Paper and packaging executives today face a complex set of challenges, including low profitability, overcapacity, and subdued demand levels. Stiff price competition is the norm, and markets have diverged. North American companies have fared slightly better in terms of operating rates and asset utilization compared with Europe and other regions. Paper and packaging companies are spending less time marketing their sustainability efforts and doing more of the hard work to meet sustainability targets and evolving regulations.

Bain’s second Paper & Packaging Report delivers insights into how leading companies are adapting to these challenges, cutting costs, and taking action to grow going forward. The report looks at managing overcapacity, the supply chain, and maintenance as key ways to build organizational resilience and efficiency. AI is starting to help accelerate both internal efficiency improvements and top-line growth through customer and consumer insights, impacting areas ranging from commercial excellence to sustainability. Finally, M&A continues to be active and is an increasingly important strategy for paper and packaging companies to find scale benefits and growth outside their core businesses.