Clearwater Paper Targets Value Market with New Velora™ Paperboard

SPOKANE, WA – March 30, 2026 – As the packaging industry grapples with the dual pressures of economic efficiency and escalating environmental mandates, Clearwater Paper Corporation (NYSE: CLW) has introduced a new contender aimed at the heart of the market. The Spokane-based company today launched Velora™, a lightweight folding carton paperboard designed to offer a compelling blend of performance, sustainability, and value for everyday packaging needs.

The new product line enters a dynamic market where brand owners and packaging converters are actively seeking alternatives to plastic that don't carry the premium price tag of high-end paperboard grades. Velora™ is positioned to fill this gap, offering a cost-effective solution for folding cartons and foodservice applications without sacrificing critical performance attributes.

“Velora is a strategic expansion of our portfolio. It is purpose‑built for value, efficiency and dependable converting performance,” said Arsen Kitch, president and chief executive officer of Clearwater Paper, in the official announcement. “It complements our premium Candesce® brand while giving customers a strong domestic option in the lightweight segment.”

Balancing Cost with Green Credentials

The launch of Velora™ arrives at a critical juncture for the packaging sector. The global paper-based packaging market, valued at over USD 344 billion in 2024, is projected to exceed USD 512 billion by 2034, fueled by a powerful consumer and regulatory shift away from single-use plastics. Within this trend, "lightweighting"—the practice of reducing material mass without compromising structural integrity—has become a key strategy for brands to lower both shipping costs and their carbon footprint.

Velora™ is engineered with an "optimized fiber blend" and a "lighter fiber structure" specifically to address this demand. According to the company, this allows for material reduction, helping customers manage sustainability commitments and navigate emerging regulatory frameworks like Extended Producer Responsibility (EPR), which place financial responsibility on producers for the post-consumer lifecycle of their products.

“Converters are looking for straightforward value: performance they can trust, supply they can count on and a lower cost per carton,” noted Ruomeng Pang, vice president of marketing strategy and development. “Velora was designed for exactly that. Its optimized fiber blend delivers the strength and printability customers need, while helping reduce overall material costs.”

The product’s sustainability profile is further bolstered by key certifications. Its compliance with FDA 21 CFR regulations makes it suitable for the vast food and beverage market, a segment where paperboard is rapidly gaining ground. The global market for paper-based food and beverage packaging is forecast to grow at a robust CAGR of nearly 11% through 2033. Additionally, its SFI® (Sustainable Forestry Initiative) fiber sourcing certification assures brand owners and consumers that the raw materials originate from responsibly managed forests, a crucial element for corporate social responsibility reporting.

The Strategic Value of Domestic Supply

Beyond its performance and sustainability features, one of Velora™'s most significant market advantages may be its origin. Manufactured in the USA from domestic and imported materials, the product offers North American converters a stable supply chain and consistent lead times. This promise of reliability is a powerful selling point in a post-pandemic world still contending with the memory of global logistical bottlenecks and volatile freight costs.

For procurement officers and supply chain managers, the ability to source critical materials domestically mitigates risk and can lead to more predictable inventory management. As the North American folding carton market is projected to expand significantly, reaching an estimated USD 24.1 billion by 2036, the availability of a reliable, locally produced value-segment paperboard is a welcome development. This domestic focus insulates customers from the geopolitical and logistical uncertainties that can plague international supply lines, offering a degree of security that has become increasingly valuable.

The emphasis on a domestic supply chain reinforces Clearwater Paper's strategy to strengthen its position as a premier independent supplier within North America, directly addressing customer demands for dependability and regional economic support.

Reshaping the Competitive Landscape

The introduction of Velora™ is a calculated strategic move by Clearwater Paper to capture a larger share of the paperboard market by targeting the substantial value-focused segment. While the company's Candesce® brand serves the premium Solid Bleached Sulfate (SBS) market, Velora™ is designed to compete in the high-volume "everyday packaging" space where cost-effectiveness is paramount.

This dual-brand strategy allows Clearwater Paper to engage with a broader customer base, from luxury brands requiring premium print surfaces to mass-market consumer goods and foodservice operators who need dependable, economical solutions. The launch is timely, as the broader paperboard market has faced challenges, including excess supply in certain grades which led to price erosion in 2025. By introducing a product explicitly designed for value and efficiency, Clearwater Paper is positioning itself to thrive in a competitive environment where customers are meticulously scrutinizing every aspect of their packaging costs.

The product directly challenges offerings from other major industry players like WestRock, International Paper, and Graphic Packaging International, who also compete in the folding carton and foodservice sectors. By providing a strong domestic option that balances performance with cost and sustainability, Clearwater Paper is not just launching a new product; it is making a clear statement about its intention to be a dominant force across multiple tiers of the North American paperboard market. This strategic expansion could influence market dynamics, providing converters with more options and potentially driving further innovation in the pursuit of the ideal balance between cost, performance, and environmental responsibility.