Introduction
While consumers have been adjusting their lifestyle in response to COIVD-19 pandemic, the crisis has triggered several market disruptions. These disruptions will have both short- and long-term repercussions for the global machine glazed paper market, which will generate US$ 12 Bn in 2020.
Governments are moving on the sustainability issue, and fast-moving consumer goods (FMCG) firms and retailers are actively making bold commitments to step up sustainability of their packaging as well as fundamentally rethink their packaging systems.
These escalating sustainability due to evolving consumer demands and stringent regulatory requirements will augur well for global machine glazed paper market over years ahead.
Leveraging Kraft Pulping – A Sustainable Approach
Market players are turning to kraft pulp derived from industrial wood wastes to develop machine glazed papers. FMI estimates that the US alone generates around 20-30 million tons of industrial wood waste every year.
Reutilization of industrial wood wastes to develop kraft pulp requires less preparing duration to attain Kappa number almost identical to that of virgin pulp. Further, pulp derived from industrial wood wastes is bleached more efficiently versus loblolly pine pulp and requires lesser chlorine dioxide under similar bleaching requirements.
Mechanical aspects of industrial wood waste pulp-produced papers are akin to those of virgin pulp. As such, reusing industrial wood wastes to manufacture machine glazed papers will gain huge traction, globally, in near future.
Unsustainable Manufacturing Process – A Key Concern
While machine glazed papers carry umpteen eco-friendly benefits compared to conventional plastic, manufacturing process of these papers are put under scrutiny, especially in products such as disposable paper bags.
Cutting down millions of trees – deforestation - in exchange for developing paper bags for short-term usage is putting burden on available resources.
FMI finds that about 14 million trees are cut down in the US alone to meet the demand for around 10 billion paper bags. In addition, about 80% of paper bags end up in landfills in the country, where they do not degrade for decades.
Region-wise Analysis
East Asia Machine Glazed Paper Market
Availability of cost-effective labor and production in East Asia has driven manufacturers of machine glazed papers across the globe to expand their manufacturing facilities to the region.
Moreover, sustainability drive is rapidly hitting mainstream in East Asia. Mintel states that eco-friendly movement has significantly influenced packaging in beverages, with 23% of new beverage launches in 2019 featuring eco-friendly packaging claim.
Several food and beverage experts in East Asia have notices rapidly rising demand for sustainable packaging for on-the-go and take-aways foods and beverages. By 2030, machine glazed paper market in East Asia will value around US$ 7 Bn.
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Europe Machine Glazed Paper Market
As per Euronews, over 50 million tonnes of plastics are utilized a year in the European Union (EU). Over 25 million tonnes of plastic waste are accumulated yearly, however, less than 30% is recycled. As such, regulators in Europe are encouraging packaging industrials to turn to sustainable packaging formats.
Moving ahead, food and beverage industry will majorly drive machine glazed paper market. However, the industry has witnessed supply chain disturbances due to voluntary or authority-enforced shutdowns of factories amid COVID-19 pandemic.
That said, the industry will make sharp recovery in coming months as lockdown restrictions relax gradually. While demand for machine glazed papers has been high in Germany, players are grabbing potential value-capture opportunities in the UK and Spain.
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North America Machine Glazed Paper Market
Players in machine glazed paper market are also tapping white spaces in North America. Packaging industry in the region has been recovering moderately despite taking hard hit in 2009 due to economic recession (2008-09).
That said, innovative packaging trends, especially sustainable packaging solutions, are paving way for paperboard and corrugated packaging. As leading players in machine glazed paper market are headquartered in North America, barrier to entry and competitiveness for new entrants is considerably high in the region.
FMI finds that, by 2020, adoption of machine glazed papers in North America will register revenue around US$ 2 Bn.
Category-wise Insights
Basis Weight
Machine glazed papers with basis weight 71 to 100 grams per square meter (GSM) continue to procure leading revenue share. However, their market share will gradually falter in coming years.
Machine glazed papers weighing 41 to 70 GSM and above 100 GSM will pick momentum in near future. Both the categories will share nearly equal divide in global market revenue by 2030.
Furthermore, FMI finds that machine glazed papers with basis weight up to 40 GSM will register fastest CAGR among other categories over decade ahead.
Paper Type
Given their strength, cost-effective, and eco-friendly attributes, machine glazed kraft papers are considered ideal for packaging. With ever-growing consciousness regarding of ecological burden, end users are increasingly turning to eco-conscious businesses and products, with kraft paper packaging among those products.
As such, several retail stores have been resorting to machine glazed kraft paper bags for past few years. Moreover, various e-commerce giants have begun leveraging the material for envelopes and boxes. About 8 out of 10 end users will stay glued to machine glazed kraft papers for packaging purposes.
Grade
Unbleached machine glazed papers are considered safer versus the bleached variant as they are not processed with chlorine. They are heat resistant and are relatively cheaper, as such, are ideally used in packaging dry food items, and delicate products such as chinaware.
However, unbleached machine glazed papers fail to protect food items within from grease and are not suitable for packing wet food products. Despite these cons, they continue to gain preference over bleached variant. As per FMI, unbleached machine glazed papers will generate revenue over double that of their bleached counterparts over following decade.
Application
Usage of machine glazed papers will remain prominent in sacks and bags & pouches through 2030. About 6 out of 10 machine glazed papers are used either in sacks or bags & pouches, says FMI report.
Moving ahead, market players are also unpacking potential revenue lines in wraps. By 2020, adoption of machine glazed papers will value around US$ 1.4 Bn. That said, manufacturers will hurt their revenue pool if they do not turn to envelopes and labels & release liners, of which value creation from latter will hit US$ 1 Bn mark in coming years.
End Use
Food and beverage industry continue to remain target end user of machine glazed papers, accounting for about a quarter of overall sales. According to recent survey, 80% of respondents have shown preference for biodegradables, however, few believe the material is ready for them.
As a response, several food and beverage retailers are embracing the concept of ‘reduce, reuse, and recycle.’ This trend continues to flourish across food and beverage industry, machine glazed paper manufacturers must keep pace with these transformations in order to capture value at stake.
Competitive Intelligence
The global machine glazed paper market is characterized by presence several large and small- and medium-scale companies. Further, tier-3 players in market account for 75-80% revenue share.
As sustainability is having significant impact on packaging converters and their value chain, players with right focus and innovation capabilities will unleash considerable growth and new partnership opportunities to back end users in rethinking their packaging portfolios.
Smurfit Kappa Group has rolled out portfolio of sustainable packaging solutions for bundling bottled and canned beverages. The cutting-edge new corrugated range staves off the need for single-use plastic and is 100% recyclable, biodegradable, and renewable. GreenClip is surrogate for plastic rings that are utilized to group six packs of cans. TopClip replaces stretch films that are used to bundle and distribute cans in one pack. Nor-Grip is innovative corrugated solution that safely bundles bottles collectively into consumer units, warding off the need for shrink films.
Stora Enso Oyj has developed Performa Light™ - recyclable and renewable board for premium folding cartons utilized for packaging chocolate and confectionery. The board is extremely lightweight and possesses better strength owing to microfibrillated cellulose structure, leading to low waste and reduced CO2 emissions in transport. In addition, high print quality of Performa Light™ owing to its whiteness and brightness is another attraction point for customers.
Mondi Group Plc has launched new recyclable polypropylene (PP) films that are ideal for thermoforming of flexible films for vacuum packaging and modified atmosphere packaging (MAP), which are beneficial in extending shelf life of products such as cheese, and meat. The solution offers 23% reduction in carbon footprint compared to existing packaging.
In addition to these, some other key players in machine glazed paper market include
- Nippon Paper Industries Co. Ltd.
- International Paper Company
- BillerudKorsnas AB
- Heinzel Group
- Gascogne Papier SAS
- Twin Rivers Paper Company
- Verso Corporation
- Burgo Group Spa
- Dunn Paper Company
Machine Glazed Paper Market Report: Scope
| Attribute | Details |
| Forecast Period | 2020-2030 |
| Historical Data Available for | 2015-2019 |
| Market Analysis | USD Million for value and Volume in ‘000 tonnes |
| Key Regions Covered | North America, Latin America, Europe. South Asia, East Asia, Oceania and Middle East & Africa (MEA) |
| Key Countries Covered | US, Canada, Brazil, Mexico, Germany, UK, France, Italy, Spain, BENELUX, China, Japan, South Korea, India, ASEAN, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, Israel, South Africa |
| Key Segments Covered | Basis Weight, Paper Type, Grade, Application, End Use, and Region |
| Key Companies Profiled | Smurfit Kappa Group, Nippon Paper Industries Co., Ltd, Stora Enso Oyj, International Paper Company, Mondi Group Plc, BillerudKorsnas AB, Heinzel Group, Gascogne Papier SAS, Twin Rivers Paper Company, Verso Corporation, Burgo Group Spa, and Dunn Paper Company (only indicative list) |
| Report Coverage | Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives |
| Customization & Pricing |
Key Questions Answered by the Report
- How is the market for machine glazed papers expected to shape up in coming ten years?
The global machine glazed papers market will value around US$ 12.1 Bn in 2020. The growth rate for the market will be 4.5 % CAGR during 2020-2030.
- Which is the largest market for machine glazed papers?
East Asia represents the largest market for machine glazed papers, worldwide, followed by Europe, given flourishing food & beverage and healthcare industries in these regions.
- How the competition is structured in global machine glazed paper market?
The global machine glazed paper market is highly competitive with leading players including, Smurfit Kappa Group, Nippon Paper Industries Co. Ltd., and Stora Enso Oyj accounting for about 25% revenue share.
- Who are the end users of machine glazed papers?
End users of machine glazed papers include food and beverage, building and construction, and healthcare industries, to name a few. Among these, food and beverage industry will remain primary end user, while demand from building and construction industry is speeding up.
- Which paper type is highly preferable in global machine glazed paper market?
Kraft papers continue to capture leading share in global machine glazed paper market. Moreover, market players are eyeing relevant revenue growth prospects in tissue papers.
Enquiry before Buying
- Is this research conducted by Future Market Insights?
Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst.
- What research methodology is followed by FMI?
FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions.
- Who are the respondents for primary research?
FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.
- What are the sources of secondary research?
FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
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Key Segment
Basis Weight
- Up to 40 GSM
- 41 to 70 GSM
- 71 to 100 GSM
- Above 100 GSM
Paper Type
- Tissue Paper
- Kraft Paper
Grade
- Unbleached
- Bleached
Application
- Bags & Pouches
- Sacks
- Wraps
- Labels & Release liners
- Envelopes
- Coating & Lamination
- Trays, cups & bowls
- Others (Gift Wrap)
End Use
- Food & Beverages
- Healthcare
- Electrical & Electronics
- Automotive
- Personal care & Cosmetics
- Textile
- Building & Construction
- Household
Regional Outlook
- North America (US, and Canada)
- Latin America (Brazil, and Mexico)
- Europe (Germany, UK, Russia, France, and Italy)
- South Asia (India, Indonesia, Thailand, Australia and New Zealand)
- East Asia (China, Japan, and South Korea)
- Oceania (Australia and New Zealand)
- Middle East & Africa (MEA) (Turkey, GCC Countries, and South Africa)
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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