Converted Paper Products Manufacturing

Converted Paper Products Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry convert paperboard and corrugated boxes, paper bags, stationery, and sanitary paper products. Major companies include Kimberly-Clark, Packaging Corporation of America, and Smurfit WestRock (all based in the US), as well as Mondi (UK), Rengo (Japan), and SCA (Sweden).

COMPETITIVE LANDSCAPE

Demand is driven by general commercial activity and population growth. The profitability of individual companies depends on efficient operations, as products are sold mainly based on price. Big companies have advantages in distribution and can supply large customers. There are few economies of scale in manufacturing; large and small producers operate the same kinds of plants -- large producers just have more of them. Small companies can compete successfully by making specialty products or serving a small geographical market. The US industry is concentrated: the top 50 companies account for about 60% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include converted paper and paperboard varieties. Folding paperboard boxes, packaging, and packaging components account for about 12%, followed corrugated shipping containers for food and beverages (accounted for about 10%). Other products include pressure-sensitive products and corrugate paperboard in sheets and rolls, lined and unlined. Tens of thousands of different paper products are produced, but most manufacturers concentrate on a limited product line.