Strategy First Ltd Oy

Industry trends

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

At the same time, demand is growing in many other product segments like packaging boards, tissue, and specialty papers in all regions. Additionally, market pulp demand grows due to paper capacity additions in emerging markets with fewer own fiber sources, like China.

Wood products used for house construction are gaining positive momentum in Europe in addition to the US and Japan. New biorefinery products based on woody biomass, like biofuels and biochemicals, are developed continuously to become new value creators for the industry.

The paper 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.