Published - 2018/01/10
Is the Pulp market becoming non-cyclic? Here are 10 arguments
“You can’t see the forest for all the trees”. In Sweden, with some 80 percent of the land covered by forests, that is a pretty obvious remark. But it is also a Swedish proverb, meaning that it’s hard to see what’s under your nose.
Maybe that is also the case when it comes to the nature of the forestry industry, especially the pulp industry. Things are changing, fast. And few see it. From being the archetypical cyclic industry, ridden by regular financial tidal waves, the forest industry is showing signs of increased stability over time.
Let’s list the indicators, one by one, but without any internal order:
Forest land gets a higher evaluation than ever by analysts and is seen as a safe investment.
Printing paper represent a much smaller share of the business now, and hence a much lower implication on the bottom line.
The population in the industrialized world is getting significantly older, which implicates an increased use of tissue products, not least for incontinence care.
Globally, a larger proportion of the population is rising from poverty, and therefore is likely to consume more paper based products.
The growth in the global economy shows surprising stamina, which in turn drives the demand on packaging.
Consumers are becoming more environmentally concerned, and show a growing resentment against plastics and pro paper based packaging.
The shift from a fossil-based to a bio-based society is growing and becoming common practise.
There is a growing lack of recycled fibre in the recycling system, which drives a need to invest in the production of fresh fibre.
The forestry industry, which may have been seen as conservative, is becoming more and more innovative, focusing increasingly on R&D.
After years of development, large scale wooden based buildings (residential as well as commercial) are getting a broader acceptance.
We see these trends; with all the new opportunities they offer for the forestry industry. And we’ll take an active role in this process of change. Because we help create value for companies around the world by transforming data and knowledge into strategic advice and efficient communication.