“E-commerce deliveries might lead to an increase in reusable packaging, and fibre is best placed to deliver a lightweight, reusable and recyclable outcome.”
Almost all of the region’s softwood resources are grown in New Zealand and Australia, and the demand-side pressure on it is substantial. There is not enough virgin fibre available now, let alone over the next two to three decades. But where there are challenges, opportunities can be found too. “On the fibre side, recovered paper pulp – as a product in its own right – cannot be produced too far away from Australia and New Zealand.” However this kind of situation might bring new oppor- tunities for Finnish pulp in the future despite the geo graphy. “Australia’s softwood plantations are currently supplying material for pulp mills that manufacture virgin kraftliner. For the time the amount of virgin fibre is sufficient, but the resource is under pressure. At least currently, Australia does not use much Nordic pulp.” FIBRE IS SUITABLE FOR E-COMMERCE Offering lightweight materials in the corrugated box mar- ket is one of the possibilities which can compete with the next generation of substitute products. Woods considers that the pressure from e-commerce deliveries and their need for less and lighter weight pack- aging might lead to an increase in reusable packaging, and fibre is best placed to deliver a lightweight, reusable and recyclable outcome. •
GREAT DISTANCES MAKE PACKAGING IMPORTANT According to Woods, when it comes to demand in Australia the situation is similar to most other mature economies. Demand for most packaging is also mature, and that includes corrugated boxes. That means the eco- nomic growth is steady and the demand for corrugated boxes doesn’t grow very much annually. However, the first thing Woods points out when discuss- ing the cardboard market in Australia are the geographical challenges, which affect the cardboard market, too. “If there is one difference between Australia and all other developed markets, it is the distances products have to travel from one place to the next. Australia is a massive continent with a small population, and it is a long way from most international markets,” Woods explains. “That means packaging really matters, and as a result, corrugated boxes will continue to be important for the Australian economy.” VIRGIN FIBRE IS RUNNING OUT At the moment the biggest challenge is the access to fibre for corrugated box businesses in Australia and around the region. “Of course, there is plenty of recovered material avail- able, though it is sometimes difficult to get access to it at a reasonable price and in good condition. However, the really challenging situation is virgin fibre.”
Tim Woods Managing Director of IndustryEdge, a company that provides market intelligence, trade data and analysis in the paper, pulp and recovered paper sectors in Australia and New Zealand. He has experience in the Asia Pacific region, especially in South East Asia.
53
Powered by FlippingBook