NAICS 322 - Paper Manufacturing
Industries in the Paper Manufacturing subsector make pulp, paper, or converted paper products. The manufacturing of these products is grouped together because they constitute a series of vertically connected processes. More than one is often carried out in a single establishment. There are essentially three activities. The manufacturing of pulp involves separating the cellulose fibers from other impurities in wood or used paper. The manufacturing of paper involves matting these fibers into a sheet. Converted paper products are made from paper and other materials by various cutting and shaping techniques and includes coating and laminating activities.
The Paper Manufacturing subsector is subdivided into two industry groups, the first for the manufacturing of pulp and paper and the second for the manufacturing of converted paper products. Paper making is treated as the core activity of the subsector. Therefore, any establishment that makes paper (including paperboard), either alone or in combination with pulp manufacturing or paper converting, is classified as a paper or paperboard mill. Establishments that make pulp without making paper are classified as pulp mills. Pulp mills, paper mills and paperboard mills comprise the first industry group.
Establishments that make products from purchased paper and other materials make up the second industry group, Converted Paper Product Manufacturing. This general activity is then subdivided based, for the most part, on process distinctions. Paperboard container manufacturing uses corrugating, cutting, and shaping machinery to form paperboard into containers. Paper bag and coated and treated paper manufacturing establishments cut and coat paper and foil. Stationery product manufacturing establishments make a variety of paper products used for writing, filing, and similar applications. Other converted paper product manufacturing includes, in particular, the conversion of sanitary paper stock into such things as tissue paper and disposable diapers.
An important process used in the Paper Bag and Coated and Treated Paper Manufacturing industry is lamination, often combined with coating. Lamination and coating makes a composite material with improved properties of strength, impermeability, and so on. The laminated materials may be paper, metal foil, or plastics film. While paper is often one of the components, it is not always. Lamination of plastics film to plastics film is classified in the NAICS Subsector 326, Plastics and Rubber Products Manufacturing, because establishments that do this often first make the film. The same situation holds with respect to bags. The manufacturing of bags from plastics only, whether or not laminated, is classified in Subsector 326, Plastics and Rubber Products Manufacturing, but all other bag manufacturing is classified in this subsector.
Excluded from this subsector are photosensitive papers. These papers are chemically treated and are classified in Industry 32599, All Other Chemical Product and Preparation Manufacturing.
Industry trends:
The paper manufacturing industry, classified under NAICS 322, is undergoing several transformative trends as it adapts to changing consumer behaviors, sustainability demands, and technological advancements. A significant trend is the shift toward sustainable and environmentally friendly practices. Companies are increasingly focusing on reducing carbon footprints, using recycled materials, and sourcing raw materials from certified sustainable forests to align with consumer and regulatory expectations for sustainability.
Digital transformation is also playing a crucial role in shaping the industry's future. Advances in paper production technologies, such as automation and the implementation of IoT for more efficient machine operations, are improving productivity and reducing waste. Additionally, the rise of e-commerce and digital communication has led to a decline in demand for traditional printing paper, prompting many manufacturers to diversify their product offerings to include packaging solutions, which are witnessing strong demand due to the growth of online shopping.
Moreover, the increasing importance of packaging for brand differentiation and consumer appeal is driving innovation in paper-based packaging designs. This trend is expected to continue as brands seek to enhance their sustainability credentials with recyclable and biodegradable packaging materials.
Looking ahead, the paper manufacturing sector is poised to continue its evolution as it strengthens its commitments to sustainability and innovation. The integration of advanced technologies such as AI and machine learning to optimize resource use and production processes is anticipated to gain momentum. Moreover, regulatory pressures and consumer preferences for sustainable packaging options are likely to further drive the shift towards more eco-friendly paper products in the near future.
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