July 23, 2024 (press release) –
Rising prices making recovery more economical for US producers
Cleveland, OH, July 23, 2024 — US recovery of paper from the municipal solid waste (MSW) stream is forecast to increase 1.7% yearly in volume terms through 2028, according to Recovered Paper: United States, a report recently released by Freedonia Focus Reports. Growth in US paper and paperboard production will support demand for wastepaper as an input material. Increased demand will put upward pressure on prices for recovered material, making recovery more economically feasible and possibly leading to higher levels thereof. Due to the implementation of China's National Sword Policy, US paper producers have invested in increasing US recycled paperboard production, as the increased supply of recovered material reduced input costs for domestic recyclers. The majority of new capacity that has come online or been announced since 2017 has been for producing linerboard and corrugated medium from old corrugated containers (OCC). In addition, gains in recovery volumes will be supported by US exports of post-consumer paper, particularly to countries that possess a vigorous paper industry but lack resources to meet demand for virgin fiber, particularly in Southeast Asia.
Faster growth will be constrained by source reduction efforts from paper product manufacturers and continued use of digital media. Furthermore, restraints on paper recovery volumes will include slower expansion in the reach of recycling programs in the US over the forecast period compared to the historical decade; this is because single-stream recycling systems are not as financially feasible as they were prior to China’s National Sword program.
These and other key insights are featured in Recovered Paper: United States. This report forecasts to 2028 US recovery of post-consumer paper from the US MSW stream in short tons. For comparison, this report also forecasts the generation of post-consumer paper in the MSW stream to 2028. Total paper recovery is segmented by type in terms of:
- packaging
- mixed paper products
- newspapers and mechanical papers
Total paper generation is segmented by type as follows:
- packaging
- mixed paper products
- newspapers and mechanical papers
- other paper products such as tissue paper, paper towels, paper plates and paper cups
To illustrate historical trends, total paper volumes generated and recovered along with their segments are provided in annual series from 2013-2023.
Generation refers to the weight of materials and products as they enter the waste management system from residential, commercial and institutional sources and before recycling, composting, combustion or landfilling take place. Pre-consumer (industrial) scrap is not included in the generation estimate. Source reduction activities, such as backyard composting, take place ahead of generation.
Recycling is defined as the recovery of useful materials, such as paper, glass, plastic and metals, from the MSW stream, along with the transformation of the materials, to make new products to reduce the amount of virgin raw materials needed to meet consumer demands.
The annual volume of material recovered from other paper products is negligible and is therefore excluded from total recovered paper. Pre-consumer paper and paper combusted for energy are also excluded from this report. Throughout this report, measures in tons refer to short tons.
More information about the report is available at:
https://www.freedoniagroup.com/freedonia-focus/recovered-paper-united-states-ff25019.htm
About Freedonia Focus Reports
Each month, The Freedonia Group publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Packaging reports can be purchased at Freedonia Focus Reports.
Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including:
- total historical market size and industry output
- segmentation by products and markets
- identification of market drivers, constraints, and key indicators
- segment-by-segment outlook in five-year forecasts
- a survey of the supply base
- suggested resources for further study
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