Paper Products Distributors NAICS 4241

Apr 6, 2026 - USDA Cancels Program That Promoted Paper-Based Packaging

• In March, the USDA terminated the Paper and Packaging Board, ending a decade-long marketing program funded by manufacturers and importers to promote paper-based packaging, according to Packaging Dive. A recent referendum failed, with only about 26% of eligible participants, representing less than 10% of volume, supporting continuation. The program, funded by a 35 cents-per-ton fee paid by large, US-based manufacturers and importers of paper and paper-based packaging, had a $20 million budget in 2025 and helped drive demand, including an estimated 1.1 million short tons of annual packaging consumption from 2019 to 2023. For the packaging and labeling services industry, the shutdown removes a key source of coordinated marketing that boosted paper-based packaging adoption and supported the shift away from plastics. Companies may now need to increase their own marketing and innovation efforts to sustain demand and maintain momentum for paper packaging.
• The global market for molded pulp packaging is expected to grow steadily through 2030, according to market research firm Smithers. The worldwide molded pulp packaging market is forecast to reach $4.7 billion in 2026 and is expected to post a compound annual growth rate (CAGR) of 4.1%, reaching a value of $5.5 billion in 2030. Increased regulation and corporate commitments to reducing plastic content in packaging are boosting demand for molded pulp alternatives. Most commonly used in egg and wine packaging, molded pulp is gaining market share in other applications, including foodservice, cosmetics, and pharmaceuticals.

• Total US packaging papers and specialty packaging shipments increased 4% in February compared to the same month in 2025, and were 1% year-to-date compared with the same period in 2025, according to the American Forest & Paper Association (AFPA). Bleached food wrapping shipments dropped 1.5% in February compared to a year earlier. The unbleached packaging paper operating rate in February increased four percentage points to 83.9% from February 2025. February's packaging papers and specialty packaging inventories increased 7% year over year.
• International Paper plans to split into two publicly traded companies, creating separate North America and EMEA (Europe, Middle East, and Africa) packaging businesses with distinct strategies, capital priorities, and leadership teams. The company says the move will sharpen operational focus and allow each business to pursue region-specific investments, innovation, and cost improvements. The North America unit will concentrate on sustainable packaging, productivity gains, and targeted acquisitions, while the EMEA business will expand high-performance operations and tailor investments to regional market demands. The separation, expected to be completed in 12 to 15 months as a tax-free spin-off, depending on final terms, will leave International Paper with a meaningful ownership stake in the new EMEA company, which plans dual listings in London and New York.