The global synthetic paper market industry size is expected to surge at a CAGR of 6.2%. The market value is projected to increase from US$ 1,002.7 million in 2023 to US$ 1,724.6 million by 2032.
The market was valued at US$ 937 million at the end of 2022. It is anticipated to exhibit y-o-y growth of 7.0% in 2023.
As per Future Market Insights (FMI), the market for synthetic paper is estimated to create an attractive incremental growth opportunity of US$ 787.7 million in the next ten years. It is predicted to expand 1.8x times the current market value during the forecast period.
Synthetic paper meets specific regulatory requirements in various sectors. For instance, it can comply with food contact regulations, making it suitable for food packaging and labeling applications. It is hence expected to drive demand in the global market.
The initial cost of synthetic paper is often higher than traditional paper, however, its durability and longevity can result in cost savings over time. Synthetic paper’s resistance to wear and tear reduces the need for frequent replacements, making it a cost-effective choice for several applications. Being a cost-effective material, its sales are anticipated to surge over the forecast period.
Synthetic paper has inherent chemical resistance properties, making it suitable for sectors where exposure to chemicals or solvents is common. It is expected to be extensively used for applications in laboratories, manufacturing facilities, and healthcare settings, thereby pushing demand.
One of the key advantages of synthetic paper is its resistance to moisture and water. This feature would make it ideal for applications where traditional paper would be damaged or compromised. A few of these include outdoor tags, labels, menus, and manuals that might come into contact with liquids.
A Few Key Trends Pushing Synthetic Paper Demand:
Resistance to chemicals and solvents is a key property of synthetic paper that would boost its demand.
Growing utilization in maps, charts, and outdoor signage is anticipated to propel demand.
High-quality printability and vibrant color reproduction property of synthetic paper is set to aid growth.
Increasing applications in labels, tags, and wristbands worldwide is projected to augment demand.
Rising demand for synthetic paper in the medical and healthcare sectors would support sales.
Synthetic paper is gaining massive popularity as a viable alternative to laminated paper products, aiding sales.
Key Dynamics in Synthetic Paper Industry Listed by Future Market Insights (FMI)
Growing Use of Synthetic Paper for Making Eco-friendly Banners
Key factors that might drive growth in the global market are increasing environmental concerns about deforestation and need for highly durable labels & tags in packaging applications. Synthetic paper is highly durable, hard to tear, and waterproof, which makes it a great labeling alternative, as compared to natural paper.
Regulations for packaging and labeling of consumer products require materials that are light in weight and have a limited impact on the environment. With surging marketing actions to endorse products and enhance brand visibility, the market for synthetic paper to make billboards, banners, stickers, and posters is increasing.
The global market is further anticipated to witness impressive growth with rising labels and tags application. Synthetic paper is used in a variety of label segments, including wrap-around labels, in-mold labels, and a multitude of pressure-sensitive labels.
Demand for labels & tags is growing at a remarkable rate due to the rapidly expanding retail and e-commerce sector. Need for product security would also boost demand for radio-frequency identification (RFID) labels. According to manufacturers of labels, synthetic paper is well suited to develop labels enabled with RFID technology.
Surging Use in Restaurants, Consumer Goods, and Electronics
Durable, waterproof, and tear-resistant synthetic paper is finding applications in the retail, hospitality, and manufacturing sectors. Large-scale printers and mail houses are remodelling current business applications, changing old ways of doing business. They are adopting new, efficient, and cost-effective procedures, including the use of durable products ideal for cost-saving, on-demand, and short-run production.
Manufacturers in the synthetic paper industry can gain lucrative opportunities in printing, display, and graphics applications. Elimination of laminating costs is expected to be a key driver boosting demand for synthetic paper for printing and graphics.
Leading restaurant chains are using synthetic paper for their menus as it makes them easy to clean and avoids replacement costs. Hospitals are also adopting synthetic paper to reduce the risk of delamination and contamination. Ability of synthetic paper to offer the same readability and durability in any environment is anticipated to increase synthetic paper sales in the next ten years.
Electronics and consumer goods companies are also expected to create high demand for synthetic paper in the foreseeable future. Washing machines, TVs, refrigerators, and other electronics products are labelled with synthetic paper due to their long life and capability to sustain in any environmental conditions.
Country-wise Insights
Would Synthetic Paper Demand Rise Steadily in the United States?
Synthetic paper is suitable for numerous food packaging applications offering enhanced strength and barrier properties. It is also tear-resistant, grease-resistant, and can withstand moisture & temperature variations.
According to USDA’s Economic Research Service, agricultural, food, and corresponding sectors in the United States have contributed around US$ 1.264 trillion to their GDP. It accounted for about 5.4% of share in 2021.
Sectors related to agriculture include food & beverage manufacturing, stores, services, textiles, as well as leather products, forestry, and fishing. Food expenditures are estimated to be 12.4% of the United States households’ spending in 2021, which is an upsurge from 11.9 % in 2020.
Percentage of household expenses on food was rated third after housing and transportation. Constantly evolving food sector of the country and rising food expenditures are expected to drive demand for synthetic paper. The United States synthetic paper industry is expected to record a CAGR of 4.1% and create an incremental opportunity of US$ 64.1 million during the projected years.
Why Are Synthetic Paper Sales Surging in India?
According to India Brand Equity Foundation (IBEF), the flexible packaging sector of India covers the maximum market share, which is around 64%. The paper packaging sector has gained momentum due to rising demand for small packs, sachets, envelopes, and bags. This is attributed to its lightweight and cost-effective nature.
The paper and packaging sector in India is estimated to reach US$ 204.81 billion by 2025, growing at a CAGR of 27.7%. India has also showcased growth in exports of packaging materials at a CAGR of 9.9% from 2021 to 2022.
Owing to growth in the paper packaging sector in India, the synthetic paper market is expected to record a CAGR of 8.6% during the forecast period. It is also likely to hold a market share of around 6.7% in 2023.
