The global synthetic paper market size was valued at USD 749.3 million in 2016. It is expected to expand at a CAGR of 7.1% from 2016 to 2024. Increasing popularity of sustainable packaging coupled with spiralling demand for blister packaging in the pharmaceutical sector is among the key trends stoking market growth. However, fluctuating prices of high-density polyethylene (HDPE) and polypropylene (PP) are anticipated to deter the sharp growth of the market.
The superior physical characteristics including durability and high tear resistance along with excellent chemical properties make them ideal for labeling applications, which in turn is supporting the growth of the market. It is used for packaging in different industries such as cosmetics, chemicals, and food & beverages.
Growing concerns regarding deforestation among environment protection groups are estimated to increase the usage of synthetic paper as a substitute to conventional paper. It does not contain wood pulp, which results in reduced deforestation and promotes conservation of natural resources.
The market is projected to rake in a healthy share of the revenue pie with the robust growth of the packaging & labeling industry worldwide. In addition, burgeoning popularity of carton and blister packaging is likely to augment the market over the forecast period. Synthetic papers have the ability to exhibit superior print quality of premium papers and exceptional strength of plastic films with a smooth surface.
The market is price sensitive and is affected by fluctuations in crude oil prices. Slight variation in crude oil prices significantly affect profit margins of synthetic paper manufacturers. To overcome raw material price volatility, synthetic paper manufacturers enter into long-term contracts of polypropylene, polyethylene, and polybutene suppliers. Long-term contracts help manufacturers to purchase synthetic resins at a fixed price over a period of time.
Depletion of crude oil resources and political instability in different OPEC nations such as Libya, Iraq and some Middle Eastern countries, including Syria are affecting the supply of crude oil. Volatile crude oil supply has resulted in price hike, which is poised to increase focus on bio-based products.
Biaxially Oriented PolyPropylene (BOPP) accounted for 61.0% of the global market volume in 2016. The segment is expected to retain its dominance over the forecast period primarily due to high application in flexible packaging. Along with superior strength and excellent moisture barrier properties, it is more cost effective in nature as compared to other plastic films.
BOPP is used as a packaging material for snacks, fast food, vegetables, fruits, and confectionery. Superior properties of BOPP allow ease of coating, printing, and lamination, which helps in achieving required characteristics and appearance.
HDPE is majorly used in packaging of powder, cheese, frozen food, and electronic parts. These possess high moisture barrier, temperature resistance properties, and are non-abrasive, non-scratch, and acid resistant in nature. Low cost of HDPE with extensive application scope is anticipated to gain popularity in emerging economies of Brazil, China, India, and Russia, which will benefit the growth of the segment.
HDPE films are used as release liners and interleaving sheeting, foam-in-place, and box liners owing to their better release property without silicone coating. These thermoplastic papers are known for high strength to density ratio and are easily recyclable using conventional processes. HDPE is economical and possesses high impact strength, moisture resistance, chemical resistance, and easy processing ability properties, which results in its use in a number of applications.
Synthetic papers are resistant to chemicals, oil, and water, which increase their utility in both indoor and outdoor applications. Various governments have standardized the use of these products in making passports in order to ensure enhanced document life span. Non-label applications accounted for revenue share of 61.0% in 2016 and are used in making maps, banners, charts and graphic arts.
Label applications include wraparound labels, stack labels, in-mold labels, pressure sensitive labels, and shrink labels. Increasing flexible packaging use is projected to fuel demand for label applications in the market. Shifting trend towards packaged food & beverages among consumers as a result of improving lifestyle coupled with rising disposable income is likely to result in high label demand.
Non-label applications are expected to lose share to label applications by 2024 as a result of its increasing usage in the packaging of products. Non-label applications include maps, banners, charts and graphic arts and were the largest application segment in the synthetic paper market in 2016. High use of the product in making maps, banners, charts, and graphics owing to longer life span is a key driver for the industry.
Increasing marketing activities by various companies in terms of banners, advertisements, and pamphlets in order to sustain competition and promote their product is poised to further supplement the growth of the segment.
Asia Pacific was the largest regional market accounting for a volume share of 40.6% in 2016. Flourishing packaging industry in emerging economies such as India and China owing to increased packaged food and beverage consumption is expected to stir up the demand for synthetic papers in APAC.
China is the second largest market in Asia Pacific. Increasing focus on utilization of eco-friendly products, particularly in tag & label application, is anticipated to have a positive impact on the demand over the forecast period. The product is being increasingly used in the chemical, cosmetics, and food & beverage industries, which is estimated to facilitate development over the coming years. Moreover, increasing investments by companies in the region on account of low labor cost is projected to contribute to the growth of the regional market.
Wrap-around labels are increasingly being used in beverage packaging including fruit juices and functional drinks, apart from bottled water, which is likely to trigger the growth of the market in North America, thus positively impacting the market. U.S. FDA has endorsed RFID labels for use in pharmaceutical packaging, providing an opportunity to the market.
Better affordability of synthetic paper compared to cellulosic paper owing to high import duty on the latter is a key factor promoting the growth of the market. In addition, low price of synthetic paper in Latin America as compared to other regions has resulted in high adoption in the region. Advertising by outdoor panel, panels in public transportation vehicles, taxis, and personal document manufacture are key factors influencing market growth in Brazil.
The global market is highly consolidated with few global players accounting for a large share. Yupo Corporation is one of the major players in the industry. The company accounted for the major market share in 2016 and markets its products under the brand name YUPO. Some of the YUPO grades include YUPO Blue, YUPO UltraClear, YUPO Octopus, YUPO Reveal, and YUPO illuminate.
PPG Industries, Arjobex, DuPont, American Profol, Hop Industries Corporation, Taghleef Industries, Nan Ya Plastics Corporation, and Neenah Papers are some of the key players in the market.
This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the industry trends in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the global synthetic paper market report on the basis of product, application, and region:
Product Outlook (Volume, Kilo tons; Revenue, USD Million, 2013 - 2024)
Application Outlook (Volume, Kilo tons; Revenue, USD Million, 2013 - 2024)
Regional Outlook (Volume, Kilo tons; Revenue, USD Million, 2013 - 2024)
Middle East & Africa
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