Asia Pacific, with a value of USD916 billion, is the largest forestry, wood and paper goods producer in the world. Forecasts for the region’s industry remain positive for 2021-2030, due to developing economies and rising population. However, the biggest changes are happening inside the region as surging India and Southeast Asian countries attract significant investments in production giving increasing competition to the leading China.
Asia Pacific is the leading region in the global forestry, wood and paper industry, accounting for 45% of global output. Over 2015-2020, the industry’s performance was weakening, due to complicated growth in regional construction and furniture industries, coupled by an elevated slump in 2020 as a result of the COVID-19 pandemic. However, the industry is expected to pick up the growth pace and reach pre-pandemic levels already in 2021 on the back of pent-up demand.
China is expected to remain the top producer for forestry, wood and paper in the world by 2030. However, the rising production costs, internal investment shift to more advanced sectors and growing environmental concerns will result in slower-than-regional-average growth over 2021-2030. The surging economies, such as India, Indonesia and Vietnam, are set to show particularly robust expansion over the forecast period to slowly cement positions as the next manufacturing hubs.
The competitive landscape in the Asia Pacific forestry, wood and paper industry remains fragmented. New FDI and growing economies ensure constant emergence of competition, which disrupts any significant concentration efforts. Finally, while in the region’s developed countries the M&A market is active, similar trends in the developing Asian countries remain weak.
The COVID-19 pandemic has boosted e-commerce business around the world. In Asia Pacific, the internet retailing market value jumped by 22% during the year, driving demand for packaging. With growing business digitisation and sustainability ideas rising in popularity in Asia Pacific, paper products are expected to record a better-than-industry-average growth pace over 2021-2030.
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