The global tracing paper market size is set to reach a valuation of US$ 470.73 million in 2023 and further expand at a CAGR of 2.4% from 2023 to 2033. It is anticipated to reach US$ 597.91 million by the end of 2033. The top 3 countries are projected to hold 30 to 40% of the global market share by 2023.
In terms of thickness, the 81 to 100 GSM segment is anticipated to hold a large portion of the global market due to its lightweight and high-quality properties. As per FMI, the segment is projected to hold around 39% of the market share by the end of 2022.
The global market created an absolute $ opportunity of more than US$ 449.2 million in 2022. Increasing demand for recyclable tracing solutions in various applications such as drawing, printing, and others is anticipated to propel sales. The market is thus estimated to grow 1.3x during the foreseeable period.
The increasing popularity of coding in technical drawing is another crucial factor anticipated to boost growth. Future Market Insights says, Construction drawings also require transparent papers for creating accurate and complete designs. Employees in the construction sector can easily find the edges in pictures and trace the image, which may save time and cost.
Top Trend Boosting Sales in the Global Market
Rapid Expansion of the Construction Industry to Generate Higher Profits for Manufacturers
Tracing paper is generally smoother than conventional paper and offers a stronger tear-resistant property than the latter. It provides transparency, which allows for an easy draft. It is used in various industries such as construction & architectural drawing, digital printing & photography, and lamination & embossing films.
Cellulose fiber is the main material used in making tracing paper as it is recyclable. The recyclability of this type of paper adds to its sustainable footprint. Increasing demand for recyclable paper for tracing is expected to drive the market in the forthcoming years.
Also, cellulose fiber helps in absorbing moisture. In the construction and architectural sectors, vellum paper is generally used for engineering and drawing purposes. An increase in construction and renovation activities worldwide is set to aid growth.
As per the United States Bureau of Labor Statistics, nearly 7,706 employees were working in the construction industry in the country in July 2022, and there were almost 5,701 production and nonsupervisory employees in the same month. These numbers are anticipated to surge quickly in various parts of the globe in the upcoming decade, thereby bolstering sales in the market.
Country-wise Insights
Expansion of the Construction Industry in Germany to Bolster Sales of Transparent Paper
Germany is projected to remain the leading country in the European tracing paper market. It is set to hold around 23% of the European market share in the evaluation period. Expansion of the construction industry in Germany is projected to augment sales.
According to the Euro Construct, in Europe, the construction industry recovered in 2021 after the 2020 decline, which was caused due to negative socio-economic development. The construction output in Germany was close to the level of 2019, which was +0.1%. The building & construction, civil engineering, and renovation activities sector under the construction industry in Europe is estimated to grow at a fast pace, thereby pushing sales in Germany.
Textile Industry in India to Utilize Pattern Tracing Materials
The India tracing paper market is projected to create an absolute dollar opportunity of US$ 16.7 million during the forecast period, says FMI. The rapid expansion of the textile industry in the country is set to aid growth.
Tracing paper is used by the textile industry to trace the image on the fabric or apparel. According to the Confederation of Indian Textile Industry (CITI), the textile and apparel commodity exported from 2020 to 2021 in India was worth US$ 30.9 billion. Apparel accounts for around 40% of the total export. Thus, the textile and apparel industry in India is anticipated to create new growth opportunities for key market participants.
Competitive Landscape
Key manufacturers of tracing paper are focusing on expanding their production capacities and resources to cater to the growing demand worldwide. Also, they are engaging in mergers and acquisitions to strengthen their presence, expand their product portfolios, and boost resources.
Some Recent Industry Developments are:
· In July 2021, Domtar Corporation announced the restarting of its paper machine at Ashdown, Arkansas, to cater to the growing demand. This is expected to help the company to expand its production capacity.
· In April 2021, Pixelle Specialty Solutions announced the acquisition of two specialty paper businesses. The company acquired Rollsource from Veritiv Corporation and the security papers & carbonless rolls business from Appvion Operations Inc. This is expected to help the company to strengthen its product portfolio.
