Market Trends of Paper Coating Material Industry
Growing Demand for Paper Coating Materials from the Printing and Packaging Industry
- Paper is coated with a blend of materials or polymers to impart specific characteristics, such as weight, surface sheen, smoothness, and reduced ink absorbency.
- Paper coating material is a type of material used to coat paper and paperboard to enhance their properties, such as printability, durability, and water resistance.
- Due to the rising demand for product self-promotion on store shelves and growing environmental concerns, the packaging industry has emerged as the predominant consumer of paper-coating materials.
- As per the data from the Association for Packaging and Processing Technologies (PMMI), the flexible packaging market surged to approximately USD 290 billion in 2023 globally. This surge is primarily driven by increasing consumer preferences for convenient packaging and a unified industry shift toward sustainable, shelf-ready designs.
- The US Flexible Packaging Association highlights that food packaging constitutes over 50% of flexible packaging applications. The food and beverage industry is anticipated to register a market volume of around USD 25 billion by 2025, boasting an annual growth rate surpassing 4.7%. As food production and marketing expand, so does the demand for packaging, underscoring its significance for the paper-coating material market.
- Coated paper is extensively used in printing to enhance aesthetics. In food packaging, coated paper acts as a barrier to moisture and oxygen, ensuring freshness and extending shelf life.
- As per the data from the Bureau of International Recycling (BIR), the global production of paper and cardboard stands at around 420 million tonnes annually, with over half of the production sourced from recovered materials.
- Additionally, the Food and Agriculture Organization (FAO) reported that in 2022, global production reached approximately 91 million metric tons of graphic paper and 265 million metric tons of packaging paper and board, totaling over 414 million metric tons.
- Moreover, data from Suzano Papel e Celulose, a prominent Brazilian paper and pulp producer, indicated that the global consumption of paper and paperboard reached an estimated 420 million tons in 2023, and it is expected to reach 432 million tons in 2024.
- Given these dynamics, the application of paper coating materials in printing and packaging is poised to grow during the forecast period.
Understand The Key Trends Shaping This Market
Download PDF
Asia-Pacific is Expected to Dominate the Market
- Asia-Pacific is poised to lead the market for paper coating materials in the coming years. The surge in demand for these materials, particularly from the packaging and printing sectors, is being fueled by the region's burgeoning population, rising disposable incomes, and increased consumption of processed foods and beverages. These trends have spurred numerous expansion projects across various Asia-Pacific nations.
o For instance, in March 2024, PepsiCo unveiled plans to invest USD 390 million in establishing two beverage manufacturing plants in Vietnam's Ha Nam and Long An provinces. Both plants are set to commence operations by 2026.
o Further, Frucor Suntory, a prominent Japanese beverage company, declared its USD 400 million investment in Q3 2022 in a new facility in Queensland, Australia, slated to start operations in 2024, boasting an annual capacity of 20 million drink cases. - There is a growing momentum toward eco-friendly and sustainable paper packaging, especially with nations like India and China advocating for paper over plastic.
- China's packaging industry, buoyed by its expanding economy and rising middle class, has seen food packaging dominate, holding about 60% of the market share. Interpak reported that in 2023, China's foodstuff packaging reached an impressive 447 billion units.
- The India Brand Equity Foundation (IBEF) projects India's packaging sector to register a CAGR of 26.7%, reaching USD 204.81 billion by 2025, driven by surges in FMCG, food processing, manufacturing, and e-commerce. This growth is set to bolster the demand for paper coating materials.
- Leading the production of paper coating materials, Asia-Pacific boasts major players like BASF SE, Eastman Chemical Company, Asia Pulp & Paper (APP) Sinar Mas, Nippon Paper Industries Co. Ltd, and Michelman Inc.
- Given these dynamics, the Asia-Pacific market for paper coating materials is expected to grow in the coming years.
Get Analysis on Important Geographic Markets
Download PDF
