The paper and paperboard industry is one of the UK's key manufacturing sectors. In 2001, the UK consumed 12.6 million tonnes of paper and paperboard products, while its papermaking industry produced a total of 6.2 million tonnes of paper and board. These consumption and production figures signal the first decline in UK papermaking output and consumption in over 10 years. Between 2000 and 2001, the volume of paper consumed fell by 2.3% and the amount manufactured in the UK fell by 6.1%. In value terms, the apparent UK market was worth an estimated £5.38bn in 2001, following several years of decline.
The market can be divided into six key product sectors: graphics paper, newsprint, case materials, folding box board (FBB), sanitary products and wrappings. Case materials and wrappings are the two best-performing sectors in terms of market value, both having increased in value in 2001, while the other sectors experienced declines.
Since the late 1990s, the paper industry has had to endure extremely difficult trading conditions. A combination of factors has combined to create less than favourable market conditions, including rising production costs - many of which have resulted from EU legislation, which the UK has tended to implement more strictly and sooner than its EU counterparts - and the strength of sterling against the euro and other foreign currencies.
As a result of the difficult trading conditions and in order to achieve greater economies of scale, many companies have been involved in mergers or acquisitions and a number have been forced out of the industry altogther. Consequently, the market for paper and board manufacturing is becoming increasingly concentrated, dominated by fewer, but larger players.
Nevertheless, the UK paper and paperboard industry remains a dynamic one, and continues to set the pace when it comes to developing environmentally sustainable manufacturing practices. Various trade organisations have negotiated and influenced recent legislation - at national, European and international levels - for the benefit of the industry and the environment.
Each sector within the paper and board market targets a specific group of customers and is affected by a distinct range of issues. For example, the newsprint sector has been affected by increasing demand as a result of the wide range of lifestyle supplements that now accompany most newspapers, while the paper producers supplying the sanitary and food packaging sectors have had to face new self-regulatory standards set by the industry on paper quality and content.
Taking account of the current economic difficulties facing the industry, we forecast that the market will show only modest growth in 2002, after which it will pick up momentum, before levelling off in 2005 and 2006. SHOW LESS READ MORE >
TABLE OF CONTENTS:<BR><BR>Executive Summary 1<BR><BR>1. Market Definition 7<BR><BR>REPORT COVERAGE 7<BR>Definitions and Terminology 7<BR>MARKET SECTORS 8<BR>Graphics Paper 8<BR>Newsprint 8<BR>Case Materials 8<BR>Fluting Medium 8<BR>Kraftliner 8<BR>Testliner 9<BR>Fourdrinier Chip 9<BR>Folding Box Board 9<BR>Sanitary Products 9<BR>Wrappings 9<BR>Other Paper and Board 9<BR>MARKET TRENDS 10<BR>Production and Consumption 10<BR>International Trade 10<BR>Raw Materials Usage 10<BR>MARKET POSITION 11<BR>The UK 11<BR>Table 1: UK Consumption of Paper and Paperboard by Sector (million tonnes and %), 2001 11<BR>Overseas 12<BR>Table 2: The Top Ten Paper and Paperboard Producing Nations in the World (000 tonnes), 2001 12<BR><BR>2. Market Size 13<BR><BR>THE TOTAL MARKET 13<BR>By Value 13<BR>Apparent UK Market 13<BR>Table 3: The Apparent UK Market for Paper and Paperboard by Value (£m at msp), 1997-2001 13<BR>By Volume 14<BR>Production and Consumption 14<BR>Table 4: UK Production and Consumption of Paper and Board by Volume (million tonnes), 1997-2001 14<BR>BY MARKET SECTOR 14<BR>Table 5: The Apparent UK Market for Paper and Paperboard by Sector by Value (£m), 1997-2001 15<BR>Newsprint 16<BR>Graphics Paper, Folding Box Board, Sanitary Products and Wrappings 16<BR>Case Materials 17<BR>OVERSEAS TRADE 17<BR>Table 6: UK Imports and Exports of Paper and Board by Volume (million tonnes), 1997-2001 17<BR>Imports 18<BR>By Volume 18<BR>Table 7: UK Imports of Paper and Board by Country of Origin by Volume (million tonnes and %), 2001 18<BR>By Value 19<BR>Table 8: UK Imports of Paper and Board by Value (£m), 1997-2001 19<BR>Exports 19<BR>By Volume 19<BR>Table 9: UK Exports of Paper and Board by Country of Destination by Volume (000 tonnes), 2001 20<BR>By Value 20<BR>Table 10: UK Exports of Paper and Board by Value (£m), 1997-2001 21<BR><BR>3. Industry Background 22<BR><BR>RECENT HISTORY 22<BR>NUMBER OF COMPANIES 22<BR>Table 11: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Paper and Paperboard by Turnover Sizeband (£000), 2002 23<BR>EMPLOYMENT 23<BR>Table 12: Number of VAT-Based Local Units Engaged in the Manufacture of Paper and Paperboard by Employment Sizeband, 2002 24<BR>REGIONAL VARIATIONS IN THE MARKETPLACE 25<BR>DISTRIBUTION 25<BR>HOW ROBUST IS THE MARKET? 26<BR>LEGISLATION 26<BR>KEY TRADE ASSOCIATIONS 27<BR>The Paper Federation of Great Britain 27<BR>The Confederation of Paper Industries 27<BR>The Confederation of European Paper Industries 27<BR>The British Printing Industries Federation 27<BR><BR>4. Competitor Analysis 29<BR><BR>THE MARKETPLACE 29<BR>MARKET LEADERS 29<BR>DS Smith PLC 29<BR>Company Structure 29<BR>Current and Future Developments 30<BR>Financial Results 30<BR>Inveresk PLC 30<BR>Company Structure 30<BR>Current and Future Developments 30<BR>Financial Results 30<BR>James Cropper PLC 30<BR>Company Structure 30<BR>Current and Future Developments 31<BR>Financial Results 31<BR>Jefferson Smurfit Group PLC 31<BR>Company Structure 31<BR>Current and Future Developments 31<BR>Financial Results 31<BR>Norske Skog 32<BR>Company Structure 32<BR>Current and Future Developments 32<BR>Financial Results 32<BR>St Regis Paper Company Ltd 32<BR>Company Structure 32<BR>Current and Future Developments 33<BR>Financial Results 33<BR>SCA Hygiene Products UK Ltd 33<BR>Company Structure 33<BR>Current and Future Developments 33<BR>Financial Results 33<BR>Stora Enso 34<BR>Company Structure 34<BR>Current and Future Developments 34<BR>Financial Results 34<BR>UPM-Kymmene Corporation 34<BR>Company Structure 34<BR>Current and Future Developments 35<BR>Financial Results 35<BR>OTHER COMPANIES 35<BR>BPB PLC 35<BR>OUTSIDE SUPPLIERS 36<BR>Pulp and Recovered Paper 36<BR>Chemicals 36<BR>Water 37<BR>Energy 37<BR>Machinery 37<BR>ADVERTISING AND PROMOTION 38<BR>Exhibitions and Trade Shows 38<BR><BR>5. Strengths, Weaknesses, Opportunities and Threats 39<BR><BR>STRENGTHS 39<BR>WEAKNESSES 39<BR>OPPORTUNITIES 39<BR>THREATS 40<BR><BR>6. Buying Behaviour 41<BR><BR>CUSTOMER PROFILE 41<BR>Graphics Paper 41<BR>Newsprint 41<BR>Packaging Materials 42<BR>Sanitary Products 42<BR><BR>7. Current Issues 43<BR><BR>CORPORATE ACTIVITY 43<BR>LEGISLATION 44<BR>Packaging and Packaging Waste 44<BR>Food Contact 44<BR>Waste Sludge 44<BR>POLITICAL DIMENSIONS 45<BR>Scotland's Forest Strategy 45<BR>Effective Recycling 45<BR>Energy Costs 45<BR>Starch Pricing 46<BR>Paper Tariffs 46<BR>E-COMMERCE 46<BR>CONSUMER DEMAND 46<BR>PRODUCT DEVELOPMENT 47<BR>HEALTH AND SAFETY 48<BR>THE ENVIRONMENT 48<BR><BR>8. The Global Market 49<BR><BR>TOTAL MARKET SIZE 49<BR>MAJOR TRENDS 49<BR>The Impact of the Euro 49<BR>Deregulation 49<BR>Safeguarding the Environment 49<BR>Corporate Activity 50<BR>Table 13: The Top Ten Paper and Paperboard Producers in Western Europe by Volume (000 tonnes), 2000 50<BR>CONSUMER DEMAND 50<BR>FUTURE TRENDS 51<BR><BR>9. Forecasts 52<BR><BR>THE ECONOMY 52<BR>FUTURE TRENDS 52<BR>The Benefits of the Eurozone 52<BR>Product Development 52<BR>Changes in Recycling Methods 53<BR>E-Commerce 53<BR>Competitor Forecasts 53<BR>FORECASTS 2002 TO 2006 54<BR>Table 14: The Forecast Apparent UK Market for Paper and Paperboard by Value at Constant 2002 Prices (£m at msp), 2002-2006 54<BR><BR>10. Company Profiles 55<BR><BR>Ds Smith Plc 56<BR>Inveresk Plc 58<BR>James Cropper PLC 60<BR>SCA HYGIENE PRODUCTS UK LTD 62<BR>Smurfit Uk Ltd 64<BR>St Regis Paper Company Ltd 66<BR>Upm-kymmene (uk) Ltd 68<BR><BR>11. Further Sources 70<BR><BR>Associations 70<BR>Periodicals 72<BR>Directories 73<BR>General Sources 73<BR>Bonnier Information Sources 74<BR>Government Publications 75<BR>Other Sources 76