The February 2025 reports from the American Forest & Paper Association (AF&PA) for Packaging and Printing &Writing are now published.
As we know, packaging papers are closely tied to consumer goods and e-commerce, sectors that often reflect economic activity, as P&W for some extend. The decrease in shipments displayed in the chart below might indicate reduced demand potentially due to weaker consumer spending or a slowdown in manufacturing and retail activity. The modest year-to-date increase in the operating rate for packaging (+0.6%, link below) despite a significant drop from last year (-3.2%) suggests mills are adjusting capacity but still operating below peak efficiency, possibly in response to lower demand.
The drop in food wrapping shipments for two years in a row stands out. Could this reflect shifting consumer habits—perhaps a move away from packaged foods due to inflation-driven cost-cutting? Or could it indicate a reduction in single-use packaging amid sustainability pressures?
