Coated Paper Market - Forecasts from 2021 to 2026

The coated paper market is projected to grow at a CAGR of 3.92% to reach US$54.001 billion by 2026, from US$41.258 billion in 2019.



Coated paper is a paper layered with a mixture of chemicals and materials, to improve its surface properties, such as gloss, weight, smoothness, and ink retention. The materials used for coating are typically clay, calcium carbonate, kaolinite, bentonite, and talc.

Polymers, such as polyethylene and polyolefin, are used for their waterproofing properties and tear strength. Moreover, the coating material is often mixed with certain chemical additives, such as resins and dispersants, to enhance the wet strength and UV resistance.

When compared to uncoated variants, the coated paper print is brighter, smoother, and has improved reflectivity. The coating also offers a glossy feel, providing it with a professional appearance. Furthermore, since the ink does not bleed through these sheets, they produce sharp pictures. Because of the improved ink holdout, these products are dust resistant and require less ink. As a result, they are suitable for different finishing techniques, such as spot varnish.

Coated papers are also used for printing invites and decorating, which offers players numerous expansion opportunities. The growing popularity of online and digital platforms has fueled the e-commerce sector, resulting in an increase in home delivery services. This has increased the demand for packaging and labeling solutions, resulting in increased product demand. Coated paper is also used to label bottled beverages and other items.

The coated paper in food packaging protects its contents from moisture and oxygen and keeps the item fresh and provides extended shelf-life.

Businesses have been investing in brand promotion and marketing through various forms of advertisings, which also acts as a key driver for the segment.

However, widespread digitization across industries is a major impediment to the growth of the coated papers market. Companies have started replacing paper-based prints such as brochures, catalogs, and manuals with digital alternatives, thereby minimizing paper consumption. This trend is primarily caused by increasing deforestation and the release of harmful carbon emissions during product manufacturing. To increase their market share, companies have adopted a variety of organic and inorganic growth strategies such as expansions, mergers and acquisitions, and new product development.

Nevertheless, market players have been focusing on technological advancements and product innovations to overcome these obstacles. The usage of coated paper in banknotes, security documents, and checkbooks is expected to ensure stable growth of the. Furthermore, consistent use of this product as brochures and product manuals for cellphones, laptops, and other electronic devices will maintain demand.

Growth Factors

Rising internet trade and e-commerce sales

The rapid expansion of the e-commerce industry has widened the scope of the coated paper market through the innovation of packaging. There is a demand for attractive and premium packaging. 

Escalating demand for flexible paper packaging

Flexible paper packaging is being preferred over flexible plastic packaging. The preference for innovative and environmentally friendly and biodegradable packaging is likely to boost the coated paper industry.

Increasing demand for high-quality prints

Coated paper is widely utilized for printing applications to enhance aesthetic characteristics. The resulting print on coated paper is brighter, smoother, and glossier than non-coated paper. The increasing influence of advertisements and media such as magazines, catalogs, brochures, newsprints, etc. is expected to increase the demand for coated paper.

Restraints

Digitalization

Widespread digitalization across industries is a major restraint for coated papers market growth. Companies are adopting digital alternatives such as e-newspaper, e-magazine, tutorials, etc., and discouraging the use of paper. This shift is expected to decrease the consumption of coated paper in the printing industry.

Capital and energy-intensive manufacturing process

The capital investment required for the coated paper manufacturing process is huge. This investment covers the expenditures of acquiring land, establishing a manufacturing plant, purchasing necessary equipment, obtaining permits, and so on. This may hinder market growth in the future.

Impact of COVID-19 on the Coated Paper Market

The COVID-19 pandemic has negatively influenced the coated paper industry. Supply chain disruption, shortage of raw material, and rise in chemical prices caused coated paper prices to increase. Due to the closure of educational institutes as a result of Covid-19, the use of notebooks and exercise books decreased. This resulted in a decline in demand for writing and printing paper, which further aggravated the present slump in the publishing sector.

Segmentation:

By Product Type

• Standard Coated Fine Paper
• Art Paper
• Coated Fine Paper
• Coated Ground Wood Paper
• Others

By Application

• Printing
• Packaging
• Business Communication
• Labels
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Japan
• Others