Paper Products Are Becoming Expensive, Hard to Find
We’ve all heard the news reports about rising prices, supply chain issues, and shortages. One often overlooked industry that has been hit particularly hard is the paper products sector. In a business context it would be easy to jump to concerns over reams of printer paper, but today we are focusing on other paper products. Specifically, what the industry calls “functional specialty paper products,” common everyday items like disposable tissues, paper towels, and toilet paper. Shortages of these necessities are causing sharp price increases. Industry stalwarts like Georgia Pacific, Kimberly-Clark, and Kruger have reported price increases from 18-25%, while some sellers are simply removing SKUs from their ecommerce sites to avoid dealing with frustrated customers.
Why are prices so high, and continuing to rise?
Paper is made from the pulp of trees. Without trees there is no pulp, and without pulp there are no paper products. Global events such as the the invasion of Ukraine have slowed or shut down trade with Russia, a major worldwide supplier of timber. Low unemployment rates in the US mean there are fewer workers available to harvest, transport, process, and deliver paper products. Combined, these events lower the supply of paper while demand continues to grow, driving prices up.
How to Cut Costs by Eliminating Waste
The categories experiencing the most volatility in supply and price are:
We at Greeno have a few money saving suggestions to help you keep costs down.
- Replace brown rolled or folded towels with white. Many products are available in both brown and white paper. With brown’s price on the rise, it may be time to make the switch to another quality product like Pacific Blue Select Premium Paper Towel Roll in White.
- It's easy to set out a box of folded towels, or a big roll of bath tissue, and think you’ve solved a problem. But you may be causing one. Loose towels and tissues create a lot of waste, which increases cost. Consider switching to a commercial dispenser system designed to increase convenience and decrease waste. Our Georgia Pacific Proprietary Dispensing System Supplies have everything you need to start saving.
Plastic Strapping Also Impacted
Plastic strapping, which includes both polypropylene and polyester (PET) straps, is also facing increased prices. High commodity prices seem to be the main driver of this development. Summer is a high-volume season for commercial products like water bottles, which are also made with PET. This seasonal demand drives up commodity prices, making strapping more expensive.
There is good news. While polyester strapping is still plagued by the lack of raw materials and extremely high demand, polypropylene’s commodity prices may have plateaued, indicating an improving market and a return to normalcy.
Check out all our Bathroom Tissue Dispensers and Paper Towel Dispensers to find your savings today!