The global thermal paper market size was valued at USD 4.02 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% from 2021 to 2028. The growing popularity of Point of Sale (PoS) machines to carry out retail transactions is expected to drive the market over the forecast period. The rising importance of labeling/providing a detailed description of constituents in the food & beverage and pharmaceutical industries to beat adulteration practices is also expected to propel the product demand. Moreover, the growing application of Radio-Frequency Identification (RFID) tags in the healthcare industry is expected to remain a favorable factor for industry growth in the near future.
Point-of-Sale (PoS) emerged as the largest application segment in the U.S. market in 2020. High penetration of PoS machines for carrying out daily transactions was the primary factor responsible for the segment growth. Furthermore, the wide-ranging use of portable PoS machines for issuing parking tickets has also had a favorable impact on the product demand.
Leuco dye is the main raw material required in the production of thermal paper. Chinese manufacturers account for over 80% of the global leuco dye production. Thus, the implementation of stringent pollution control norms in China has led to an unprecedented rise in leuco dye prices, which also increased the prices of thermal paper.
When exposed to heat, the molecules in the leuco dye react with the developer, producing the printed image on the base paper. Most thermal papers are known to produce black and white images. However, improvements in dye technology have made it possible to produce images in other colors.
Growing preference for e-receipts for purchase transactions is expected to pose a credible threat to the product demand over the forecast period. Furthermore, the increasing restrictions on the use of bisphenol A-based products in Europe and the U.S. owing to its adverse effects on the human reproductive system are expected to hamper the market growth.
The Point-of-Sale (PoS) segment led the thermal paper market and accounted for more than 64% of the global revenue share in 2020. The product is widely used in PoS machines owing to the ease of printing. In addition, the wide-ranging use of mobile PoS terminals in public utility spaces, transportation, and retail markets has supported the segment growth. Growing preference for cashless transactions in developing economies, such as India, China, Vietnam, and Indonesia, are driving the demand for PoS transactions and thereby propelling the product demand. However, progressive adoption of electronic receipts is expected to have a restraining impact on the market growth.
The tags & labels segment is expected to register the fastest CAGR of 6.4% over the forecast period. Growing applications of tags & labels in the retail and food & beverage industries are expected to be the primary factors driving the segment growth. Furthermore, the growing adoption of detailed labeling in the pharmaceutical industry is expected to drive the segment. These labels are used in the hallmark and paper form, which not only provides the details of the nutritional ingredients but also avoids any duplication practices. In the pharmaceutical industry, it is used to provide information regarding manufacturing and expiry date, composition, bar codes, and related data of products including drugs, injections, and pharmaceutical equipment.
Asia Pacific region dominated the market and accounted for over 34% share of total revenue in 2020. The rapid growth of the retail industry coupled with the rising demand for pharmaceutical and healthcare products in the region has led to the growing product utilization for billing operations. In addition, a rising preference for cashless transactions has had a positive impact on the market.
Europe has emerged as a manufacturing hub for dietary supplements and nutritional products owing to the presence of prebiotic manufacturers, such as FrieslandCampina Domo (The Netherlands), and Beneo (Belgium). These companies are progressively adopting the labels and tags to adhere to the labeling standards as well as to prevent adulteration. The MEA regional market is estimated to register the second-highest CAGR from 2021 to 2028.
This growth is credited to the high product demand as a result of an increasing number of retail outlets, shopping malls, and ATMs in Saudi Arabia. The product demand in the U.S. is expected to grow at a CAGR of 3.8% over the forecast period. The presence of major food & beverage manufacturers, such as Tyson, Cargill Foods, JBF, and KFC, in the country, is expected to increase the incorporation of printed labels and tags, which, in turn, is likely to fuel the product demand.
The global market is highly oligopolistic with fierce price competition between the companies. The market is characterized by tight margins. The profitability of the companies is highly dependent on the cost of raw materials and a high degree of automation to achieve economies of scale in the production process. Furthermore, the industry profit margins vary based on their integration levels. Some of the prominent players in the global thermal paper market include:
Ricoh Company, Ltd.
Oji Holdings Corporation
MPM Ltd.
Appvion Incorporated
Jujo Thermal Ltd.
Lecta Group
Report Attribute |
Details |
Market size value in 2021 |
USD 4.17 billion |
Market volume in 2021 |
2,088.0 Kilotons |
Revenue forecast in 2028 |
USD 6.03 billion |
Volume forecast in 2028 |
2,865.6 Kilotons |
Growth Rate |
CAGR of 5.2% from 2021 to 2028 (Revenue-based) |
Base year for estimation |
2020 |
Historical data |
2017 - 2019 |
Forecast period |
2021 - 2028 |
Quantitative units |
Volume in kilotons, revenue in USD million/billion, and CAGR from 2021 to 2028 |
Report coverage |
Revenue forecast, volume forecast, competitive landscape, growth factors, and trends |
Segments covered |
Application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; Germany, U.K.; France; China; India; Japan; Brazil; Saudi Arabia |
Key companies profiled |
Ricoh Company, Ltd.; Oji Holdings Corporation; MPM Ltd.; Appvion Incorporated; Jujo Thermal Ltd.; Lecta Group |
Customization scope |
Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global thermal paper market report on the basis of application and region:
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)
Point of Sale (PoS)
Lottery & Gaming
Tags & Labels
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)
North America
U.S.
Canada
Mexico
Europe
Germany
U.K.
France
Asia Pacific
China
India
Japan
Central & South America
Brazil
Middle East & Africa
Saudi Arabia
b. Some of the key players operating in the thermal paper market include Appvion Incorporated, Ricoh Company, Ltd., Oji Holdings Corporation, Koehler Paper, Nakagawa Paper Rolls, Hansol Paper, Mitsubishi Paper Mills (MPM), and Jujo Limited.
b. The key factors that are driving the thermal paper market include a growing preference for cashless transactions across the developing economies of India, China, Vietnam, and Malaysia.
b. The global thermal paper market size was estimated at USD 4.02 billion in 2020 and is expected to reach USD 4.17 billion in 2021.
b. The thermal paper market is expected to grow at a compound annual growth rate of 5.2% from 2021 to 2028 to reach USD 6,030.4 million by 2028.
b. The point of sale (PoS) segment dominated the thermal paper market with a share of 64.1% in 2020, owing to the wide-ranging adoption of thermal paper in PoS machines used in retail stores, bus stations, and railway stations among others.
b. The tags & labels segment is expected to advance at the fastest CAGR of 6.4% in the thermal paper market over the forecast period.
b. Asia Pacific led the thermal paper market in 2020 in terms of revenue, with an overall share of more than 34%, aided by the rapid growth of the retail and healthcare sectors in the region.
b. The U.S. market for thermal paper is expected to grow at a CAGR of 3.8% over the forecast period, with the food and beverage sector anticipated to drive the product demand, with regards to the integration of printed labels and tags.
b. There has been an increased number of restrictions on the use of Bisphenol A-based products in the thermal paper market, which has led to the launch of phenol-free products in major regions by manufacturers.
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