Global Demand For Synthetic Paper To Exceed US$405 Mln By 2023

Global demand for synthetic paper to exceed US$405 mln by 2023

14-Nov-16

Size of the synthetic paper market is projected to surpass 210 kilo tons by end of 2023 and record CAGR of about 6.2%, and touch revenue of US$410.11 mln, as per Global Market Insights, Inc. Heavy concerns among environmental protecting organizations against deforestation can result in high use of synthetic paper as it does not contain wood pulp and conserves natural resources. All these factors are predicted to contribute towards growth of synthetic paper industry.

Global paper consumption has increased significantly in past few years and approximately about 35.1% of harvested trees are utilized for paper production. Its biodegradable nature and sustainable output are main growth factors promoting global synthetic paper market trends. Crude costs substantially affect product demand and current low crude cost has led to steady synthetic paper market price. However, the industry is projected to recover from 2017 as it could experience an upswing in industry prices. The global synthetic paper industry is segmented into products like biaxially oriented polypropylene and high-density polyethylene.
Biaxially oriented polypropylene segment is projected to record CAGR of 6.9%, and high-density polyethylene segment is projected to surpass 76 kilo tons by end of forecast timeline.

The global synthetic paper market is segmented into a label and non-label applications. Use of synthetic paper for label applications is growing and projected to touch 80 kilo-tons by end of forecast timeline. Its key uses are shrink labels, wraparound labels, stack labels and in-mold labels. Non-label applications are extensively used in industry and it contributed about 62.1% of global industry demand for 2015. They are used in charts, graphics, banners, print media and maps. The global synthetic paper industry is segmented into various regions like North America, LATAM, Europe, MEA and Asia Pacific.

Asia-Pacific has led the global industry as the region is the biggest exporter in the world and has largest packing industry globally. It is projected to record CAGR of 7.4% and touch revenue of $162 million by end of forecast timeline. China and India synthetic paper market share has dominated the Asia-Pacific industry. The growth of Asia Pacific region can be credited to heavy demand across end-use sectors like food & beverages, cosmetics and chemicals. This is due to lifestyle changes, consciousness, demographic trends and standardization. The industry is projected to record a CAGR of 6.9% during forecast timeline. North American industry is projected to contribute towards 45.81 kilo-tons by end of forecast timeline with non-label applications predicted to contribute for more than 60.1% of total size. European industry accrued revenue higher than US$69.1 mln for 2015. MEA and LATAM are new synthetic paper markets and contributed about just higher than 10.1% of total size.