Key Research Findings
- Expansion witnessed in the packaging sector has helped the synthetic paper market gain momentum, says Future Market Insights (FMI)
- The market was forecast to record impressive growth, however, ongoing pandemic is stunting sales at present
- Synthetic paper is widely used in non-label applications since it meets all necessary environmental requirements
- Improving lifestyle of consumers and higher awareness regarding environmental protection is enabling growth in high potential markets such as India and China
- The approval of RFID labels for pharmaceutical product packaging by the U.S. FDA has been welcomed by the market
Demand from Diverse Sectors Gives a Big Push to Growth
Synthetic paper is widely used as outdoor tags for nurseries and lumber tags for various horticulture products. It is growing in popularity and offers some great advantages. Backed by better durability and eco-friendliness, synthetic paper has trumped its traditional counterpart. FMI forecasts the market to witness impressive growth between 2020 and 2030.
These papers are very similar to pulp milled paper commonly used in copiers and printers. However, instead of pulp they are made from polyester, which means they essentially have plastic in composition and can be put to use in various specialty applications.
For instance, the high demand for synthetic paper in food packaging has helped the market gain momentum in the last few years. Besides this, applications across cosmetics and pharmaceutical sectors are expected to enable growth in the market. In the last couple of years synthetic papers have emerged as suitable alternatives to PVC given the many environmental benefits of the former.
The market’s valuation stood at above US$ 800 Mn in 2017. In the last couple of years it witnessed exponential surge in demand, will help it surpass the aforementioned valuation at an impressive pace.
End-use Applications of Synthetic Paper is steadily increasing as Industries Realize its Benefits over Traditional Paper
Synthetic papers have become increasingly popular because they have characteristics of both paper and films. Like film, synthetic papers are tear resistant, grease resistant, and water resistant. These papers are also radiant white and have printable surfaces. They are also tough thus support high quality printing.
Every end user of synthetic paper leverages these qualities in some form or other. One of the key benefits of synthetic paper over traditional papers is their resistance to turning yellow. With an impressive shelf-life and wide range of applications, these papers are recording sales uptick even in the most unconventional sectors.
For instance, synthetic papers have applications in the medical sector. For instance, it is used for making labels and tags or patient’s wristbands. Considering the environment these wrist bands are exposed to, it is imperative for them to offer moisture and tear resistance.
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Demand from Legacy Regions Continues : Analysis by Regions
Asia Pacific is forecast to account for the leading share in the global synthetic paper market. Rapid industrialization witnessed in the region has fuelled the demand for packaging. This, coupled with sustainability drives adapted by various governments have made Asia Pacific a highly lucrative market for synthetic papers.
According to Future Market Insights, the market should expect demand from high potential economies such as India and China. The augmented penetration of packaging industries will enable growth in both countries.
The Middle East and Africa will continue exhibiting high demand backed by ample availability of raw materials. The region boasts an abundant crude oil reserves thus there is no dearth of raw materials required for the production of synthetic paper. Driven by this, manufacturers such as Yupo Corporation and PPG Industries are looking to expand their businesses in the region.
The emplacement of Latin America in the product life cycle (PLC) chart below is indicative of the rising demand for synthetic fibers in the region. Low prices of synthetic papers are expected to spur their demand in Latin America. The region also exhibits high spending on outdoor advertising which will create ample opportunities for the market.
In North America, growth of the market will be particularly backed by the rising demand in the U.S. The increasing use of synthetic paper will aid the expansion of market. Europe as well will continue exhibiting demand for synthetic papers however the market is gradually reaching its maturity in the region, compelling players to explore opportunities elsewhere.
Synthetic Papers to Gain Popularity as Ingenious Solutions for Outdoor Applications
Besides a wide range of commercial applications, synthetic papers have astounded the global community by showcasing various outdoor uses. Be it for lumber tags, nursery requirements, or need for producing run-of-mill horticulture product tags and labels, synthetic papers have proven their versatility.
They are ingenious solutions, considered suitable for outdoor signage and billboard. Billboard printing unlike traditional paper printing requires a high degree of water resistance. These papers are exposed to harsh conditions and climatic elements. They have to withstand sporadic weather each day hence durability quotient should be considerably high. Because of their high resistance, synthetic papers are preferred for outdoor signage.
Looming Possibilities in Publication Sector will Help Market Gain Momentum
Synthetic paper is helmed as a bit of an enigma and looming possibility for the publication sector to consider. In the last couple of years, the market has witnessed publishers grow fonder for synthetic papers over “real” ones especially for printing cookbooks, maps, boating books, or lifeguarding manuals.
Coffee table books for instance constitute one of the potential categories for application of synthetic paper. Simply put, any book that needs better durability and waterproofing is considered a prime candidate for synthetics.
Synthetic Papers Are Recyclable and More Eco-Friendly Alternatives for Traditional Paper Derived from Pulp
Often touted as non-paper papers, synthetics are not made from trees. They are typically recycled from polypropylene, polyolefin resin and other kinds of plastics. Since the process is entirely inorganic, manufacturing of synthetic papers does not include trees or plants at any step.
Instead, synthetic papers are created via the extrusion of melted plastics. Following this method the melted plastics are stretched to form multilayered surfaces and then cut as per requirement dimensions. A major part of the whole process takes place in a computer controlled and sterile environment to minimize waste creation and avoid the risk of potential hazard.
The process of manufacturing synthetic papers therefore leaves no byproducts or create waste threatening the ozone layer. It does not involve the use of peroxide, bleach, or chlorine to offer brilliant whiteness.
The aforementioned factors confirm the viability of synthetic papers. Because they are 100 percent recyclable, synthetic papers are considered extremely environmentally friendly. Till date, this remains one of the chief drivers of the market.
During the production of synthetic papers, no detectable amounts of chlorine, sulfur, or dioxin gases are generated. Traditionally, lesser amount of heat is incinerated during the production, which makes the whole process more cost-effective.
Availability in Diverse Grades and Colors to Aid Expansion
Besides offering a multitude of applications, synthetic papers are available in various grades and colors. For instance, these papers can be made with lesser or more opacity depending on the purpose of their use. Synthetic papers can also come in heavy gauge board thickness and light gauge label stock.
It can be manufactured to conform to different shapes or as stand-alone used for in-store signage. It offers the flexibility to add UV-inhibitors for outdoor applications. Furthermore, a layer of top coating can make synthetic paper suitable for digital printing.
The demand for synthetic papers is growing especially as a recycled commodity for daily use. Consumer brands are looking for more eco-friendly measures of packaging, which is bringing them to synthetic papers. The fast exhausting natural resources and rising awareness pertaining to the importance of recycled goods are aiding the expansion of the synthetic paper market.
Despite clear view of many advantages, potential use of this curious paper is often clouded with skepticism. Nonetheless, articles delving deeper in the abyss of synthetic papers explore novel projects. FMI sees these articles are ushers of a positive future.
Leading Suppliers in Synthetic Paper Market
Synthetic paper market exhibits the presence of several companies, which has rendered it highly competitive. Leading companies are focusing in future-oriented innovations to gain competitive edge in the market. Some of the notable market players are:
- PPG Industries, Inc.
- Seiko Epson Corporation
- Agfa-Gevaert Group
- Yupo Corporation
- Arjobex SAS
- American Profol Inc.
- Hop Industries Corporation
- Relyco Sales, Inc.
- Transilwrap Company, Inc.
- MDV-Papier-und Kunststoffveredelung GmbH
- Cosmo Films Ltd.
- Neenah Inc.
- Toyobo Co. Ltd.
Synthetic Paper Market: The Way Forward
In terms of raw material, the synthetic paper market is forecast to witness high demand from the BOPP segment. The application of this grade of paper is poised to surge especially following demand for sustainable packaging.
Synthetic papers made from BOPP also find application in the manufacturing of business cards, book covers, calendar, maps, garments, and newspapers. Better resistance to water makes this category of synthetic an instant hit for the packaging of frozen food.
Besides this, the size of printing segment will continue increasing through the course of the forecast period. This will in turn enable growth in the market
- Paper Bags
- North America
- Latin America
- Asia Pacific