Thermal Paper Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Thermal Paper Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Thermal Paper Market is expected to grow at a CAGR of 5.7% over the forecast period 2022 to 2027. Thermal paper is widely used in grocery stores, catering, gaming houses, lottery systems, coffee shops, and bakery stores for printing labels, tickets, and receipts due to its convenience and dependability. This, along with the expanding retail sector, is one of the key factors driving the demand for thermal paper for POS transactions.

Key Highlights

• The requirement for thermal paper has been increasing over the past many years, owing to the growing demand for labeling as standardization of product quality of packaged foods. Enhanced thermal paper usage in applications such as label printing is a crucial perspective for driving the market's overall growth. For instance, according to INX International Ink, the printed packaging and label sales revenue is presumed to amount to USD 27.1 billion in 2020, up from USD 24.5 billion in 2015.
• The product is getting full acceptance in billing operations as it can print quickly and efficiently. Moreover, the paper's endurance and print precision make it simple to read the barcode. They thus have gained a significant share in the paper utilities, which is anticipated to drive its need over the forecast period.
• The mobile POS terminals are extensively used in ticketing applications in buses, trains, and other commercial transports. Moreover, these machines are used for material management in government facilities, manufacturing units, and retail centers.
• The strong market presence of manufacturers such as Jujo Thermal, Appvion, and Oji Holdings has increased the demand for thermal papers. Also, substantial investments in producing these papers using eco-friendly chemicals as a part of product innovation are a critical aspect expected to fuel future product demand.
• The growing ubiquity of stringent Occupational Safety and Health Administration (OSHA), which seeks to limit BPA levels in thermal paper, is supposed to check the thermal paper market growth. Increasing awareness regarding less utilization of paper for billing applications and rising online transactions for e-commerce applications have increased digital receipts, thus negatively impacting market growth.

Key Market TrendsPOS to Drive the Market

• The POS End-user segment is anticipated to progress faster over the forecast period, owing to growing billing purposes in the retail industry across the globe. Besides, expanding supermarkets and hypermarkets worldwide are anticipated to propel the POS terminal applications and boost the market growth.
• For instance, according to the U.S. Census Bureau, In 2021, U.S. supermarket and grocery store sales amounted to about USD 766 billion. This is more than double the sales amounts generated in 1992. Walmart stores dominated sales of the leading grocery retailers in 2020, generating over USD 369 billion. Kroger and Ahold Delhaize each reached sales numbers of about USD 133 and 52 billion, respectively, within the same period.
• Massive data volumes produced by several business verticals exert enormous pressure on existing businesses to switch to POS systems from traditional transactional methods. POS terminals dodge manual errors in financial billing and inventory management and offer business reliability. Consequently, developing the retail sector and increased printing of receipts and bills in large- and small-scale stores spur thermal paper market growth.
• The mobile POS terminals are extensively used in ticketing applications in buses, trains, and other commercial transports. Moreover, these devices are used for material management in manufacturing units, government facilities, and retail centers. A rising number of POS terminals in public facilities will likely support the product demand in the estimated time.
• Cashless payments are widely adopted due to the availability of secure payment solutions and services. POS terminal machines feature real-time analytics and engage in fast bill processing, maintaining customer records and loyalty programs of retail stores. ATM and credit cards have a unique symbol for contactless payments and are easily read by POS machines.

Asia Pacific is Fastest Growing Market for Thermal Paper

• The Asia Pacific commanded the market owing to the region's well-established food and retail industry, contributing to the increasing product demand for billing operations. For instance, according to the National Bureau of Statistics of China, in 2021, the total retail sales of the consumer goods industry in China amounted to approximate yuan 44.1 trillion . Retail sales in urban areas totaled 38.2 trillion, whereas sales in rural China amounted to yuan 5.9 trillion .
• According to METI (Japan), in 2021, the total retail sales value of department stores and supermarkets in Japan amounted to around 19.9 trillion yen, slightly increasing from about 19.5 trillion yen in 2020.
• Moreover, the developing trend for shopping online and enhanced related warehousing operations is projected to support the forecast period. For example, according to IBEF, in 2022, the Indian e-commerce market is predicted to increase by 21.5%, reaching USD 74.8 billion. E-commerce has changed the way business is done in India. India's e-commerce market is expected to reach USD 350 billion by 2030.
• In the Asia Pacific, food & beverage industries are projected to be the biggest consumers. Rising demand for packaged food products in the growing economies of China and India is likely to drive the demand for specialty labels and tags and thus are estimated to impact the thermal paper industry positively.
• Strict environmental and health regulations have resulted in stringent norms for using thermal paper that includes bisphenol A, thus influencing product demand. Nevertheless, technological advancements in the APAC region are expected to present new possibilities for companies.

Competitive Landscape

The Thermal Paper Market is moderately competitive and consists of several major players. In terms of market share, these significant players currently dominate the market. Moreover, owing to the attendance of many well-established manufacturers, the growth of the thermal paper market is presumed to be further propelled globally. Enterprises operating in the thermal paper market trends are adopting strategies such as new capacity additions, collaborations and acquisitions, and product launches, to intensify their current offerings and target a broader customer base and fasten their market position.

• March 2022 - Oji Holdings plans to increase thermal paper production at the Kanzan thermal and inkjet paper mill in Duren, Germany, by January 2024; the company is strengthening its global business as thermal paper demand grows in the e-commerce, food application, and label markets.

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