Innovation and Growth

Innovation has long been a major source of true competitive advantage especially in downstream areas of the industry such as consumer packaging, as companies seek to improve the appeal, the convenience or the overall brand value of their customers’ products. Now innovation is a key to achieving transformation of the whole FPP industry driven by structural declines for staple products such as graphic papers in mature Northern Hemisphere markets and the many opportunities provided by the broad sustainability and climate change agenda. One very significant manifestation of this is the drive to replace fossil fuel sources with renewable sources of energy, such as woody biomass. In fact despite the deep economic downturn, one constant has been a robust demand for energy wood.

This is a challenge for traditional FPP players as competition for feedstock heats up. It is a significant business opportunity for them too. Wood energy can provide the platform to replace or supplement existing revenue streams. It will require that companies take innovative and strategic approaches to leverage existing assets and competencies to capitalise upon the opportunities, which range from growing, harvesting, supplying or aggregating woody biomass, to producing clean energy - heat and power. With expected technological advances, these opportunities can be expected to extend to producing transport fuels, value added chemicals and various other bio products. In turn these advances will bring yet more new entrants and hence competitors into wood fibre value chains.

How PwC can help
At PwC, we provide a wide range of services to the FPP industries through our strong global network of professionals serving the sector. Through experience we have gained a deep knowledge of fibre value chains. Building on this, we work in cooperation with our colleagues serving the energy and government sectors amongst others, to support public and private sector stakeholders alike in their projects in the energy wood space. Download our Transformation through innovation: leveraging the forest energy opportunity capability statement for more information.