Paper Products Manufacturers

The 2,100 companies in the US manufacture paper products by cutting, shaping, coating, or laminating paper and other materials. End products are often referred to as converted paper goods. Product categories include paperboard containers, paper bags, coated and treated paper, stationery products, and sanitary products.

Variability in Raw Materials’ Costs

The paper industry is cyclical and cost of wood pulp (primary material in paper manufacturing) can fluctuate depending on global supply and demand.

Competition from Imports

Imports of converted paper products have grown at a healthy rate over the last decade.

Aug 6, 2026 - Kimberly-Clark Hopes to Replace Wood Fiber in Paper Products

• The Wall Street Journal reports Kimberly-Clark has identified hesperaloe, a drought-tolerant plant grown in arid climates, as a potential alternative to wood fiber in paper towels, toilet paper, diapers, and other hygiene products. The company says hesperaloe fibers can produce materials that are softer and stronger than wood-based products while potentially reducing costs, water use, and environmental damage. Kimberly-Clark has invested about $250 million in research, secured more than 30 related patents, and is building a pilot facility in Yuma, Arizona, that is scheduled to open next year. However, executives cautioned that large-scale commercialization will require substantially more investment and research. If successful, hesperaloe could reduce demand for timber from natural forests, reshape paper-product supply chains, and pressure companies involved in logging and wood-fiber production.
• US containerboard production fell more than 2% year over year in the second quarter, improving from an 8% decline in the first quarter, according to the American Forest & Paper Association (AF&PA) and Packaging Dive. First-half production was down 5%, reflecting facility closures that eliminated nearly 10% of North American capacity and a 19% drop in exports. Industry conditions strengthened as the operating rate approached 95%, mill inventories reached a 15-month low, demand rose about 1%, and box shipments increased 0.9%. Packaging Corporation of America and International Paper also reported higher box volumes, although International Paper said demand was softer than expected. Boxboard production increased 2% year over year, but its operating rate declined to 88.8%.
• According to Resource Recycling, packaging companies are increasingly considering mergers, acquisitions, and vertical integration to secure recyclable material supplies, strengthen sustainability capabilities, and drive packaging innovation. However, some McKinsey consultants say such strategies have done little to reduce volatility in recycling markets. Firms continue to face uncertainty around raw material costs and supply chains. At the same time, companies must navigate changing regulations, tariffs, fluctuating demand, and consumer resistance to higher-priced sustainable packaging. McKinsey noted that sustainability has become a baseline expectation in the packaging sector. At the same time, risk-sharing concerns, unpredictable demand, and ongoing supply-demand imbalances continue to hinder long-term recycling investments. Industry analysts expect modest growth in the paper and packaging industry over the next one to two years as economic and geopolitical uncertainty persists.
• According to World Paper Mill, Chinese paper and pulp manufacturers have expanded capacity beyond what the country can consume, and the excess is disrupting global paper markets. Between 2022 and 2025, China added about 12 million metric tons of additional paper and paperboard capacity, creating an estimated annual surplus of 4 million metric tons that is being exported at competitive prices, according to Fastmarkets. Chinese paper exports rose about 23% in the first half of 2025, supported by lower energy, financing, and production costs, which have reshaped trade flows and increased pressure on paper producers in North America, Europe, and other regions. This trend could affect the US paper product manufacturing industry by increasing competition from lower-cost imports, encouraging mill closures and consolidation, and accelerating shifts toward specialty packaging, premium tissue, recycled-fiber products, and other higher-value grades that are less exposed to commodity paper competition.

Industry size & Structure

A typical paper product manufacturer employs 130 workers and generates $66 million annually.

• The paper product manufacturing industry consists of about 2,100 companies that employ about 269,900 workers and generate $136.8 billion annually.
• The 50 largest firms account for 61% of industry revenue.
• Some large companies are vertically integrated and own paper mills.
• Large companies include Kimberly-Clark, Smurfit Westrock (formerly Smurfit Kappa and WestRock), and Amcor (Bemis Company).