Converted Paper Products Manufacturing Industry Profile

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 WestRock (all based in the US), as well as Mondi (UK), Rengo (Japan), Smurfit Kappa Group (Ireland), and SCA (Sweden).

Leading countries for converted paper products manufacturing include China, Japan, Germany, India, and the US. Growth in GDP is a strong indicator of demand for many kinds of converted paper products, including paperboard containers and boxes, paper bags, and sanitary products. The global production of paper and cardboard totals about 415 million metric tons each year, according to Statista.

The US converted paper products manufacturing industry includes about 3,700 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $110 billion.

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.

Companies in this industry typically make ...