Specialty Paper Market Snapshot
The specialty paper market will register positive growth through 2021, with the overall valuation forecast to reach US$ 14.9 Bn in 2021. FMI projects specialty paper sales to increase at 5.1% CAGR between 2021 and 2031.
Despite stagnant sales amid COVID-19, the demand for specialty paper will surge 2021 onwards, albeit gradually. Global consumption is forecast to reach 8.2 Mn tons by the end of 2021. FMI also estimates the U.S. specialty paper market to grow by 3.3% year on year in 2021. Across North America, total sales of specialty paper is expected to reach US$ 7.2 Bn in 2031.
Key Points Covered in the Specialty Paper Market Study
- Market Estimates and Forecast 2013-2031
- 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 Specialty Paper Market and How to Navigate
- Recommendation on Key Winning Strategies
2015-2020 Specialty Paper Market Outlook Compared to 2021-2031 Forecast
Primarily driven by the growth of the packaging industry, the specialty paper market is anticipated to rise at 5.1% CAGR from 2021 to 2031 in comparison to the 3.1% CAGR registered during 2015 to 2020.
Specialty paper is not only used in printing and writing, but has a wide scope of use in various other end-use applications such as packaging and building and construction. The demand for specialty paper such as glassine paper is expected to surge in the coming years, thanks to higher focus on sustainability.
Specialty paper offers benefits such as non-reactant, temperature resistant, waterproof, attractive, colorful, and lightweight properties, which has helped it gain traction in the packaging industry. Also, the growing trend of decorative interiors has propelled the sales of specialty paper in the building and construction industry.
The molecular structure of specialty paper is effective in developing newer product variants customized to the requirement of end users. Also, nanomaterials in specialty papers make it suitable for several by-products from the paper itself. The larger untapped markets provide lucrative opportunities for all market players, through biodegradable options.
These factors are set to boost the specialty paper market in the short-term. The key trend that drives the specialty paper sales growth is its availability as per the requirement of end-users.
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How is Infrastructural Development Bolstering Demand for Specialty Paper?
The boom in the building and construction sector has been registered in developed and developing countries alike. Masking tapes which are widely used for designing, painting, and marking form an important part of the vital construction supplies, which are made using specialty papers.
The sharp rise in demand and a multitude of applications of masking tapes are the result of increase in infrastructural development and construction projects. Consequently, the boom in the building and construction sector drives the demand for masking tapes, and eventually, it is likely to positively result in the growth of the specialty papers market.
Despite application across diverse sector, availability of plastic packaging at pocket-friendly price might dampen growth prospects. Nonetheless, sharp rise in demand is expected as industries focus on curbing their carbon footprint.
What is the Impact of the COVID-19 Outbreak on Specialty Paper Sales?
The specialty paper market experienced an adverse impact during the COVID-19 pandemic. Disrupted supply chain and logistics has impacted the production capacity of manufacturers operating in the industry. Also, operations of various end-use industries including packaging and building and construction have reduced.
The ongoing easing of restrictions has helped end-use industries to start their operation with greater efficiency which is anticipated to boost the sales of specialty paper. The specialty paper market is projected to recover soon backed by efforts of key manufacturers with the rising demand for specialty paper through end-use applications. The overall specialty paper market is forecasted to grow at a faster pace in the near future.
Why is the U.S. Considered a Lucrative Market for Specialty Paper?
North America will remain the top region for specialty paper products holding more than 25% of the market share by the end of 2031. According to the study, the U.S. is projected to hold more than 85% of the total North America specialty paper market in the next ten years.
The U.S. is estimated to remain the most lucrative market for specialty paper due to demand from the food and beverage industry in addition to major packaging players operating in this country. The country is home to major food-producing companies that are anticipated to excel in the sales of specialty paper in the coming decade.
Why is the Demand for Specialty Paper Increasing in Germany?
Germany holds a considerable share in the specialty paper market in Europe. It holds around 20% of the total specialty paper market share in the region and is projected to expand at a CAGR of 3.4% during the forecasted period.
The demand for specialty paper in Germany is driven by the rising application in the building and construction sector. The growing trend of decorative interiors in the building and construction sector propels the demand for specialty paper.
The building and construction sector in Germany registered a growth rate of 10.4% during 2016, as per a European Commission (EC) report for the European Construction Sector Observatory. The building and construction segment accounts among top three end-use applications of specialty paper.
How Will the Food Packaging Industry in China Drive the Specialty Paper Market?
The specialty paper market in China is expected to expand at a CAGR of 7.4% during 2021-2031. China is estimated to hold a leading share of 71% in the East Asia specialty paper market by 2031.
Consumers in China are increasingly preferring to eat natural and healthy food while focusing on attractive and convenient packaging formats. This will boost the demand for specialty paper as it possesses the required features.
According to the U.S. Department of Agriculture (USDA), food processing accounts for 60% of the industry. This shows that demand for packaging from the growing food industry will boost the sales of specialty paper in China.
How is the India Market Gaining from Expanding Packaging Sector?
In South Asia, India will hold a market share of more than 40% by the end of 2031 in the specialty paper market. The growing packaging industry in India is creating various growth opportunities for specialty paper products as packaging has emerged as a major end-use application of specialty paper.
According to India Brand Equity Foundation (IBEF), consumption of packaging in India is drastically rising due to the rapidly growing e-commerce sector. The Indian packaging industry is expected to reach around US$ 204 Bn in 2025 from US$ 50 Bn in 2019. Around 20% of the packaging material is dominated by the paper segment.
The demand for specialty paper is anticipated to rise with the increasing consumption of packaging by the food industry. Also, the features of specialty paper are well suited for food product wrapping, which adds to market growth.
Why the Demand for Décor and Kraft Paper in Specialty Paper Types Continuously Rising?
Based on product type, décor paper and kraft paper hold a substantial share in the market, which accounts for around 3/5th of the overall revenue. The rise in use of specialty paper in printing and writing, interior designing (building & construction) bolsters the demand for décor and kraft specialty paper.
Furthermore, moisture and temperature resistance along with its lightweight feature supplements the sales of décor and kraft specialty paper. Both segments collectively are anticipated to provide an incremental opportunity of US$ 7.7 Bn during the forecast period. The décor and kraft segment are estimated to register a CAGR of 5.7% and 6.5% respectively during 2021-2031.
Considering the different types of specialty paper, the prices for décor specialty paper remains costly.
Which Are the Leading End-Use Applications in the Specialty Paper Market?
The packaging segment followed by the printing & writing and building & construction industries are the leading end users in specialty paper market. These segments will hold a market share of around 36%, 27%, and 20% respectively in the year 2021.
The packaging segment will remain dominant due to the rising demand for packaging material by various end-use industries such as food & beverage, personal care, household, healthcare, and others to protect and secure their products.
On the back of these factors, the packaging segment is projected to register a high CAGR during the forecast period. Gradually rising demand for decorative interiors will push the sales of specialty paper in the building & construction segment.
Key players operating in the specialty paper market are focusing on launching new products to expand product portfolios to cater the increasing demand from various end-use applications. Also, manufacturers are aiming for strategic partnerships and acquisitions with to expand their global presence and production capacity.
- In May 2021, UPM-Kymmene Oyj launched a new product under the specialty paper product range, namely, UPM Asendo Pro, which is an advanced fiber-based barrier paper.
- In February 2020, Ahlstrom-Munksjö launched a new confectionary paper range named Delicitera Confectionary Papers.
- In July 2020, Asia Pulp and Paper expanded its flexible food packaging portfolio by launching a new product in the Enza specialty papers range. This is unbleached kraft paper, which provides sustainable packaging solutions for food service outlets.
Scope of Report
Historical Data Available for
US$ Million for Value and ‘000 Tons for Volume
Key Countries Covered
US, Canada, Brazil, Mexico, Germany, Italy, France, U.K., Spain, Russia, Poland, Turkey, South Africa, GCC, China, Japan, South Korea, India, Australia and New Zealand
Key Segments Covered
Product Type, End-Use Application, and Region
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Key Questions Answered in the Report
What is the current valuation of the specialty paper market?
The specialty paper market is expected to surpass a valuation of US$ 14.9 Bn by 2021.
At what rate did the specialty paper market expand in the last 5 years?
The specialty paper market exhibited steady YoY growth of 3.1% in the last five years from 2016 to 2020.
What is the demand outlook for specialty paper market?
Specialty paper market will register a gradual rise in demand after the decreasing sales due to the COVID-19 pandemic in 2020. As per FMI, the market will register a CAGR of 5.1% between 2021 and 2031.
What are the key trends prevailing in the specialty paper market?
Key players are focusing on manufacturing specialty paper according to the requirements of end users. Manufacturers are focusing on non-reactant features of specialty due to increasing demand for packaging papers in the food and beverage industry.
What are the key factors driving specialty paper sales?
Expansion of e-commerce has led towards high demand for specialty paper as a packaging material. The increasing use of printable specialty paper for decorative purposes is bolstering sales.
What is the North America specialty paper market outlook?
North America market is lucrative and is estimated to hold nearly 32% value share in the global specialty paper market in 2021.
What is the cumulative share of the top five companies in the specialty paper market?
The top five companies operating in the specialty paper market are International Paper Co., Oji Holdings Corp., UPM-Kymmene Oyj, Stora Enso Oyj, and Nippon Paper Industries Co., Ltd. These players are estimated to hold nearly 20% to 25% share in the global specialty paper market.
At what rate will the specialty paper market grow in South Asia?
FMI has forecast the South Asia specialty paper market to exhibit a CAGR of 7.2 % between 2021 and 2031.
Which are the top 5 countries exhibiting high demand for specialty paper?
The U.S., China, Germany, the U.K., and India are among leading markets for specialty paper, exhibiting consistently high demand.
At what rate will China specialty paper market grow?
As per FMI, the China specialty paper market is expected to rise at 7.4% CAGR between 2021 and 2031.
Specialty Paper Market by Category
By Product Type:
- Other types
By End-Use Application:
- Printing and Writing
- Building and Construction
- Other Commercial End Use
- North America
- Latin America
- Middle East and Africa (MEA)
- East Asia
- South Asia