Total Worth of the Paper Manufacturing Industry Globally

Paper manufacturing is one of the largest manufacturing industries in the world. However, the rise in digital products has somewhat impacted the global market size of paper manufacturing. Irrespective of the digital age, the use of paper remains omnipresent. It has been found that the market size of global paper products was $268.8 billion in 2018, which is expected to grow at a 0.3% CAGR from 2019 to 2025. The primary drivers of demand for the global paper industry are businesses dealing with FMCG, pharmaceuticals, packaging, hospitality, etc. The topic provides a comprehensive overview of the paper manufacturing industry size on a global level.

Outlook on the Global Paper Manufacturing Market

The global market size of paper manufacturing has increased over time due to paper used across many industries. The paper market is expected to grow at a compounded annual growth rate of 0.3% over the period from 2019 to 2025. With a 0.3% CAGR growth, it is expected to reach USD 275.1 billion by 2025. In 2020, China was one of the largest manufacturers of paper and paperboard at 117 million metric tons. Previously, the United States was one of the top manufacturers in the global paper industry, but surpassed China in 2005. Currently, Asia is the largest paper-producing continent, with maximum production from China, and Europe follows this. In 2020, Germany was the largest exporter of paper, with a large shipment of 13.6 million metric tons.

Trends Across Global Paper Manufacturing and its Uses

A report by Statista shows that the global market size of paper manufacturing in 2020 was 420 million metric tons of paper. Nearly 70% of the revenue is collected from the top 50 paper manufacturing companies across the globe. However, the pulp and paper industry is also responsible for increasing environmental pollution, industrial wastewater, and deforestation. Here are some key trends observed in the global paper manufacturing market:

• The primary demand for paper comes from the packaging paper industry. The packaging paper is used across many industries, including FMCG, pharmaceutical, hospitality, etc.
• The paper industry used advanced technology to manufacture products from processed paper that are durable and of higher strength.
• The declining global market size of paper manufacturing is due to increasing awareness about environmental issues, global warming, biodegradability, etc. 
• The attempt to reduce single-use plastic has increased the demand for recycled packaging paper. Many leading manufacturers or companies provide 100% recyclable packaging made from recycled paper. 

Overall Outlook of the Global Paper Industry

The global market size of paper manufacturing and its current outlook has achieved a medium rating. As per the prediction, the global paper industry is expected to grow over the next 2 to 3 years, but it might escalate the price due to the higher price of the raw material. Here are a few region-wise outlooks or information on the paper industry:

• Asia-Pacific has been the largest manufacturer of paper and paper products since 2018, accounting for more than 36% of the global market size of paper manufacturing. Rapid industrialisation is one of the main causes of the rise in manufacturing.
• China, followed by India, continues to be the largest producer of papers. One of the main reasons is increased awareness of the negative impact of plastic products, leading to their replacement with paper packaging products. 
• China is the largest global paper manufacturing market due to its laws and taxes. China has seriously started assessing environmental hazards and imposed environmental protection taxes. However, large-scale paper manufacturers have low pollution emissions per ton and hence are profitable in terms of tax reduction. 
• The global macroeconomics and slowdown of growth across developing countries have weakened the paper manufacturing industry in the US due to low market demand for paper. 
• The packaging and household papers continue to be manufactured in large quantities in Japan. However, the price of manufacturing has increased due to an increase in the cost of raw materials. 

Good to Know Information About the Paper Manufacturing Market

The global wood, paper, and paperboard recycling market are expected to grow in 5 to 10 years. The global market size of paper manufacturing has grown, driven by the demand for virgin-fibre pulp mills. Some of the largest manufacturers contributing to a massive percentage of the global paper manufacturing market include Kimberly-Clark Corporation, K.P. Tissues Inc., Cascades Inc., Irving Consumer Products Ltd, First Quality Enterprises, ST Paper LLC., Procter & Gamble, etc. China is the largest paper manufacturer due to the presence of two key companies: Samson Paper Holdings Ltd. and Quanzhou Sinowise Machinery Co.Ltd.

• Among all the countries, the US is the largest producer of wood pulp, whereas China is the largest paper manufacturer. 
• In 2020, Germany’s leading paper exporter was valued at 19.2 billion USD, whereas the US was the second leading paper exporter. 
• The global market size of paper manufacturing was valued at 348.43 billion USD in 2019. It is expected to grow at 0.8% CAGR, reaching nearly 370 billion US dollars by 2027.

Conclusion 

Due to the increase in the demand for paper products such as packaging and cardboard, the global market size for paper manufacturing is expected to increase from 0.3% to 0.8% CAGR. In summary, China is the largest manufacturer of paper, and the largest wood pulp manufacturer in the US. Although China is one of the largest global paper manufacturing markets, the largest exporter of paper was Germany in 2020, followed by the US. Most paper manufacturing companies across the globe have applied stringent processes for manufacturing to reduce environmental pollution and boost recycling.