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Coated Paper Market Size By Product (Coated Fine Paper, Coated Groundwood Paper), By Coating Material (Clay, Calcium Carbonate, Talc), By Finishing Process (Online Calendering, Offline Calendering), By Application (Printing, Packaging), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2026

  • Report ID: GMI1099
  • Published Date: Dec 2019
  • Report Format: PDF

Coated Paper Market Size

Coated Paper Market size was valued at over USD 45 billion in 2018 and is projected to achieve over 3% CAGR from 2019 to 2026.

Coated Paper Market

Coated paper is treated with a mixture of chemicals and materials to improve surface properties such as gloss, weight, smoothness, and ink retention. The coating materials typically used are clay, calcium carbonate, kaolinite, bentonite, and talc. Polymers, such as polyethylene and polyolefin, are used to impart waterproof and tear strength characteristics. Moreover, the coating material is mixed with certain chemical additives, such as resins and dispersants, to enhance wet strength and UV resistance. The coating makes the base paper less porous, which is ideal for printing applications.

Proliferating internet trade and the e-commerce industry are the prime factors driving the market growth. Rising popularity of home delivered food and household products creates an upsurge in packaging, which will drive the product demand in the upcoming years. Increasing demand for paper bags, grocery bags, waterproof bags for milk & fruit juice, and shopping bags are likely to augment the market growth over the forecast timeframe. Also, stringent regulations pertaining to plastic packaging are creating a radical shift toward paper packaging, further boosting the industry share.

Coated Paper Market Trends

The volatility in wood pulp prices may have an adverse impact on the growth of coated paper market during the forecast timespan. Economic cycles and global supply & trade disturbances cause a major shift in the prices of wood pulp. Moreover, the requirement for huge capital investment may hinder the market growth in the future. This investment covers costs associated with land, setting of production plant, necessary equipment, permits, etc.

Additionally, constraints related to locations having plenty of forest reserves, environmental clearances, and water availability may pose difficulties for coated paper manufacturers. However, major players are aligning their business models and adopting vertical integration strategies for improving their production output and enhancing efficiency of the overall process.

Coated Paper Market Analysis

Coated fine paper dominates, however coated groundwood paper showcases higher growth

Coated fine paper will account for a significant share in the coated paper market share over the study period. Coated fine paper is produced from chemically bleached pulp and contains lesser amount of mechanical pulp. The growth in the adoption of such papers can be attributed to its high grammage and excellent brightness of up to 96%. It is prominently used for offset printing applications to produce annual reports, magazines, advertising materials, and catalogues.

Coated groundwood paper is expected to be the fastest-growing segment owing to its smooth surface with significant reduction of ink absorbency capabilities. These papers are generally lightweight, finding applications in magazines, brochures, and catalogues. In addition, coated groundwood paper is eco-friendly and cost-effective. It also offers high stiffness and thickness required for printing books, calendars, and business communications.

Clay will hold the majority share as a popular coating material in the coated paper market over the study period. This can be attributed to the provision for a wide range of finishes based on the customer requirements. The finish ranges from high or dull gloss to matte finishes. Moreover, the brightness of the paper can also be altered, thereby boosting the segment share over the study period.

Online calendering will showcase the highest growth over the projected timeframe. This can be credited to the technological advancements along with faster calendaring process compared to the online calenders. Moreover, online calenders are available in a wide range of types including hard nip, soft nip, and multi nip calenders among others making them ideal for a wide range of applications.

Packaging sector preferring coated paper, printing holds substantial share

Packaging gained a significant market share and is likely to register the highest CAGR during the review period. This is largely due to an upsurge in the demand for such paper in flexible packaging for food, medical, and cosmetic products. Increasing consumer awareness regarding single-use plastic is creating a shift towards paper packaging in home delivered products and consumer goods, thereby driving the segment demand.

Printing held a substantial market share in 2018 and is likely to grow at a healthy CAGR in the upcoming years. This is mainly due to the growing advertisement sector and the increasing demand for printed magazines, financial reports, brochures, and direct mails by business corporate offices. Coated paper offers superior gloss and thickness, which are considered as preferred features for printing applications. It offers a smooth surface for printing books and calendars with sharp images and reduced ink absorption.

Stringent regulations pertaining to plastic packaging and presence of large customer base to drive regional demand (USD Million)

The Asia Pacific coated paper market dominated with the largest market share in 2018 and is likely to grow at a significant rate in the upcoming years. This is largely due to the expanding end-use industries for the packaging sector such as food & beverages, pharmaceutical manufacturing, personal care products, and online retail. The booming e-commerce sector and internet trade have led to rising consumption of such papers in the packaging of home delivered products. China and Japan are the key countries contributing to the regional market growth on account of significant consumer base, affordable labor, and regulations pertaining to plastic packaging. Also, the printing sector is expanding in the region owing to an upsurge in printed packaging products and the developing advertisement sector.

Coated Paper Market Share

The companies have adopted various strategies, such as partnerships and collaborations for enhancing their market share. For instance, in October 2019, Sappi Europe signed a collaboration agreement with HP Indigo to print media in its wood-free coated paper using HP Indigo’s digital imaging technologies. The coated paper market is consolidated with presence of large number of manufacturers across the globe. Some of the key manufacturers in the market are

  • South African Pulp and Paper Industries Limited (Sappi Ltd.)
  • UPM, Ltd
  • Verso Corporation
  • Stora Enso

by Product

  • Coated Fine Paper
  • Coated Groundwood Paper
  • Others

by Coating Material

  • Clay
  • Calcium Carbonate
  • Talc
  • Others

by Finishing Process

  • Online Calendering
  • Offline Calendering

by Application

  • Printing
  • Packaging
  • Others

The above information is provided on a regional and country basis for the following:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
  • Asia Pacific
    • China
    • Japan
    • Australia
    • Indonesia
    • India
    • Malaysia
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • GCC
Authors: Kiran Pulidindi, Akshay Prakash

Frequently Asked Questions (FAQ) :

The global coated paper industry is expected to achieve $64 billion by 2026 and is poised to record over 3% CAGR.

Rising demand for flexible paper packaging along with escalating online sales activities are the major driving factors for market growth.

Major challenges likely to impact the global coated paper industry outlook include capital and energy intensive manufacturing process of coated paper and volatility in the wood pulp prices.

South African Pulp and Paper Industries Limited (Sappi Ltd.), UPM, Ltd, Verso Corporation, BURGO GROUP SPA and Stora Enso are key companies operating in the global industry for coated paper.

Coated Paper Market Scope

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Premium Report Details

  • Base Year: 2018
  • Companies covered: 11
  • Tables & Figures: 280
  • Countries covered: 17
  • Pages: 175
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