he says. “As with any business, dealers and customers should still be flexible and scenario plan to secure the continuity of their business. “There are some obvious trends which have been present for some time such as reduced pagination and hybrid use of printed and online material. Moreover, there is a move to more recycled material as these products are improving in their finished quality and sophistication, Asia Pulp & Paper offer a product call Paperline Eye Care Recycled which reflects this.” Packaging sector Meanwhile the packaging sector is also providing opportunities. “The packaging market is showing a significant growth opportunity with the rise in plastic-free legislation, we are seeing a positive focus on cardboard as a sustainable alternative,” says Iain. “Moreover, the move to more online shopping is also increasing the demand for outer packaging to product the products en transit.” Lawrence agrees, adding that a recent report from Smithers reported that the corrugated packaging sector growing at
about 3.7% per year and will reach $300 billion this year. “Across Europe retail e-commerce sales are set to increase by approximately 20%,” he adds. “When combined with global online sales, which are predicted to surpass $5.5 trillion in 2023, this will have an acute impact on corrugated packaging as it equates to 80% of demand in e-commerce. “Fit-to-product or box-on-demand system solutions are now enabling suppliers to offer customised packaging that is produced to fit bespoke product sizes, reducing the need for so much filler material. “Wrapping and paper packaging will remain a dominant segment within the market as the increased adoption of paper-based packaging materials created from demand throughout the e-commerce and retail sectors continues.” This will help to drive the sector in the coming years, as print and traditional writing and news print will endure further steady decline, Lawrences says, before noting: “The luxury stationery sector is predicted to experience continued growth, which will be primarily driven through consumer demand for sustainability and personalised products.” He adds that the latest figures from Statista show that global consumption will continue to rise over the next decade before reaching 476 million tons by 2032. It demonstrates that the sector remains resilient and, after the problems of recent years, is looking forward to some much- needed stability, meaning the focus can return to sales and the continuing evolution of the sector into markets such as packaging and luxury stationery to offset declines elsewhere.
With the rise in plastic- free legislation, we are seeing a positive focus on cardboard as a sustainable alternative “ ”
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