Blog - Coated Paper Market

2021-06-07

Coated paper is treated with a mixture of chemicals and materials to improve surface properties such as gloss, weight, smoothness, and ink retention.

Development of customized grades according to applications

Many global established players are manufacturing various specifications or grades of coated papers to meet the needs of various applications. For packaging applications, new grades of coated paper are being developed. Since coated paper is a food-grade product, it can be used in various dry-food packaging applications. It keeps the food fresh and extends the shelf life by preventing the passage of moisture and oxygen. For high-end branding, coated paper offers superior styling and a wide range of printing options.

The paper also provides thermal stability against various hot and cold food packaging. Coated paper also finds extensive application in drug and pharmaceutical packaging. Aseptic packaging for drugs & pharmaceuticals offers sterility and prevents contamination. Properties of coated paper products such as thermal stability, moisture proofing, and mechanical flexibility proves essential for the food packaging industry. Thus, the need for different types of packaging materials is increasing globally.

Sierra Coating Technologies LLC has been a key supplier of coated paper for food packaging for many leading food brands. With FDA-approved coatings and quality specifications that meet stringent food grade standards, Sierra has produced barrier coated paper that lets packaging printers supply major consumer brands. 

Increasing E-commerce platform bolstering the demand for packaging

The e-commerce industry's rapid development has paved the way for decorative and luxury packaging, expanding the demand for coated paper. The growing preference for home delivery services has increased the use of coated paper in packaging activities, following the strengthening of online retailers' presence. Malaysia is an attractive e-Commerce market in Southeast Asia, according to the International Trade Administration (ITA), due to its competitive economy and built-in infrastructure for digital technologies. The implementation of programs under the National E-Commerce Strategic Roadmap has benefited Malaysia's e-Commerce market (NeSR).

According to the US Census Bureau, retail e-commerce sales in the United States reached $160.3 billion in the first quarter of 2020, up 2.4 percent (1.1 percent) from the fourth quarter of 2019

In developing countries, demand for online shopping is increasing, and labels, plastic bags, and invoices are used for packaging, which ultimately necessitates the use of coated paper to identify deliverable packages. As a result, the growth of the e-commerce platform is a driving force behind the demand for coated paper.

Growth of food and beverage industry

Coated papers can be used for printing invitations as well as for decoration, providing players with a variety of growth opportunities. The e-commerce industry has been propelled by the rising popularity of online and digital channels, which has resulted in an increase in home delivery services. This has fueled the need for packaging and labelling solutions, thereby driving product demand, further providing opportunities to various market players in the global coated paper market.

Increasing preference for bio-based papers in the majority of the regions is a lucrative opportunity for players.

For a more sustainable environment, most countries are focusing on bio-based packaging. Coated paper replaces conventional plastics in packaging since it is a bio-based product. Coated paper is increasingly being used in food packaging, pharmaceutical packaging, and cosmetic packaging in some regions because plastic packaging is hazardous. The rising awareness about the harmful effects of plastic packaging of the food products creates an increased demand for bio-based and degradable packaging materials.

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