Synthetic paper is an eco-friendly substitute to conventional paper as it does not involve deforestation making it a preferred option in current regulatory scenario. It is generally manufactured from polyethylene and polypropylene.
Synthetic paper has all characteristics of natural paper made from wood pulp. It is not only printable and writable but also has characteristics, such as high tear resistance, increased durability, high stiffness, and good slip and antistatic properties. Synthetic paper possesses strength, superior graphic qualities and resistance to pilferage. All these characteristics make it perfect for use in blister packaging. Synthetic paper displays characteristics resembling those of plastic films and at the same time is visually indistinguishable from regular paper. Synthetic paper is resistant to water, stains, tearing, oily substances, and most chemical products. In addition, unlike normal paper, synthetic paper is capable of withstanding extreme heat and cold. Furthermore, synthetic paper is resistant to ultraviolet light (UV) and sunlight, which makes it ideal for outdoor applications. Synthetic paper is inorganic, eco-friendly and produces very low quantities of byproducts during the manufacturing process. Synthetic paper is an eco-friendly substitute for traditional cellulose paper. Synthetic paper is a film produced by extrusion, which mainly contains high amount of fillers. It has an opaque, white paper like appearance. Synthetic papers offer different functionalities for a variety of applications in various industries, such as food & beverages, cosmetics, and pharmaceuticals for packaging & labeling and printing. Synthetic paper can be easily disposed off through recycling, incineration, or at certified landfills. Synthetic paper not only finds application in the converting industry, but also in the food label and packaging industry and for children’s books. It is commonly used for making banners, maps, charts, book covers, driving licenses, restaurant menus, and instruction manuals, among others. Synthetic paper is also used in different types of labels which are used in bags, clothes, luggage, and other products for the purpose of identification and marking.
The demand for advanced and high quality synthetic papers is gradually increasing owing to the implementation of stringent regulations by various governments for environment protection, unique properties of synthetic paper, and increased utilization of labels and tags in different products.
Applications of the synthetic paper market comprise label and non-label. Non-label occupied considerable shares in 2013 accounting for volumes worth 71000 tons. This was attributed to non-label category’s superior print qualities that are ideal for making maps, charts, banners, and graphic arts. Label applications encompass stack, wraparound, pressure sensitive, in-mold, and shrink. Surge in the industries of household goods, packed foods & beverages, invitation cards, and visiting cards should propel demand for this category. Global demand for synthetic paper, pegged at 116000 tons in 2013 is estimated to surpass 177000 tons by 2020 with market revenues estimated to grow to around US$343 mln, as per Grand View Research. Food & beverage labeling is a prime application of the market. Therefore, expansion across this application can trigger market growth. Folding cartons and blister packaging are the new-found uses of synthetic paper. Fluctuations in the prices of basic raw materials like polybutylene, polypropylene, and polyethylene may restrain the synthetic paper market. Product categories are BOPP (Biaxially Oriented Polypropylene), HDPE (High-Density Polypropylene), and others like polyester and polystyrene. BOPP, exceeding revenues US$120 mln, was the dominant product in 2013. It is expected to continue its dominance, with a CAGR of 7% during 2014 to 2020 (forecast period). Asia Pacific led the market in 2013. China and India generate high demand from industries like chemicals, cosmetics, food & beverages, etc. Europe was the second-largest synthetic paper market in 2013. Non-label applications accounted for a significant share of synthetic paper market with estimated demand in excess of 70,000 tons in 2013, owing to superior print properties making them favorable for use in banners, charts, graphic arts and maps. Synthetic paper has distinguished properties such as pilferage resistance and high strength making them ideally suited for novel applications such as blister packaging and folding cartons. Further key findings from the study suggest:
* BOPP was the largest product segment for synthetic paper owing to properties including superior strength, easy printability, versatility and cost effectiveness. Segment revenue was estimated at over US$120 mln in 2013 and is expected to grow at a CAGR of 7.1% from 2014 to 2020.
* Labeling is expected to be the fastest growing synthetic paper market application at a CAGR of over 6.6% from 2014 to 2020. Increased consumption of packaged foods & beverages owing to enhanced lifestyle is expected to augment labeling demand as the food & beverages market is characterized by stringent labeling regulations.
* Asia Pacific was the largest regional synthetic paper market with demand estimated at 45000 tons in 2013 and expected to witness growth at a CAGR of 6.8% from 2014 to 2020. Regional growth can be attributed to increasing end-use industries including cosmetics, chemicals and food & beverage as a result of enhanced lifestyle and increasing disposable income of the working class population.
* Key market participants including Arjobex and Nan Ya Plastic are focusing on new product development as a tool for sustaining competitive advantage. DuPont focuses on green processing alternatives consuming less energy and reducing green house effect. Other key companies in the market include PPG Industries, Yupo Corporation, American Profol and Tagleef Industries.
According to the new Market Research Report, the global synthetic paper market was valued at US$234.2 mln in 2014, and is projected to reach US$335 mln by 2019, at a CAGR of 7.4% from 2014 to 2019, as per Micro Market Monitor. Incessant rise in demand of synthetic paper among varied end user applications and stringent environmental laws are factors influencing the overall consumption of synthetic paper. The manufacturing companies, associations and end-product manufacturers infuse high investments for future advancements and technology modifications of synthetic paper to match the upcoming demands of synthetic paper arising from various end-user industries.
As per Brisk Insights, the global synthetic paper market is expected to grow at a CAGR of 8% during 2015-2022, driven by many factors such as growing adoption in various label and non-label application. Some of the other reasons for the growth of the market are increasing trend of customized papers, advancement of technologies of pulp production and paper manufacturing. Growth in Asia Pacific market is one of the major growing factor. There are many local and international players that have emerged in the market. The high demand for synthetic paper in Asia Pacific especially in China and Japan is attracting a number of companies to set up their plants in this region or to increase the capacity of their existing plants. Some of the restraints faced by the industry are high cost of production and product. Synthetic paper prices are also dependent on crude oil which is also a major restraint. The application market for synthetic paper market is based on labeled and non-labelled papers. During the year 2015, labeled segment had the largest market share of all the synthetic papers present in the market and it is expected that this segment would be maintaining its dominance in the diagnostic devices industries. North America hold the largest market share among the other regions followed by Europe. It is estimated that North America and Europe together have 60% of the total market share followed by Asia Pacific.
As per Markets and Markets, the size of the global synthetic paper market is estimated to be US$275.4 mln in 2015 and is projected to reach US$386.5 mln by 2020, at a CAGR of 7% from 2015 to 2020. The Asia-Pacific region is the global leader, in terms of consumption of synthetic paper and this dominance is expected to continue till 2020. Japan is the key market in this region, which contributes to more than 30% of the total demand for synthetic paper, followed by China, where the consumption rate is increasing steadily. The increase in the consumption of synthetic paper in packaging & labeling, food & beverages, cosmetics, pharmaceuticals, and printing industries has been observed in the Asia-Pacific region owing to continuous industrialization along with rise in the manufacturing sector in the region. The continuous growth and innovations as well as industrial consolidations are projected to ascertain a bright future for this market in the coming years. Packaging & labeling and printing industries are the two major end user industries of synthetic paper. Their growth is driven by the rising affluence of the middle class in the developing countries, coupled with a rapid rate of urbanization which has led to a rise in the consumerism opportunities, such as a high demand for consumer goods and lifestyle services in this market. The increase in spending in the construction sector in the emerging economies, such as China, India and Taiwan is also expected to fuel the synthetic paper demand over the next few years.
As per MRSSE, growing application sectors, such as the labels segment, are likely to drive the global synthetic paper market. In addition, the rising demand for eco-friendly and energy efficient products is projected to boost the global synthetic paper market in the coming years. Regular paper is often given preference over synthetic paper due to low price of regular paper. However, innovative and cost-effective products can overcome this challenge. Majority of synthetic papers are either produced using biaxially oriented polypropylene (BOPP) or high-density polyethylene (HDPE). Biaxially oriented polypropylene (BOPP) accounted for over 60% of the global synthetic paper market in 2013. BOPP synthetic paper has very high stability and performance over a very wide range of temperatures and environmental conditions. High-density polyethylene synthetic papers exhibit excellent chemical resistance, which is often the driving force behind the selection of high-density polyethylene synthetic paper. In terms of volume, HDPE is likely to experience moderate growth, at a CAGR of approximately 6% between 2014 and 2020. However, a sizable amount of synthetic paper is manufactured from polyesters and some amounts from polystyrene and polyvinyl chloride.
Synthetic paper finds application in a wide range of printing and finishing applications where high temperature resistance, durability, strength, moisture, grease, and chemical resistance are essential factors. Major applications of the synthetic paper market are divided into two sectors: label and non-label. The non-label segment comprises traditional synthetic paper products such as banners, graphic art, maps, and menus. The non-label segment dominated the global synthetic paper market with just under 60% of the total volume share. The label segment is expected exhibit quicker growth numbers as compared to the non-label segment due to the increasing demand from end-user industries such as food, beverage, and pharmaceuticals. Labels are typically used as warning labels, bar-coded labels, and laboratory identification labels in the chemical, cosmetics, transportation and pharmaceutical end-user segments. The market is currently dominated by a few large, global ventures with proprietary technologies, each making a distinctive product. The top three companies accounted for over 83% of the global synthetic market in 2013. Additionally, a number of small players have emerged in the unorganized sector, especially in Asia Pacific. The unorganized sector comprises small and medium-sized companies competing in China and India. MRRSE stands for Market Research Reports Search Engine.