The most important driver for Stora Enso’s business is advertising spending. Advertising is the main driver for publication and coated fine papers. Demand for uncoated fine paper depends on business activity and demand for packaging boards depends on non-durable goods.

Stora Enso has undertaken a detailed study concerning graphic papers and their end uses. The study improved the Group’s understanding of future graphic paper demand and the end uses of graphic paper in different geographical areas. Major paper demand drivers were identified.

• marketing spend and marketing mix
• developments in technology and competing media
• consumer behaviour and demographics

Future paper market trends

The drivers' effects on the demand for paper used in newspapers, magazines and commercial printing were determined. The study showed that demand for newsprint will grow slowly and for magazine grades moderately in mature markets. Commercial printing and office uses of paper are the fastest-growing segments in mature markets. In emerging markets, however, all segments are expected to grow strongly.

Strategic responses

The key strategic responses to the findings are to shift more production towards low-cost regions; to continue to consolidate, improve productivity and increase the added value of products in mature markets; and to utilise fully the comprehensive sales and marketing network and account management concept.