Speciality Paper Market Estimated to Exhibit 5.7% CAGR through 2027
Speciality paper sales in Western Europe, the largest market for specialty paper, are expected to surpass 10,000 thousand tons by 2027-end, followed by North America and Asia Pacific Excluding Japan (APEJ). However, APEJ is projected to be the fastest-growing market at 6.7% volume CAGR in the global specialty paper market, followed by Japan and Eastern Europe. North America will hold highest share of the market in terms of value (Bn).
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Kraft Paper to be the Most Attractive Product by 2027-End
Widespread availability of a variety of application-specific specialty paper including décor paper, thermal paper, label paper, carbonless paper, release liners, and kraft paper have been driving the growth of the market. FMI’s report states that kraft paper will be the most attractive product in the market, followed by décor and label. Sales of Kraft paper is expected to reach 10,582.7 thousand tons by 2027-end. Décor and label are projected to register 5.7% and 5.4% volume CAGRs respectively through 2027.
Based on end-users, packaging & labelling industry is expected to remain dominant over the global specialty paper market during the forecast period. This industry is projected to exhibit largest demand for specialty paper and register a highest volume CAGR of 5.9% through 2027, followed by building & construction, and food & beverage industries. In contrast, electrical industry is anticipated to exhibit the lowest 3.9% volume CAGR through 2027.
Growing Consumption of Beer to Drive Demand for Specialty Paper in Labelling
Growing sales of pharmaceutical products is influencing the growth of packaging & labelling industry. Thermal paper caters to labelling requirements of pharmaceutical products for providing information including expiry date, price, and other related data of the product in brief. Growing consumption of beer has influenced the growth of beer bottle and specialty paper manufacturers globally. These manufacturers focus primarily on innovation in labels for gaining consumer attraction. These factors are expected to drive the growth of the global specialty paper market during the forecast period. In addition, widespread application of glassine paper, which is resistant to water and grease, as a protection to food including meat and baked products is further fuelling the market growth.
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Developed economies are inclining toward polyethylene terephthalate packaging owing to its property of multi-layer protection. This offers longer shelf life and sustainability to products as compared to specialty paper. In addition, regulatory authorities are focusing on overcoming deforestation and carbon emissions- . Reduced tree cutting will directly impact the availability of wood for specialty paper production. The aforementioned factors are estimated to restrain market growth during the forecast period.
Key players identified in FMI’s report include Mondi Ltd., Nippon paper industries Co., Ltd., Domtar Corporation, Stora Enso Oyj, International Paper Co., P.H. Glatfelter Co., UPM-Kymmene Oyj, AhlstromMunksjö Oyj, Oji Holdings Corp., Fedrigoni Spa.
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