In 2023, the pulp, paper, and forest industries navigated through a series of dynamic market shifts and unanticipated challenges. Here are five key predictions shaping the upcoming year.
- The inventory destocking that occurred in virtually every industry in 2023 is coming to an end.
- Most new forestry investments in 2024 will be concentrated in the US South. The forests in the US South, including North Carolina, boast incredible productivity and offer some of the most cost-effective fiber in the world.
- Housing starts will be relatively strong in 2024, hanging between 1.3–1.5 mm starts. In addition, demand for engineered wood—CLT, glulam, I-Joists, and mass timber—will continue to build, underpinning sawlog demand.
- Increase in investment in bio-economy production at pulp mills. Driven by governmental regulations such as the Green New Deal in the EU and supported by incentives like the Inflation Reduction Act.
- Global operating rates in the pulp and paper industry will continue to improve, bringing stability to the sector.