Executive Summary

The UK paper and board market is estimated to have amounted to 11.9 million tonnes in 1997, up from the 1996 figure of 11.5 million tonnes. The market is subject to large price fluctuations, so volume figures give a much better indication of true market size. The published government figures gave a total UK demand of £13.6bn for 1995, and Key Note estimates that the apparent UK demand on this basis would have been £14.9bn in 1996, due to price changes.

The market includes the manufacture of paper pulp from vegetable fibres, whether from chemically- or mechanically-treated timber, cotton fibres or recycled fibres. The report examines the processing of the rolls and large sheets of paper into a variety of finished paper and board goods, such as cartons, corrugated packaging, stationery, newsprint and tissues.

The market is dependent on demand for paper goods with the newspaper and magazine market an important end user. Paper for newsprint and for lower quality applications is bought on the world market, and is subject to severe price changes, and strong competition from countries with a low-cost raw material source. At the higher quality end of the market, individual niche markets are addressed by particular firms, and a number have achieved enviable reputations for the quality of their products.

Specific factors affecting the market include the worldwide stocks of individual products, which determine spot prices and mill outputs. The paper industry is a heavy user of energy and water, and is subject to strict environmental laws. All major papermakers have well-developed environmental policies on board, and are actively seeking widespread efficiency improvements. The European Union (EU) Packaging Directive has a strong influence on the recycling programme for paper-based packaging.

The paper industry is in a state of flux at present, but there is an underlying belief that European economic progress is being achieved, and that the paper industries will benefit from the increased activities and use of paper for promotional material, packaging and stationery. There will be an overall UK apparent consumption of 14 million tonnes in the year 2001.

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