The global specialty paper market size was valued at USD 26.2 billion in 2018 and is estimated to expand at a CAGR of 4.1% over the forecast period. The growth of the market is attributed to change in the packaging mechanisms and equipment and rise of e-commerce.
Need for packaging and labeling of the delivery goods has increased and it is expected to grow significantly in the next few years due to rise in home delivery services. Consumer goods is the fastest growing segment and it accounts for the largest share in the e-commerce industry. This, in turn, is increasing the market demand as packaging and labeling is the major revenue generating category of the global industry.
The market is gaining traction owing to its rising applications in the e-commerce activities such as packaging, storing, and transportation. Other basic applications of specialty papers other than packaging high-end products include printing invitations and decoration purposes. These products are either produced individually or converted into specialty form by applying pulp chemicals.
Europe holds the largest share in the global market. Increase in the number of online shopping portals and surging home deliveries in countries such as Germany and U.K. are the major factors contributing to the growth of the Europe market. Moreover, Europe is one of the largest markets for paper processing and exporting, therefore it accounts for a major share in the global market. Asia Pacific is expected to be one of the fastest growing regions due to rise in per capita income of people in countries like India and China.
Growth of digitalization is a major factor affecting the market growth as people prefer electronic means of communication over paper based communication. Other factors responsible for hindering the market growth are emission of carbon during paper manufacturing and deforestation, which harms the environment. These factors, if worked upon, can be solved with technological advancement and innovation in the paper manufacturing process.
The market is segmented on the basis of product as decor, thermal, carbonless, kraft, and others. Decor paper held the largest market share in 2018 both in terms of revenue and volume owing to its wide range of applications in flooring, paneling, and furniture surfaces. This category is expected to generate a revenue of USD 11.9 billion by 2025. These papers are available in single color or are printed with a range of designs.
Kraft paper is anticipated to expand at the fastest CAGR of 4.9% in terms of volume over the forecast period. Increase in demand for food packaging in emerging economies and developing retail infrastructure are driving the segment. Moreover, transformation in storage, distribution methods, and transportation is increasing the demand for this product type.
In 2018, the printing and publishing application segment held the largest market share in terms of revenue as well as volume. Usage of specialty paper in currency, security papers, cheque paper, and postage stamp is anticipated to drive the segment. In 2018, packaging and labeling held a considerable share of 25.0% in terms of volume.
Sack kraft paper is used for packaging material, thus rise in use of this paper is responsible for the growth of packaging and labeling segment. Manufacturers are investing in improving the quality of sack kraft papers to increase their market share. For instance, Mondi Group, a leader in packaging and paper, developed sack kraft paper with high quality and strength. The infrastructure industry uses specialty paper in electrical applications. Therefore, the infrastructure industry is also expected to increase its share in the global market. However, the growth is high in developing countries and stagnant in the developed countries.
Europe was the largest revenue generating region in 2018 with a share of over 30%. Europe is the largest exporter of paper and is investing more in this business. Rise in the online shopping as well as packaging and delivery of products in this region is also boosting the growth of the regional market. MEA and CSA are expected to witness significant growth in future.
Asia Pacific is anticipated to expand at the highest CAGR of 4.6% from 2019 to 2025 in terms of revenue. Key factors contributing to the regional market growth include growing population and rapid industrialization. Growth of the real estate sector in developing countries like India and China is driving the market due to its growing applications in electrical wiring.
Key players operating in the market include Domtar, Glatfelter, Mondi, Sappi, Fedrigoni, International Paper Company, Nippon Paper, Stora Enso, Robert Wilson Paper Corporation, and Griff Paper and Film. The industry is highly competitive in nature due to presence of some of the leading players. Companies are focusing on product development and innovation in order to gain a competitive advantage over others. Moreover, leading players such as Mondi Group are making high investment in the development of high quality kraft paper.
Base year for estimation
Actual estimates/Historical data
2015 - 2017
2019 - 2025
Revenue in USD Billion, Volume Million Tons, and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa
U.S., Germany, U.K., India, and China
Revenue forecast, Volume forecasts, company share, competitive landscape, growth factors and trends
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This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global specialty paper market report on the basis of product, application, and region:
Product Outlook (Volume, Million Tons; Revenue, USD Billion, 2015 - 2025)
Application Outlook (Volume, Million Tons; Revenue, USD Billion, 2015 - 2025)
Packaging & Labeling
Printing & Publishing
Building & Construction
Regional Outlook (Volume, Million Tons; Revenue, USD Billion, 2015 - 2025)
Central & South America
Middle East & Africa
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