Specialty Paper Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 6.80 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Specialty Paper Market Analysis
The speciality papers market is expected to register a CAGR of 6.8% over the forecast period. Specialty paper provides enhanced moisture retention, pH levels, and hygiene, making it suitable for packaging materials in the food and beverage, lifestyle, and cosmetics industries. Also, rising disposable incomes have increased the demand for high-quality packaging material, boosting the market growth.
- The changing lifestyle has increased fast food consumption, and eat-on-the-go food has propelled growth. Also, the increasing trend of online food ordering and delivering it to the doorstep is expected to support market growth. This trend has surged since covid. The food delivery restaurants use speciality paper to pack products to prevent the development from becoming dishevelled by the customer. The growth in online delivery will support market growth. For instance, according to The Economic Times, the size of online food delivery experienced a decline owing to COVID-19 and restrictions on the moment for goods. Still, the market is projected to regain traction by 35 % and reach USD 12.8 billion by 2025.
- Sustainable improvement in the specialty paper, such as water-based barrier coating and lightweight and special performance coating, is rising due to constant research and development in enhancing specialty paper. Likewise, high-performance composites, biodegradability, and nano-materials are poised to give rise to new markets in the foreseeable future and will continue to boost the global market growth.
- The market is gaining traction owing to its rising applications in the e-commerce activities such as packaging, storing, and transportation. Other basic applications of specialty papers other than high-end packaging include printing invitations and decoration. Additionally, the growing usage of the latest design, colors, and materials in home decor drives new and advanced décor papers. Owing to its convenience, strength, and less environmental impact, kraft paper is witnessing growing demand for wrapping, sacks, and pouches to handle goods.
- Moreover, the availability of customizable specialty paper products with specific properties according to end-user preference is an advantage driving the global specialty paper market. However, carbon emissions from the paper manufacturing processes and deforestation are projected to be a substantial disadvantage of specialty papers, hindering their market growth.
- With the recent outbreak of COVID-19, the specialty papers manufacturer is facing supply chain disruption and decreasing manufacturing at the site in many parts of the world. However, Governments across the globe have deemed food-related businesses essential, owing to which the demand for packaging from specialty papers is expected to be steady during the period. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem
Specialty Paper Market Trends
Food Service Industry is Expected to hold Significant Share
- The demand for packaged food items has risen considerably due to the urban population's busy lives and increasing disposable income. The need for specialty paper is growing as packaged food sales soar because specialty paper is often utilized in the food service industry to package takeaway items. For instance, Just Eat PLC in the UK stated that household spending on takeout food reached GBP 11.2 billion (USD 13.25 billion ) in 2021.
- In the food service industry, speciality papers are increasingly being used for carryout boxes, carryout bags, paper tubes, paper plates, cups, and more as they provide good barrier performance, high wet strength, excellent flexibility, print-ability, and increased shelf life of a product and also enables seamless transportation handling.
- Also, packaging and labelling have become differentiating factors for potential customers in the industry. Therefore, manufacturers and marketers constantly innovate and improve their packaging and labelling solutions to attract potential buyers. This is expected to boost the speciality papers market growth in the food service industry.
- The demand for essential packed food and beverage products surged during the initial spread of COVID-19. Companies struggled to meet the rapidly changing market and faced supply chain disruptions. In addition, the rapidly growing e-commerce has contributed to the growth by driving the demand for specialty paper packaging in the sale of food, beverages, online pharmacies, and drug stores. For instance, according to US Census Bureau, the United States food service and drinking place sales amounted to about USD 876.33 billion in 2021.
North America is Expected to hold the Largest Share
- One of the key elements anticipated to drive the adoption of speciality papers in the region over the forecast period is the growing tendency for on-the-go eating, along with the expansion of the food service industry in the area. For instance, Home Chef estimates that Americans spend an astounding USD 70,000 on delivery and takeout over their lives.
- The market players are also witnessing strategic acquisitions as a lucrative opportunity to expand their regional market presence. Also, certain players are focusing on widening their product mix. For instance, in April 2022, JK Paper intends to expand its product mix and is planning to introduce liquid packaging, cigarette board, anti-fungal, and aqueous boards. The company launched kraft liner paper, colour kraft paper, JK Pac fresh, JK sublime paper (rolls) & Liquid packaging board. Further, the company is working on numerous new products under various stages of development, focusing on functional grades, speciality paper & board, and sustainable packaging, which will promote the growth of speciality packaging. In the financial Year 2021, the Company sold 3,40,976 MT of uncoated W&P and specialty paper (including exports).
- The region also is witnessing an increased output from the quick-service restaurant (QSR). This is expected to fuel market growth over the forecast period. For instance, according to the International Franchise Association, the Output of the quick-service restaurant (QSR) franchise industry in the United States reached USD 255.53 billion.
- The U.S. dominates in the North American region as the specialty paper sector proliferates. Also, the increasing consumption of specialty paper as a leaflet in the pharmaceutical industry boosts the demand for specialty paper in the market. Such instances indicate that the market in the region is poised to grow over the forecast period.
Specialty Paper Industry Overview
The specialty papers market is highly competitive. The players in the specialty papers market are focusing on recyclability and sustainability to widen their consumer base. Product differentiation and quality enhancement are key focus areas of key players such as Nippon Paper Industries Co., Ltd., Stora Enso Oyj, Sappi Limited, Mondi Group Plc, and others in the specialty papers market. Some key developments of the market are:
- August 2022: Arttek Solutions in Bengaluru, India, collaborates with BillerudKorsnäs to replace plastic straws in India. Arttek Solutions has collaborated with BillerudKorsnäs to drive innovation, selecting BillerudKorsnäs ConFlex Glaze as its straw material. A 100% recyclable and sustainable high-quality MG specialty paper made from FSC-certified Scandinavian forests.
- July 2022: Mill Rock Packaging Partners, a portfolio company of private investment firm Mill Rock Capital, has acquired US-based specialty packaging and printing company Impressions.
- July 2022: Neenah Paper Inc. and Schweitzer-Mauduit International, Inc. completed their merger and are now operating under the name Mativ Holdings Inc. The two specialty paper manufacturers announced a plan to form a company with USD 3 billion in annual sales in March. This newly formed company touted its strong market share in emerging categories such as health care and wellness, protective and adhesive solutions, industrial solutions, packaging paper, and specialty paper.
Specialty Paper Market Leaders
Nippon Paper Industries Co., Ltd.
Stora Enso Oyj
Sappi Limited
Mondi Group PLC
International Paper Company
*Disclaimer: Major Players sorted in no particular order
Specialty Paper Market News
- November 2022: Sappi North America announced the investment of USD 418 million in paper machine rebuilds at its Somerset Mill in Skowhegan. With this investment, the company is focusing on increasing Paper Machine No. 2's capacity to produce solid bleached sulfate board products, a sustainable alternative to plastic packaging. This move of the company indicates its long-term Thrive25 strategy, which focuses on growing its portfolio in packaging and speciality papers, pulp, and biomaterials.
- September 2022: Sappi Europe, a packaging and speciality paper manufacturer, is set to extend its capacity at its mill in Gratkorn, Austria, enabling the mill to manufacture wet-strength label papers. The double-digit million-euro investment in a state-of-the-art technical infrastructure will drive the site's expansion and establish Sappi as a leader in the label sector for the long term.
Specialty Paper Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Trend of Online Food Ordering
5.1.2 Changing Consumer Preference to Adopt Sustainable Decorative Lamination
5.2 Market Challenges
5.2.1 Stringent Government Regulations Pertaining to the Usage of Chemicals While Manufacturing of Specialty Papers
5.2.2 Shortage of Raw Materials caused due to Stringent Environmental Regulations for deforestation
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Kraft Paper
6.1.2 Container Board/Paper Board
6.1.3 Label Paper
6.1.4 Silicon-based Paper
6.1.5 Others
6.2 By End-user Industry
6.2.1 Packaging & Labelling
6.2.2 Food Service
6.2.3 Printing & Publication
6.2.4 Building & Construction
6.2.5 Other End-user Industries (lamination, retail bags etc.)
6.3 By Geography
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 Germany
6.3.2.2 United Kingdom
6.3.2.3 France
6.3.2.4 Rest of Europe
6.3.3 Asia Pacific
6.3.3.1 China
6.3.3.2 India
6.3.3.3 Japan
6.3.3.4 Rest of Asia Pacific
6.3.4 Latin America
6.3.4.1 Brazil
6.3.4.2 Mexico
6.3.4.3 Rest of Latin America
6.3.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Stora Enso Oyj
7.1.2 Nippon Paper Industries Co., Ltd.
7.1.3 Mondi Group PLC
7.1.4 ITC Limited
7.1.5 Domtar Corporation
7.1.6 Nordic Paper AS
7.1.7 Twin Rivers Paper Company
7.1.8 LINTEC Corporation
7.1.9 Sappi Limited
7.1.10 BillerudKorsns AB
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Specialty Paper Industry Segmentation
The market is defined based on the demand for speciality paper through the revenue derived from sales of Kraft Paper, Container Board/Paper Board, Label Paper, Silicon-based Paper, and Other speciality papers to the different end-user industries such as packaging & labelling, food service, printing & publications, building & construction, and others. The study presents the current status and prospects of the speciality papers market. The overall impact of COVID-19 on the ecosystem has been considered in the market prospects.
The Specialty papers market is segmented by Type (Kraft paper, Container Board/Paper Board, Label Papers, Silicon-based papers), End-user Industry (Packaging & Labelling, Food Service, Printing & Publication, Building & Construction), and Geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Type | |
| Kraft Paper | |
| Container Board/Paper Board | |
| Label Paper | |
| Silicon-based Paper | |
| Others |
| By End-user Industry | |
| Packaging & Labelling | |
| Food Service | |
| Printing & Publication | |
| Building & Construction | |
| Other End-user Industries (lamination, retail bags etc.) |
| By Geography | ||||||
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| Middle East and Africa |
Specialty Paper Market Research FAQs
What is the current Specialty Papers Market size?
The Specialty Papers Market is projected to register a CAGR of 6.80% during the forecast period (2024-2029)
Who are the key players in Specialty Papers Market?
Nippon Paper Industries Co., Ltd., Stora Enso Oyj, Sappi Limited, Mondi Group PLC and International Paper Company are the major companies operating in the Specialty Papers Market.
Which is the fastest growing region in Specialty Papers Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Specialty Papers Market?
In 2024, the North America accounts for the largest market share in Specialty Papers Market.
What years does this Specialty Papers Market cover?
The report covers the Specialty Papers Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Specialty Papers Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Specialty Papers Industry Report
Statistics for the 2023 Specialty Papers market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Specialty Papers analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
