Industry-controlled industry positioning and national policy

"2016-2021 China's tissue paper industry development prospects and investment strategic planning analysis report" pointed out: China has long positioned the paper industry in the light industry, and the development of the paper industry is subject to the "three powers separation" of forestry, agriculture and light industry. The country lacks unified planning and guidance for the industry, and there is no complete industrial policy for a long time. The relevant policies of various departments of the state have different regulations for the paper industry, which cannot be coordinated or even mutually restrained, resulting in the paper industry being greatly affected by the macro environment. In recent years, the macro-control and environmental protection measures of the national policy have caused great pressure on the paper industry; the relevant laws and regulations have not kept up, the industry development plan has lagged behind, and various industry standards have been low, which has adversely affected the development of the industry and enterprises.

High dependence on raw materials

With the improvement of domestic economic living standards, the demand for papermaking materials such as pulp is expanding, but China's forest resources are relatively scarce, and most of the pulp is imported. Excluding the impact of the financial crisis on the paper industry, domestic pulp demand has shrunk in 2009, and domestic pulp imports have been on the rise. Since 2011, the international pulp market has shown a big ups and downs. The high external dependence of pulp makes the industry face the threat of losing the pricing power of pulp, which has a great negative impact on the development of the industry.

Regional consumption is uneven, and urban and rural areas are large

Large and medium-sized cities such as Shanghai, Beijing, and Guangzhou, as well as developed coastal cities, are the most important markets for consumer paper consumption in China. According to statistics, the consumption of household paper in the above-mentioned areas accounts for more than 60% of the total national consumption. As early as 2003, Shanghai's per capita consumption of household paper reached 8 kilograms, which is close to the consumption level of developed countries. The consumption of household paper in the central and western regions is still very low. The annual consumption of per capita household paper in some provinces and cities is less than 1 kilogram, which is equivalent to the consumption level of other poor countries in Asia and Africa. At the same time, the difference between urban and rural consumption is also large. Although China's urban population is less than the rural population, urban household consumption of paper consumption accounts for more than 70% of the country's total consumption. The consumption of medium and high-grade household paper is mainly concentrated in cities.

Variety consumption structure is not ideal

In recent years, the consumption of tissue paper tissue has grown rapidly. The proportion of toilet paper is decreasing, but it still accounts for more than 66%. Paper towels account for about 30%, of which napkins account for 8.50%, facial tissues account for 8.80%, and handkerchiefs account for 12.70%. According to statistics, in the household paper of developed countries, the consumption of toilet paper only accounts for 56% of the total, and the consumption of other tissue papers accounts for 44%. The proportion of the two is not much different.