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Pulp & Paper in Chile Current Behavior Changes Analysis

Ongoing Behavior Changes

Based on the analysis of the provided reports, several ongoing behavior changes are impacting relationships and demand within the Chilean Pulp & Paper value chain in 2024 and 2025:

  • Heightened Customer Demand for Sustainability and Certification: A significant behavioral shift among primarily international B2B customers is the increasing prioritization of sustainability credentials and certifications (such as FSC and PEFC) when purchasing pulp. [See Final Customers Identification] This is not merely a preference but is becoming a crucial purchasing criterion, integral to the business models of major players to meet customer demand and regulatory pressures. [See Value Chain Analysis] This behavior change directly influences procurement decisions and supplier selection processes.

  • Continued Sensitivity to Price and Cost amidst Inflation: Despite other factors, price remains a critical component of customer purchasing behavior, particularly for commodity products like market pulp. [See Value Chain Analysis] The ongoing challenge of input cost inflation across the value chain exacerbates this sensitivity, leading to persistent pressure on pricing negotiations in B2B transactions. [See Value Chain Analysis] Customers are behaving cautiously regarding costs, impacting sales relationships and profitability.

  • Increased Adoption of Circular Economy Practices by Manufacturers: Driven by sustainability goals and potentially cost considerations, there is a growing behavior among certain paper manufacturers, like Empresas Coipsa, to incorporate recovered paper into their production processes, particularly for grades like containerboard. [See Value Chain Analysis] This creates new demand streams specifically for recycled fiber and shifts procurement behavior towards waste management companies and specialized suppliers of recovered paper. [See Value Chain Analysis]

  • Prioritization of Supply Reliability and Quality Consistency in Procurement: In a market subject to volatility in price and logistics, the behavior of B2B customers strongly emphasizes securing reliable, consistent supply of pulp and paper products that meet specific quality specifications. [See Value Chain Analysis] This procurement behavior necessitates strong supply chain management and reliable operations from producers and distributors.

Table of the Impact of These Changes on the Value Chain

Value Chain Step Impact of Ongoing Behavior Changes
Forestry Increased demand for certified wood (FSC/PEFC) [See Final Customers Identification, Value Chain Analysis]. Greater scrutiny on sustainable forest management practices, water usage, and biodiversity impact [See Value Chain Analysis]. Relationships with certification bodies and local communities become more critical.
Pulp Production Pressure to produce certified pulp and demonstrate sustainable practices (e.g., energy generation from biomass, reduced water use) [See Value Chain Analysis]. Export relationships increasingly conditioned on sustainability criteria [See Final Customers Identification, Value Chain Analysis]. Potential need for investment in greener technologies.
Paper Manufacturing Higher demand for certified virgin pulp and increased demand for recovered paper as a raw material [See Final Customers Identification, Value Chain Analysis]. Relationships with pulp suppliers (internal/external) and recovered paper suppliers are influenced by sustainability and quality requirements [See Value Chain Analysis]. Production may need to adapt to using recycled fibers.
Converting Increased demand from customers (retailers, industrial users) for sustainable packaging and converted products (e.g., made from recycled or certified paper) [See Final Customers Identification]. This impacts raw material purchasing behavior from paper manufacturers, favoring sustainable options. Relationships with brands may involve collaboration on sustainable packaging solutions.
Distribution Need to handle and market certified and/or recycled-content products [See Final Customers Identification, Value Chain Analysis]. Sales and marketing efforts increasingly highlight sustainability attributes. Potential impact on logistics relationships to ensure sustainable transportation options where possible.
Recycling Increased demand for recovered paper feedstock, driving the need for more efficient and quality-controlled collection and sorting systems [See Value Chain Analysis]. Commercial relationships with waste generators and collection companies become more formalized and focused on meeting specific quality grades required by mills [See Value Chain Analysis].

References

  • Tissue World Magazine. (2015-05-29). Chile – Modest T&T business with recent growth. https://www.tissueworldmagazine.com/articles/chile-modest-tt-business-with-recent-growth/
  • Empresas Coipsa converts former BO Paper newsprint mill in Chile to containerboard (2022-05-26). https://www.risiinfo.com/industry-news/packaging/empresas-coipsa-converts-former-bo-paper-newsprint-mill-in-chile-to-containerboard/
  • CMPC Pulp > About. https://www.cmpcpulp.com/about/
  • Products - Packaging | InterlogChile. https://www.interlogchile.cl/productos/packaging/
  • Overview - The Company - Empresas CMPC S.A. https://www.cmpc.com/en/about-us/overview/
  • Planted forest : The big opportunity for forest recovery in Chile and Uruguay (2019-02-26). https://www.fao.org/fao-stories/article/en/c/1182225/
  • Overview of the Pulp and Paper Market - Newspulpaper. https://www.newspulpaper.com/overview-of-the-pulp-and-paper-market/
  • Ametro Sarl- Paper manufacturers & suppliers Chile. https://www.ametrosarl.com/chile/paper-manufacturers-suppliers
  • La Industria Forestal de ChileChile's Forestry Industry - AmCham Chile. https://www.amchamchile.cl/wp-content/uploads/2015/09/la-industria-forestal-de-chile.pdf
  • The South American Pulp and Paper Industry: The Cases Brazil, Chile, and Uruguay (2024-11-21). https://link.springer.com/chapter/10.1007/978-3-030-90719-9_11-1
  • Pulp & Paper - Manuchar. https://www.manuchar.com/industries/pulp-paper/
  • Chile Paper Industry Suppliers and Exporters | Manufacturers, Wholesale Dealers, Trading Companies in Chile | B2B Directory Online | PaperIndex. https://www.paperindex.com/chile/
  • Arauco's 2100000 TPA Pulp Producing Paper Mill in Chile becomes Operational (2022-07-13). https://www.paperinfonews.com/news/mills/araucos-2100000-tpa-pulp-producing-paper-mill-in-chile-becomes-operational
  • Chile - Food and Agriculture Organization of the United Nations. https://www.fao.org/countryprofiles/index/en/?iso3=CHL
  • Unasylva - Vol. 6, No. 2 - The work of FAO. https://www.fao.org/forestry/unasylva/8582/en/
  • ANDRITZ Chile Ltda. https://www.andritz.com/group/locations/south-america/andritz-chile-ltda