Home / Consumer Goods / Specialty Paper Market By Type (Decor paper, Release Liner paper, Packaging paper, Printing paper, Others), By Application (Building & construction, Industrial, Packaging & labeling, Printing & writing, Others), By Raw Material (Pulp, Fillers & Binders, Additives, Coatings, Others) - Growth, Future Prospects And Competitive Analysis, 2022 - 2030

Specialty Paper Market By Type (Decor paper, Release Liner paper, Packaging paper, Printing paper, Others), By Application (Building & construction, Industrial, Packaging & labeling, Printing & writing, Others), By Raw Material (Pulp, Fillers & Binders, Additives, Coatings, Others) - Growth, Future Prospects And Competitive Analysis, 2022 - 2030


The market for specialty paper is expected to grow at a CAGR of 6% during the forecast period of 2022 to 2030. Because specialty paper has superior qualities in terms of moisture retention, pH levels, and hygiene, it is frequently utilised in the food and beverage, lifestyle, and cosmetics industries as a component of packaging materials. In addition, increasing levels of discretionary spending have led to an increase in the demand for high-quality packaging material, which has contributed to the expansion of the industry. In addition to this, people who lead hectic lifestyles have led to an increase in the consumption of instant tea premix sachets that are constructed from specialised paper. In addition, specialised paper is utilised in the production of masking tapes, which are then utilised to cover surfaces such as walls and doorframes. The expansion of the construction sector, particularly in developing nations, has contributed to an increase in the need for masking tape, which in turn has driven the expansion of the market.Constant research and development into the improvement of speciality paper has led to a growth in sustainable improvements in specialty paper. Some examples of these improvements are water-based barrier coating, lightweight and special performance coating, and others. In a similar vein, high-performance composites, biodegradability, and nanomaterials are poised to give rise to new markets in the relatively near future and will continue to increase the overall growth of the global market.Nevertheless, carbon emissions that are produced as a by-product of the paper manufacturing processes, in conjunction with deforestation, are anticipated to be a significant disadvantage of specialty papers, which will impede the expansion of the market.Despite its widespread applicability in a variety of industries, the accessibility of plastic packaging at prices that are friendly to consumers' wallets may hinder growth potential.

Stringent Quality Standards of Specialty Papers for Packaging Remains as the Key Market Booster

Because of the stringent standards that govern the packaging of both edible and non-edible goods, high-quality specialty papers are increasingly being used. Guidelines for food safety and preservation that are being developed by the Food and Drug Administration (FDA) and the European Commission will further promote the growth of the business by the year 2030. Strong product requirement across the globe has been brought about as a result of the widespread demand for papers of varying quantities, sizes, and lengths across all industries. There will be an effect on the market as a result of the rapid expansion of sustainable packaging for the purpose of preserving the environment and lowering ecological footprints. In addition, increasing government initiatives to reduce negative effects on the environment and the promotion of environmentally friendly alternatives to plastic packaging materials that are widely used in end-use industries are anticipated to drive revenue growth in the market. This is expected to be a major factor.

Key Properties of Specialty Papers Expanding its Application

Due to the product's many advantageous properties, including its resistance to heat and moisture and, depending on the context, its capacity to withstand a certain amount of weight, it is commonly utilised for the purpose of food packing. In the food service industry, it is utilised extensively for the purpose of packing takeout products. Product demand is being driven forward by rising levels of consumption of packaged food goods. In addition, the widespread application of speciality paper in food packaging, such as corrugated clamshells, carry-out bags, cardboard tubes, containers, and cups, is one more factor that contributes to an increase in overall consumer demand.

Growing Demand for Online Shopping and Other Forms of E-Commerce

The specialty paper market is benefiting from the beneficial effects of the rise in demand for e-commerce and logistics activities around the world. In this industry, the product is useful for a wide variety of uses, including packing, storage, and transportation. The demand for speciality papers in the areas of packaging and labelling is being driven by the expansion of the e-commerce sector in a variety of countries. The rapid improvement of technology, user-friendliness of experiences, integration of social media, and accessibility are only few of the factors that are contributing to the growth of this industry. The rising adoption of e-commerce by a variety of end-use industries can be attributed to the many benefits that are connected with it. Some of these benefits include quicker B2B sales cycles, fewer barriers entry, and easier expansion into international markets. Over the past few years, there has been a noticeable increase in the amount of e-commerce activity in the Asia-Pacific region. For example, according to estimates that were published by the India Brand Equity Foundation, Indian e-commerce accounted for US $46.3 billion in 2020. It is projected that this number will rise to US $111.40 billion by 2025, and it is also estimated that it will further reach up to US $350 billion by 2030.

Development of Infrastructure Contributing to the Increased Demand for Specialty Paper

The building and construction industry has been experiencing a boom across the board, including in both established and emerging nations. Masking tapes, which are widely used for designing, painting, and marking, are an important component of vital construction supplies, and they are produced using specialised papers. These papers are used to make masking tapes, which are also widely utilised.As a direct consequence of an increase in the number of building and infrastructure development projects, there has been a precipitous rise in the demand for masking tapes and an explosion in the variety of uses for these tapes. As a result, the rise in the building and construction sector is driving demand for masking tapes, which will eventually likely have a favourable impact on the expansion of the market for speciality papers.

Rigorous Regulations Imposed by The Government Restraining the Market Growth

The paper and pulp sector are tightly regulated in the U.S. and Europe, making it one of the most severely regulated industries overall. For instance, in the United States, federal authorities have imposed a number of mandates on the industry in order to make workplaces safer and to mitigate the unfavourable impact that paper manufacturing can have on the surrounding environment. The existence of these laws and regulations has caused significant enterprises operating in this industry to incur much higher costs. In addition, the Environmental Protection Agency (EPA) of the United States implemented guidelines for printing and writing papers. These guidelines recommend that minimum content criteria should be expressed as the percentage of recovered fibre, including the percentage of fibre after consumption. These guidelines were implemented for printing and writing papers. Therefore, the presence of rigorous regulations is likely to inhibit the growth of income within the sector.

Décor Paper Dominating the Market, Kraft Paper to Lead the Growth

Décor Paper held the largest revenue share in 2021 as it can be used in such a broad variety of applications, such as flooring, panelling, and furniture surfaces. These papers can either be produced in a single colour or with a variety of different patterns printed on them.Over the course of the forecast period, it is predicted that the volume of kraft paper will grow at the highest CAGR of 5%. The growth of the category is being driven by an increase in the demand for food packaging in emerging nations as well as the development of retail infrastructure. In addition, changes in storage and distribution methods, as well as transportation practises, are contributing to an increase in demand for this product category.

Packaging Industry Remains as the Key End User

The packaging industry was the primary end consumer in the specialty paper market in 2021, followed by the printing and writing industry and the building and construction sector. The market share held by each of these subcategories will be approximately 35%, 26%, and 18% respectively in the year 2021.The packaging market will continue to be the most important one because numerous end-use industries, including food and beverage, personal care, household, healthcare, and others, will continue to have a high demand for packaging material in order to preserve the quality of their goods and keep them safe.As a result of these contributing factors, it is anticipated that the packaging segment will record a high CAGR during the forecast period of 2022 to 2030. The sales of speciality paper in the building and construction sector will be pushed forward as a result of gradually increasing demand for decorative interiors.

Pulp Remains as the Key Raw Material Used for Specialty Paper

In 2021, pulp held the largest revenue contribution among other raw materials. Pulp is a fibrous lignocellulosic material that can be produced either mechanically or chemically by separating cellulose fibres from wood, fibre crops, or wastepaper. Pulp can be used to make paper, packaging, and other products. The production of pulp presents an increasing opportunity for product from a variety of applications including construction, printing, and paper manufacturing. The demand for the product is likely to increase over the course of the forecast period because pulp possesses a variety of properties, some of which include high processability, toughness, and stiffness.

North America Remains as the Most Dominant Market, While APAC to be the Growth Leader

The revenue generated in North America accounted for about 25% of the total revenue in 2021 and is anticipated to expand at a higher CAGR during the forecast period of 2022 to 2030. The U.S. and Canada together make up the largest contributors to this region's revenue share. The pharmaceutical industry in the U.S. is one of the largest in the world. The region provides conditions that are conducive to cooperative ecosystems, which makes the path to development and commercialization in the healthcare industry relatively unobstructed. During the time of the forecast, the product demand would be driven by the government research funding that was allocated to this industry.One of the prominent factors that is expected to fuel the adoption of specialty papers in the region over the course of the forecast period is the growing trend toward eating on the go, which is occurring concurrently with the expansion of the foodservice industry in the region. According to Home Chef, the average American will spend a staggering US $70,000 on takeaway and delivery over the course of their lifetime. The market participants see strategic acquisitions as a lucrative way to extend their market position in the region, and they are taking advantage of this opportunity. The acquisition of specialty papers mills from Verso Corporation was successfully completed by Pixelle Specialty Solutions in February of 2020. As a result of this relocation, the company was able to increase its yearly manufacturing capacity to one million tonnes. Additionally, the region is experiencing an increase in output from the quick-service restaurant industry (QSR). It is anticipated that this will stimulate the expansion of the market during the course of the analysis period.

During the forecast period of 2022 to 2030, in Asia Pacific is expected to grow at a CAGR of 6.5% during the forecast period. Both the rising population and the quickening pace of industrialization are significant contributors to the expansion of the regional market. The expansion of its applications in electrical wiring is driving the market, which is being propelled by the expansion of the real estate sector in developing countries such as India and China. Growth in APAC region canalso be attributed to the expansion of online shopping as well as improvements in product packaging and delivery in this region, which is driving revenue growth in the regional market. Due to an increase in the number of applications for electrical wiring, the market is being driven by the expansion of the real estate sector in India, Japan, and China. The high demand for security features such as watermarks and holograms that are embedded during the printing stage of banknotes, passports, and stamps is the primary factor driving the growth of India's security paper market. Product demand is expected to rise during the forecast period as a result of this trend. Increased spending on legal services such as litigation, documentation, and licencing are likely the cause of the country's high demand for specialised papers such as security papers. In turn, this factor has been a driving force behind the increased demand for legal documents across the country.

Highly Active Market Participants to Intensify the Level of Competition During the Forecast Period

The market is fragments and is marked by intense competition as a result of the presence of a large number of companies that operate on both a large and a small scale. To broaden their customer base, the companies that are active in the market for specialty papers are placing increased emphasis on products' abilities to be recycled and to be environmentally friendly. The most important participants in the speciality papers market are putting a strong emphasis on differentiating their products while also improving their overall quality. Domtar, Glatfelter, Mondi, Sappi, Fedrigoni, International Paper Company, Nippon Paper, Stora Enso, Robert Wilson Paper Corporation, and Griff Paper and Film are some of the major players in this market. The presence of some of the most prominent players in the market contributes to the sector's characteristically cutthroat nature. In order to achieve a competitive advantage over their rivals, businesses are placing increased emphasis on product development and innovation. In addition, major industry players such as the Mondi Group are devoting significant resources to the research and development of high-grade kraft paper.Key players who are active in the market for specialty paper are focusing on the launch of new products to expand their product portfolios in order to meet the growing demand from a variety of end-use applications. Additionally, in order to increase both their global presence and their production capacity, manufacturers are looking to form strategic partnerships and make acquisitions.

Historical & Forecast Period

This study report represents analysis of each segment from 2020 to 2030 considering 2021 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2022 to 2030.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Specialty Paper market are as follows:

  • Research and development budgets of manufacturers and government spending
  • Revenues of key companies in the market segment
  • Number of end users and consumption volume, price and value.
  • Geographical revenues generate by countries considered in the report
  • Micro and macro environment factors that are currently influencing the Specialty Paper market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

ATTRIBUTE DETAILS
Research Period  2020-2030
Base Year 2021
Forecast Period  2022-2030
Historical Year  2020
Unit  USD Million
Segmentation
Type
  • Decor paper
  • Release Liner paper
  • Packaging paper
  • Printing paper
  • Others including medical grade paper, insulation paper, automotive filter paper, security paper and currency check paper)

Application
  • Building & construction
  • Industrial
  • Packaging & labeling
  • Printing & writing
  • Others (including medical application, automobile filter application, and banking application)

Raw Material
  • Pulp
  • Fillers & Binders
  • Additives
  • Coatings
  • Others

 Region Segment (2020–2030; US$ Million)

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • UK and European Union
    • UK
    • Germany
    • Spain
    • Italy
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East and Africa
    • GCC
    • Africa
    • Rest of Middle East and Africa
Global Impact of Covid-19 Segment (2020-2021; US$ Million )
  • Pre Covid-19 situation
  • Post Covid-19 situation

Key questions answered in this report

  • What are the key micro and macro environmental factors that are impacting the growth of Specialty Paper market?
  • What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
  • Estimated forecast and market projections up to 2030.
  • Which segment accounts for the fastest CAGR during the forecast period?
  • Which market segment holds a larger market share and why?
  • Are low and middle-income economies investing in the Specialty Paper market?
  • Which is the largest regional market for Specialty Paper market?
  • What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
  • Which are the key trends driving Specialty Paper market growth?
  • Who are the key competitors and what are their key strategies to enhance their market presence in the Specialty Paper market worldwide?
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