Paper Products Distributors NAICS 4241

Feb 6, 2026 - International Paper to Split into Two Companies

• In late January, International Paper (IP) announced plans to split into two separate companies, North America and EMEA, according to Packaging Dive. The move could reshape supply dynamics for US paper distributors by creating a more streamlined, regionally focused supplier with tighter control over assets, pricing, and service models. The North America business will consolidate IP and DS Smith operations under a single strategy centered on innovation, productivity, and targeted capital investment, which may influence distributor access to containerboard, corrugated packaging, and value-added products. A more concentrated footprint and optimized asset network could strengthen IP’s cost position, potentially affecting contract terms, lead times, and competitive pressures across the distribution channel. As the EMEA business becomes an independent entity, distributors relying on global supply chains may also see shifts in import availability and cross-regional coordination. The separation is expected to be completed in 12 to 15 months, pending regulatory approvals.
• Paper distributors may see their costs increase as box manufacturers signal price increases. Packaging Corporation of America told customers in January that it would raise containerboard prices by $70 per ton on March 1, marking the first significant increase of 2026 and signaling a broader shift after a year of steep capacity cuts and weak demand, according to Packaging Dive. International Paper quickly followed with an identical hike, a pattern analysts say often prompts other large producers to move in tandem. For North American producers, the increases come as operating rates climb back into the low 90s after roughly a 10% loss of production capacity in 2025, tightening supply and strengthening producers’ pricing power. Analysts note that rising energy costs, wage inflation, and higher equipment expenses are driving the push for higher prices, which could halt further erosion in box pricing. Additional increases may follow as structural cost pressures persist across the sector.

• US boxboard production declined 2% in the fourth quarter of 2025 compared to Q4 2024, according to the American Forest & Paper Association (AFPA). The boxboard operating rate was 85.6% in the fourth quarter of 2025, down 2.3 percentage points from Q4 2024. US containerboard production declined 4% in the fourth quarter of 2025 compared to Q4 2024, according to the AFPA. At 91%, the US containerboard operating rate was unchanged in Q4 2025 compared to a year earlier.
• Packaging M&A activity in 2026 is expected to remain steady or rise slightly, according to Packaging Dive. The shift could meaningfully affect distributors of paper packaging products as producers refine portfolios and pursue smaller, more targeted deals. With organic growth limited and trends like lightweighting suppressing volumes, converters are increasingly looking to acquisitions or divestitures to strengthen margins, streamline operations, and rebalance capacity in sectors such as boxboard. These moves could alter supplier lineups for distributors, tighten or loosen availability depending on which assets change hands, and reshape pricing leverage as consolidation continues. Private equity’s growing role, driven by aging portfolios and lower interest rates, may introduce new ownership models that emphasize efficiency and value extraction, influencing service levels and contract structures. As companies shed non-core units and pursue value-added technologies, distributors may need to adjust sourcing strategies to keep pace with a more fluid supplier landscape.