Brazil 4 Business

Paper, pulp and wood

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The paper and pulp market is constantly growing. The level consumed in 2011 of approximately 400 MM (million) Ton must rise to more than 500 MM (million) Ton in 2025, representing annual growth of 1.6%. Dividing the market, the category of graphic papers are expected to decline in developed countries and grow in developing countries, especially in terms of IT popularization and document scanning. But papers for hygiene or packaging material will advance in all regions of the world.

Graphic - Perspective of world paper consumption (millions of tons)

Understanding this potential, the country is already positioned as a potential exporter of Wood, Pulp and Paper, earning annually approximately R$ 57 MM (million) and possessing a planted area of more than 7.6 MM (million) hectares, proportional to twice the total area of the state of Rio de Janeiro. The whole Paper, Pulp and Wood industry employs more than 4.5MM (million) of people.
 
The raw wood is consumed primarily by the construction industry (which continued to grow, even though a little slow in recent years) and the steel mills that feed the blast furnaces. Having a consumer market with the same nature, the main destination for Brazilian exports is China.
 
A very promising sector in Brazil is the activity of recycling. The country recycles about 13% of the generated waste (including paper and cardboard), higher than the level of Latin America in general. Developed countries present this indicator by 40%, a level which should be achieved within 20 years. Several states have incentive policies for the installation of these types of industries. 
 
Briefly, it is a market that has projected growth for the coming years and Brazil has physical space, qualified staff and suitable climate for growing an infinity variety of trees. The main opportunities are located in the Northern (plenty of physical space) and Central-West region (regarding physical space x close to major centres).

 

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