AF&PA: U.S. Boxboard and Containerboard Production Dropped in Q3 2025
Paper Recycling | 2025-11-03 20:04:40
The operating rates of all four major grades increased from Q2 as capacity declined 1.7% over the same period.
By Paul Ploumis
SEATTLE (Scrap Monster): The American Forest & Paper Association (AF&PA) has released its Q3 2025 Containerboard and Boxboard Quarterly Reports, revealing a mixed performance across the U.S. paper and packaging industry.
According to the report, total containerboard production fell 3.1% year-on-year in the third quarter of 2025. For the first nine months of the year, output was down 3% compared to the same period in 2024, reflecting softer demand and ongoing capacity adjustments within the sector.
Despite the decline in overall production, the operating rates of all four major containerboard grades improved from Q2, supported by a 1.7% reduction in total capacity. Year-to-date operating rates remained largely stable compared with last year, suggesting that producers have effectively balanced output with market demand.
The report also highlighted that domestic new supply remained steady during Q3 2025 compared to Q1 levels, marking a rebound from the weaker performance seen in the second quarter. However, mill inventories reached a 15-month high of 462,000 short tons in August before easing 8% in September, signaling improving shipment activity and better inventory management heading into the final quarter of the year.
In the boxboard segment, total production during Q3 2025 declined by 2% year-on-year, with an operating rate of 88.7%, down 1.7 points from the same period last year. Within the segment, performance varied across product categories:
Solid bleached folding boxboard production rose 1% from Q3 2024.
Plate, dish, and tray output surged 14%, reflecting stronger demand from the food packaging sector.
Uncoated recycled boxboard—including tube, can, and drum grades—increased 3% year-on-year, highlighting resilience in recycled packaging demand.
The AF&PA noted that while certain niche packaging grades saw growth, overall market conditions remain cautious, with producers focusing on capacity optimization and inventory control amid evolving economic and consumer trends.
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What is the main factor behind the decline in U.S. containerboard and boxboard production in Q3 2025, according to the AF&PA report?
Frequently Asked Questions
- What did the AF&PA report reveal about U.S. boxboard production trends in Q3 2025?
The report showed that total boxboard output fell 2% year-on-year in the third quarter of 2025, reflecting softer overall demand in the packaging sector.
- Which boxboard grades performed better during the quarter?
Certain grades showed notable resilience — solid bleached folding boxboard rose 1%, while plate, dish, and tray production surged 14%, driven by strong demand from the food packaging industry.
- What does this indicate about market dynamics in the boxboard segment?
The results suggest a divergent trend — while overall production slowed, specialized and food-related packaging products continue to show steady growth and market strength.
