Paper thin: Rising purchase costs and falling demand are slicing into industry margins

The Paper Product Wholesaling industry is in a state of decline. Paper products are increasingly being replaced with digital products as consumers demand environmentally friendly and convenient alternatives. People are increasingly consuming media through digital channels and communicating and conducting business online, reducing the need for physical copies of items such as newspapers and letters. In addition, wholesalers are struggling against the rising tendency for manufacturers and retailers to deal directly with one another, cutting out the need for wholesalers. Industry revenue is expected to fall at an annualised 1.2% over the five years through 2017-18, to $6.6 billion. However, industry revenue is projected to rise by more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The Paper Product Wholesaling industry is in a state of structural decline
  • Higher disposable incomes and largely positive business confidence have supported demand
  • The rising popularity of digital alternatives is projected to limit paper product sales
  • Industry Report - Industry Analysis Chapter

    The Paper Product Wholesaling industry’s performance has deteriorated over the past five years due to falling demand for paper products and the growing trend towards wholesale bypass. The rising adoption of digital and plastic substitutes by businesses and households has further eroded demand for printing paper, stationary and publishing-grade paper. Furthermore, other paper items have struggled to compete with alternative biodegradable and plastic products. Wholesale bypass has accelerated as downstream markets have turned to dealing directly with manufacturers in search of cost savings. Industry profitability has fallen over the past five years, due to higher purchase costs and downward pressure on industry prices from low-cost imports and buyers’ strong bargaining position. Unp...purchase to read more.

    Additional Insights for the Paper Product Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Paper Product Wholesaling are:

  • Supply contracts in place for key inputs
  • Automation - reduces costs, particularly those associated with labour
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Demand from printing and Business confidence index in the Paper Product Wholesaling industry impact industry performance..

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    What's in this report

    What is the Paper Product Wholesaling Industry?

    Industry operators purchase a range of paper and paper products from domestic and foreign manufacturers to onsell to retailers, downstream manufacturers, businesses, government departments and other industries. Industry products include paper rolls, cardboard containers, sanitary paper products, paper stationery, paper bags and sacks, and other paper products.

    Industry Products
  • Pulp and paper
  • Paperboard containers
  • Sanitary paper products
  • Paper stationery
  • Other paper products
  • Industry Activities
  • Paper roll and ream wholesaling
  • Paper and paperboard container wholesaling
  • Paper bag and sack wholesaling
  • Sanitary paper product wholesaling
  • Paper stationery wholesaling
  • Pulp wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from printing
  • Business confidence index
  • Domestic price of paper products and paperboard
  • Trade-weighted index
  • Real household disposable income

  • Current Performance
  • Rising substitute use
  • Consumer and business demand
  • Supply chain trends and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Product substitution
  • Wholesale bypass and profitability
  • Business conditions and international trade
  • Table: Paper Product Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Paper Product Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Printing
  • Newspaper Publishing
  • Newsagents and Book Retailers
  • Supermarkets and Grocery Stores
  • Fast Food and Takeaway Food Services
  • Cafes and Coffee Shops

  • Key Selling Industries
  • Corrugated Paperboard Container Manufacturing
  • Paper Bag and Other Paper Product Manufacturing
  • Paper Stationery Manufacturing
  • Paperboard Container Manufacturing
  • Pulp, Paper and Paperboard Manufacturing
  • Sanitary Paper Product Manufacturing

  • Products & Services
  • Paperboard containers
  • Sanitary paper products
  • Pulp and paper
  • Paper stationery
  • Other paper products
  • Chart: Paper Product Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Printers and publishers
  • Paper product manufacturers
  • Food and beverage product manufacturers
  • Other industries
  • Businesses
  • Chart: Major Market Segmentation for the Paper Product Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Paper Product Wholesaling

  • Basis of Competition
  • Internal Competition
  • External Competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Paper Product Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Paper Product Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Paper Product Wholesaling Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The buying and selling of products or services over electronic systems such as the internet and other computer networks.
  • Paperboard
  • Thick, strong paper that is often used in packaging.
  • Wholesale Bypass
  • An increasingly popular trend whereby manufacturers supply goods directly to retailers or users.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Paper Product Wholesaling market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    This report on Paper Product Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Paper Product Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Paper Product Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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