US Packaging Paper Shipments Rise 2% as Unbleached Operating Rate Tops 90%

Strong Operating Rates and Import Growth Define the US Packaging Paper Market

The American Forest & Paper Association (AF&PA) has released its September 2026 Packaging Papers Monthly report, revealing sustained momentum in the US packaging paper sector. Total shipments of packaging papers and specialty packaging increased by 2% in September compared to the same month in 2025. This growth contributes to a solid year-to-date performance, with shipments up 4% over the first nine months of 2026.

A key indicator of the industry's current strength is the unbleached packaging papers operating rate, which reached 90.9% in September. This marks the second-highest level recorded so far in 2026 and the third month this year that the rate has exceeded the 90% threshold. The high utilization of domestic capacity underscores robust demand for unbleached grades, which are essential for a wide range of industrial and consumer packaging applications.

Bleached Grades and Import Dynamics

The bleached segment also demonstrated positive performance. Shipments of bleached food wrapping increased by 1.9% year-over-year in September, bringing the year-to-date growth for this specific grade to 3.3%. This steady rise reflects ongoing demand in the food service and retail sectors for specialized wrapping solutions.

However, the domestic market is also experiencing significant shifts in trade flows. Total imports of packaging papers have surged by nearly 10% year-to-date. The most notable increase is seen in the unbleached bag, sack, and multiwall category, where imports have jumped by 24.2%. A substantial portion of this influx originates from Canada, with imports from the neighboring country up nearly 30% year-to-date. Conversely, imports from all other global destinations have declined by 3.4%.

The combination of high domestic operating rates and surging imports, particularly in the bag and sack segments, suggests a US market where demand is currently outpacing local supply capabilities in specific grades. This dynamic highlights the critical role of cross-border trade, especially within North America, in meeting the evolving needs of the packaging industry.