Growing competition from China comes at the expense of other Asian countries’ market share but the Kiwis have them licked, according to the latest Pulp & Paper Edge.
Imports from New Zealand, mainly by Candida Stationary, account for almost 50% of the total 281.5 million envelopes brought into the country in the June quarter. Next in line and growing strongly are envelopes from China that constitute 8.2%, almost double its market share from two years ago. Imports from Indonesia, Malaysia and Thailand all fell during the period.
Australian Office at its Preston, Victoria plant, makes the majority of envelopes used in Australia. Its 100 employees produce over 250 products such as stock envelopes, overprinted and custom-made overprinted products. Every year, the plant produces close to a billion envelopes. Australian Office incorporated the failed Australian Envelopes three years ago.
There is a resurgence of local production in Australia following the demise of Australian Envelopes with Trade Envelopes opening a new envelope manufacturing plant in Geelong. The plant is reportedly close to coming online, which will boost local manufacturing.
It's worth noting that New Zealand's share of the imported envelopes makes use of exported paper from Australian Paper, that goes both ways across the Tasman, once as raw material then re-imported as finished envelopes.
Defying the onslaught of digital media, envelopes are a bellwether of the continuing strong state of paper-base communication. While overall demand has been falling steadily from 2011, in recent times there was an increase in total imports reflecting a new price conscious dynamic.
In a focused report on the sector, industry bible, Pulp & Paper Edge claims fluctuations in demand are increasingly price related. Leaving aside the decline in consumption of envelopes associated with digital media, some of the decline in imports might be due to the increasing price of envelopes. From 2008-09 to 2010-11, the price of envelopes fell and was reflected in rising demand during the period.
However, since 2010-11, the price of envelopes has more or less increased steadily. For example, MQ’14 saw price increases of 15% and an inversely proportionate decrease in demand of 332.3%. Furthermore, a drop of 9.2% in the price of imported envelopes in JQ’14 revved up the imports by 7.1%
Envelopes are increasingly price sensitive.