The firms in the Paper and Paper Products industry are usually divided into two main groups:
• Pulp and paper makers and
• Converted paper products makers
Firms that make pulp but not paper are called pulp mills. Firms that make paper and sometimes pulp are called paper or paperboard mills. Making pulp requires separating cellulose fibers from impurities in wood or paper. Making paper requires matting fibers into a sheet. Making converted paper products and other materials requires cutting, shaping, coating, and laminating.
The ‘converted paper products' industry acquires its raw materials (such as paper, old corrugated containers and paperboard) from other producers within this industry, from paperboard manufacturers and pulp mills. It also purchases flexible packaging to store its products from plastics producers. The products made include tissues, paper-based hygiene products such as diapers as well as paper food plates, trays and dishes etc.
Aruvian Research analyzes the Paper & Paper Products Industry in the United States in a PEST Framework Analysis. A PEST analysis is concerned with the environmental influences on a business. The acronym stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business. Identifying PEST influences is a useful way of summarizing the external environment in which a business operates.