The global stone paper market size was estimated at USD 15.60 billion in 2015 and is expected to witness significant growth over the forecast period owing to the rising demand from key application segments, such as packaging, labeling, and self-adhesive paper. The growth in the packaging industry can be attributed to the rising need for high-quality and efficient labeling options, to enhance the aesthetics of the packaged product.
Increasing investment in R&D for the development of advanced manufacturing techniques using calcium carbonate and other similar organic compounds is expected to be a key driver promoting growth. Furthermore, rising concerns related to deforestation coupled with supportive regulations promoting the use of an alternative to conventional paper is likely to propel demand over the projected period. The regulations enforced to minimize deforestation for the production has resulted in the discovery and development of alternative sources or materials for product manufacturing, which is expected to have a positive impact on growth.
U.S.stone paper market revenue, byapplication, 2013 - 2024 (USD Million)
The key challenges faced by the industry include environmental regulations on mining activities, which play key roles in the extraction of calcium carbonate, among others. The increasing demand for raw materials such as HDPE (High-Density Polyethylene) from other industries such as piping, fuel tanks, bottles, and furniture, may affect the availability of the raw material for the manufacture of the product over the next eight years.
The key raw materials used to manufacture the product include calcium carbonate (CaCO3) and high-density polyethylene (HDPE). The industry is highly competitive owing to the presence of a large number of manufacturers and suppliers, globally. The industry is growing rapidly, as a result of which, key players are adopting strategies such as new product developments and innovation to strengthen and sustain their market positions, while also attempting to increase profit margins.
Asia Pacific is estimated to witness the highest growth during the forecast period, owing to the easy availability of raw materials, low costs of production, a large number of manufacturers, and high demand for environmentally friendly packaging materials, among others. The growing middle-class population and the growing disposable incomes in the region have led to increased demand for aesthetic and eco-friendly packaging solutions for products, thereby urging packaging market players to adopt the product and similar solutions to replace plastics and pulp paper.
The packaging segment accounted for a market revenue of over USD 10 billion in 2015, primarily driven by the rising environmental concerns regarding the usage of plastics, which have shifted consumer preferences towards paper-based packaging options. Furthermore, with stringent regulations in place regarding deforestation for manufacturing conventional products, the industry is expected to witness significant demand growth in the packaging as well as labeling industries, mainly due to the recyclable and eco-friendly nature of the product.
Europe accounted for the second largest share in 2015 and is expected to witness significant growth over the next eight years. This trend can be attributed to the high demand from packaging application in countries including Russia, Germany, France, Italy, and the U.K. The future growth of the European market is expected to be driven by the technological advancements, new product developments, and growing global presence of market players in Russia, France, and Italy. Furthermore, the aging of the European population, rising health awareness, increasing consumer shift towards convenience, and rising need for brand enhancement or differentiation in the highly competitive business environment are the key factors driving growth in packaging and labeling application segments.
The market in North America is expected to witness higher growth due to the increasing technological advancements in the field of manufacturing the product, combined with support from governmental and environmental organizations.
The key players in the industry include Stone Paper Company, Taiwan Lung Meng Technology Co., Ltd., KapStone, and Gaiakraft. These players are focusing on new product developments and R&D as key strategies for strengthening and sustaining their market position in the global scenario, amidst the intense competition from Asian manufacturers and suppliers.
The market players are marking their presence by expanding product lines and engaging in research, development, and innovation. For instance, in 2013, Stone Paper Company Ltd. announced the introduction of a new product named Rockstock Pallets, made from recycled stone paper and recycled plastic polypropylene bottles.
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