The global coated paper market was valued at $36.94 billion in 2013 and is anticipated to reach $48.21 billion by 2020, expanding at a CAGR of 3.9% between 2014 and 2020, according to a new report published by Transparency Market Research (Albany, N.Y., USA) titled Coated Paper Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2020. 

 

A rise in Internet trade is boosting demand for coated paper in the industrial packaging segment, the report notes. Various grades of coated paper, classified in terms of glossiness and brightness, are used for packaging applications. Additionally, coated paper manufacturers are focusing on bio-based and degradable flexible paper packaging due to increasing demand for flexible paper packaging in the food industry. However, availability of high-performance, and cost-effective substitutes such as plastics and uncoated paper is likely to hamper market growth. Furthermore, rising pulp prices due to a diminishing number of pulp plantations is anticipated to hamper the growth of the coated paper market from 2014 to 2020. Advancements in paper recycling and coating techniques are likely to provide immense growth opportunities for the coated paper market in the next few years.

 

Graph (top right): Coated paper demand has seen mostly on a slow, consistent rise during at least the past three decades leading up to the early 2000s when demand growth began to pick up additional pace. All indications point to demand continuing to grow throughout the rest of this decade, at least to 2020 in this new report.   

Coated fine paper was the largest product segment of the coated paper market in terms of volume in 2013 and held more than 55% share in the global coated paper market. However, the segment is projected to expand at the slowest rate compared with the other two segments during the forecast period. Relatively higher price of coated fine paper compared with coated groundwood paper is lowering demand for coated fine paper globally. Moreover, a sizeable substitution by superior quality uncoated paper is hampering growth of the coated fine paper market. Several innovations and developments in the coated groundwood paper segment in recent years are expected to drive the coated paper market in the forecast period.

In terms of volume, the packaging application segment held a substantial share of more than 45% in the global coated paper market in 2013. The segment is estimated to expand at a moderate rate during the forecast period. Significant growth in the packaged food industry is slated to boost demand for coated paper in packaging applications during the forecast period. Coated paper is largely used to make pouches, sachets, paper bags, cups, bowls, and seal bags in the food industry. Printing is another significant application of coated paper. However, substitution of coated paper with low-cost uncoated grades of paper is hindering growth of coated paper in printing applications. Hence, the printing segment is expected to show a sluggish growth rate in the forecast period.

More information is available online.