Forecast for U.S. paper packaging demand growth weak

BEDFORD, Mass., April 4, 2003 - RISI, forecasting arm of Paperloop - the premier provider of information for and about the paper, pulp, forest, converting and allied industries - is projecting in recently released forecasts that domestic demand for paper packaging will not match the overall growth in the economy during the next few years.

After a sluggish start in 2002, demand for paper packaging began to rise for most products by the start of spring. However, conditions deteriorated again in late 2002, and remained soft in early 2003.

"We expect that demand will recover during the second half of this year, and expect to see continued demand growth over the next several years," said Kenneth Waghorne, Vice President, Packaging at RISI. "However domestic demand is forecast to grow at a slower pace than the overall economy each year."

Increased fiber costs leading to increased product prices, and increasing competition from plastics are both factors expected to keep the demand growth for packaging low. Total consumption is not expected to climb back above its 1999 peak anytime before 2007.

A complete discussion of the North American Paper Packaging markets is available in the RISI North American Paper Packaging Forecast, a quarterly report providing forecasts for supply, demand, trade, capacity, and selected prices and costs for over 15 paper packaging grades in North America. Visit www.resourceinfo.com for more information.

About Paperloop

Paperloop's mission is to provide the most valued information for and about the paper, pulp, forest, converting and allied industries through the best channels for information exchange. This is achieved through leading industry publications such as the Pulp & Paper and PPI family of magazines and newsletters, RISI, experts in paper/forest products analysis and forecasts, Paperloop's cost benchmarking team, and the foremost website for the paper industry, www.paperloop.com.

Headquartered in San Francisco with offices throughout North America and in Europe, Paperloop was founded in February 2000 and leverages deep, relevant experience from well over 100 well-established, leading print and online industry publications as well as conferences and trade shows.