Have you been watching the volatility of paper costs? While it’s a fundamental resource, it’s also one that’s availability has been contentious. With high demand and low supply, prices increase. As a result, you may have seen budgets for paper rise in 2022, especially around print and mail operations. To prepare you for what’s ahead, check out this 2023 paper costs preview.
The Paper Costs Landscape
The paper price escalation is a direct result of the pandemic. The paper market experienced many challenges, including a reduction in production, supply chain issues, and requirements to manufacture certain products over others. That led to price increases in commercial paper of 6-15% in 2021.
Even as the pandemic faded and supply chains were restored, 2022 saw increases in prices, too. Some of that is due to longer growing seasons for trees, a consequence of climate change.
In looking at the entire cycle to produce commercial paper, it’s complicated and requires lots of phases. The costs associated, such as fuel and energy, are ballooning due to inflation. So, what can you expect in 2023?
2023 Paper Price Expectations
In looking at paper production, it’s a global industry. Mills are in many countries, including China, the U.S., Mexico, Japan, Russia, and Germany. While each has its own economy, global trends impact the business. Some of the most recent pricing announcements include:
- Mitsubishi HiTec Paper raised all prices across its portfolio by 15% in September 2022.
- Nippon Paper announced it would increase prices by 15-25% in 2023, citing high costs of raw materials and energy.
Overall, there is uncertainty in the market, and demand is still outpacing supply. The year ahead could involve much higher rates and availability issues. If your organization handles print and mail in-house, your budget will need to grow, cutting out other expenditures. You can find relief by working with a transactional print and mail company.