The American Forest & Paper Association (AF&PA) has released its 66th Annual Paper Industry Capacity and Fiber Consumption Survey, providing one of the most comprehensive snapshots of the U.S. paper industry’s performance, capacity changes, and fiber consumption trends.

The report covers approximately 87% of U.S. paper and paperboard manufacturing capacity, making it one of the industry’s most important annual benchmarks.

Key Findings at a Glance

Metric	2025 Result	Change
Total paper & paperboard production	66.3 million tons	-3.7%
Total fiber consumption	-3.5%	Declined
Recovered fiber consumption	-4.0%	Declined
Wood pulp consumption	-3.2%	Declined
Containerboard production	36.1 million tons	-4.4%
Packaging paper production	Increased	+1.7%
Boxboard production	12.4 million tons	Flat
Tissue production	7.8 million tons	-0.8%
Printing-writing operating rate	82.8%	Up from 76.8%
Containerboard operating rate	91.9%	Stable

Fiber Consumption Continues to Decline

One of the most important indicators in the survey is fiber consumption.

AF&PA reported:

• Total fiber consumption declined 3.5%
• Recovered fiber usage fell 4%
• Wood pulp usage decreased 3.2%

Fiber demand is often viewed as a leading indicator of production activity because it reflects actual mill operating levels.

The decline suggests continued production rationalization across several paper grades.

Containerboard Remains the Industry’s Backbone

Despite lower production volumes, containerboard continues to dominate the U.S. paper industry.

Containerboard Statistics

• Production: 36.1 million tons
• Production decline: 4.4%
• Capacity decline: 5.1%
• Operating rate: 91.9%

Even after capacity reductions, containerboard still represents more than half of total U.S. paper and paperboard capacity.

This highlights the continued importance of:

• E-commerce shipping
• Corrugated packaging
• Industrial packaging
• Consumer goods logistics

The sector remains one of the strongest segments in North American papermaking.

Packaging Paper Shows Positive Growth

While many paper grades faced pressure, packaging paper production increased by 1.7%.

This reflects several ongoing market trends:

Growth Drivers

• Expansion of online retail
• Sustainable packaging adoption
• Plastic replacement initiatives
• Consumer preference for fiber-based packaging

Packaging remains one of the most attractive long-term growth segments within the paper industry.

Printing-Writing Paper Continues Long-Term Decline

The most dramatic structural change remains within printing-writing grades.

Capacity Reduction

2025 capacity:

• 7.7 million tons

2015 capacity:

• Nearly 18 million tons

This represents a decline of approximately 57% over the past decade.

A Positive Sign

Although capacity continues shrinking, operating rates improved significantly:

• 2024: 76.8%
• 2025: 82.8%

This suggests remaining mills are operating more efficiently after years of consolidation.

The sector appears smaller but healthier.

Tissue Remains Stable

Tissue production declined only slightly:

• 2025 production: 7.8 million tons
• Change: -0.8%

Compared with other grades, tissue remains one of the most stable paper markets because demand is linked closely to population and daily consumer needs.

Industry analysts continue to view tissue as a defensive segment during economic uncertainty.

What the Numbers Really Mean

Looking beyond the headline production decline, several important themes emerge.

1. Capacity Rationalization Is Working

The industry continues removing excess capacity in weaker grades.

This has helped maintain:

• Strong operating rates
• Better mill utilization
• Improved cost competitiveness

2. Packaging Is Driving Investment

Growth continues shifting toward:

• Containerboard
• Packaging paper
• Corrugated products
• Fiber-based alternatives to plastic

3. Printing-Writing Has Reached a New Reality

Digitalization continues reducing demand for:

• Office paper
• Printing paper
• Publication grades

However, surviving mills are achieving stronger utilization levels.

4. Tissue Remains Resilient

Tissue continues serving as a stable demand segment with relatively predictable consumption patterns.

Implications for Global Paper Markets

For suppliers, equipment manufacturers, and investors, the AF&PA survey provides several signals.

Paper Machine Investments

Future investments are likely to focus on:

• Packaging conversion
• Tissue capacity upgrades
• Efficiency improvements
• Sustainability projects

Fiber Markets

Declining fiber consumption may continue affecting:

• Recovered paper demand
• Pulp pricing
• Recycling infrastructure

Sustainability Opportunities

Growing demand for fiber-based packaging supports:

• Circular economy initiatives
• Plastic replacement programs
• Sustainable packaging investments

Industry Insight

The most important takeaway from the AF&PA survey is that the U.S. paper industry is not shrinking uniformly.

Instead, it is undergoing a structural transformation.

While printing-writing grades continue to contract, packaging and tissue remain highly relevant and continue attracting investment.

The industry’s future increasingly revolves around fiber-based packaging, logistics, e-commerce, and sustainable materials rather than traditional graphic paper markets.

Final Thought

The latest U.S. paper industry trends 2025 report illustrates an industry that is adapting rather than declining.

Production may have fallen 3.7%, but operating rates remain strong, packaging demand continues growing, and manufacturers are actively aligning capacity with market realities.

For industry participants, the message is clear: growth opportunities increasingly lie in packaging, tissue, sustainability, and operational efficiency, while traditional paper grades continue their long-term adjustment.

Last Updated on 03/06/2026 by Jota Machinery