Paper Products Distributors NAICS 4241

Apr 7, 2025 - AFPA Expresses Tariff Concerns

• In a March press release, the American Forest & Paper Association (AFPA) suggested that trade strife could disrupt North America’s complex paper product supply chains. AFPA President and CEO Heidi Block said, “Pulp and paper mills are strategically located across the United States to efficiently and sustainably create essential products for everyday use. From turning wood chips into pulp, pulp into base stock, and then transforming that raw material into a product that is then packaged for distribution, our industry’s manufacturing process involves many stages that can each happen at different facilities on both sides of the border.” During earnings calls in February, several paper companies – including Cascades, Clearwater Paper, and Smurfit Westrock – expressed concerns about escalating US-Canada trade tensions, according to Packaging Dive.
• The US paper distribution industry is expected to experience sluggish sales growth in the coming years, and the overall economy's growth will outpace it. The industry’s year-over-year sales rose to 1.0% in 2024 after decreasing by 7% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to rise to 1.1% in 2025, then see average annual growth of about 0.9% through 2029, according to Inforum and the Interindustry Economic Research Fund, Inc.

• Total US printing-writing (P-W) paper shipments dropped 9% in February compared to the same month in 2024, according to the American Forest & Paper Association (AFPA). On a month-over-month basis, the three grades of P-W paper – coated free sheet (CFS), uncoated free sheet (UFS), and mechanical (MECH) – saw mixed results as UFS shipments rose 5%, Mech increased 15%, and CFS fell 3%. US packaging papers and specialty packaging shipments declined 8% in February compared to a year earlier, according to the AFPA, and the operating rate for unbleached packaging papers fell 3.2 percentage points to 84.8%.
• Amid mounting regulatory requirements and consumer demand, more brands are shifting away from plastic packaging in favor of fiber-based alternatives, according to Packaging Dive. The United Nations Environment Program estimates that nearly all single-use plastic products are made with fossil fuel feedstocks, and production, use, and disposal of single-use plastics will account for almost 20% of the global carbon budget by 2040. So far, most of the shifts toward paper packaging have been food and shipping. Several brands are working with packaging firms to develop a paper-based bottle that is durable enough to contain liquids and can be easily recycled.