Thermal Paper Market Analysis By Technology (Direct Thermal, Thermal Transfer), By Application (POS, Lottery & Gaming, Tags & Label), By Region (North America, Europe, Asia Pacific, Central & South America), And Segment Forecasts, 2018 - 2025

Industry Insights

The global thermal paper market size was estimated at 1,154.8 kilo tons in 2015 and is expected to witness substantial growth over the forecast period on account of its extensive use in tags, labels, tickets and receipts. Rising demand for POS terminals as an alternative to cash registers in the hospitality, warehouse, retail, and laboratory sectors is expected to be a favorable factor for growth.

Thermal paper changes color during exposure to light and heat on account of the presence of a coating pigment. The product finds applications in ATM, gaming equipment, movie ticket machines, lottery machines, debit or credit card terminals, laboratory apparatus, and office consumables.

Germany thermal paper market, by technology, 2014 - 2025 (Kilo Tons)

Rising importance of labeling in packaged food and pharmaceutical industries to support regulatory measures aimed at standardizing product quality is expected to drive the market. Furthermore, improving demand for convenience foods in emerging markets including Mexico, Brazil, China, and Thailand owing to rising domestic consumption is projected to increase the application of tags & labels and thus, in turn, have a favorable impact. 

Stringent regulations aimed at restricting the usage of bisphenol A in the packaging of food & beverage products on account of association with estrogenicity is projected to result in reducing the access of chemical feedstock to paper manufacturers over the next nine years. This factor is anticipated to impact the production of the product.

The growing popularity of thermal spray coating in applications which are prone to moisture and external contamination is expected to open new avenues for paper vendors. Furthermore, increasing spending on gaming and lottery in Italy, Singapore, and Macau will force industry participants to establish their manufacturing facilities in the vicinity. 

Technology Insights

Direct thermal accounted for 52.4% of global volume share in 2015. The simple design of equipment, the absence of ribbons, and low operating cost as compared to thermal transfer is likely to be a major driving factor over the forecast period.

Thermal transfer is projected to foresee a volume growth at a CAGR of 5% from 2016 to 2025 owing to the technological capability for long-term durability, good heat resistance, and excellent sensitivity towards abrasion. However, use of ribbons in thermal transfer printing is anticipated to incur high operating cost for thermal paper producers.

Application Insights

POS was the largest application accounting for 81.9% of global volume share in 2015. The rising number of retail outlets and supermarkets in China, India, and Saudi Arabia on account of increasing urban population and supportive government policies to promote investments is expected to remain a key driver for the industry in the near future.

Global thermal paper market volume, by application, 2015 (%)

Labels are used in the form of hallmarks and stickers, which not only provide details of the constituents but also help in avoiding duplication. Tags & label segment generated a revenue of USD 258.0 million in 2015 and is projected to witness gains as a result of growing demand for RFID tags in the healthcare sector.

Regional Insights

Asia Pacific is expected to foresee revenue growth at a CAGR of 8% from 2016 to 2025. Positive outlook towards the food & beverage sector in China, Thailand, and India on account of increasing domestic consumption is expected to have a significant impact over the forecast period.

North America accounted for 34.3% of the overall volume share in 2015. High prevalence of food & beverage and healthcare manufacturing companies in the U.S. and Canada is expected to have a positive impact. However, significant market gains by online POS (or m-POS) in the U.S. as a result of new product launches by companies is expected to reduce the use of conventional counterparts and shrink the demand for thermal coated paper in the near future.

Competitive Insights

Major thermal paper vendors include Appvion Incorporated, Ricoh Company, Ltd., Oji Holdings Corporation, Koehler Paper, PM Company, Nakagawa Paper Rolls, Hansol Paper, Mitsubishi Paper Mills (MPM), Siam Paper, and Jujo Limited. In 2014, Appvion launched a new vitamin derived thermal paper under the brand name, Alpha-Free, aimed for use in POS terminals.

In October 2016, the government of India announced a ban on the tendering of INR 500 and 1000 notes in all states and union territories across the country. This national initiative is aimed at enhancing the importance of cashless economy on a domestic level and thus likely to promote the scope of POS. As a result, vendors are expected to open production units to serve buyers in POS applications over the projected period.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the thermal paper market on the basis of technology, application, and region:

• Technology Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

  • Direct Thermal

  • Thermal Transfer

  • Others

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

  • POS

  • Lottery & Gaming

  • Tags & Label

  • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • MEA