Global Specialty Paper Market 2022-2028

Global Specialty Paper Market 2022-2028

Global Specialty Paper Market Size, Share & Trends Analysis Report By Product Type (Decor Paper, Thermal Paper, Carbonless Paper, Kraft Paper And Others), By Application ( Packaging & Labeling, Printing & Publication ,Building & Construction And Others)Forecast Period (2021-2028)

The global specialty paper market was valued at around $26.3 billion in 2021, which is projected to reach around $32.1 billion in 2028, growing at a CAGR of 4.2% during the forecast period (2021-2028). Specialty papers are special grades of paper that are manufactured using specialty paper and pulp chemicals for a specific application such as printing currency, packaging & labeling, and insulation. Specialty papers are widely used in various domains, its applications include paper currency, décor papers, coffee filters, labeling & packaging, insulation paper, and carbonless copy paper.

The market growth is attributed to the increasing demand for specialty paper from various end-user industries. Packaging & labeling is the demand driving application of the global specialty paper market. The growth in the global e-commerce industry is creating demand for specialty papers for packaging & labeling purposes. As per OMR analysis, the global e-commerce industry is expected to reach $8.6 trillion in 2028 as compared to around $2.6 trillion in 2021. Moreover, most of the major economies around the globe will witness double-digit growth in the e-commerce market. Growth in e-commerce significantly raises the demand for paper-based packaging during product delivery. Further, with the increasing demand for sustainable packaging solutions, paper manufacturers are focusing on offering eco-friendly paper products.For instance, in November 2021, the ITC Paperboards and Specialty Papers Division of the ITC Group has announced to increase its focus on the value-added paper packaging business with the development of innovative B2B value-added paperboards. This range covers environmentally sustainable, recyclable, and compostable materials. The new paperboards are emulsion-coated with a barrier that can withstand oil, grease, and the strains of varying temperatures of take-away food.

Moreover, discouragement of plastic products is another opportunity for the growth of the market. Along with metal, and glass; paper is also a sustainable alternative to plastic for packaging. As per the Greenpeace survey in October 2021, FMCG companies such as Coca-Cola, PepsiCo, Nestlé, and Danone were among the top polluter of plastics, globally. Due to this, the companies have pledged to reduce plastic waste by adopting recycling measures and plastic alternatives. The companies are also launching related sustainable products in the market. For instance, in February 2021, Coca-Cola announced to test 250 ml paper bottles in Hungary, Europe with 2,000 consumers in the summer of 2021.

SEGMENTAL OUTLOOK

The global specialty paper market is segmented based on product type and application. Based on the product type, the market is segmented into décor paper, thermal paper, carbonless paper, kraft paper, and others such as filter paper for cigarette manufacturing. Among these, kraft paper dominated the market with 46.0% of the share and generated around $12.1 billion in 2021. This value is further projected to reach around $15.1 billion in 2028, growing at a CAGR of 4.6% during the forecast period. The segmental growth is attributed to the increasing demand for kraft paper for food packaging. Kraft Paper is widely used in the packaging industry, by converting it into bags, pouches, wrapping papers, cans, cartons, corrugated sheets including others. Kraft paper is used primarily in packaging and aims at users that require very high standards of purity, printability, sterilization, flexibility, and strength.

Moreover, décor paper is projected to exhibit the highest growth rate during the forecast period. The market value generated by décor paper in 2021 was around $5.8 billion, which is projected to reach around $7.7 billion in 2028, growing at a CAGR of 5.5% during the forecast period. The décor paper is used for decorative applications mainly in laminated furniture, flooring, and interior applications for both technical and esthetical purposes. The segmental growth is attributed to the growing building & construction industry coupled with the rising trend of interior designing. Moreover, the rapidly growing middle class in developing markets driving construction and furniture demand and hence driving the segmental growth of the market.

Based on application, the market is further segmented into packaging & labeling, printing & publications, building & construction, and others such as industrial application. Among these, packaging & labeling dominated the market with 34.0% of the share and generated around $8.9 billion in 2021. This value is further projected to reach around $11.2 billion in 2028, growing at a CAGR of 4.6% during the forecast period.

The segmental growth is attributed to the increasing need for packaging & labeling of delivery goods coupled with the rise in-home delivery services. Further, the printing & publication segment follows packaging & labeling in terms of revenue and generated around $7.4 billion in 2021. The value is further projected to reach around $8.2 billion in 2028, growing at a CAGR of 4.6% during the forecast period. The segmental growth is attributed to the increasing use of specialty paper in currency and security papers.

REGIONAL OUTLOOK

Based on region, the market report covers the analysis of four major regions including North America (the US and Canada), Europe (UK, Germany, Italy, Spain, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and the Rest of Asia-Pacific), and the Rest of the World. Europe held a market share of 39.6% in 2021. The European specialty paper market was valued at around $10.4 billion, which is projected to reach around $12.5 billion in 2028, growing at a CAGR of 4.0% during the forecast period. Germany, UK, and France are among the major countries contributing to the market growth. The regional growth of the market is mainly driven by the presence of key players such as Mondi Group Plc, Ahlstrom-Munksjö Oyj, BillerudKorsnäs AB, and others. Further, the increasing adoption of carton packaging in the region due to the growing e-commerce industry is giving a boost to the regional growth of the market. In October 2021, Paper manufacturer Arjowiggins (France) announced new paper packaging for the food sector to replace plastic and films.

Asia-Pacific is projected to grow at the fastest CAGR of 4.6% during the forecast period. The Asia-Pacific specialty paper market was valued at around $8.2 billion in 2021, which is projected to reach around $10.3 billion in 2028. The regional growth is attributed to the increasing demand for décor paper owing to the growing building & construction industry. Further, the rising spending of the consumers coupled with the growing interior design trend further drives the regional growth of the market.

MARKET PLAYERS OUTLOOK

Moreover, the study of the global specialty paper market covers the analysis of various players operating in the market. Some of the key players covered in the report include International Paper Co., Mondi Group Plc, Nippon Paper Industries Co. Ltd., Sappi Ltd., Ahlstrom-Munksjö Oyj, Stora Enso Oyj, Pixelle Specialty Solutions LLC, BillerudKorsnäs AB, and others.To remain competitive, the players operating in the market adopt various strategies such as mergers and acquisitions, partnerships,collaborations, product launches, and geographical expansion. For instance, in April 2021, Pixelle Specialty Solutions LLC acquired the carbonless rolls and security papers business of Appvion Operations, Inc.The acquisition expanded the Pixelle product portfolio by building on Pixelle’s established brands of carbonless papers (ExcelOne and Trans/Rite) and adding DocuCheck and DocuMark security papers to Pixelle’s existing brand (Defensa).