Paper and paperboard waste market in MERCOSUR

Earlier Report Observations

The market for paper and paperboard waste in MERCOSUR remained relatively stable from 2018 to 2021, with volumes hovering between 5 919 and 6 209 thousand tons. A modest increase to 6 209 thousand tons was recorded in 2021.

Market volume rose by 4.4% to 6 483 thousand tons in 2022, primarily due to China's ban on imports of paper and cardboard for recycling, which redirected global scrap flows and boosted regional availability. However, a severe industry crisis struck in 2023, causing a 13.2% contraction to 5 624 thousand tons. This downturn was driven by an oversupply of recycled paper that collapsed prices, compounded by the Brazilian government's move to restrict imports of paper waste to protect domestic processors.

Entering 2024, the market continued to be shaped by growing e-commerce demand for sustainable packaging and tighter environmental regulations, while the industry adapted to technological advances in recycling and competitive pressure from virgin fiber production.

Production paper and paperboard waste in MERCOSUR

In kind, 2017-2020, K t

Top producers of paper and paperboard waste, 2017-2020

World map of production of paper and paperboard waste, 2017-2020

In 2019, MERCOSUR's production of paper and paperboard waste reached its lowest point at 5 820 K t. The following year, in 2020, output was slightly higher at 5 834 K t, showing minimal change year-over-year. Looking at the broader period from 2017 to 2020, production declined by 3.1%, which translates to an average annual decrease of 1.0%. The peak was recorded in 2018 at 6 122 K t, marking the largest increase of 1.7% during this timeframe. Conversely, the most significant drop occurred in 2019 with a decline of 4.9%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

MERCOSUR's paper and paperboard waste production value continued to decline for the second year in a row. In 2020, the output was valued at 905 M $ US, representing a 12.1% decrease compared to 2019. Over the four-year span from 2017 to 2020, production fell by 25.1%, equating to an annualized decline of 9.2%. The highest value was observed in 2018 at 1 417 M $ US, which also saw the largest increase of 17.2%. In contrast, the steepest decline occurred in 2019 with a drop of 27.3%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports paper and paperboard waste from MERCOSUR

Exports in kind, K t

Cross-border shipments of paper and paperboard waste from MERCOSUR declined for the third consecutive year. In 2020, export volume stood at 41.6 K t, reflecting a 1.4% decrease from the previous year. Over the period from 2017 to 2020, exports fell by 42.8%, with an average annual decline of 17.0%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, the country structure of exports in kind remained highly diversified. China accounted for 19.0% of exports, Bolivia for 7.8%, and Venezuela for 4.2%. Together, these three countries represented only 31.1% of total flows, while a long tail of smaller markets made up the remaining 68.9%.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, K $ US

Foreign supplies of paper and paperboard waste from MERCOSUR declined for the second year in a row. In 2020, exports were valued at 6 457 K $ US, indicating a solid decrease of 13.6% compared to the previous year. Over the 2017-2020 period, exports dropped by 55.8%, with an average annual decline of 23.9%. The peak value was recorded in 2018 at 16 452 K $ US, which also saw the largest increase of 12.5%. The most significant decline occurred in 2019 with a drop of 54.6%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, K $ US

Between 2017 and 2020, exports in value terms were distributed across a wide set of partner countries. China held 19.9% of exports, Bolivia 12.3%, and Venezuela 10.2%. Collectively, these three countries accounted for just 42.4% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports paper and paperboard waste to MERCOSUR

Imports in kind, K t

Market performance showed noticeable fluctuations during this period. Imports reached their lowest point in 2017 and peaked in 2019, with a 3.1-fold difference between these years. In 2020, MERCOSUR imported approximately 124.1 K t of paper and paperboard waste, marking an 11.9% decrease year-over-year. The highest volume was recorded in 2019 at 140.9 K t, while the largest increase occurred in 2018 with a rise of 94.8%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, the United States, Chile, and the Dominican Republic formed the main cluster of markets for imports in kind. The United States accounted for 37.2% of imports, Chile for 18.5%, and the Dominican Republic for 3.1%. Together, they represented 58.8% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Import levels fluctuated significantly, with a 2.9-fold difference between the low in 2017 and the high in 2019. In 2020, MERCOSUR imported approximately 22 537 K $ US of paper and paperboard waste, marking a 20.3% decrease compared to the previous year. The peak value was recorded in 2019 at 28 275 K $ US, while the largest increase occurred in 2018 with a rise of 91.6%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, K $ US

Throughout 2017 to 2020, the United States, Chile, and the Dominican Republic played leading roles in imports in value terms of paper and paperboard waste to MERCOSUR. The United States accounted for 39.2% of imports, Chile for 21.1%, and the Dominican Republic for 3.2%. Collectively, they took 63.5% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020