MARKET OPPORTUNITIES FOR PAPER INDUSTRY IN RADIO FREQUENCY IDENTIFICATION
During the most part of the past century paper consumption was strongly linked to economic growth of nations and the consumption increased rather steadily. However, it seems that such direct connection between gross domestic production (GDP) and consumption is no longer valid. In fact, paper consumption began to decline in North America during 1990’s and today, also the markets in Western Europe and Japan are
mature. (Hetemäki & Nilsson 2005).
One of the key reasons for the declined demand is that electronic media, especially Internet, have rapidly substituted traditional media including newspapers, radio and television as a source of information and news. This has lead to an overcapacity in many paper product brands, falling end product prices and decreased profitability of pulp and paper industry (PPI). (Hetemäki & Nilsson 2005)
The paper demand still increases in Asia, particularly in China, and the paper industry has invested heavily into new manufacturing plants there, while closing production capacity in mature markets. In addition to these structural changes, the industry in Finland is facing the challenges of high input costs and shortage of raw materials. In these circumstances there is a strong likelihood that the Finnish paper industry will make its further
investments in the growing markets, where raw material and labor costs are also competitive. The industry may wither away in Finland, a development that would have deep consequences for many individuals as well as the whole society.
Paper products alone can no longer offer livelihood for the entire industry, and it is of significant importance that the industry augments its efforts to generate new businesses. Printed intelligence extends new functionalities typically into paper or plastic substrate (e. g. Hakola et al. 2006; Södergård et al. 2007). Among other areas of printed intelligence, radio frequency identification (RFID), especially printed RFID, could offer new business opportunities for the paper industry.
Market opportunities for paper industry in radio frequency identification.pdf
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