North America Pulp and Paper Market Size, Share & Industry Analysis, By Category (Wrapping & Packaging, Printing & Writing, Sanitary, News Print, and Others), and Country Forecast, 2024-2032

The North America pulp and paper market size was valued at USD 56.39 billion in 2023 and is projected to grow from USD 56.53 billion in 2024 to USD 57.32 billion by 2032, exhibiting a CAGR of 0.17% during the forecast period. Moreover, the pulp and paper market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 52.99 billion by 2032, driven by the rising consumption of fast-moving consumer products, thereby leading to increasing demand for packaging paper in the U.S.

Pulp is a fibrous material prepared from wood, waste paper, fiber crops, and rags. Pulp is the raw material used to produce paper and other industrial paper products. North America's pulp and paper market plays a key role in the paper industry, with the U.S. being a major pulp producer in the world. In North America, packaging paper is the largest paper category produced owing to its wider applications. The region’s industry is experiencing positive growth in sanitary, specialty paper, and packaging categories. However, the extensive adoption of digitization has led to a decline in demand for newsprint, printing and writing papers, which collectively constitute around one-fourth portion of the market. This reduced adoption is impacting overall market growth in the U.S.

However, the market experienced significant disruption and an interrupted value chain during the progression of COVID-19, leading to a decline in market growth. Industrial paper packaging categories, except pharmaceuticals and food & beverage industries, experienced a decline in demand throughout the outbreak. However, the pandemic created a potential demand for health & hygiene papers, such as face towels and tissues, to fulfill the growing demand for sanitary paper from the healthcare industry.

North America Pulp and Paper Market Trends

Rising Consumer Awareness Regarding Sanitary Hygiene to Boost Product Adoption

The improving standard of living and government efforts have fueled the demand for pulp and paper in sanitary products, including tissues, diapers, and sanitary pads. The growing population and improving medical facilities have resulted in a higher birth rate. The rising awareness amongst customers regarding the usage of diapers instead of traditionally used cloth coverings owing to their higher water-holding capacity and stench control properties has expanded the demand for diapers. Companies producing diapers have also brought innovation to attract potential parent customers. For instance, Mamy Poko and Huggies introduced diapers in the shape of pants for infants, reducing the efforts for parents to dress and undress their children.

The utilization of sanitary napkins has augmented, driven by the awareness programs launched by NGOs and governmental healthcare organizations to improve women’s sanitary health. Hence, such initiatives and growing sanitary hygiene will help the market grow during the forecast period.

North America Pulp and Paper Market Growth Factors

Increasing Demand for Eco-friendly Packaging Materials to Propel Market Development

Growing demand for eco-friendly packaging material due to the rising environmental regulations, rapid growth of the e-commerce industry, and increasing demand for packaged food have augmented paper and pulp consumption globally. Additionally, the rising difficulty in degrading other packaging materials, such as glass, plastic, aluminum, and wood, coupled with manufacturers’ increasing innovations in sustainable packaging solutions, will further boost the adoption of pulp and paper.

Waste wood and paper easily degrade in the environment. For instance, SaveOnEnergy estimated that paper and wood take about 1 month to 3 years to decompose completely, while plastics can take about 10-50 years. Aluminum and glass, on the other hand, take about 80-100 million years to decompose completely. Thus, pulp & paper is one of the most sustainable and recyclable packaging materials available globally.  In addition, pulp & paper packaging is projected to grow due to many advantages, including lighter weight, reduced consumption of fuel in logistics, lower emissions, and better pricing per ton. Hence, the beneficial characteristics of paper packaging and the growing demand for sustainable packaging solutions will propel the North America pulp and paper market growth.

Growing Paper Recycling Activities to Foster Product Adoption

The growing paper recycling activities by the government and companies are expected to boost product adoption in the near future. The paper recycling industry is well-established and capital-intensive. Companies that recycle other materials find that paper recycling is a beneficial addition to their services. It provides opportunities for governments and entrepreneurs in services, such as collection, transportation, and sorting. Furthermore, increasing environmental awareness among consumers and businesses has increased demand for sustainable practices, encouraging higher recycling rates.

Moreover, technological advancements have also improved the efficiency and cost-effectiveness of the recycling process, making it more accessible and attractive. Further, government regulations and incentives in the U.S., such as recycling mandates and subsidies, have significantly promoted recycling initiatives.

RESTRAINING FACTORS

Increasing Ingress of Digital Media in News and Education Fields May Restrict Market Growth

Newspapers, print media, and educational publications have been some of the largest consumers of pulp and paper in the past. According to WAN-IFRA’s World Press Trends 2016 report, the top 20 newspapers by circulation accounted for over 60 million copies per day. Similarly, students utilized a large amount of paper in the form of notebooks, notes, textbooks, and reference papers. However, the ingress of digital media, facilitated by the improving telecommunication infrastructure and technological advancement, has shifted the knowledge and data to digital media. Nowadays, due to busy lifestyles, many consumers prefer to read content online on smartphones instead of buying newspapers or publications. This trend contributes to a swift decline in the demand for pulp and paper, which is anticipated to restrain market growth.

North America Pulp and Paper Market Segmentation Analysis

By Category Analysis

Wrapping & Packaging Segment Dominated Owing to Increased Demand for Sustainable Packaging

Based on category, the market is segmented into wrapping & packaging, printing & writing, sanitary, news print, and others.

The wrapping & packaging segment held the highest North America pulp and paper market share in 2023. Major packaging end-use industries, such as fast-moving consumer goods, pharmaceuticals, and food & beverages, are incorporating sustainable packaging solutions for their products. Additionally, the demand for packaging solutions, including corrugated boxes and bags, has increased in recent years. Paper can be recycled and reused, and thus, it plays a crucial role in reducing the challenge of packaging waste. It can be efficiently used as a substitute for plastic packaging in many applications. Therefore, the increasing focus on sustainable solutions is projected to drive the growth of the wrapping & packaging segment in the near future.

The sanitary segment is anticipated to witness the fastest growth in this market during the study period. Increasing consumer spending on health & hygiene products in North America is creating a robust demand for sanitary papers and driving the segment’s growth.

However, with the increasingly digital economy, the consumption of printing & writing and newspapers is declining. These segments are showcasing a negative CAGR in the near future.

COUNTRY INSIGHTS

Based on country, the market is segmented into the U.S. and Canada.

The U.S. pulp and paper market size was valued at USD 52.19 billion in 2023. The country dominated paper consumption due to the higher demand from all end-use applications. The market’s vitality is attributed to the presence of large-scale manufacturers, availability of raw materials, and adoption of the latest paper manufacturing technologies, fostering healthy competition in the market. The surge in online retailing has contributed to an increased demand for paper packaging in the U.S., with a sustainable packaging trend among suppliers and end-users projected to drive market growth in the country.  

In Canada, most of the forest products industry, including paper, is concentrated in Quebec and Ontario. Recyclability is becoming necessary for packaging manufacturers in Canada, posing a challenge for products incorporating polymer-based coatings used for waterproofing paper packaging. Currently, there is a noticeable shift toward using recyclable protective coating on paper, which is expected to gain traction in pulp and paper throughout the forecast period. The growing concern about the non-recyclability of plastic is also driving paper usage in the country.

KEY INDUSTRY PLAYERS

Key Players Focus on Efficient Utilization of Paper Raw Material to Sustain in Market

The pulp and paper market is characterized by the presence of large & medium scaled entities operating in this market. Effective utilization of available forest resources is a major challenge for paper manufacturers. Thus, major players such as WestRock, International Paper, Domtar, and others focus on production capacity expansion to gain a competitive edge in the North American market. For instance, in March 2023, WestRock planned to establish a corrugated box plant in Longview, Washington to fulfill the increasing demand from customers in the Pacific Northwest. Moreover, these players are making significant efforts to optimize utility usage, which contributes to enhanced profit margins.

List of Top North America Pulp and Paper Companies:

• International Paper (U.S.)


• Georgia-Pacific Corporation (U.S.)


• WestRock (U.S.)


• Packaging Corporation of America (U.S.)


• Domtar Inc. (U.S.)


• Graphic Packaging International (U.S.)


• Billerud AB (Sweden)


• Sylvamo Corporation (U.S.)


• Sappi Ltd. (U.S.)


• Kimberly-Clark Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2024 – Georgia-Pacific announced a substantial investment of over USD 150 million to reconstruct a paper machine at its mill in Wauna, Oregon. The project involves refurbishing a paper machine dating back to 1965, transforming it into a state-of-the-art facility for producing paper used in Angel Soft and strategic private label bath tissue. This modernization effort is aimed at enhancing the mill's competitiveness in the market and fortifying the overall business.


• January 2024 – WestRock Company planned to build a new corrugated box plant in Pleasant Prairie, Wisconsin. The current plant in North Chicago will close, once the new facility is completed. The company aims to improve production and cost efficiency in the Great Lakes region. The construction is expected to cost around USD 140 million and will be partly covered by property sales.


• November 2023 – Liberty Coca-Cola Beverages, a local bottler for Coca-Cola in Philadelphia, New Jersey, and New York City, is teaming up with WestRock, a leading provider of sustainable paper and packaging solutions. Together, they will introduce a paperboard carrier to replace plastic rings for the multipack bottled beverages.


• September 2023 – Georgia Pacific announced the production of its 1 billionth recyclable padded mailer ‘EarthKraft’ at its facility in Tolleson, Arizona. The new recyclable product is designed for e-commerce shipments of apparel and other items that do not require padded packaging for shipment.


• January 2023 – Graphic Packaging completed the acquisition of Bell Incorporated for USD 264 million, adding three packaging facilities in Sioux Falls, South Dakota, and Groveport, Ohio. Bell is reported within the Americas Paperboard Packaging reportable segment.

REPORT COVERAGE

The research report provides both qualitative & quantitative insights on pulp & paper worldwide. Quantitative insights include market sizing in terms of value (USD billion) across each segment, sub-segment, and region profiled in the scope of the study. In addition, it provides market analysis and growth rates of segments, sub-segments, and key counties across each region. Qualitative insight covers the elaborative analysis of key market drivers, restraints, growth opportunities, and industry trends related to the market. The competitive landscape section covers detailed company profiling of the key players operating in the industry.

Report Scope & Segmentation