Stone Paper Market Size & Trend Analysis Report By Application (Residential, Non-Residential), By Region (North America, Europe, Asia Pacific, Latin America), And Segment Forecasts, 2016 - 2024

Industry Insights

The global stone paper market size was estimated at USD 692.9 million in 2015, and is expected to grow at a CAGR of 6.3 % from 2016 to 2024. Rising demand from key application segments, such as packaging, labeling, and self-adhesive paper is expected to show a positive impact on overall industry growth in the forecast period.

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 along with supportive regulations promoting the use of an alternative to conventional paper is likely to boost product demand.

In the U.S., the paper-packaging segment accounted for the largest revenue share of 44.5% in 2015 and is expected to continue its dominance over the projected period. The growth of the packaging industry in this country can be attributed to the rising need for high quality and efficient labeling options, to enhance the aesthetics of the packaged product.

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. Manufacturers are adopting strategies to develop innovative products to strengthen and sustain their market positions with high-profit margins.

The key challenges faced by the industry include environmental regulations on mining activities, which play a key role in the extraction of calcium carbonate. The increasing demand for raw materials like HDPE from other industries such as piping and fuel tanks, bottles, and furniture, may affect the availability of the raw material for manufacturing the product in the upcoming years.

Asia Pacific is estimated to witness the highest growth during the forecast period, owing to the easy availability of raw materials, low production cost, and high demand for environment-friendly packaging materials. Manufacturers in the region are influenced to use eco-friendly packaging solutions for product development to replace plastics and pulp paper.

Application Insights

Paper packaging segment emerged as a dominant application in 2015 accounting for 43.5% of the total revenue share. The segment is expected to gain momentum owing to rising environmental concerns regarding the usage of plastics, which have shifted consumer preferences towards paper-based packaging options.

The self-adhesive segment followed the paper packaging segment, accounting for the revenue share of 24.9% of the overall market in the same year. The growing requirement of convenience amongst consumers, packaging market players, and so on are expected to drive the growth of the stone paper industry in self-adhesive paper applications over the forecast period.

Labeling paper application is expected to witness a growth rate over the forecast period owing to its rising applications such as archiving and pricing information across several industries. Pulp-based paper is being replaced with stone paper with similar organic compounds. Thus, the demand for stone paper in labeling applications is expected to increase considerably over the forecast period.

Increasing government regulations to reduce deforestation, is expected to impact the raw material availability for conventional paper products. As a result, the demand for stone paper is exacted to grow over the projected period. The product is expected to gain significand demand in labling application over the forecast period.

Regional Insights

Asia Pacific dominated the global stone paper market in 2015 and is anticipated to continue its dominance in the forecast period. The presence of key manufacturers and suppliers coupled with increasing investments in R&D for the development of alternatives to pulp-based paper, such as stone paper are supporting the market growth.

Europe accounted for 24.3% of the global industry share in 2015. The region is expected to witness considerable growth over the forecast period, owing to technological advancements and increasing demand from the packaging industry across countries such as Russia, France, UK, and Italy, among others.

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. Moreover, well-established distribution network in the region is the major factors for strong market hold.

The overall market is expected to witness considerable growth in the Middle East & Africa region during the forecast period, both in terms of volume as well as revenue. This growth can be attributed to economic growth, environmental regulations on paper and plastics, and rising private investments in R&D for development of advanced packaging solutions.

Stone Paper Market Share Insights

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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