Paper Products Distributors
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 6,200 paper and paper product distributors in the US act as middlemen between paper products manufacturers and large customers, such as publishers, printers, government offices, corporate offices, manufacturers, resellers, and retailers. Companies may specialize in bulk printing and writing paper; stationery and office supplies; or industrial and personal service paper. Some large companies have retail operations.
Competition From Alternative Sources
Paper products distributors compete with a variety of alternative sources, including office supply superstores, office supply distributors, traditional retailers (mass merchandisers, warehouse clubs), manufacturers, and Internet retailers.
Push For Less Paper
Technology and the increasing concern over recycling and the environment have led to considerable efforts to reduce paper consumption.
Industry size & Structure
The average paper products distributor operates out of a single location, employs 18-19 workers, and generates $13.2 million annually.
- The paper products distribution industry consists of about 6,200 companies that employ about 116,000 workers and generate about $82 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 firms account for about 70% of industry sales.
- Some companies are vertically-integrated; converters may act as distributors and large distributors may have retail operations.
- Large companies with paper distribution operations include Office Depot and Essendant (formerly United Stationers).
Industry Forecast
Paper Products Distributors Industry Growth
Recent Developments
Feb 7, 2025 - Shift to Paper Packaging Continues
- 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.
- The Trump administration’s tariff-based trade strategy could disrupt the US paper industry and increase its costs, according to the American Forest and Paper Association (AFPA). On January 21, 2025, President Trump declared that a 25% tariff would be imposed on imports from Canada and Mexico beginning on February 1, 2025. On February 3, Trump agreed to pause the tariffs for 30 days after Canada and Mexico agreed to increase their border security and drug interdiction efforts. In 2024, pulp and paper product trade between the US and Canada totaled $14 billion, and pulp and paper trade with Mexico was over $5 billion, according to the AFPA. The paper-making process includes several steps - making pulp from wood chips, using pulp to manufacture rolls of paper or paperboard, and using those to make converted products such as boxes. A single product can cross borders several times during this process and face levies each time it does.
- In 2023, between 65% and 69% of paper available for recovery in the US was recycled, according to a report released in mid-November by the American Forest & Paper Association (AF&PA). Paper recycling volume in 2023 amounted to an average of 126,000 tons per day. The Recycling rate for cardboard in 2023 was between 71% and 76% - or about 90,000 tons per day. Nearly half of the paper recycled in 2023 was used to make containerboard, which is used to manufacture cardboard boxes. The AF&PA said the US currently recycles almost 60% more paper than it did in 1990.
- North American demand for recovered paper is expected to grow as materials recovery facilities (MRF) leverage technology to produce higher volumes of cleaner fiber, according to a recent Fastmarkets webinar. MRFs are investing in optical sorters and AI-enabled equipment that yield cleaner fiber streams, which command higher prices. Improvements at MRFs come as newer paper mill machines have come online in the past year that can process higher volumes of recovered fiber, both mixed paper and old cardboard containers (OCC). Large paper firms – including Smurfit Westrock and Graphic Paper International - are increasingly prioritizing recovered fiber facilities as older plants are closed and remaining operations are consolidated and optimized.
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