Paper and paperboard production experienced an overall decline in 2025, although some sectors showed resilience, according to findings in the American Forest & Paper Association’s newly released Paper Industry Capacity and Fiber Consumption Survey.
“Even as some grades face market pressure, manufacturers are investing and aligning capacity with demand, maintaining solid operating performance and continuing to compete,” AF&PA President and CEO Heidi Brock said in a statement.
U.S. paper and paperboard production declined 3.7% year over year to 66.3 million tons in 2025, and containerboard production dropped by 4.4% to 36.1 million tons. In addition, the industry’s overall consumption of fiber to make paper and paperboard products decreased by 3.5% year over year.
Containerboard capacity declined 5.1% in 2025, according to AF&PA. That fiber grade makes up more than half of total U.S. paper and paperboard capacity.
Industry observers and analysts in recent months have described a larger containerboard production capacity drop in 2025 than what AF&PA reported. Most point to the rash of shutdowns equating to a nearly 10% loss. The discrepancy is because AF&PA’s figure reflects actual capacity lost in calendar year 2025, whereas analysts’ higher estimates account for shutdowns announced last year as well, said Mark Pitts, AF&PA’s interim vice president of industry affairs, via email.
Analysts have noted that several shutdowns announced in 2025 actually occurred in Q1 2026, and therefore the full capacity reduction effects wouldn’t be felt until this year. In April, AF&PA released data showing North American containerboard production had its largest year-over-year drop in years during the first quarter of 2026, at 8%.
Industry observers also have pointed out that the capacity cuts have led to operating rate improvements. Multiple companies’ executives have described how the shutdowns were for older, less efficient facilities. Containerboard operating rates were 91.9% in 2025, according to AF&PA’s newly released data.
Meanwhile, packaging paper production increased 1.7% in 2025, according to AF&PA, while boxboard production was essentially flat at 12.4 million tons. Analysts have highlighted an oversupply of solid bleached sulfate that has stretched into this year.
