Synthetic Paper Market - Forecast(2024 - 2030)
Synthetic Paper Market Overview
Synthetic Paper Market size is forecast to reach US$1,194.9 million by 2027, after growing at a CAGR of 8.7% during 2022-2027. Globally, the rising need for energy-efficient and eco-friendly products is enhancing the market for synthetic paper. Due to the superior chemical and physical properties, synthetic paper performs better than regular paper in a variety of ways. Besides, synthetic paper, unlike regular paper, can withstand extreme heat and cold. Furthermore, synthetic paper is resistant to ultraviolet light (UV) and sunlight, making it ideal for outdoor use. Rising growth of the packaging, printing, and labelling sectors, are examined to drive the long-term expansion of the Synthetic Paper Market. For instance, the packaging industry sector has emerged as one of the fastest-growing industries in various countries. Globally, the packaging industry stood at more than US$917 billion in 2019, and it is expected to grow at a CAGR of 2.8% to reach US$1.05 trillion by 2024.
Covid-19 Impact
The rise in COVID-19 cases also dented the Synthetic Paper Market. The COVID-19 implications for several end-use industries (primarily the cosmetics, chemical, and food and beverage industries) resulted in a significant decrease in demand for the Synthetic Paper Market?in 2020 and 2021. Globally, synthetic paper producers were impacted in 2020 due to the paper mill shutdown, social distance conventions, and the presence of limited labour for mill activity. On the other hand, the pandemic hampered demand for synthetic paper by reducing demand from the cosmetics and food & beverage industries. Also, the halt of several commercial and government offices deduced the need for ID tags, ID cards, and passports, thus widely affecting the synthetic paper production demand. However, with the rising normal conditions and increasing preference among individuals for waterproof packaging solutions, the demand and production for synthetic paper are anticipated to achieve widespread adoption over the forecast period.
Report Coverage
The “Synthetic Paper Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the synthetic paper industry.
By Raw Material: Biaxially Oriented Polypropylene (BOPP), High Density Polyethylene (HDPE), Polyethylene Terephthalate (PET), Polystyrene (PS), Polyvinyl Chloride (PVC), and Others
By Application: Printing, Packaging, Labelling, ID Tags, Restaurant Menu, ID Cards, Passports, and Others
By End-Use Industry: Cosmetics, Medical, Horticulture, Chemical, Food & Beverages, and Others
By Geography: North America (Canada, Mexico, and USA), South America (Argentina, Brazil, Chile, Colombia, and Rest of South America), Europe (Belgium, Denmark, France, Germany, Italy, Netherlands, Rest of Europe, Spain, and UK), Asia-Pacific (Australia, China, India, Japan, Malaysia, Rest of APAC, South Korea, and Taiwan) Middle East & Africa (Israel, Nigeria, Rest of Africa, Rest of Middle East, Saudi Arabia, South Africa, and UAE)
Key Takeaways
Figure: Synthetic Paper Market Revenue Share, by End-Use Industry, 2021 (%)
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Synthetic Paper Market Segment Analysis – By Raw Material
The biaxially oriented polypropylene (BOPP) segment held the largest share in 2021 and is expected to grow at a CAGR of 8.8% during 2022-2027. Biaxially oriented polypropylene (BOPP) is a polypropylene film that is biaxially oriented which means that the film is stretched in both the machine direction and transverse direction during production resulting in a material with superior strength at low gauges, flatness, clarity, and excellent printability. BOPP has extremely low toxicity as well as a controllable transparency (BOPP can be made clear or opaque). These qualities are perfect for long-lasting, food-safe labels. BOPP is resistant to organic solvents, which makes synthetic BOPP paper labels easy to stick even under demanding conditions. BOPP is also used in many other industries and applications, such as in the packaging and cosmetics industry as well as on advertising and household products.
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Synthetic Paper Market Segment Analysis - By End-Use Industry
Food and Beverage sector held the largest share with 30% in the Synthetic Paper Market?in 2021 and is anticipated to grow at a CAGR of 8.9% during the forecast period 2022-2027. In the food and beverage industry, synthetic papers are used for printing, packaging and labelling. Labelling is essential in the food and beverage industry to display essential information of the product. Synthetic papers are perfect for food labels that need to be FDA-approved for direct food contact. Being oil resistant, synthetic paper is a great option to wrap sandwiches and other food which prevents leakages and spills. Owing to its tear resistance, synthetic paper can also be used to reduce tampering. Due to the pandemic, the sales of packaged food has increased. The demand for packaged food products such as ready-to-cook food, snacks and frozen food surged during the lockdown. A survey conducted by the American Frozen Food Institute revealed a 70% increase in frozen food sales in 2020. And this growth is predicted to continue. Thus, the growing sales of packaged food is expected to boost the Synthetic Paper Market.
Synthetic Paper Market Segment Analysis – By Country
Asia-Pacific region dominated the Synthetic Paper Market?in terms of revenue with a share of 45% in 2021 and is projected to dominate the market during the forecast period 2022-2026. In the Asia-Pacific region countries such as China, Japan, and India, India dominates the Synthetic Paper Market?due to the rising growth of the cosmetics, pharmaceutical, food and beverage, and other end-use industries. For instance, according to Invest India report, India’s food processing sector is one of the largest in the world and its output is expected to reach US$535 billion by 2025-2026. The pharmaceutical industry in India is currently valued at US$41.7 billion. The pharmaceutical industry in India is expected to reach US$65 billion by 2024 and US$120 billion by 2030. With the rise in the cosmetic and pharmaceutical market, the demand for labels and packaging is exponentially rising, boosting the demand for synthetic paper in the Asia-Pacific countries.
Synthetic Paper Market Driver
Significant market traction from the increasing demand for synthetic paper across various end-use sectors
The rising demand for synthetic paper in the key end-use sectors such as food & beverages, medical, and cosmetic industries, for printing, packaging, and labelling applications is estimated to incline the growth of the market during the forecast period. Owing to its durability and strength, synthetic paper is the perfect solution in various industrial environments. It even provides the necessary resilience and performance required from outdoor printing to identification and credentials. Also, currently, the rising adoption of paper packaging has turned out to be a boon for the growth of the synthetic paper industry. According to the report published by the Environmental Paper Organization, more than half of the paper used globally is for packaging, and this area has been increasing consistently in recent years. Paper packaging is the food industry's most valuable asset. It is eco-friendly and increases consumer convenience. As a result, the increasing sales for food and beverage products is considered as one of the largest driving factors behind the growth of the Synthetic Paper Market. For instance, The Specialty Food Association (SFA) has released its annual State of the Specialty Food Industry Report, which shows that the specialty food market reached US$ 170.4 billion in 2020, a 13% increase from 2018. The rising adoption of paper packaging by several organizations in the cosmetic sector has also uplifted the growth of the Synthetic Paper Market. For illustration, in 2020, L'Oréal and Albéa introduced the first cosmetic tube made of certified paper-based material. Similarly, to boost up the development of innovative packaging in the same year L'Oréal collaborated with Paboco the paper bottle company to develop paper bottle packaging for its product. Additionally, in January 2021, to generalize the use of cardboard instead of plastic in the primary packaging of its products. L'Oréal expanded its use of paper bottles throughout its portfolio.
Synthetic Paper Market Challenges?
The fluctuating price of raw materials can hinder market growth
One of the major challenges that the Synthetic Paper Market?faces is the price volatility of raw materials. The main material used in the production of synthetic papers is synthetic resin such as biaxially oriented polypropylene (BOPP), high-density polyethylene (HDPE), polyethylene terephthalate (PET), polystyrene (PS), polyvinyl chloride (PVC), and others, which are derived from petroleum. Prices reflect even minor shifts in supply and demand in the Synthetic Paper Market, which is extremely competitive. Synthetic paper manufacturers use the price and availability of raw materials to determine the cost structure of their products. Because synthetic paper is made from petroleum by-products, changes in synthetic resin prices have a direct impact on synthetic paper prices. In the Synthetic Paper Market, price is a major deciding factor for many end-users. For instance, according to the ITC Trade Map Organization, globally the export price for polyethylene terephthalate stood 1,052 US Dollars/Ton in 2017, which inclined to 1,231 US Dollars/Ton in 2018, and again declined to 1,072 US Dollars/Ton in 2019. Similarly, the export price for polystyrene increased from 1,467 US Dollars/Ton in 2017 to 1,498 US Dollars/Ton in 2018.
Synthetic Paper Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Synthetic Paper Market. Global synthetic paper top 10 players include:?
Recent Developments
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