PAPER
Paper chase The past few years have been volatile in the paper sector but now, with the return to the office and an increasing focus on sustainability, there is positivity and increasing opportunities for resellers in this market.
It has been a volatile time for the paper sector in recent years, with price rises and material shortages just two of the challenges presented to manufacturers and sellers. As Dr Liz Wilks from APP notes: “Since 2020, paper prices have almost doubled, with commodity shortages, energy prices, Brexit and surging freight costs feeding into rising prices,” says. “At the same time, significant growth in e-commerce – driven by the COVID lockdowns – brought an overwhelming increase in home deliveries. As demand soared, the price of paper did too.” This rise in price was further driven by a strike at Finnish paper mills, which led to a brief shortage of paper at one point in 2022. “When we had the shortages, paper prices went up, but to a point where they should be, if the truth be told, where everyone in the chain was making a fair margin,” says Steve Carter from Advantia. “Because prior to a couple of years ago, it was just a race to the bottom. You were selling paper for the same price that you sold it 15 years ago. In some instances, people would give it away just to get in the door because you were always judged on how much your paper cost, which is not the right thing to do.” Liz adds that paper and packing
manufacturers are now starting to stabilise, as are costs. “Though high costs, supply chain challenges, and economic uncertainty may mean the benefit is not felt until the second half of the year,” she says. Premium print As mentioned, COVID changed the sector, and, as Paul Savill from Antalis notes, the mass digitisation during the pandemic negatively impacted paper volumes overall, but it has had other effects that present opportunities to sellers. “The documents that are being printed now have greater importance and impact, placing a stronger emphasis on the substrate used to produce the completed document,” he says. “Elements such as weight, whiteness and smoothness add to the tactile qualities of the printed document and play an important role in the overall quality of the document and how a document is perceived by the individual.” Industry shift Another aspect of the sector that is growing is the shift to paper and paper packaging with the focus on alternatives to plastics. “This has meant a flood of demand for paper products,” says Liz. “However, with the rise of the circular
Dr Liz Wilks
app.co.id
Elements such as weight, whiteness and “
smoothness add to the tactile qualities
of the printed document and
play an important role in the overall quality of the document and how a document is perceived by the individual.
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