Key Pricing Factors and Underlying Mechanisms for Wood Packaging in Sweden: A Case-Based Analysis

Abstract

In recent years, global trade has experienced disruptions which have affected the supply of commodities. This has increased the price volatility of these commodities, creating uncertainties regarding future prices. One commodity that has experienced increased price volatility is wood, particularly in Sweden. The increased price of wood in turn affects the price of wood products, including packaging. To mitigate the uncertainties associated with price instability, it is important to understand the key factors influencing price fluctuations. The aim of this thesis is to identify the key pricing factors of wood packaging and to analyse how underlying mechanisms within each of these key factors affect pricing, based on wood packaging used within the case company. The thesis presents a frame of reference based on theories about market factors of commodities, including supply and demand, macroeconomic conditions, competition, market integration, and regulations. This study utilises a case study approach, and the empirical data has been collected through interviews with respondents at the case company, as well as industry experts, supported by market reports and company documents. The study resulted in the identification of key pricing factors affecting wood pack- aging and an analysis of the underlying mechanisms shaping these factors in the context of the Swedish wood market. The findings show that pricing is influenced by a combination of supply constraints, global demand growth, export dependency, power dynamics, price discrepancy, and regulatory developments, all of which in- teract in a highly complex and often unpredictable market environment. Both do- mestic conditions, such as ownership structures and value chain integration, and global factors, such as currency fluctuations and geopolitical events, play a critical role in shaping pricing dynamics. These insights deepen the understanding of price formation of wood and highlight challenges and opportunities relevant to both the case company and broader industry contexts.