The global coated paper market size was worth US$ XX billion in 2019 and further predicted to reach US$ XX billion by 2027, at a CAGR of 1.60% during the forecast period (2020-2027)
Coated papers are paper that is coated with matte finishes, glossy and semi-gloss. Coated paper is treated with a mixture of chemicals and materials to improve surface properties such as gloss, weight, smoothness, and ink retention. The coating materials typically used are the clay, calcium carbonate, kaolinite, bentonite, and talc. Polymers, such as polyethylene and polyolefin, are used to impart waterproof and tear-strength characteristics. Moreover, the coating material is mixed with certain chemical additives, such as resins and dispersants, to enhance wet strength and UV resistance. The coating makes the base paper less porous, which is ideal for printing applications.
Product demand is propelled by the rising impact of advertisements in media such as newsprints, magazines, brochures, and catalogs. Coated papers consist of a layer of clay or polymer applied on either or both sides. Such paper sheets result in brighter and sharper images in printing and also offer better reflectivity compared to uncoated variants. The layer also adds a glossy and shining texture to the paper, giving it a professional touch to be used in magazines and other publications.
Based on coating material, the calcium carbonate segment is projected to lead the coated paper market from 2020 to 2027. It held the highest market revenue share of 46.84% in the year 2019. GCC and PCC improves the brightness, opacity, and gloss of the coated paper and is a cost-effective coating material. Due to its smooth surface with substantial decreases in ink absorbency capabilities, coated fine paper is expected to be the fastest-growing segment with a CAGR of 1.99% during the forecast period.
Market Dynamics
Drivers
- Development of customized grades according to applications
- Increasing demand of coated papers for various applications
- Increasing E-commerce platform bolstering the demand for packaging
Restraints
- Volatile wood pulp prices along with capital and energy intensive manufacturing process
Increasing demand of coated papers for various applications
Coated papers are increasingly being used for business communication, printing, labels, and other applications. Coated papers, for example, are widely used in paper packaging materials such as boxes, paperboard containers, cartons, packets, cans, and other products. Coated paper is widely used in printing applications to enhance aesthetics.
Coated paper is often used in business communication applications to convey critical business information because it offers the superior finish and consistency needed to highlight the important messages. Annual reports, catalogs, company notes, office papers, and other corporate contact papers all use the paper in business communication.
Coated papers are also used for labeling on bottled beverages and other items. Label papers are temperature stable in both hot and cold storage applications.
Cast coated labels have a glossy surface, finish, wetting strength, quick ink setting, and extended durability. Thus, the increasing application of coated papers will eventually drive the market growth.
Geographical Analysis
North America is estimated to account for a share of 35% in total dollar sales in 2019. North America coated paper market valued at USD XX million in 2019 and is estimated to reach USD XX million by 2027, declining at a CAGR of 0.39% during the forecast period.
The U.S dominated North America coated paper market with a market revenue share of 82.23% in 2019. The growth of the paper and packaging industry has led to high demand for various quality papers in the North America coated paper market.
Due to the changing consumer habits, the beverage industry in the United States has noticed substantial growth. According to PMI's 2018 Beverage Report, the North American beverage industry is expected to grow by 4.5% during 2018-2028. The major portion of the beverage sales in North America is achieved by sellers in the United States.
The packaging and labeling providers in the United States that cater to the beverage industry are focusing extensively on packaging innovations, as they demonstrate the visual manifestation of the products’ positioning, where words, fonts, and images reinforce the image of the brand in people’s mind. An effective package and label highlight the unique selling proposition, showcasing everything that sets the product apart.
Moreover, increasing demand for paper bags, grocery bags, waterproof bags for milk & fruit juice, and shopping bags are likely to augment the market growth over the forecast timeframe.
The country is also home to several leading manufacturers, which has resulted in the large-scale production of coated paper. Corporate profit is a major contributor to the U.S. economy, therefore businesses rely heavily on paper products, which poses a significant opportunity for growth.
Amazon’s packaging transition is a boost for the US flexible plastics industry. The company currently controls just over 49% of the US e-commerce market and nearly 5% of the total US retail market and generated sales of over USD 250 billion in 2018. Flexible materials are extensively being used in the food and soft drinks industries in the United States, where many consumers actively seek out quick and easy solutions that align with their time constraints. Increasing demand for flexible paper packaging solutions as compared to plastics has emerged as an important factor in the packaging industry which is responsible for the growth of the coated paper market in the United States.
On the other hand, Canada coated paper market is expected to grow with a CAGR of 1.53% during the forecast period, reaching USD XX million in 2027, from its recorded value of USD XX million in 2019.
The country is witnessing a flourish in the retail industry, which is generating an increasing demand for flexible packaging products, further driving the demand for coated paper. According to StatCan, in 2019, the sales of retail trade in Canada were CAD 615 billion, which increased from CAD 467.77 billion in 2012. Growing E-commerce industry in Canada is expected to drive the demand for coated paper as it is increasingly used for packaging purposes.
Mexico is one of the largest and most competitive labels markets in North America. According to research conducted by the Mexican magazine, Label Pack and Canagraf, the national chamber for the graphic arts industry, stated that there was a rise in the number of label printers in the last decade, from around 300 companies to some 450-550 companies. This is expected to drive the Mexico coated paper market for labeling application.
About Us:
DataM Intelligence was incorporated in the early weeks of 2017 as a Market Research and Consulting firm with just two people on board. Within a span of less than a year, we have secured more than 100 unique customers from established organizations all over the world.
For more information:
Sai Kiran
Sales Manager at DataM Intelligence
Email: [email protected]
Tel: +1 877 441 4866
Website: www.datamintelligence.com