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Upsurge for recovered paper market

Global – The manufacturing economies of China and other emerging countries will ensure steady demand growth for paper packaging, according to research firm Smithers Pira. ‘In fact, the overall market for recycled paper packaging will grow at a CAGR of 5% to reach US$ 139 billion in 2018,’ it predicts.

In the USA and Canada, paper and paperboard recovery has increased by 81% since 1990, with the countries achieving respective recycling rates of 70% and 80%. In Europe, the average is 75% while the UK has recorded 80% and both Belgium and Austria have managed nearly 90%.

A ′rapid′ surge in demand for paper pulp has been identified for China, India and the rest of Asia. These are the ′fastest growing users of paper per capita′, largely owing to rising consumerism in this part of the world. China′s packaging demand has been growing at an annual rate of 6.5% since 2008 – ′far higher than anywhere else in the world′, observes Smithers Pira.

′Along with this demand for paper packaging, the demand for recycled paper is also increasing.′ The company estimates that demand for recycled paper will exceed supply by 1.5 million tonnes of recycled pulp per annum by the year 2018. In order to satisfy growing demand, particularly in Asia, the paper industry is looking to set up packaging plants in the developing world.

′Further improvements in paper recycling will also help to grow the market, as recent advances have made it possible to recycle coated paper packaging along with corrugated paper,′ the researcher adds. ′This will reduce the cost of recycling significantly, driving up the demand for recycled paper.′

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