IBISWorld has released an updated report on the Coated & Laminated Paper Manufacturing industry.
The report predicts a marginal increase in the revenues in the next five years. The US dollar is expected to continue its depreciation, as seen in the past five years, resulting in competitive exports in the global market. With increasing environmental awareness, plastic bags will be banned at grocery stores, driving companies to develop and market innovative products of higher value to accelerate sales. These key trends forecast a marginal increase in the industry revenues till 2017. It is anticipated that industry consolidation will accelerate in the next five years as struggling units will be either purchased by larger firms or merge with major players.
The Coated and Laminated Paper Manufacturing industry has seen a judicious decline in the past five years with an average revenue decline of 1.8% annually. According to analyst Nikolas Hulewsky, the weak output in industries such as cement manufacturing, printing, publishing and label making, decreased the demand for flexible packaging as well as coated paper. On the heels of improved demand in the industry's key markets, the revenues are slated for a growth of 3.5% in 2012.
While depreciation of the US dollar has helped industry exports in some markets, increase in business and consumer purchasing power post recession has augmented the demand for print-based advertising, packaging, and specialized paper products. Though a large number of medium-size businesses prevail in the Coated and Laminated Paper Manufacturing industry, there is sufficient competition to ensure that a single operator is unable to slice a large share of the market.
Source: http://www.ibisworld.com