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Paper Coating Materials Market - Forecast(2024 - 2030)
Paper Coating Materials Market Overview
The Paper Coating Materials Market size is projected to reach a value of US$65.3 million by the end of 2027 after growing at a CAGR of 4.2% during the forecast period 2022-2027. Paper coating materials can be categorized into various types which include calcium carbonate, kaolinite (kaolin clay), bentonite, talcum and more. They are primarily used to coat papers which are further utilized in a wide range of industries including packaging, printing, labeling and other industries. According to recent insights published on Interpack in 2020, the global packaging sector is expected to grow by an annual rate of 3.5% within the next four years. An increase in demand for paper packaging from the food and beverage sector along with the growth of the printing industry is expected to drive the growth of the Paper Coating Materials Market size in the upcoming years. On the other hand, high costs associated with paper packaging may confine the growth of the market. In 2020, the surge in the COVID-19 pandemic negatively impacted the packaging industry as a result of the country-wise shutdown of manufacturing sites, shortage of labor and the decline of the supply and demand chain all across the world, thus, temporarily affecting the growth of the paper coating materials industry. However, a steady recovery in the packaging industry has been witnessed since 2021, which in turn, is driving the demand for paper coating materials.
Paper
Coating Materials Market Report Coverage
The
"Paper Coating Materials Market Report–Forecast (2022-2027)” by IndustryARC,
covers an in-depth analysis of the following segments in the Paper Coating Materials Market.
Key Takeaways
- Kaolinite (Kaolin Clay) material held the largest share in Paper Coating Materials Market in 2021. Its wide range of characteristics, along with better texture and compatibility made it stand out in comparison to other types of coating materials in the market.
- Coated paperboard segment
held a significant share in Paper Coating Materials
Market in 2021, owing to its increasing demand from the packaging sector,
particularly food packaging.
- Asia-Pacific dominated the Paper Coating Materials Market in 2021, owing to its increasing demand from the packaging sector of the region.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Paper Coating Materials Market Report.
Figure: Paper Coating Materials Market Revenue Share, By Geography, 2021 (%)
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Paper Coating Materials Market Segment Analysis – by Coating Material
Kaolinite (Kaolin
clay) material held the largest Paper Coating Materials Market share of over 25%
in 2021, owing to the
range of characteristics and benefits it offers over other types of coating
materials. For instance, Kaolinite (kaolin clay) offers an enhanced paper appearance,
which is characterized by smoothness, gloss, opacity and brightness in
comparison to calcium carbonate, bentonite, talcum and other types of
coating materials. Moreover, it also improves the printability and texture of
the coated paper along with providing better adherence of the coating to the
paper’s surface as compared to other types of coating materials. Kaolinite (kaolin clay) also reduces the tendency of lint formation
on the paper’s surface. Hence, all of these benefits are driving its demand over types of
coating materials, which in turn, is expected to boost the market growth during
the forecast period.
Paper Coating Materials Market Segment Analysis – by Application
The coated paperboard held a significant Paper Coating Materials Market share of over 18% in 2021, owing to its increasing demand from the packaging sector, particularly food packaging due to the properties they hold. Coated paperboard is highly flexible and adaptable, can be easily cut to any shape or size as per the requirements in comparison to other packaging types. They can store a wide variety of food products from bakery products to dairy products and even fruits and vegetables. Thus, it provides better protection of the food products and ensures convenient and safe delivery of food products from one destination to another. Furthermore, they are lightweight, cost-effective and readily available, which makes them ideal for use in the food packaging sector. According to the Packaging Industry Association of India, food packaging is considered to be one of the industries with a high growth rate in India and is rising at 22%-25% per year. Thus, such surging growth of the food packaging sector is expected to increase the demand for coated paperboard for use in the packaging in the food sector.
Paper Coating Materials Market Segment Analysis – by Geography
Asia-Pacific held a dominant Paper Coating Materials Market share of around 45% in the year 2021. According to a recent study published on Interpack, China holds the largest market share around the world when it comes to food packaging. The consumption of food packaging in China is expected to increase to 447,066 million in 2023. Likewise, it further states that the Chinese packaging companies such as 3D, SIP and WLCSP alone achieved a revenue of around US$ 5.88 billion with end packaging. Moreover, according to the Packaging Industry Association of India, the Indian packaging industry was valued at around US$ 50.5 billion in 2019 and is expected to increase up to US$ 204.81 billion by the end of 2025, with food packaging accounting for the highest growth rate.
Paper Coating Materials Market Drivers
An increase in demand for paper packaging from the food and beverage sector
The
properties of paper packaging such as biodegradability, recyclability,
versatility, wide availability, lightweight and sustainability are driving its
demand from the food & beverage sector for the packaging of food and beverage
products. For instance, according to PMMI (The
Association for Packaging and Processing), the North American beverage industry
is expected to increase by 4.5% from 2018 to 2028, with the United States
leading the beverage packaging sector. Likewise, recent insights from the
Packaging Federation of the United Kingdom state that the UK packaging
manufacturing industry reached an annual sales of GBP 11 billion (US$ 15.2
billion) in 2020, owing to the increasing demand for packaging from multiple
sectors including the food & beverages sector of the region.
Growth of the printing industry
Paper coating materials
are commonly used in the printing industry for the production of coated
printing papers that are mainly utilized in the commercial printing industry
involving the production of magazines, newspapers, books, brochures and more. The
use of coated papers in commercial printing produces sharper, brighter images while
offering better reflectivity than uncoated paper. For instance, according to
the All India Federation of Master Printers (AIFMP), the commercial printing industry
in India is expanding at a rate of around 10% every year. Moreover, according
to recent insights from GroupM, a leading media firm, the total investments in commercial
printing including newspapers, magazines and more reached US$563.02 billion in
2019, an increase of 3.6% from US$543.71 billion in 2018. Hence, such surging
growth of the printing industry is expected to increase the demand for paper coating
materials for the production of coated printing papers utilized in the
industry. This is expected to accelerate the growth of the market in the
upcoming years.
Paper Coating Materials Market Challenge
High costs associated with paper packaging
The rise in costs of raw
materials such as pulp has made it difficult to access paper for various
packaging purposes. According to the U.S. Bureau of Labor Statistics, the PPI
and pulp cost and raw materials for corrugated boxes in 2021 have increased by more
than 25% in the past 12 months. Furthermore, another major factor that is
causing the increase in packaging costs is transportation. Prices of crude oil
have increased up to 40% since the beginning of the year 2021 and its prices
are expected to increase up to US$ 80 per barrel in the upcoming years. This,
in turn, has increased the overall costs of transporting the raw materials
required for the production of paper packaging, thus, leading to increased paper
packaging costs. Hence, such high costs associated
with paper packaging may limit the growth of the paper coating materials industry
during the forecast period.
Paper Coating Materials Industry Outlook
Technology launches, acquisitions and increased R&D activities are
key strategies adopted by players in the Paper Coating
Materials Market. The top 10 companies in Paper Coating Materials Market are:
- BASF SE
- Eastman Chemical Company
- Nippon Paper Industries Co. Ltd.
- Asia Pulp & Paper Co. Limited
- Imerys SA
- Michelman Inc.
- Dow
- Penford Corporation
- Stora Enso Oyj
- Burgo Group SpA
Recent Development
- In April 2022, BillerudKorsnas completed the acquisition of Verso, a leading manufacturer of coated paper in North America with US$825 million. The main motive of this acquisition was to expand and strengthen the company’s presence in the North American market.
Relevant Reports
Report Code: CMR 0046
Report Code: CMR 26097
Report Code: CMR 1160
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