Since peaking in the mid-1990s due to strong foreign and domestic demand, recovered paper prices have remained depressed in part due to an excess of manufacturing capacity. Because of this overcapacity, experts do not predict any significant increases in recovered fiber use over the next several years. More than 400 mills in the United States use at least some recovered materials in their manufacturing processes, and more than 200 of those mills use recovered fiber exclusively. Twenty firms consume 60 percent of the recovered paper in the United States, and paper manufacturers, along with recovered paper collectors and processors, continue to merge. Programs such as EPA's Comprehensive Procurement Guidelines have identified recycled-content levels for paper items that ensure high product quality at competitive prices.
Experts also predict future growth as a result of resurgent foreign markets in Asia and Mexico.
Such trends offer opportunities to entrepreneurial recycled-content product manufacturers. Firms that develop viable products from mixed paper feedstock will be able to take advantage of this high volume waste stream. While the bulk of recovered fiber is used to create new paper and paperboard products, some of the greatest growth opportunities for recovered fiber, especially mixed paper fiber, are in construction applications such as cellulose insulation, fiberboard subflooring, acoustic panels, roof systems, and siding. Still other products include cellulose mulch, animal bedding, and molded pulp products such as packaging and plant pots.