Tuesday, 27 December 2016

Rise of E-Commerce Gives Impetus to Global Coated Paper Market

Plain paper coated with a thin covering of a variety of materials such as SB latex, titanium dioxide, wax, polythene, or kaolin clay is known as coated paper. Coated paper is known for its ability to offer protection against dirt and corrosion. Coated paper is available in gloss and matte finish and has applications in advertising publications, catalogues, magazines, insertions for newspapers, security merchandise, and paper products. Coated paper is suitable for printing purposes owing to the detailed and sharp images it offers.

According to product type, coated paper is classified into groundwood paper, fine paper, and others. On a global level, the coated paper market is also segmented on the basis of its application. According to the geographical spread of the market, the global coated paper market is divided into North America, Asia Pacific, Europe, and Rest of the World.

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Internet Trade Will Spur Coated Paper Market

The growth of e-commerce has contributed significantly to the market for coated paper, which is used for industrial packaging. Coated paper, which is graded based on its glossiness and brightness, has extensive application in other types of packaging as well. The coated paper market is also driven by the growing demand for adjustable packaging material, and high-grade printed images. The food industry is one of the largest end users of flexible packaging material. The food industry uses adjustable packaging material sticking to food grade standards to wrap and store fresh and frozen foods for various needs.

Packaging Holds Major Share of Coated Paper Market

The packaging application of the coated paper market held a 45% share of the market in 2013 in terms of volume. Another important application segment of the coated paper market is for printing purposes. Coated paper is suitable for print media for advertising and branding campaigns which companies and businesses undertake as part of marketing programs. Thus, the coated paper market is anticipated to enjoy steady but slow demand from printing operations.

Coated Fine Paper Leads Coated Paper Market in 2013

The product segment of coated fine paper held 55% of the coated paper market in 2013 by volume. This segment is expected to grow the slowest in the coming years. In the period from 2014 to 2020, the coated groundwood paper category is expected to receive moderate demand. Of all, the others category of the coated paper product segmentation is expected to grow the fastest from 2014 to 2020 due to its extensive application in the food and beverage industry.

The coated paper market is slowed due to the availability of substitutes such as uncoated paper and plastics. The substitutes also have a price advantage over the more sophisticated coated paper, which adds to the significance of these materials. Though there is a growing preference for bio-plastic films for packaging purposes, the advancements in coating methodologies and recycling techniques are anticipated to boost the coated paper market in coming years.

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Asia Pacific Segment Leading Coated Paper Market

According to geographical segmentation, Asia Pacific led the coated paper market in 2013 in terms of volume. The region held more than 33% of the global coated paper market in 2013. The demand from the coated paper market in Asia Pacific can be attributed to the development of the region as a prime manufacturing hub. The coated paper market in Europe and North America is slated for slow growth in the coming years. In the Rest of the World (RoW) regional segment, the coated paper market is expected to have moderate growth in the next couple of years.

The coated paper market worldwide is moderately fragmented and is led by companies such as Asia Pulp & Paper Co., Oji Holdings Corporation, Nippon Paper Industries Co. Ltd, Stora Enso Oyj, Verso Corporation, Sappi Limited, and Arjowiggins SAS.

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