PCA Capitalizes on Strong Case Demand While Implementing Higher Prices

Packaging Corp. of America manufactures uncoated free sheet paper and packaging products. It accounts for about 10% of the North American containerboard market and is the third largest producer. Most of the company’s cardboard is used internally to produce corrugated packaging, with the remainder sold to external customers. A decade of consolidation in the corrugated packaging industry has allowed PCA to raise prices aggressively, but the increased competitive intensity of legacy paper producers has limited pricing power in recent years.