Global Overview of the Forestry, Wood and

Paper Industry
August 2022

© Euromonitor
© Euromonitor International
International 2021.
2022. All rights
All rights reserved.
reserved.
 Euromonitor International’s Industrial research took place before the invasion of Ukraine. As
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research database, at time of publication
▪ Forecast closing date: March 2022
▪ Report closing date: August 2022

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Contents

Introduction

Global overview

Leading Companies

Global Outlook

Country snapshots

© Euromonitor International
 Introduction

© Euromonitor International
 INTRODUCTION 55

Scope
Forestry The briefing examines how the forestry,
USD346 billion wood and paper industry performs globally
and in the largest countries in terms of
Wood and Wood Products forestry, wood and paper output. The report
USD912 billion also provides data for production, market size,
imports, exports, industry costs, industry
Forestry, Wood and Paper profitability and number of companies. The
(2021) Corrugated Paper, Paperboard and Containers industry and market overview provide
USD304 billion benchmarks against other countries in the
USD2.3 trillion region.
Disposable Paper Products
USD250 billion

Pulp, Paper and Paperboard

USD527 billion
Disclaimer
This report analyses the global forestry, wood and paper industry, which includes the core Much of the information in this briefing is of a
categories above. statistical nature and, while every attempt has
been made to ensure accuracy and reliability,
Unless otherwise noted, all values expressed in this report are in US dollar terms, using year- Euromonitor International cannot be held
on-year exchange rates. responsible for omissions or errors.
Figures in tables and analyses are calculated
All forecast data are expressed in current terms. The historic period refers to 2016-2021; the from unrounded data and may not sum. Analyses
found in the briefings may not totally reflect the
forecast period is 2022-2026.
companies’ opinions, reader discretion is advised.

© Euromonitor International
 INTRODUCTION 66

Examining four trends shaping the forestry, wood and paper industry
Trends Expected long-term implications Medium-term Long-term
Digital innovations allow wood and paper product manufacturers to increase
productivity and improve production quality, while big data analysis provides
Big data and
opportunities for better process management and production planning.
digitalisation
Innovations in technologies will play an important role in the industry’s future
development, offering cost-cutting solutions and productivity improvements.
Plant-based packaging materials have been gaining popularity, but solutions like
waterproof coating do not allow for proper paper recycling, leading to waste
Rise of recyclable piling up in landfills. Innovations allowing the application of biodegradable
products coatings are, however, coming into paper packaging production, allowing for fully
recyclable paper products. Rising recyclability of paper products, especially
packaging, will further boost industry demand.
The EU ban on single-use plastics, and growing anti-plastic sentiment are
Anti-plastic boosting demand for plant-based biodegradable products. Further investment in
sentiment plastic waste reduction is set to benefit the paper and pulp industry, as viable and
more sustainable alternatives to plastic packaging are sought.
Booming global Rising energy prices boost production costs and encourage manufacturers to
energy prices adjust their production processes, improve energy efficiency and seek alternative
energy sources, such as bio-based fuel and renewable electricity generation.

© Euromonitor International
 INTRODUCTION
Key trends impacting the industry in 2022
Slower residential construction to be
partly compensated for by
infrastructure spending
▪ After a construction boom in 2021,
residential and non-residential
construction is cooling down, as
soaring inflation is limiting consumer
purchasing power and rising interest
rates are increasing borrowing costs.
Increased uncertainty is also expected
to negatively affect the construction
sector in the short term.
▪ Infrastructure spending is, however,
projected to continue driving demand
for wood, as public spending planned
under COVID-19 recovery
programmes is set to support funding
for social and transport infrastructure.
© Euromonitor International
Growth in e-commerce and anti-plastic
sentiment drive paper demand
▪ The online retail sector grew
substantially during COVID-19
lockdowns, and is projected to
maintain growth over the forecast
period. While consumers are coming
back to physical retail stores, online
sales continue increasing, stimulating
demand for paper and paperboard
packaging.
▪ Paper-based packaging demand is
also stimulated by rising
environmental cautiousness and anti-
plastic sentiment, encouraging
retailers and manufacturers to shift
towards more sustainable packaging
solutions, in turn fuelling demand for
pulp, paper and paperboard.
77
Global surge in energy prices boost
production costs
▪ Global energy prices have been
surging as a result of Russia’s invasion
of Ukraine, fuelling production costs
for the forestry, wood and paper
industry. With further rises in
electricity, oil and gas prices, the
industry is projected to face falling
profitability in the short term. Over
the long term, the industry is
expected to seek alternative energy
sources, aim to reduce carbon
footprint and adopt more sustainable
production technologies, including
better utilisation of recycling
capabilities.
 Global overview

© Euromonitor International
 GLOBAL OVERVIEW 99

After swift recovery from COVID-19 shock, the industry to maintain stable growth
Global Production Value of Selected Industries, 2021 Global Production Value Growth Year to Exceed pre-pandemic Level
USD billion % CAGR 2021-2026

Construction and Real Estate 26,278 2020

Retail and Wholesale 16,699 2021
Business Services 11,908 2021
Government and Membership Organizations 11,407
2020
Transport and Storage 10,485
Finance and Insurance 10,106 2021
Information and Communications 8,786 2020
Healthcare and Social Services 8,299 2020
Food, Beverages and Tobacco 8,197 2020
Metal Products 7,658 2021
Hi-tech Goods 7,537
2021
Energy 6,382
2021
Agriculture 6,242
Utilities and Recycling 2022
6,062
Transport Equipment 5,985 2020
Education 4,544 2021
Chemical Products 4,453 2021
Hotels and Restaurants 4,223 2021
Machinery 4,063 2021
Non-metalic Mineral Products 3,160 2022
Textile and Leather Products 2,549 2021
Forestry, Wood and Paper 2,339 2021
0 10,000 20,000 30,000 0% 5% 10%

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 GLOBAL OVERVIEW 10
10

Production value recorded robust growth in 2021

GLOBAL SNAPSHOT Demand for forestry, wood and paper saw a swift recovery after the COVID-19-induced
PRODUCTION VALUE recession, largely driven by a booming e-commerce sector, which fuelled demand for
paper and cardboard packaging during lockdowns in 2020 onwards. Moreover, in 2021, the
2,339 15.5% industry saw solid demand for wood products from the construction sector, as major
USD bn, 2021 Growth, 2021
global economies saw a recovery.
PROFITABILITY
Production value growth was also facilitated by a robust rise in prices of wood and wood
15%* 0.4P.P. products, as demand surged in 2021. A rapid rise in construction activities boosted
% of Production, 2021 Increase in 2021 demand for wood and wood products, fuelling prices and overall industry value growth.
COMPANY OPENINGS FULL RECOVERY IN Global Production Value Growth, 2016-2026
USD million, y-o-y growth
239K 2021 20.0%
in 2021
Production Value by Region 15.0%
% of total production, 2016-2026
100%
10.0%
Western Europe
North America
Middle East & Africa 5.0%
Latin America
Eastern Europe
Australasia 0.0%
Asia Pacific
-5.0%
2016 2021 2026
0%
2016 2021 2026 Note: *Based on data from 18 largest economies globally
© Euromonitor International
 GLOBAL OVERVIEW 11
11

China and US continue to dominate global industry

Global production of forestry, wood and Production Value in Top 20 Countries, 2021 Production Value Growth
USD million % CAGR 2016-2021
paper is concentrated, with the top 20
manufacturing countries accounting for 82% China 654,354

of global production value in 2021. USA 374,476

Japan 99,636
China is the largest producer of wood and Germany 99,377
wood products, paper, paperboard and India 95,433
cardboard products, thanks to large and Canada 77,576
growing domestic and foreign demand. Indonesia 55,319

Production value in China is forecast to Italy 47,679

Finland 45,330
continue to grow over the period to 2026
France 43,186
owing to solid global demand and rising
Russia 41,453
prices. Sweden 39,825
The US has a large share in the global forestry, UK 39,781
Brazil 37,063
wood and paper industry, thanks to large
Poland 32,354
forest coverage, and a vast market. Given the
South Korea 32,344
solid construction sector in the US, demand Spain 28,009
for wood products is projected to drive Austria 24,744
industry growth. Rising consumer Australia 23,247
environmental awareness is causing a shift TURKEY 21,238
from plastic to paper packaging, contributing 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000
-10% 0% 10% 20%
to industry growth through to 2026.
© Euromonitor International
 GLOBAL OVERVIEW 12
12

Profitability bounced back after COVID-19 downturn

Despite the rising cost pressure, Profits
USD million 2016-2021
manufacturers of wood and paper US CHINA INDIA GERMANY
products managed to maintain
2020 2020 2020 2020
stable profit margins over 2016-
2018 2018 2018 2018
2021. The COVID-19 crisis had a
2016
negative effect on profitability; 2016 2016 2016
0 20,00040,00060,00080,000 0 40,000 80,000 0 20,000 40,000 60,000 0 5,000 10,00015,00020,000
however, the contraction was RUSSIA
INDONESIA JAPAN CANADA
quickly reversed by robust
2020 2020 2020 2020
economic recovery, which
boosted demand for wood 2018 2018 2018 2018

products and led to skyrocketing 2016 2016 2016 2016

0 10,000 20,000 0 5,000 10,000 15,000 0 5,000 10,000 15,000 0 5,000 10,000
wood and wood products’ prices.
MEXICO BRAZIL ITALY FRANCE
The forestry, wood and paper 2020 2020 2020 2020
industry is projected to maintain
2018 2018 2018 2018
solid profit margins on the back of
2016 2016 2016 2016
strong demand and hence high
0 2,000 4,000 6,000 8,000 0 5,000 10,000 0 2,000 4,000 6,000 8,000 0 2,000 4,000 6,000 8,000
production prices. Over the long
TURKEY SOUTH KOREA AUSTRALIA WORLD
term, however, innovations in
2020 2020 2020 2020
recycling are projected to
2018 2018 2018 2018
continue diminishing production
costs. 2016 2016 2016 2016
0 2,000 4,000 6,000 8,000 0 2,000 4,000 6,000 0 2,000 4,000 0 100,000 200,000 300,000
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 GLOBAL OVERVIEW 13
13

Exports accelerated amidst solid recovery after COVID-19 shock

Global exports of forestry, wood and paper Global Exports Structure, 2021
products grew slightly over 2016-2021, driven
by intensifying trade in European countries and
rising production in Southeast Asia. While the
COVID-19 pandemic slashed exports and
disrupted global supply chains, the swift
recovery in demand (primarily from
construction the industry) led to a recovery in
exports from late 2020 onwards.
Trade among the largest global industry players
was, however, slightly depressed during the
2016-2021 period, owing to trade tensions
between the US and China. The imposition of
tariffs hindered trade between the two
countries, while expanding domestic markets
absorbed rising production levels. China
remained largely closed due to COVID-19,
further limiting its trade.
Meanwhile, the wood industry enjoyed rising
export demand, as the construction and
furniture sectors maintained steady growth.
© Euromonitor International
 GLOBAL OVERVIEW 14
14

Expanding B2B demand to drive growth in imports in Europe, US and China

Global import value of forestry, wood and Global Imports Structure, 2021
paper products rose over 2016-2021, driven by
solid growth in the construction sector and
infrastructure developments in leading global
economies, primarily the US and China. The
construction sector also supported a solid
recovery in demand for wood and wood
products after the COVID-19-related downturn.
The shift from single-use plastics in the EU will
increase demand for paper and cardboard
packaging, stimulating imports of paper fibre,
intermediate materials, and ready-to-use paper
and cardboard packaging. Further investment
in plastic reduction and the usage of recycled
materials for packaging are expected to
support further growth in paper imports
among the EU countries.
Moreover, increased global prices for wood
and wood products are projected to facilitate
rising wood import value over the short-to-
medium term.
© Euromonitor International
 GLOBAL OVERVIEW 15
15

B2B demand drives market expansion in Europe, North America and Southeast Asia
Global demand for wood and wood products Fastest Growing Forestry, Wood and Paper Markets 2016-2021
grew steadily over 2016-2021, driven by CAGR
increased construction activities in European 40%
countries, North America and emerging Ghana
Southeast Asian economies. Following a 35%
setback during the COVID-19 outbreak in 2020,
the construction sector was one of the first to 30%
bounce back, supporting robust growth in
demand in upstream industries. 25%
Iran
The largest global economies led wood and
paper products’ market growth over the review 20%
period. China and the US stand out as leading
markets for wood and paper products, driven 15%
by solid and expanding construction sectors
and substantial demand for packaging Bangladesh
10%
materials. South Africa Vietnam Russia
Thailand Sweden
Emerging economies saw rapid growth over Poland
5% Netherlands Canada US
the review period, driven largely by robust Austria UK
Spain India
infrastructure expansion, boosting demand for Germany China
France Italy
0%
wood and wood products used in construction. 1,000 10,000 100,000 1,000,000
Absolute Market Size Growth (USD million) 2016/2021
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 GLOBAL OVERVIEW 16
16

While energy prices rise, hard logs prices have dropped significantly

Energy prices have soared as industrial production picked up after the COVID-19 setback, especially as China
returned to economic expansion in late 2020.
Energy Prices of oil and gas recorded a record jump in 2022, following Russia’s invasion of Ukraine. With European
countries aiming to limit their dependency on Russian energy imports, prices are projected to remain high
over the short-to-medium term.

With economic recovery from mid-2020 onwards, demand for hard logs surged, thanks to a swift rebound in
the construction industry and related sectors. Recovering demand for construction-related wood products
and furniture drove strong demand for hard logs. At the same time, supplies of the commodity were limited,
Hard logs
as major forest fires and severe droughts limited forestry activities. With booming demand and sluggish
supply prices of hard logs grew substantially. Nevertheless, as demand stabilised and weather-related supply
limitations ended in the northern hemisphere, prices in the global market started to decline.

Pulp prices jumped during the post-pandemic recovery, as demand for various paper products surged. Global
prices subsequently started to decline gradually, as supply-demand disparities were resolved, nevertheless,
Pulp
Russia’s invasion of Ukraine put additional pressure on pulp supply and logistics in Europe, reflected in rising
prices in the region.

© Euromonitor International
 GLOBAL OVERVIEW 17
17

After a sharp rise, hard logs and pulp prices dropped to pre-pandemic levels in mid-2022

Energy prices index 2016-2023
Energy prices are forecast to
peak in 2022
180
Hard logs price, USD per cubic Pulp price, USD per cubic metre,
metre 2016-2023 2016-2023
Prices dropped to pre-pandemic Prices projected to continue
levels and continue declining moving downwards
300 920

160 290
900
140
280
120 880
270
100
260 860
80
250
60 840
240
40
820
20 230

0 220 800
Jul 2022

Jul 2022

Jun 2018

Jul 2022
Jun 2018

Jun 2018
Apr 2017
Nov 2017

May 2021
Dec 2021

Apr 2017
Nov 2017

Mar 2020

May 2021

Apr 2017
Nov 2017

May 2021
Aug 2019

Aug 2019

Dec 2021

Aug 2019

Dec 2021
Feb 2016
Sep 2016

Jan 2019

Mar 2020
Oct 2020

Feb 2023
Sep 2023

Feb 2016
Sep 2016

Jan 2019

Feb 2023
Sep 2023

Feb 2016
Sep 2016

Jan 2019

Mar 2020

Feb 2023
Sep 2023
Oct 2020

Oct 2020
© Euromonitor International
 Leading companies

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 LEADING COMPANIES 19
19

US-based paper companies continue dominating global market

US-based paper manufacturers like Georgia- Top 10 Companies by Production Value
% of global production value, 2016-2021
Pacific LLC, International Paper Co and
2016 Rank 2021 Rank
Kimberly-Clark Corp continue dominating 1. 2.1% Georgia-Pacific
LLC
production of global paper and paper-based
consumer products. 2. 1.4% Cartomo SPRL

In 2021, Georgia-Pacific announced investment

of USD120 million in the modernisation of its 3. 0.9% WestRock Co

Pineland Lumber Complex in Texas. The new

4. 0.9% International
mill is projected to expand its annual capacity Paper Co
from the current 380 million board feet of
5. 0.9% Kimberly-Clark
dimensional lumber to 450 million board feet Corp
after construction is completed in late 2022.
6. 0.8% Packaging Corp
International Paper Co leads global recycled of America

paper and renewable fibre-based packaging 7. 0.7% Nippon Paper

Industries Co Ltd
manufacturing. The company boasts innovative
recycling facilities across the US, supplying 8. 0.7% Smurfit Kappa
Group Plc
recycled materials for its regional production
lines in the Americas, Europe, Asia, and the 9. 0.6% Specialty
Packaging Group Pty Ltd
Middle East and Africa.
10. 0.5% UPM-Kymmene
Oyj

© Euromonitor International
 LEADING COMPANIES 20
20

Total number of companies rises as the sector witness liberalisation and decentralisation
Total Number of Companies
Units 2016-2021

INDONESIA INDIA CHINA BRAZIL ITALY

6,000,000 4,000,000 1,500,000 600,000 200,000
3,000,000 150,000
4,000,000 1,000,000 400,000
2,000,000 100,000
2,000,000 500,000 200,000
1,000,000 50,000
0 0 0 0 0
TURKEY MEXICO JAPAN RUSSIA US
200,000 200,000 150,000 150,000 150,000
150,000 150,000
100,000 100,000 100,000
100,000 100,000
50,000 50,000 50,000
50,000 50,000
0 0 0 0 0
GERMANY SPAIN UK CANADA FRANCE
60,000 80,000 60,000 40,000 40,000
60,000 30,000 30,000
40,000 40,000
40,000 20,000 20,000
20,000 20,000
20,000 10,000 10,000
0 0 0 0 0

The total number of companies operating in the forest, wood and paper industry increased globally over 2016-2021, mostly driven by a rise
in the number of companies in the forestry sector, which grew by nearly 10% over the period. Liberalisation of the largely state-owned
forestry sector has been the main driver of the rise in the number of companies operating in the field.
© Euromonitor International
 LEADING COMPANIES 21
21

Global industry concentration to remain rather low

Concentration in the global forestry, wood and paper Top Five Companies’ Production Value Share 2016-2021
% of total production value
industry remain rather low, with the top five companies
CHINA US JAPAN INDIA
accounting for around 6% of total industry output. The 100%

Hundreds
degree of concentration remained largely unchanged over
50%
2016-2021.
Industry concentration is notably higher in forest-rich 0%
countries, many of which have strong state-owned forestry GERMANY CANADA INDONESIA ITALY
100%
companies, which dominate the market. Moreover, such

Hundreds
countries typically have strong wood, pulp and paper 50%
companies, able to consolidate their power on the back of
solid fibre supply from the forestry industry, allowing them 0%
to gain higher market shares compared to global averages.
100% FRANCE RUSSIA UK BRAZIL
Nonetheless, global market concentration is expected to

Hundreds
remain rather low, especially as rising recycling capacities 50%
boost supply of recycled fibre for paper and cardboard
manufacturing. Expanding recycling capacities are reducing 0%
the price of recycled fibre, allowing smaller companies to SOUTH KOREA SPAIN AUSTRALIA WORLD
100%
benefit from lower production costs and hence compete Hundreds

against the industry giants. 50%

0%
© Euromonitor International
 Global outlook

© Euromonitor International
 GLOBAL OUTLOOK 23
23

China, US and Eastern Europe to drive future production value growth

The global forestry, wood and paper industry is Forestry, Wood and Paper Production in Top 20 Countries 2021-2026
projected to see accelerating production value CAGR 2021-2026
growth over the period to 2026. Production 25%
value growth is set to be driven by expanding
demand from the construction and
infrastructure sectors. Moreover, short-term 20% Turkey
production value growth will be boosted by
rising wood and wood products’ prices, as
production lags behind booming demand.
15%
China and the US drove the industry’s recovery
in late 2020 and 2021, and are set to remain key
Poland
markets for the forest, wood and paper industry
10%
throughout the forecast period. The industry in India
leading economies is projected to maintain a Brazil
solid growth pace over 2021-2026, largely owing Australia Spain Indonesia
UK
to heavy infrastructure investment and growth 5% Austria Finland Germany US
in residential and non-residential construction. Sweden Canada China
France Italy Japan
Forest-rich countries, like Brazil, Poland and
Turkey, are set to record solid growth, benefiting South Korea
0%
from abundant resources. 1,000 10,000 100,000 1,000,000
Absolute Production Value Growth (USD million) 2021/2026
© Euromonitor International
 GLOBAL OUTLOOK 24
24

Leading economies recovered from COVID-19 shock, with Brazil and Japan lagging behind
Production Value Dynamics Index 2016-2026
2019=100
200 200 200 200 200
CHINA US JAPAN INDIA GERMANY
150 150 150 150 150
100 2021 100 2021 100 2023 100 2021 100 2021
50 50 50 50 50
0 0 0 0 0
2016 2019 2026 2016 2019 2026 2016 2019 2026 2016 2019 2026 2016 2019 2026
200 200 200 200 200
CANADA INDONESIA ITALY FINLAND FRANCE
150 150 150 150 150
100 2020 100 2021 100 2021 100 2021 100 2021
50 50 50 50 50
0 0 0 0 0
2016 2019 2026 2016 2019 2026 2016 2019 2026 2016 2019 2026 2016 2019 2026
200 200 200 200 200
RUSSIA SWEDEN UK BRAZIL POLAND
150 150 150 150 150
100 2021 100 100 100
2020 2020 100 2023 2021
50 50 50 50 50
0 0 0 0 0
2016 2019 2026 2016 2019 2026 2016 2019 2026 2016 2019 2026 2016 2019 2026
200 200 200 200 200
SOUTH KOREA SPAIN AUSTRIA AUSTRALIA TURKEY
150 150 150 150 150
100 100 2021 100 100 100
2021 2021 2021 2020
50 50 50 50 50
0 0 0 0 0
2016 2019 2026 2016 2019 2026 2016 2019 2026 2016 2019 2026 2016 2019 2026
Note: the line marks the year when the industry is forecast to reach pre-COVID-19 production value
© Euromonitor International
 GLOBAL OUTLOOK
GLOBAL OUTLOOK
Key future trends shaping the global industry
Big data and digitalisation
During lockdowns, e-commerce saw substantial expansion globally,
especially in Europe, North America and China. Online sales fuelled
demand for cardboard and corrugated box packaging. While retail
sales in physical stores have regained popularity as lockdowns were
lifted and social distancing measures made more flexible, e-
commerce is projected to maintain its solid growth pace. With
booming online sales, global paper-based packaging and corrugated
boxes manufacturers are projected to see increasing demand.
Anti-plastic sentiment
The EU has taken a strong stance against single-use plastics,
imposing a ban on plastic cutlery, plates, straws, food and drink
containers, oxo-degradable plastic bags and other single-use plastic
products. The development of biodegradable alternatives is set to
benefit the paper, cardboard and pulp industry. Elimination of
plastic products will boost demand for plant-based alternatives,
primarily from the forestry, wood and paper industry.
© Euromonitor International
25
25
Recyclable products
Rising environmental concerns, especially among Western
economies, are boosting demand for recyclable products.
Numerous consumer products have been shifting to paper and
cardboard packaging instead of plastic. However, the waterproof
coating of some paper packaging has been a challenge to recycling.
Innovative solutions are being developed to create waterproof
coatings that are fully recyclable. The potential to fully recycle
coated paper products creates opportunities for further expansion
of paper and cardboard packaging.
Booming energy prices
As energy prices globally continue to rise sharply, the forestry, wood
and paper industry will see rising costs of production. Aiming to
mitigate the impact of rising prices of fossil fuels and to reduce CO2
emissions from paper production process, the industry is expected
to look for alternative energy solutions. Expanding usage of bio-
based fuels and exploring more energy efficient production
practices are anticipated to curb production costs and increase the
energy efficiency of the paper and cardboard industry.
 Country snapshots

© Euromonitor International
 COUNTRY SNAPSHOTS 27
27

China: Industry swiftly bounced back after COVID-19 shock

COUN T RY SN AP SHOT Forestry, Wood and Paper Production Value in China 2016-2026
Turnover (USD million)
800,000 20%
700,000 15%

Y-o-y growth
600,000
500,000 10%
400,000 5%
300,000 0%
200,000
100,000 -5%
0 -10%
2016 2021 2026
PRODUCTION VALUE
635,856 3.3% Forestry, Wood and Paper Industry in China 2021-2026
% CAGR
Forestry, Wood and Paper Exports 2016-2021
USD million
USD mn, 2021 CAGR 2021-2026
7% Disposable paper 2021 26,917
MARKET SIZE 6%
products 2020
723,823 1.8% 5% Forestry
2019
2018
USD mn, 2021 CAGR 2016-2021 Corrugated 2017
4% paper,
Wood and 2016 25,570
EXPORT VALUE paperboard
3% wood 0 10,000 20,000 30,000
and
26,917 1.0% 2%
containers
Pulp, paper and
products

USD mn, 2021 CAGR 2016-2021 Exports Share 2016/2021

paperboard
1% 2021
STRENGTHS WEAKNESSES
0% 2016
Expanding domestic and Geopolitical uncertainty 0 50 100 150 200
global demand 0% 20% 40% 60% 80% 100%
Production Value per Capita (USD) 2021 Export Domestic Sales
© Euromonitor International
 COUNTRY SNAPSHOTS 28
28

Industry to maintain growth on a back of rising global demand

The Chinese construction sector recorded a swift bounce back in the latter part of 2020, and is projected to
maintain solid growth over the forecast period, supported by renewed attention to infrastructure through
Solid construction
post-COVID-19 support packages. Infrastructure projects are projected to receive up to CNY17.5 trillion in
sector drives demand
investment over the period to 2025. Substantial financial support for the infrastructure sector over the
for wood
forecast period is anticipated to continue acting as a major driver of demand for wood and paper from China’s
construction industry.

Demand for paper packaging for groceries and healthcare products remained strong during the pandemic,
Demand for sustainable and there was a sharp rise in e-commerce, increasing demand for packaging. Exports are projected to pick up
packaging favours the over the forecast period, supporting growth in demand for paper and cardboard packaging.
paper and cardboard
industry Moreover, intensifying sustainability trends globally are set to continue to see a shift from plastic to more
environmentally friendly packaging, including paper.

Wood and pulp prices recorded a sharp rise in 2021, as global construction soared, fostering demand for
Rising global energy wood, while the e-commerce boom facilitated growth in demand for paper and cardboard. Shortages in
prices add to the supply led to a rapid rise in prices during the year.
production costs of the
wood and paper While prices of wood and pulp are expected to fall, the currently high energy prices are boosting production
industry costs, which will be reflected in production prices, maintaining them at a relatively high level in the short
term.
© Euromonitor International
 COUNTRY SNAPSHOTS 29
29

US: Industry to maintain moderate growth after swift recovery in 2021

COUN T RY SN AP SHOT Forestry, Wood and Paper Production Value in the US 2016-2026
Turnover (USD million)
500,000 14%
12%
400,000

Y-o-y growth
10%
300,000 8%
6%
200,000 4%
100,000 2%
0%
0 -2%
2016 2021 2026
PRODUCTION VALUE
374,476 3.7% Forestry, Wood and Paper Industry in the US 2021-2026
% CAGR
Forestry, Wood and Paper Exports 2016-2021
USD million
USD mn, 2021 CAGR 2021-2026
6% 2021 39,337
MARKET SIZE Wood and 2020
5% wood products 2019
484,305 4.8% Corrugated 2018
USD mn, 2021 CAGR 2016-2021 4% paper,
2017
paperboard
and containers 2016 41,874
EXPORT VALUE 3% Forestry
0 10,000 20,000 30,000 40,000 50,000
39,337 -1.2% 2%
Pulp, paper
USD mn, 2021 CAGR 2016-2021 Disposable Exports Share 2016/2021
1% paper products and
paperboard 2021
STRENGTHS WEAKNESSES
0% 2016
Growing sustainability Prevailing elevated 0 100 200 300 400 500
sentiment uncertainties 0% 20% 40% 60% 80% 100%
Production Value per Capita (USD) 2021 Export Domestic Sales
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 COUNTRY SNAPSHOTS 30
30

Sustainability trends and growth in e-commerce to drive demand for paper products

Due to the imposition of lockdowns and the closure of non-essential retail outlets, the US e-commerce sector
E-commerce to
boomed during the COVID-19 pandemic, offering opportunities for disposable paper producers with a strong
continue driving
digital presence. Growth in e-commerce revenues and strong demand for disposable paper products in the US
demand for cardboard
is predicted to continue throughout the forecast period, supporting industry growth in the context of weak
packaging materials
B2B demand and significant trade uncertainty caused by global demand disruptions.

With growing environmental awareness and expanding recycling capacities, paper remains an attractive
Solid sustainability alternative for plastic packaging, fuelling demand for paper and cardboard products. According to
sentiment to fuel shift Euromonitor International’s Voice of the Consumer Survey, 34% of respondents in 2022 consider paper
from plastic to paper- packaging to be one of the most sustainable and environmentally friendly options. Moreover, 46% of the
based packaging respondents in the same survey indicated that they are planning to reduce their plastic consumption, which
should drive demand for paper and recycled paper packaging.

Wood and pulp prices boomed in 2021, as economies recorded a solid recovery, especially with a booming
While energy prices construction sector. While with supply catching up with demand, global wood and pulp prices started to go
boost production costs, down, booming energy prices will add to production costs, increasing final prices in the short term.
wood and paper prices
are expected to decline Nevertheless, prices are expected to fall in the long term, as forest-rich countries expand production and
global supply meets solid demand.

© Euromonitor International
 COUNTRY SNAPSHOTS 31
31

Japan: Industry’s growth to remain subdued amidst slow economic growth

COUN T RY SN AP SHOT Forestry, Wood and Paper Production Value in Japan 2016-2026
Turnover (USD million)
140,000 15%
120,000
10%

Y-o-y growth
100,000
80,000 5%
60,000 0%
40,000
-5%
20,000
0 -10%
2016 2021 2026
PRODUCTION VALUE
99,636 2.6% Forestry, Wood and Paper Industry in Japan 2021-2026
% CAGR
Forestry, Wood and Paper Exports 2016-2021
USD million
USD mn, 2021 CAGR 2021-2026
3.5% 2021 4,268
MARKET SIZE 2020
3.0% Wood and Corrugated
2019
137,082 -0.1% 2.5%
wood products paper,
paperboard 2018
USD mn, 2021 CAGR 2016-2021 Forestry and containers Pulp, paper 2017
2.0% Disposable
and 2016 4,620
EXPORT VALUE paper
1.5% paperboard 0 2,000 4,000 6,000
products
4,268 -1.6% 1.0%
USD mn, 2021 CAGR 2016-2021 Exports Share 2016/2021
0.5% 2021
STRENGTHS WEAKNESSES
Recovering construction Growing production 0.0% 2016
and rising environmental costs and phasing out 0 50 100 150 200 250
awareness of subsidies 0% 20% 40% 60% 80% 100%
Production Value per Capita (USD) 2021 Export Domestic Sales
© Euromonitor International
 COUNTRY SNAPSHOTS 32
32

Industry’s growth to be driven by recovering construction and rising anti-plastic sentiments

Recovery in the construction sector and expanding infrastructure investment are projected to stimulate a
Recovering recovery in demand for wood and wood products over the forecast period. However, high wood prices
construction sector threaten the Japanese lumber industry, as production costs are rising robustly and the global wood industry
supports demand for faces major shortages. Nonetheless, in the second half of the forecast period, global wood prices are
wood products anticipated to cool down, leading to moderate growth in output value for Japanese wood and wood product
manufacturers over 2021-2026.

Growing environmental
The paper and pulp industry is projected to record solid growth in the short term, driven by recovering sales
awareness to drive shift
of consumer goods, booming online sales and expanding anti-plastic sentiment, fuelling a shift from plastic to
towards more
plant-based packaging products. Nonetheless, the industry will face increasing production costs, as wood
sustainable paper
prices remain high on the global market, threatening profit margins.
packaging

Self-sufficient paper The Japanese paper and paperboard industry is highly self-sufficient, from raw materials to end user. With
production helps almost 94% of Japanese paper and paperboard demand met by domestic production, mostly from locally
mitigate risks of supply produced pulp or recycled fibre, the industry will manage to maintain solid growth and mitigate the risks
chains disruptions arising from growing geopolitical tensions and supply chain disruptions.

© Euromonitor International
 COUNTRY SNAPSHOTS 33
33

India: Industry to witness solid growth through to 2026

COUN T RY SN AP SHOT Forestry, Wood and Paper Production Value in India 2016-2026
Turnover (USD million)
160,000 20%
140,000 15%

Y-o-y growth
120,000 10%
100,000 5%
80,000
60,000 0%
40,000 -5%
20,000 -10%
0 -15%
2016 2021 2026
PRODUCTION VALUE
95,433 9.2% Forestry, Wood and Paper Industry in India 2021-2026
% CAGR
Forestry, Wood and Paper Exports 2016-2021
USD million
USD mn, 2021 CAGR 2021-2026
12% Corrugated paper, 2021 3,316
MARKET SIZE paperboard and Wood and 2020
10% Forestry
containers wood products 2019
104,160 3.6% 2018
USD mn, 2021 CAGR 2016-2021 8% 2017
Pulp, paper Disposable paper 2016 2,070
EXPORT VALUE 6% and products
paperboard 0 1,000 2,000 3,000 4,000
3,316 9.9% 4%
USD mn, 2021 CAGR 2016-2021 Exports Share 2016/2021
2%
2021
STRENGTHS WEAKNESSES
0% 2016
Expanding domestic demand Phasing out of subsidies
Lower operating costs 0 5 10 15 20 25 30 35
0% 20% 40% 60% 80% 100%
Production Value per Capita (USD) 2021 Export Domestic Sales
© Euromonitor International
 COUNTRY SNAPSHOTS 34
34

Growth to be driven by accelerating construction and rising demand for paper packaging

The industry is predicted to see a strong rebound in turnover over 2021-2026. The country’s construction
companies will seek to finish the projects started as soon as possible to improve their financial circumstances,
Construction boom to
while declining unemployment will improve consumer confidence regarding real estate purchases. The
drive demand for wood
country’s public infrastructure projects are predicted to provide the most important stimulus for the
products
industry’s revival, with a INR180 billion infrastructure building programme announced by the government to
foster economic recovery.

E-commerce expansion in India is predicted to continue over the forecast period, due to the abundance of
Rising internet
organic growth opportunities in both the country’s cities and rural regions. As of 2021, just 48% of Indians
coverage broadens e-
used the internet, primarily due to low internet availability, especially in rural regions. Improving internet
commerce potential,
infrastructure, rising 4G mobile internet coverage and improving standards of living in rural India are expected
driving demand for
to boost the figure, with 67% of Indians predicted to be using the internet by 2026. Solid e-commerce
cardboard packaging
expansion is expected to create rising demand for paper and cardboard packaging.

Rebounding demand Recovering industrial activities across the country, including rising spending on healthcare, and growing
for paper-based production of pharmaceuticals, packaged food and textiles, is anticipated to boost demand for cardboard and
packaging, writing and paper packaging products.
printing paper to add Moreover, the educational sector, coupled with the publishing and advertising industries, is projected to
to industry’s growth create increasing demand for writing and printing paper, adding to the industry’s growth.

© Euromonitor International
 COUNTRY SNAPSHOTS 35
35

Germany: Industry recovered swiftly from COVID-19 shock and is set to maintain momentum
COUN T RY SN AP SHOT Forestry, Wood and Paper Production Value in Germany 2016-2026
Turnover (USD million)
140,000 20%
120,000 15%

Y-o-y growth
100,000 10%
80,000
5%
60,000
40,000 0%
20,000 -5%
0 -10%
2016 2021 2026
PRODUCTION VALUE
91,940 4.5% Forestry, Wood and Paper Industry in Germany 2021-2026
% CAGR
Forestry, Wood and Paper Exports 2016-2021
USD million
USD mn, 2021 CAGR 2021-2026
6% 2021 43,907
MARKET SIZE Pulp, paper 2020
5% 2019
101,336 2.9% Forestry Corrugated
paper,
and
paperboard 2018
USD mn, 2021 CAGR 2016-2021 4% paperboard Wood and 2017
and containers wood products
2016 36,530
EXPORT VALUE 3%
Disposable 0 10,000 20,000 30,000 40,000 50,000
43,907 3.7% 2% paper products
USD mn, 2021 CAGR 2016-2021 Exports Share 2016/2021
1%
2021
STRENGTHS WEAKNESSES
High potential for recycled Robust rise in energy 0% 2016
production prices and elevated 0 100 200 300 400 500
0% 20% 40% 60% 80% 100%
uncertainties Production Value per Capita (USD) 2021 Export Domestic Sales
© Euromonitor International
 COUNTRY SNAPSHOTS 36
36

Rising energy prices will hamper industry’s short-term outlook

Germany remains one of the key producers of pulp, paper and paperboard in Europe. With rebounding
Germany remains a key demand after the COVID-19 shock and recovering supply chains, total German exports of pulp, paper and
paper supplier in paperboard grew in 2021, accounting for 70% of total production output that year.
Europe; gloomy
economic outlook likely German paper exports are expected to continue growing as industrial activities in Europe pick up; however,
to hinder exports the robust rise in energy prices might hamper the economic outlook, while rising production costs could
diminish price competitiveness of German paper products.

Housing and non-residential construction saw a swift recovery from the COVID-19 shock in late 2020 and
Demand from 2021. A stimulus from monetary policy, low interest rates and generous government financial support is
construction might be expected to have a positive effect on the construction sector, leading to a recovery.
hampered by
geopolitical uncertainty Rising inflation, geopolitical tensions and the looming energy crisis are expected to hinder construction
activities in the country over the short-to-medium term, in turn hampering growth in demand for wood.

Robust rises in energy Germany’s reliance on gas and oil imports from Russia has left the country extremely vulnerable to the robust
prices and potential rise in energy prices, and Russia’s threats to cut oil and gas supply to Europe. As a result of booming energy
shortage of natural gas prices, the paper and wood industry is seeing a sharp rise in production costs, hampering profitability. As
in upcoming winter Germany is preparing for the winter with lower natural gas supply from Russia, or even with no Russian gas at
might hamper growth all, the country’s industry might face energy supply shortages, forcing it to cut back production.

© Euromonitor International
 COUNTRY SNAPSHOTS 37
37

Canada: Industry to maintain moderate growth after solid recovery in 2021

COUN T RY SN AP SHOT Forestry, Wood and Paper Production Value in Canada 2016-2026
Turnover (USD million)
100,000 25%
20%
80,000

Y-o-y growth
15%
60,000 10%
5%
40,000 0%
20,000 -5%
-10%
0 -15%
2016 2021 2026
PRODUCTION VALUE
77,576 3.3% Forestry, Wood and Paper Industry in Canada 2021-2026
% CAGR
Forestry, Wood and Paper Exports 2016-2021
USD million
USD mn, 2021 CAGR 2021-2026
4.5% 2021 30,346
Pulp, paper
MARKET SIZE 4.0% 2020
Forestry and
2019
65,138 5.3% 3.5% paperboard
2018
USD mn, 2021 CAGR 2016-2021 3.0% Corrugated 2017
Wood and
2.5% paper, 2016
Disposable wood products 26,655
EXPORT VALUE paperboard
2.0% paper products and containers 0 10,000 20,000 30,000 40,000
30,346 2.6% 1.5%
USD mn, 2021 CAGR 2016-2021 1.0% Exports Share 2016/2021
0.5% 2021
STRENGTHS WEAKNESSES
0.0% 2016
Solid e-commerce sector Slowdown in
0 200 400 600 800 1,000
construction activities 0% 20% 40% 60% 80% 100%
Production Value per Capita (USD) 2021
Export Domestic Sales
© Euromonitor International
 COUNTRY SNAPSHOTS 38
38

Demand to continue to be driven by e-commerce and construction sector

A solid construction industry across Canada and the US is projected to drive demand for construction
Construction remains materials, including wood products, over the forecast period. In 2021, construction boomed in both Canada
key driver of wood and the US, with private funding being augmented by post-COVID-19 government stimulus packages. The
demand, but boom is surge in construction fuelled raw material prices, including prices of wood and wood products.
set to be constrained
by rising interest rates While prices of wood have stabilised, demand is expected to grow at a slower pace, as the construction boom
is projected to be constrained by rising interest rates, rising fuel prices and growing uncertainties.

Solid online retailing During COVID-19 lockdowns, online retail gained momentum in Canada, fuelling demand for paperboard and
sector to continue cardboard packaging materials. While quarantine restrictions are being lifted and in-store retail is back on
providing demand for track, e-commerce and online shopping is projected to maintain solid growth over the forecast period. With
paper-based packaging continued growth in e-commerce, demand for paper, paperboard and cardboard packaging in Canada is
materials anticipated to remain on a positive growth path during the forecast period.

Increasing As sustainability becomes a vital concern for many Western societies, consumers are shifting away from
environmental single-use plastic, especially when used for packaging. Paper-based alternatives are gaining popularity,
awareness to support increasing demand for the wood and paper industry’s products.
demand for paper- Moreover, the green agenda and rising emission costs are also pushing industries to reduce their carbon
based packaging footprint and seek more sustainable energy solutions and less polluting production technologies.

© Euromonitor International
 COUNTRY SNAPSHOTS 39
39

Indonesia: Industry maintains solid growth pace

COUN T RY SN AP SHOT Forestry, Wood and Paper Production Value in Indonesia 2016-2026
Turnover (USD million)
100,000 30%
25%
80,000

Y-o-y growth
20%
60,000 15%
40,000 10%
5%
20,000
0%
0 -5%
2016 2021 2026
PRODUCTION VALUE
55,319 6.8% Forestry, Wood and Paper Industry in Indonesia 2021-2026
% CAGR
Forestry, Wood and Paper Exports 2016-2021
USD million
USD mn, 2021 CAGR 2021-2026
8% 2021 14,153
Pulp, paper 2020
MARKET SIZE 7% Disposable
and Wood and 2019
paper products
61,669 1.3% 6% Forestry paperboard wood products
2018
USD mn, 2021 CAGR 2016-2021 5% Corrugated 2017
paper, 2016 8,436
EXPORT VALUE 4% paperboard
0 5,000 10,000 15,000
14,153 10.9% 3% and containers

USD mn, 2021 CAGR 2016-2021 2% Exports Share 2016/2021

1% 2021
STRENGTHS WEAKNESSES
0% 2016
Low production costs Risk of oversupply
0.0 20.0 40.0 60.0 80.0 100.0
Solid global demand 0% 20% 40% 60% 80% 100%
Production Value per Capita (USD) 2021
Export Domestic Sales
© Euromonitor International
 COUNTRY SNAPSHOTS 40
40

Global construction growth and rising demand for paper packaging drives industry exports
Rebounding construction rectors across leading economies in 2021 boosted wood demand and, due to supply
Despite uncertainties, limitations, led to skyrocketing global wood prices, allowing the Indonesian forestry industry to boost export
construction projects values. According to the Ministry of Environment and Forestry, in January 2021, Indonesian forestry export
globally to remain key value grew to USD980 compared to the pre-pandemic USD922 in January 2020.
drivers of wood
demand The construction sector is set to remain the main driver of wood demand, despite rising interest rates and
geopolitical uncertainty globally, fuelling Indonesian exports over the forecast period.

In addition to recovering wood and forestry production exports, the domestic construction market is also
Domestic construction
picking up. Recovering consumer and businesses confidence, as well as rising government investment in
growth to stimulate
infrastructure developments, is driving the construction industry’s growth. Further recovery in domestic
further demand for
consumption of wood products is anticipated to drive the Indonesian forestry, wood and paper industry’s
wood products
growth over the forecast period.

Expanding online Rising environmental concerns globally, with demand for more sustainable, primarily paper-based, packaging
retailing and rise of solutions, and the boom in e-commerce worldwide, are driving demand for pulp, paper and paperboard
sustainable packaging products. Indonesian exports of pulp, paper and paperboard product recorded a swift recovery after the
demand drives COVID-19 downturn, surpassing pre-pandemic export values in 2021. As demand for paper packaging is
Indonesian paper projected to maintain solid growth, the Indonesian industry is anticipated to benefit from expanding exports
exports over the forecast period.
© Euromonitor International
 COUNTRY SNAPSHOTS 41
41

Italy: After swift post-pandemic recovery, industry’s growth to remain moderate

COUN T RY SN AP SHOT Forestry, Wood and Paper Production Value in Italy 2016-2026
Turnover (USD million)
60,000 20%
50,000 15%

Y-o-y growth
40,000 10%
30,000 5%
20,000 0%
10,000 -5%
0 -10%
2016 2021 2026
PRODUCTION VALUE
47,679 3.4% Forestry, Wood and Paper Industry in Italy 2021-2026
% CAGR
Forestry, Wood and Paper Exports 2016-2021
USD million
USD mn, 2021 CAGR 2021-2026
4.5% Corrugated 2021 11,135
MARKET SIZE 4.0% paper, 2020
paperboard 2019
67,322 3.2% 3.5% Forestry and containers 2018
USD mn, 2021 CAGR 2016-2021 3.0% Pulp, paper Wood and 2017
2.5% and Disposable wood products
2016 9,188
EXPORT VALUE paperboard paper products
2.0% 0 5,000 10,000 15,000
11,135 3.9% 1.5%
USD mn, 2021 CAGR 2016-2021 1.0% Exports Share 2016/2021
0.5% 2021
STRENGTHS WEAKNESSES
0.0% 2016
Expanding domestic demand Low recycling capacities
Accelerating e-commerce Phasing out of subsidies 0 50 100 150 200 250 300 350
0% 20% 40% 60% 80% 100%
Production Value per Capita (USD) 2021 Export Domestic Sales
© Euromonitor International
 COUNTRY SNAPSHOTS 42
42

Infrastructure spending to drive wood demand, while private construction slows down

Government The Italian construction sector picked up in 2021, driving demand for wood products. With rising global wood
infrastructure prices during the year, the Italian wood industry saw a surge in production value over the year.
investment to continue
driving construction Further growth in the Italian construction sector is projected to be driven primarily by government investment
demand for wood in infrastructure, as residential and commercial construction activities are expected to slow down amidst the
products sharp rise in energy and construction material prices, as well as overall inflation and geopolitical uncertainty.

After surge in online

retail, the sector is During COVID-19 lockdowns, online retailing surged, driving demand for paper and paperboard used for
projected to maintain packaging. While social distancing and other restrictions have been lifted, and in-store shopping has returned
momentum, to business as usual, online shopping is projected to maintain its popularity among Italian consumers, further
supporting demand for supporting demand for paper-based packaging.
paper packaging

Sustainable packaging Rising environmental concerns and anti-plastic sentiment is anticipated to fuel paper packaging consumption
trends in the EU and in the EU over the forecast period. the Italian pulp, paper and paperboard industry is projected to benefit
production localisation from the sustainable packaging trend in the EU. Moreover, European markets are seeing an increasing need to
to support Italian localise production to reduce supply chain risks and transportation costs, providing growth potential for
industry European paper manufacturers, especially those using recycled raw materials.

© Euromonitor International
 COUNTRY SNAPSHOTS 43
43

Finland: Moderate growth projected for Finnish forestry, wood and paper industry
COUN T RY SN AP SHOT Forestry, Wood and Paper Production Value in Finland 2016-2026
Turnover (USD million)
60,000 14%
12%
50,000
10%

Y-o-y growth
40,000 8%
6%
30,000
4%
20,000 2%
0%
10,000
-2%
0 -4%
2016 2021 2026
PRODUCTION VALUE
45,330 3.7% Forestry, Wood and Paper Industry in Finland 2021-2026
% CAGR
Forestry, Wood and Paper Exports 2016-2021
USD million
USD mn, 2021 CAGR 2021-2026
4.5% 2021 17,303
MARKET SIZE 4.0% 2020
Disposable Wood and Pulp, paper 2019
26,440 2.5% 3.5% paper products
Forestry
wood products and 2018
USD mn, 2021 CAGR 2016-2021 3.0% paperboard
2017
2.5% Corrugated 2016 14,961
EXPORT VALUE 2.0% paper,
paperboard 0 5,000 10,000 15,000 20,000
17,303 3.0% 1.5% and containers
USD mn, 2021 CAGR 2016-2021 1.0% Exports Share 2016/2021
0.5% 2021
STRENGTHS WEAKNESSES
0.0%
Solid and well-developed High production costs 2016
0 1,000 2,000 3,000 4,000 5,000 6,000
forestry industry 0% 20% 40% 60% 80% 100%
Production Value per Capita (USD) 2021 Export Domestic Sales
© Euromonitor International
 COUNTRY SNAPSHOTS 44
44

Wood demand will be stimulated by the construction sector, despite expected slowdown

Despite soaring
The wood industry recovered swiftly in 2021, supported by the robust expansion of construction activities and
inflation, rising interest
escalating global log prices. While prices have cooled down and demand from the construction sector is
rates and geopolitical
projected to ease in the light of rising interest rates, soaring inflation, elevated geopolitical uncertainties, and
uncertainties,
mid-to-long term government investment in social and transport infrastructure will continue supporting
construction will post
domestic construction industry, and hence demand for wood products.
solid demand for wood

Sustainable packaging
Rising environmental awareness and anti-plastic sentiment, especially in EU countries under its Green
trends and anti-plastic
Agenda, are projected to boost demand for paper and pulp-based packaging. Forest-rich Finland is expected
sentiment will drive
to benefit from rising demand for paper and cardboard, especially among European countries. Over the long
demand for pulp and
term, the shift from plastic packaging and expanding demand for plant-based packaging are projected to
paper products in the
support healthy growth of the Finnish forestry, wood and paper industry.
EU

EU struggles to strike a
In the light of Russia’s invasion of Ukraine, with Russian, Belarussian and Ukrainian timber exiting the EU
balance between
markets, the industry is struggling to meet demand. At the same time, the EU is planning to reduce forest use,
ensuring wood supply
aiming to ensure the protection of biodiversity and the natural reduction of CO2 concentration. Legislators are
and protecting natural
now struggling to strike a balance between solving timber demand shortages and biodiversity protection.
forests

© Euromonitor International
 COUNTRY SNAPSHOTS 45
45

France: Industry to maintain moderate growth after robust rebound in 2021

COUN T RY SN AP SHOT Forestry, Wood and Paper Production Value in France 2016-2026
Turnover (USD million)
60,000 15%

Y-o-y growth
50,000 10%
40,000
5%
30,000
0%
20,000
10,000 -5%
0 -10%
2016 2021 2026
PRODUCTION VALUE
44,988 3.4% Forestry, Wood and Paper Industry in France 2021-2026
% CAGR
Forestry, Wood and Paper Exports 2016-2021
USD million
USD mn, 2021 CAGR 2021-2026
4.5% 2021 11,203
MARKET SIZE 4.0% Corrugated paper, 2020
Forestry
paperboard and 2019
63,519 3.0% 3.5%
containers Wood and 2018
USD mn, 2021 CAGR 2016-2021 3.0% wood products 2017
2.5% Disposable Pulp, paper 2016 10,194
EXPORT VALUE paper and
2.0% 0 5,000 10,000 15,000
paperboard
11,203 1.9% 1.5%
products

USD mn, 2021 CAGR 2016-2021 1.0% Exports Share 2016/2021

STRENGTHS WEAKNESSES 0.5% 2021
Strong sustainable packaging Rising energy prices 0.0% 2016
trends and growing domestic and elevated 0 50 100 150 200 250
demand uncertainties 0% 20% 40% 60% 80% 100%
Production Value per Capita (USD) 2021
Export Domestic Sales
© Euromonitor International
 COUNTRY SNAPSHOTS 46
46

Construction to remain the key buyer of wood products, despite rising interest rates
The French construction sector bounced back in the second half of 2020, and recorded solid demand in 2021,
Despite uncertainties
thanks to a recovery in consumer and business confidence, as well as significant government investment in
and rising interest
infrastructure developments. Growth in the construction sector led to rising demand for wood products,
rates, the construction
while the global supply-demand mismatch resulted in soaring commodity prices, hence boosting wood
sector will continue
production in value terms during 2021. While wood prices fell in 2022, and geopolitical uncertainty and rising
driving demand for
interest rates are likely to hinder construction activities, the sector is still set to remain the key driver of wood
wood
demand over the forecast period.

French pulp, paper and paperboard exports are recovering swiftly from the pandemic-related downturn, and
Solid e-commerce
in 2021, accounted for 52% of total industry output. Demand for French paper products has been growing as
growth in Europe
the retailing sector recovers after the COVID-19 shock, and e-commerce booms across European countries,
drives French paper
fostering demand for paper packaging and paperboard. As online retailing is projected to maintain steady
and paperboard
growth in France’s largest paper export destinations, including Germany and Spain, the industry is expected to
exports
see rising exports.

Anti-plastic sentiment The EU’s ban on single-use plastics and rising environmental concerns are likely to encourage businesses to
and green agenda shift from plastic packaging to paper and cardboard, especially recycled materials, providing opportunities for
provides opportunities French paper manufacturers. Moreover, given the experience of supply chain disruptions during the
for recycled paper in pandemic, European companies are seeking to localise paper packaging production, aiming to mitigate future
packaging production risks and reduce transportation costs.

© Euromonitor International
 COUNTRY SNAPSHOTS 47
47

Definitions
Production: Total revenue (including export revenue) generated by all locally-registered companies, the core activities of which fall under
the industry definition range. Measured at basic prices/MSP. Also called “turnover” or “turnover of local producers”.
Market Size: Total value of industry-specific goods and/or services, whether produced domestically or imported, that are sold on a country’s
market. Measured at purchaser price/RSP.
Exports: Value of goods exported to foreign countries, including all production and other costs incurred up until the goods are placed on
board the international carrier for export, but excluding international insurance and further transportation costs.
Imports: Value of goods delivered at the frontier of the importing country, including any freight, insurance and other costs incurred during
transportation of goods from the port of origin, but before the payment of any import duties or other taxes within the country. Includes re-
exports.
Profits: Difference between production and total costs (B2B costs, labour costs, taxes less subsidies). Profits are measured in local currency
units and USD.

© Euromonitor International
GLOBAL OVERVIEW OF THE FORESTRY, WOOD AND PAPER INDUSTRY

For Further Insight please contact

Indre Zebrauskaite
Senior Analyst
Indre.Zebrauskaite@Euromonitor.com
• www.linkedin.com/in/indre-zebrauskaite
• @ IZebrauskaite

© Euromonitor International
GLOBAL OVERVIEW OF THE FORESTRY, WOOD AND PAPER INDUSTRY

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