Global demand for paper is steadily declining, which is mainly due to the decline of its consumption both in emerging markets and Western world, according to recent statements, made by representatives of some leading global paper producers and analysts in the field of paper business.
The main reason for this is the current trend of digitalization
Analysts expect instead of paper, the demand will be shifted towards more active use of cardboard and various types of packaging.
According to experts of the Russian Delovoy Peterburg business paper, the pandemic has also spurred demand for tissue, toilet paper, and other hygiene products, based on paper. That provided an opportunity for pulp and paper producers to increase their production and receive short-term profits, although the effects of such trends will be short term.
According to them, the global market is currently oversaturated by various paper types. That trend is primarily observed in Western markets, while the current situation in China and Southeast Asia remains much better. Still, in recent years the volume of paper and pulp production in China has significantly increased, which negatively affected the profits of importers, operating in this market.
For Russian pulp and paper producers, the devaluation of rubles has made export direction more economically beneficial, than the supplies to the domestic market.