Paper Profits in Pandemic!

March 21st, 2022

The U.S. fast-moving consumer goods (FMCG) sector grossed sales of $970 billion in 2021, up 2.1%.


Today’s post is written by Ivy Ray, Senior Procurement Specialist at SafeSourcing Inc.

We have experienced a shift in our economy, due to the unexpected demand on supplies, and supply chain disruptions during the recent pandemic.  Labor shortages and freight issues have caused major issues that none of us could foresee. The inflation rate is soaring, and gas prices are rising at a steady clip which is evident in what it cost to buy food, consumable goods, and appliances.

The global pulp and paper market is projected to grow from $351.51 billion in 2021 to $370.12 billion in 2028 at a CAGR of 0.74% in forecast period, 2021-2028. [i] The main products include wrapping paper, paper packaging material, writing paper, printing paper, tissue paper, rolls, and specialty paper. The leading paper manufacturers in the U.S. are International Paper, Georgia-Pacific, Kimberly-Clark, and WestRock. [ii]  Sales of disposable sanitary items such as toilet and bathroom paper, as well as the use of beverage napkins and specialty wipes in restaurants and bars, have greatly increased. The demand for paper packaging has also increased, partly due to the drive to reduce plastic use.

At the initial surge of the pandemic, retailers were often out of stock on paper products which resulted in a loss of revenue for their bottom line. According to Supermarket News, out-of-stocks cost retailers $82 billion in missed sales last year.[iii]  While consumers and retailers are negatively affected, the manufacturers have profited greatly. Still, the U.S. fast-moving consumer goods (FMCG) sector grossed sales of $970 billion in 2021, up 2.1%. The bath and toilet paper market is expected to rise in both the commercial and residential use. Kimberly-Clark’s annual revenue increased from $18.5 billion in 2019 to $19.1 billion in 2020, a (3.74%) increase (35.1% from Consumer Tissue).[iv]  They experienced a .19% decrease in revenue in 2019 from the previous year. In their current annual report, Georgia-Pacific reported a total revenue of $1,182.1 million for FY2021, representing an 11.3% increase when compared to that in FY2020.[v]

The fact is, increasing costs and low availability is an issue of concern that affects both the consumer and retailer. If you are a retailer with concerns about stock availability and/or cost reduction, allow our SafeSourcing team to partner with you to procure your products and services and get the savings you need.

For more information on how SafeSourcing can assist you in exploring your procurement solutions for your business or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire customer services team waiting to assist you today.

We look forward to your comments.







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