Sustainable stock offers positive angle on struggling paper sector

Eco-friendly grades are one of the most profitable areas in an otherwise bleak outlook for paper, according to a report by Markets Initiative.

The company's Trend Report 2008 claims that use of environmentally friendly stock in Canada has increased threefold in the last year, at a time when the paper industry has undergone consolidation with mill closures and poor financial results.

"Companies that implement environmental commitments with integrity stand to reap the benefits of increased customer respect, support and loyalty," said the report's author Nicole Rycroft, executive director of Markets Initiative.

The UK is at the vanguard of implementing green paper policies, with 80% of newsprint being recycled stock and 60% of UK book publishers setting out eco-friendly purchasing policies.

In comparison, Canada is only just catching up and the US is far lower on the green ranks. In 2006, just one newspaper and 70 magazines in Canada were printed on green stock, and there were only six printers printing them. Last year, the figures rocketed to 151, 191 and 66, respectively.

The growth reflects consumers' increasing awareness of the issue. The report cites a consumer poll that showed two thirds of respondents would pay more for newspapers, magazines and books printed on eco-friendly stock.

A spokesperson for Beswick Papers told printweek.com that it could be difficult to quantify the upswing in green paper. "It's a little bit intangible," he said. "Demand is increasing, and there is definitely a pull from what I call the end-user market.

"There has been a significant increase in the number of brands that have FSC accreditation, so there has been better availability over the last three to four years, but it has also been true that there is not enough FSC pulp to go round."

UK printer Cambrian last year changed its house sheet paper to FSC-accredited stock as standard.

Cambrian commercial manager Martin Koffer told printweek.com: "We wondered whether we would trap ourselves in doing so."

However, he said the initiative has been welcomed by its customers. "It has given something to customers who can't necessarily pay a premium.

"We've no issues with FSC. It's the recycled stock outs which can be really frustrating," he said referring to the sometime problem of placing an order, having it confirmed but later being told there's no stock available.

CPI Recovered Paper Sector Manager Peter Seggie said that it can be difficult to measure use of recycled paper in the UK as much of it is imported, but that the country remains "one of the highest performers in Europe with regards to utilisation".

The Market Initiatives report is available from the company website.