Specialty Paper Market Size, Share | Forecast Report 2025

 



Industry Insights

The global specialty paper market has demonstrated remarkable growth, with an initial value of USD 26.2 billion in 2018. As the market continues to evolve, it's expected to expand at a compound annual growth rate (CAGR) of 4.1% over the forecast period. This upward trend can be attributed to the increasing adoption of innovative packaging mechanisms and equipment, as well as the rapid rise of e-commerce.

As the e-commerce landscape continues to evolve, one aspect that's gaining traction is the importance of packaging and labeling for delivery goods. With the surge in home delivery services, the need for standardized and efficient packaging solutions has skyrocketed. Consumer goods, in particular, has emerged as a rapidly growing segment, accounting for a substantial share of the e-commerce industry. This significant increase in consumer demand has led to a notable rise in market demand for packaging and labeling, with companies recognizing it as a major revenue-generating category.

The market for specialty papers is gaining momentum due to its expanding role in e-commerce operations. In addition to packaging, storing, and transportation, these papers also find use in printing high-end product labels, creating decorative elements, and crafting invitations. These products can be manufactured on their own or transformed into specialized forms by incorporating pulp chemicals.

The European market plays a pivotal role globally, accounting for a substantial share of the total market. The region's prosperity can be attributed to several factors, including the surge in online shopping portals and home deliveries in countries such as Germany and the U.K. This upward trend is driving growth in the European market. Additionally, Europe is a significant hub for paper processing and exporting, making it a major player in the global market. The continent's prominent position in this sector contributes to its substantial market share. In contrast, Asia Pacific is poised for rapid growth due to rising per capita incomes in countries like India and China. This trend is expected to propel the region to one of the fastest-growing markets globally, further diversifying the competitive landscape of the paper processing industry.

The shift towards digitalization has profoundly impacted the market, as consumers increasingly opt for electronic communication methods over traditional paper-based alternatives. However, there are additional environmental concerns that pose a challenge to sustainable growth, including the emission of carbon during paper production and deforestation, which can have devastating effects on the environment. By harnessing technological advancements and innovative solutions in the paper manufacturing process, these issues can be mitigated, paving the way for a more eco-friendly and prosperous market.

Product Insights

The market is segmented into five key product categories: decor, thermal, carbonless, kraft, and others. Decor paper dominated the market in 2018, accounting for the largest share both in terms of revenue and volume due to its versatility in applications such as flooring, paneling, and furniture surfaces. This category is projected to reach USD 11.9 billion by 2025, with papers available in single-color or multi-colored designs.

Kraft paper is poised to experience significant growth at a CAGR of 4.9% in volume over the forecast period. The surge in demand for food packaging solutions in emerging economies, coupled with the expansion of retail infrastructure, is driving this segment forward. Furthermore, advancements in storage, distribution methods, and transportation are also fueling the need for kraft paper, making it an attractive product type to invest in.


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Application Insights

In 2018, the printing and publishing application segment dominated the market with its significant revenue and volume shares. The increasing use of specialty paper for currency, security papers, cheque paper, and postage stamps is expected to fuel growth within this segment. Notably, packaging and labeling accounted for a substantial 25.0% share in terms of volume that year, underscoring their importance in the industry.

The increasing adoption of sack kraft paper as a packaging material has significantly contributed to the expansion of the packaging and labeling segment. As manufacturers continue to improve the quality of these papers, their market share is also on the rise. For instance, companies like Mondi Group, a leading player in the packaging and paper industry, have developed premium-grade sack kraft papers that boast exceptional strength and durability. Interestingly, specialty paper plays a crucial role in the infrastructure sector, particularly in electrical applications. As such, it is no surprise that the infrastructure industry is also expected to witness significant growth in the global market. However, it's worth noting that this growth is more pronounced in developing countries, where demand for packaging solutions is on the rise. In contrast, developed economies have seen relatively stagnant growth in this segment.

Regional Insights

Europe remains the most lucrative revenue-generating hub, boasting a substantial 30% market share in 2018. As the largest exporter of paper, Europe is actively pouring resources into this sector, fuelling its continued growth. The surge in e-commerce and logistical services within the region is also driving expansion, as consumers increasingly opt for convenient online shopping experiences. Furthermore, investments in packaging and delivery solutions are expected to yield significant returns, propelling MEA and CSA markets towards unprecedented growth prospects.

The Asia Pacific region is poised for significant expansion, with a projected compound annual growth rate (CAGR) of 4.6% from 2019 to 2025. A surge in population and rapid industrialization are key drivers behind this growth, as the region's economy continues to flourish. Furthermore, the burgeoning real estate sector in emerging markets such as India and China is a major catalyst, with electrical wiring applications experiencing significant growth due to their widespread adoption.

Specialty Paper Market Share Insights

Notable market participants include Domtar, Glatfelter, Mondi, Sappi, Fedrigoni, International Paper Company, Nippon Paper, Stora Enso, Robert Wilson Paper Corporation, and Griff Paper and Film. Characterized by intense competition, the industry is witnessing significant investment in product development and innovation as companies strive to outperform one another. Notably, prominent players such as Mondi Group are allocating substantial resources towards cultivating high-quality kraft paper products.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion, Volume Million Tons, and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Country scope

U.S., Germany, U.K., India, and China

Report coverage      

Revenue forecast, Volume forecasts, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization

Segments Covered in the Report

This comprehensive market research study offers a detailed forecast of revenue and volume growth across various geographies, including global, regional, and country-level analyses, spanning from 2015 to 2025. The study also delves into the latest industry trends in each sub-segment, providing valuable insights into the evolving landscape of specialty paper markets. In order to facilitate a thorough understanding, the research has segmented the global market report into three key categories: product, application, and region, allowing for a nuanced examination of growth prospects and trends.

  • Product Outlook (Volume, Million Tons; Revenue, USD Billion, 2015 - 2025)

    • Décor

    • Thermal

    • Carbonless

    • Kraft

    • Others

  • Application Outlook (Volume, Million Tons; Revenue, USD Billion, 2015 - 2025)

    • Packaging & Labeling

    • Printing & Publishing

    • Building & Construction

    • Industrial

    • Others

  • Regional Outlook (Volume, Million Tons; Revenue, USD Billion, 2015 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • India

      • China

    • Central & South America

    • Middle East & Africa

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