Market Trends of Thermal Paper Industry
POS to Drive the Market Growth
- The POS End-user sector is expected to develop quicker throughout the projected period, owing to increased global billing objectives in the retail industry. Furthermore, rising supermarkets and hypermarkets worldwide are expected to push POS terminal applications and promote market expansion. Chain supermarkets dominate the grocery retail business in the United States. According to US Census Bureau, grocery and supermarket store sales in the United States of America reached USD 810.28 billion, up from USD 624.97 billion in 2017.
- The introduction of digitization in emerging countries such as India has increased the need for POS systems and, as a result, the market for thermal paper rolls. Furthermore, the growing relevance of product marking in the fight against counterfeiting has boosted the demand for thermal paper rolls. As per the Reserve Bank of India database on the Indian Economy, the POS segment in retail increased by 6.17% in May 2022, an increase compared to the previous month for the financial year 2022 - 2023. The significant value during the period in the POS segment in retail contributes to the major market shares.
- Furthermore, the thermal paper has outstanding high-traffic coloring capabilities and a highly durable finish that does not fade quickly. This characteristic enables printed bar codes to be used in POS food labeling and other applications during manufacturing and shipping, which has increased global demand for thermal paper rolls.
- Massive data volumes generated by many industry sectors put immense pressure on current organizations to transition from traditional transactional techniques to POS systems. POS terminals eliminate human mistakes in financial bills and inventory management while providing corporate dependability. As a result, retail sector development and increasing receipt and bill printing in large and small-scale establishments drive thermal paper market growth.
- Mobile POS terminals are widely utilized in bus, rail, and other commercial transportation ticketing applications. Furthermore, these devices are employed for material management in industrial plants, government buildings, and retail establishments. A growing number of POS terminals in public places will likely sustain product demand in the predicted time frame. According to the state council of China, the total number of retail point-of-sale (POS) devices in the country escalated from 31.19 million to 35.56 million in 2022.
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Asia Pacific is Fastest Growing Market for Thermal Paper
- Owing to the increased customer desire for conveniently available consumer products, Asia Pacific dominated the market with the rise of retail chains in the area. Over the last few decades, the industrial sector in China, one of the major market shareholders in the Asia Pacific, has witnessed astonishing growth. According to the National Bureau of Statistics of China, in 2022, the industrial sector contributed 33.2% of the country's GDP. Moreover, the region's growing industrial activity has increased product demand for labeling applications. The expanding demand for FMCG items in developing nations must increase these commodities' manufacturing capacity. As a result, the number of transactions at retail outlets has increased.
- India's market for industrial labels has a sizable potential because of increasing and recovering market growth. Also, the government is assisting the market by educating consumers about proper labeling. Furthermore, the growing trend of online shopping and improved related warehouse operations is expected to help the projection term. According to IBEF, the Indian e-commerce sector is anticipated to expand by 21.5% to USD 74.8 billion by 2022. E-commerce has altered the way Indians conduct business. By 2030, India's e-commerce business will be worth USD 350 billion.
- The food and beverage sectors are expected to be the largest consumers in the Asia Pacific. Rising demand for packaged food goods in China and India's rising economies is expected to stimulate demand for specialty labels and tags, favorably impacting the thermal paper business. Integrating industry 4.0 technology with the print & apply label applicators helps the food & beverage sector offer real-time monitoring. Prominent companies operating in the market announced innovative products to attract consumer attention and expand their product portfolio. For instance, Markem-Imaje, a Dover Company, launched the e-Touch-S intelligent print & apply labeling system in September 2022.
- Thermal sheets are widely used in POS machines, supermarkets, and ATMs. The rise of e-commerce in the region and the presence of many ATMs support the presence of many thermal paper market players in the Asia-Pacific region. According to the National Payments Corporation of India, as of January 2022, there were approximately 255 thousand ATMs in the National Financial Switch (NFS) network. The NFS is India's largest ATM network, with approximately 1,200 linked members and over 300 million transactions.
- Strict environmental and health restrictions have resulted in severe standards for using thermal paper containing bisphenol A, impacting product demand. Nonetheless, technological improvements in the APAC area are projected to open new business opportunities in the forecast period.
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