Strategy First

Ltd Oy

Current Industry Trends

Current printed media markets suffer from a continued decline in demand due to substitution by internet and electronic media. Graphic paper markets are regionally polarized and exhibit a structural decline that is ongoing in mature markets like North America and Western Europe, though some modest growth can be seen in some emerging markets.

At the same time, demand is growing in many other product segments like containerboards and consumerboards, tissue products, and specialty paper grades in all regions. Fiber based packaging continue to grow globally due increase of e-commerce and substitution of other packaging materials. Many specialty paper grades can provide a unique offering when creating completely new applications, both in existing and new end-use areas. Additionally, market pulp (both HW and SW) demand grows mainly due to packaging and tissue capacity additions in emerging markets with fewer own fiber sources, like China.

Wood products (like e.g. CLT and LVL panels) used for house construction are gaining positive momentum in Europe in addition to US and Japan, by substituting traditional concrete. New biorefinery products based on woody biomass, like biofuels, biomaterials and biochemicals, are developed continuously to become new value creators for the industry.

The Paper and Forest industry is facing continued challenges in mature markets and needs to adapt to change. At the same time, these challenges create good business opportunities in industry consolidation, restructuring, operations improvement, streamlining of product portfolios, asset conversions, and new product innovation.