U.S. paper industry operating rate reaches 87.5% in 2024, says AF&PA
Annual report also shows decline in total capacity, production growth, and investments in packaging and tissue
The American Forest & Paper Association (AF&PA) has released the 65th edition of the Paper Industry Annual Capacity and Fiber Consumption Survey, providing detailed data on U.S. paper industry capacity and production.
The report shows that in 2024, the industry improved asset utilization, reaching an 87.5% operating rate, nearly four percentage points higher than in 2023.
Despite the improved operating rate, total U.S. paper and paperboard capacity decreased by 2%, reaching 78.1 million tons in 2024. This decline is steeper than the average annual decrease of 0.9% recorded since 2015.
On the other hand, total production increased by 3.2% last year, driven mainly by the strong performance of the containerboard segment.
STRONG INVESTMENTS IN PACKAGING AND TISSUE CONTINUE
The report highlights continued investments in mill modernization and machine conversions, particularly in the packaging and tissue sectors.
- In 2023, four new containerboard machines started up.
- A boxboard machine came online this month, and another is expected to start later this year.
- Additionally, a new tissue machine is scheduled to start in the second half of the year.
At the same time, more capacity was permanently removed across various sectors as part of efforts to improve efficiency and competitiveness.
PERFORMANCE BY SEGMENT
- Containerboard: capacity declined by 0.9% in 2024. Despite three consecutive years of decline (2022 to 2024), containerboard still represents more than 50% of total U.S. paper and paperboard capacity.
- Packaging Paper: capacity grew by 4.6%, following a 4.8% increase in 2023. For the second consecutive year, growth came entirely from unbleached packaging papers, while bleached grades have declined for six consecutive years.
- Boxboard: saw a 3.3% decline in 2024. This month, a bleached boxboard machine started up following conversion from a printing-writing line, and a recycled boxboard machine is expected to come online in Q4 as part of a new mill.
- Printing & Writing: posted the sharpest decline at 6.9%, the steepest drop since the pandemic-driven fall in 2021. Capacity fell below 9 million tons, accounting for only 12% of total industry capacity, the same as in 2023.
- Tissue: capacity dropped by 1.7% in 2024. Despite three consecutive years of decline, tissue’s share of total capacity continues to grow in the long term, increasing from 7.2% in 2000 to 11.3% today.
ABOUT THE REPORT
AF&PA’s survey provides comprehensive data on U.S. paper, paperboard, and pulp capacity for 2024 and projections for 2025, as well as fiber consumption. The report is based on an extensive survey of U.S. pulp and paper mills, covering about 89% of the industry’s total capacity.
