U.S. specialty packaging shipments surge 5% in July 2025

USA – In July 2025, U.S. packaging papers and specialty packaging shipments climbed 5% compared to July 2024, marking one of the strongest monthly gains in over a year, according to a report by the American Forest & Paper Association. 

This increase highlights a robust demand for packaging materials, though cumulative shipments for the first seven months of 2025 remain 1% below the same period last year.

The unbleached operating rate reached 86.3%, the second-highest in the past 15 months. 

“This uptick shows steady production capacity utilization,” said a spokesperson for the industry. Bleached food wrapping shipments saw a significant 15% year-on-year increase in July, with a 9.6% rise year-to-date. 

Inventories also grew, up 8.1% from July 2024, indicating stronger stock levels to meet market needs.

The year-to-date decline suggests persistent pressures, including fluctuating demand and supply chain dynamics. 

The broader U.S. forest products industry, which includes paper and packaging, employs over 925,000 workers, primarily in rural areas, and generates more than US$435 billion annually, contributing 4.7% to the nation’s manufacturing GDP.

In a statement, an industry executive noted, “The July increase is encouraging, but we’re monitoring long-term trends to ensure stability.” 

The sector continues to adapt to evolving consumer needs, particularly in sustainable packaging solutions.

Recent updates reveal that U.S. paper and paperboard production rose 3.2% in 2024, with packaging and tissue sectors seeing new machine investments. 

Packaging paper capacity grew 4.6% last year, driven by unbleached paper demand, while bleached packaging papers declined for the sixth consecutive year. 

“Investments in new equipment are helping meet growing demand for eco-friendly packaging,” an industry analyst commented.

The rise in July shipments aligns with increased e-commerce activity, boosting demand for unbleached kraft paper used in mailer envelopes. 

However, challenges like reduced fiber exports to Asia impacted recycling rates, with 2024 paper recycling dropping to 60%-64% from 65%-69% in 2023, according to recent industry data. 

Domestic mills, however, increased fiber consumption, supporting sustainability efforts.

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