Parchment Paper Market

Key Points Covered in Parchment Paper Market Study

• Market estimates and forecast 2015-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Parchment Papers Market and How to Navigate
• Recommendation on Key Winning Strategies

2015-2020 Parchment Paper Market Outlook Compared to 2021-2031 Forecast

Growth in food and food services sector has navigated rapid development of parchment paper industry worldwide. It is predicted to rise at 5.8% CAGR from 2021 to 2031 in comparison to 3.3% CAGR registered between 2015 and 2020.

Globally, changing consumer behavior has resulted in rise of consumption of ready-to-eat food. Thanks to increase in disposable income, consumers in emerging economies are spending more in food and food services sector. This trend is expected to continue over the assessment period.

On the back of these factors, the global parchment paper market is projected to witness the incremental opportunity of US$ 759.7 Mn during 2021-2031

Restaurants and bakeries are shifting towards parchment paper to reduce the time and labor invested in cleaning utensils. Traditionally usage of clamshell products was very common in the food services industry, but lately it has been transitioning to easily manageable, light weight, durable, safe and hygienic parchment paper.

Application of chlorine-free and unbleached greaseproof paper is expected to rise in the bakery and confectionary segment, which is anticipated to account for over 30% of sales in the market by the end of the forecast period.

These sheets are considered ideal for wrapping food and confectioneries. They are often used for wrapping a variety of ready-to-eat meals such as burgers or sandwiches. Parchment paper also is used as inner lining in snack boxes.

Economical parchment paper produced in South Asia and East Asia has a high demand in mature markets of U.S., U.K., Germany and France. Reasonable pricing of raw materials in emerging economies such as India, China and South Korea is pushing key players to produce goods in developing countries and export them to all parts of world.

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What Is the Impact of COVID-19 Crisis on Parchment Paper Market?

Due to the unprecedented COVID-19 outbreak, most of the countries across the globe implemented complete or partial lockdown to stop the menace of this life threatening virus. Although complete lockdown was enforced, manufacturing and transportation of essential commodities and materials were allowed by some government authorities.

The parchment paper market also witnessed a decelerating demand due to interruption of supply chains amid the outbreak of deadly virus. This caused great loss to producers and highly impacted the medium and small scale manufacturers with low profit margins. It resulted in negative year on year growth at -4.2% in the year 2020.

The food & beverage sector had a late boom, as the supply chain of agro-products and essential items were reinstated due to that bulk cargo transport by food producers. This has contributed positively to the growth of global parchment paper market by the start of 2021.

Country-wise Insights

Why is the U.S. Considered a Highly Profitable Parchment Paper Market?

North America is forecast to be second-leading market, according to Future Market Insights. As per the analysis, the U.S. is expected to hold more than 70% of the North America parchment paper market till 2031.

Implementation of stringent food safety regulations is set to boost the market for safe and hygienic food packaging solutions like unbleached parchment paper in the U.S.

Furthermore, the U.S. remains one of the world's largest markets for consumption of parchment paper, valued at US$ 164.1 Mn in 2020. Parchment paper is mostly used for wrapping of food products such as burger, bakery and confectionery products.

Many of the end users are opting for parchment paper while transporting food products, as this paper keeps the quality of the food products intact for a longer duration. Therefore, parchment paper is the most favored choice for exporting confectionary products in bulk across the globe.

Why are Parchment Paper Manufacturers Eyeing China to strengthen their Position?

China is gaining popularity for its stronghold in industrial and infrastructural growth and the country is projected to account for over 36% of the parchment paper market in East Asia.

China is well known as an early adopter of latest technologies. The cost of manufacturing is notably less in the country along with the availability of cheap labor and extensive pool of consumers, which are attracting many producers from around the world.

China also has emerged as one of Asia’s largest markets for food services industry, making it highly lucrative for parchment paper manufacturers. Moreover, rise in demand for food, and food services will create impressive growth opportunities for the market.

As per FMI, the parchment paper market in China is estimated to grow at a CAGR of 7.1% during the forecast period.

How will Expansion of Food Service Industry Fuel Demand for Parchment Paper in India?

India will hold share of more than 24% for the South Asia parchment paper market by the end of year 2031. The expansion of the food services will present lucrative opportunities for parchment paper manufacturers to maximize their sales in India.

The ever increasing production of food services product by India, means rise in demand for paper packaging solutions such as parchment papers. Also, the in-state consumption of packed foods has risen due to population surge. These factors directly impact the growth of parchment paper market.

Why is Japan Considered a Lucrative Parchment Paper Market?

Japan is one of the key producers of parchment paper in East-Asia and it is forecast to account for market value of almost about US$ 86 Mn by the end of 2031. Manufacturers from Japan are keenly focusing on developing a safe product for consumers.

Also, key food and food services players from Japan are undergoing a transition from clamshell products to parchment paper which is sustainable to reduce generation of carbon footprint. Subsequently, the Japan parchment paper market will create incremental opportunity of US$ 45.8 Mn in the forecast period 2021-2031.

Category-wise Insights

Why is Unbleached Paper Preferred in the Parchment Paper Market?

Unbleached paper is widely preferred in market owing to very little or no presence of fluorochemicals on the paper. Due to this, unbleached paper held more than 50% of market share in 2020.

Stringent rules are implemented on the use of bleached paper for food packaging in to curb the cases of food poisoning. This might restrict sales of bleached parchment paper. Moreover, bleached paper, if exposed under sunlight causes reaction of fluorochemicals present on paper with UV light. It might also leave traces of chemicals over food products which can cause food poisoning and other harmful effects.

Considering these factors, usage of unbleached parchment paper will expand by 2.05 times and expected to gain 630 BPS by the end of 2031.   

Which Type of Parchment Paper is Widely Consumed in the market?

The 40-60 GSM paper is widely used in the market due to its durability and lightweight properties. This segment is anticipated to hold about 44% of the market share by the end of 2021. Countries in the West are largely emphasizing on sustainable packaging solutions and stringent rules for environment.

40-60 GSM paper is highly recyclable and a greener option present in the market, due to which it has gained extensive market share. It will expand by almost 1.9 times its current market value by 2031.  

Who are the Leading End Users in Parchment Paper Market?

Bakery & confectionary and ready-to-eat meals segments are leading the global parchment paper holding a combined market share of 63% in the year 2020. They will remain dominant due to high consumption of bakery & confectionary and ready-to-eat meal products in mature markets of North America and Europe.

It has been witnessed that the consumption of ready-to-eat meals among millennials is exponentially increasing due to changing lifestyle and eating habits. As parchment paper is grease resistant and nonstick paper, it ensures quality of food product. Therefore, in the global parchment paper market, ready-to-eat meals segment is expected to expand by 1.9 times of current value, by the end of 2031.

Competitive Landscape

Companies operating in the parchment paper market are aiming at expansion and strategic partnerships with other manufacturers to expand their product manufacturing capabilities, product portfolio and global presence.

• In 2020, Nordic Paper AS started a campaign targeting professional bakers. Bakers are particular about ingredients they use in their products, because many baking paper contain fluorochemicals, which may migrate to baked goods. To prevent this, Nordic Paper launched a campaign in collaboration with National Swedish Baking Team. Also, this resulted in a positive surge in sales of unbleached parchment paper in Europe.
• In November 2019, McNairn Packaging was acquired by AmerCareRoyal LLC, which broadened its selection of food service packaging alternatives that were not present in its current portfolio.
• In July 2019, JK Paper signed an US$201.7 Mn MOU with Gujarat government to set up a new plant with 300,000 TPA capacity to facilitate modernization and expansion of Songadh unit. This increased the production of food packaging paper which will facilitate the consumption needs of parchment paper in the Indian subcontinent.
• In August 2018, Drewsen Spezialpapiere GmbH & Co. KG launched Mineral Oil Repellent Barrier Paper for food safety as aromatic mineral oils are harmful to human body and considered carcinogenic in nature.
• In 2018, Ahlstrom Munksjo Oyj. acquired the U.S.-based Expera Specialty Paper from KPS Capital Partners and Brazilian Caieiras plant from MD Papeis. Due to this production capacity of company increased as they captured food packaging paper distribution chains of acquired institutions.

Scope of Report

Key Questions Answered in the Report

• What is the Current Valuation of Parchment Paper Market?

  The parchment paper market is expected to surpass a valuation of US$ 959.3 Mn by 2021.

• At what rate did the Parchment Paper Market Expand in the last 5 years?

  The parchment paper market exhibited steady CAGR of 3.3% in the last five years from 2015 to 2020.

• What is the Demand Outlook for Parchment Paper Market?

  Parchment paper market will register gradual rise in demand after a period of decelerating sales amid COVID-19 in 2020. As per FMI, the market will register a CAGR of 5.8% between 2021 and 2031.

• What are the Key Trends Prevailing in the Parchment Paper Market?

  Key parchment paper manufacturers are making solutions available that will help industries to eliminate the risk of food poisoning. Also there is high focus on production of sustainable yet greener packaging solution.

• What are the Key Factors Driving Parchment Paper Sales?

  Increasing demand for lightweight, safe and hygienic packaging solutions for food and food services will drive sales in the parchment paper market.

• What is the North America Parchment Paper Market Outlook?

  North America will remain the second-leading market for parchment papers, accounting for nearly 22% of sales globally.

• What is the Cumulative Share of Top Five Companies in Parchment Paper Market?

  The top five companies operating in the parchment paper market are Georgia-Pacific Corp., Ahlstrom-Munksjo Oyj., METSA Tissue, Delfort Group AG, Nordic Paper AS. These companies covered nearly 20% to 25% of the overall market in 2020.

• At what Rate will Parchment Paper Market Grow in Europe?

  FMI has projected that the Europe parchment paper market, being a mature market, will exhibit a CAGR of 4.9% between 2021 and 2031 and will have an incremental rate of US$ 185.9 Mn

• Which are the Top 5 Countries Exhibiting High Demand for Parchment Paper?

  The U.S., Canada, China, Russia, and the U.K. are among leading markets for parchment papers, exhibiting consistently high demand.

• At what Rate will Japan Parchment Paper Market Grow?

  As per FMI, the Japan parchment paper market is expected to rise at 7.6% CAGR between 2021 and 2031 and expand almost 2.13 times at its current market value.

Parchment Paper Market by Category

By Product Type:

• Bleached Parchment Paper
• Unbleached Parchment Paper

By Basis Weight:

• Less than 40 GSM Parchment Paper
• 41 to 60 GSM Parchment Paper
• 61 to 80 GSM Parchment Paper

By End Use:

• Bakery and Confectionary
• Ready-to-Eat Meals
• Fresh Produce
• Others

By Region:

• North America
• Latin America
• Europe
• MEA
• East Asia
• South Asia
• Oceania