Worldwide demand for specialty papers surpassed 25,354 tons in 2018, with a veritable proliferation anticipated over the upcoming years.
Lowering preference for plastics across diverse end-use verticals, ranging from packaging and labelling to pharmaceuticals, has induced a shift toward viable alternatives, such as specialty paper. These insights are according to the study, which positions the specialty papers market for a bullish run in the upcoming years.
Fact.MR study opines that sales of specialty papers are surging in the wake of associated beneficial attributes, ranging from enhanced strength to smoothness. Use of MFCs has witnessed a considerable uptick on the back of its high material strength, which has been identified as a pervasive trend gaining momentum in the global market space. Moreover, increasing sensitivity toward environmental sustainability is one of the overarching trends contributing to the growth of specialty papers market.
“Demand for specialty papers is benefiting from the trend of minimalism in case of packaging industry, with rising preference for solid colors and plain designs. Moreover, spurring sales of grab-n-go foods is complementing the specialty paper, owing to its moisture retention capacity and pH levels. Rising fad for instant beverage premixes in the form of sachets is complementing the adoption of specialty paper”, Senior Report Analyst.
Packaging and Labelling Industry Drive Demand
As per the report, demand for kraft specialty papers possessing good printability and processability attributes combined with high versatility is witnessing an uptick, with volume sales valued at 5,665 tons in 2018. Décor specialty papers trail the former in terms of popularity, driven by the pervasiveness of DIY art and craft, home décor, and gifting. Specialty papers are also extensively used in crafting masking tapes, which are employed in masking off walls as well as doorframes.
Packaging and labelling industry represents the largest end-use segment in terms of demand for specialty papers with impressive revenue statistics, both in 2018 as well as 2017. Upswing in demand for cost-effective media serving small to medium order quantities with utmost flexibility is fostering the popularity of specialty papers in the packaging and labeling industry. Building and construction represents the second-most notable end-use segment and offers multiple opportunities for the manufacturers to tap into, with volume sales of 3,775 tons recorded in 2018.
Customized Specialty Papers Witness Significant Uptick in Demand
Specialty papers market is witnessing a notable surge in demand for customized products in a wide range of colors and ream weights. Innovative approach in combination with manufacturing flexibility is enabling specialty papers’ manufacturers to offer a portfolio of customized products crafted for common as well as niche applications. High scale proliferation of e-commerce and subsequent growth in shipments are also fuelling the adoption of high-grade specialty papers to facilitate recyclable packaging.
The demand for specialty papers remains closely associated with demographic shifts and consumer trends such as preference for convenience and sustainability, finds Study. Persistent innovation has been identified to be paramount for growth amid the customer marketplace, which can be fuelled by seasonal inspirations derived from sources such as consumer-goods companies, consumer surveys, social media and so on.
Management of operating costs in production of specialty papers remains one of the key areas, wherein companies need to attain a tighter grip. Despite the fact that this aspect receives continual attention from management, the evolving trends convey that there is still remarkable potential for cost reduction by moving away from the conventional approaches and moving to the next level of cost optimization via smart work.
The report offers compelling insights on the growth course of specialty papers market over the forecast period of 2019 to 2027. According to the report, global specialty papers market is likely to register a volume CAGR of more than 2% over the forecast period.
These insights are based on a report on Specialty Papers Market by Fact.MR.