The pulp market - France

As of 2020, the global pulp market has been facing several significant trends and challenges. Despite a decline in demand for paper used in print and publishing due to digitalization, other sectors such as e-commerce continue to drive demand for corrugated cardboard for packaging. Environmental concerns are shifting the industry towards more sustainable practices, with an increase in the use of recycled paper and cardboard (PCR) and a push for more environmentally friendly production methods. The market is dominated by China, which stands as the major consumer, highly influencing global production and prices. In France, the pulp market is experiencing difficulties, with national pulp production at less than one hundredth of the world production and a clear shift towards the recycled pulp sector. Regulations are increasingly favoring recycled over virgin pulp materials, incentivizing a move towards a circular economy. Innovations in manufacturing processes are focused on energy efficiency and reducing environmental impact, and there is a move to adopt eco-friendly certifications such as PEFC and FSC in the sector. As a response to pressures on the plastics industry, paper-based packaging solutions are positioned to gain market share. With the global pulp production around 181 million tonnes, and Europe's production at 38 million tonnes, the market is navigating through complex changes and adaptations..Title: Shifting Demand Patterns in the French Pulp Market The French pulp market is undergoing significant change, primarily influenced by evolving consumption habits and environmental considerations. Despite a global production of around 180 to 200 million tonnes, France's national production remains less than 2% of the world production, indicating a minor role in the global landscape. A decline in production volume and value over the past decade highlights the market's struggles, with a rapid decrease averaging between 3 and 4% per year in volume and roughly 2% per year in value. The packaging sector emerges as the primary consumer of paper pulp in France, accounting for over 50% of the country's consumption, which is between 4 and 5 million tonnes. However, the bulk of this demand stems from paper and cardboard recycling (PCR), with only a small percentage utilizing wood-based pulp. In contrast, the graphic paper sector, which includes coated and uncoated paper producers, is the second-largest consumer, followed by the hygiene papers sector. Yet, these traditional markets face a downward trend due to digitalization. An increase in digital book readership is decreasing demand for pulp in the publishing industry, with a yearly decline of around 4 to 6%. The packaging industry, on the other hand, benefits from e-commerce growth, as online shopping necessitates an increase in packaging materials like corrugated cardboard. The pulp market is also witnessing a significant shift toward environmental sustainability. Recycled pulp is gaining prominence, with recycled paper production far exceeding virgin pulp production by almost twice as much. Additionally, the market is adapting to an anti-plastic sentiment, with regulatory changes favoring paper-based over plastic packaging solutions. These adaptions align with the circular economy principles, positioning PCR as a more substantial market segment than wood pulp. Regulatory frameworks are reacting accordingly, promoting more eco-friendly operations through certifications like PEFC and FSC, and implementing research-supporting taxes. Banning single-use plastics and incentivizing recycled plastic further propels the pulp and paper industry towards ecological responsibility. In the face of these evolving trends, the French pulp market is segmented primarily into packaging, graphic paper, and hygiene paper sectors, each with varying levels of dependency on PCR and impacted by digital and environmental trends. The French pulp market is adapting, albeit with challenges, positioning itself within a framework that increasingly favors sustainability and recycling over traditional production methods..### Key Players Shaping the Pulp Market Landscape As the pulp industry goes through major changes driven by environmental concerns and technological advancements, a handful of companies stand out for their significant roles in shaping the market. These players have integrated pulp production into their business models, innovated their processes, and played a substantial part in adjusting to the circular economy. Below is an overview of some of the main companies that feature prominently in the global and French pulp markets. **International Paper** – As a world leader in the paper and pulp industry, International Paper has set ambitious goals to increase recycling and has been at the forefront of integrating pulp production into its vast array of paper products. Their commitment to sustainability is evident in their objective to significantly boost the recycling of old corrugated cardboard. **Smurfit Kappa** – This company is another major player, well-known for its large footprint in the paper-based packaging industry. By producing its own pulp, Smurfit Kappa ensures that it has the resources necessary to meet the demands of its packaging solutions while controlling the quality and environmental impact of its products. **The Navigator Company** – Catering to the needs for BHKP, The Navigator Company stands out for supplying a significant portion of this pulp type to various markets. While exact figures are not disclosed, they are an acknowledged leader in the Bleached Eucalyptus Kraft Pulp segment. **Arauco** – Noteworthy for its commentary on pulp price dynamics, Arauco is a key player in the industry, providing insights into the costs of pulp across different regions. Their Financial results reveal their importance in understanding the pulp market. **Greenfield** – A company that emphasizes its alignment with the circular economy, Greenfield directly contributes to the market by recycling paper and reinventing it as a raw material for new products. Their environmental approach embodies the sector's ideal synergy between sustainability and industry. These companies, along with continuous innovation and adherence to increasingly stringent environmental regulations, fortify their positions within the paper and pulp industry's ecosystem. Their practices and strategies not only influence the current market structure but also pave the way for the future of responsible and sustainable pulp production.

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• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 01/09/2023

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