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Demand for Coated Papers Continues to Rise in Industrial Packaging Owing to Increasing Demand for Flexible Packaging

Article Description

Coated paper is extensively used in many industries due to its attribute of resistance to wear and tear and dust. Coated paper finds application in magazines, newspaper inserts, advertising materials, security papers, and converted paper products. These papers can be customized in various grades and are used for various end-use applications including packaging, labeling, and printing. As coated paper enables flexible packaging, its demand is expected to rise in industrial packaging. In terms of volume, in 2013, the packaging application segment held 45% of the global coated paper market

The demand for coated paper is expected to increase from the printing segment. Coated papers are increasingly being used for various types of print media advertisements. The rising use of print media as a popular means of advertising and communication is expected to increase the demand for coated paper packaging.

Demand for Coated Paper Continues to Increase from Food and Beverages Industry

The food packaging industry is growing at a rapid pace and many new entrants are entering the market to introduce their food and beverages. As the durability of the food has become the need of the hour, food manufacturers aim to sign partnerships with key packaging companies. The advent of coated paper packaging has helped the food and beverages industry in many ways. Key companies operating in the global food and beverages industry are shifting their focus from traditional packaging to bio-based and flexible packaging solutions.

Flexible food grade packaging is being used for wrapping and storing products such as snacks, fast food, ready-to-eat meals, and fresh foods. Currently, the food and beverages segment is the largest segment using flexible paper packaging. The growth in the global food and beverages industry is expected to benefit the global coated paper market.

What are the key Challenges the Global Coated Paper Market Faces?

The demand for coated paper is expected to be hampered by the availability of substitute packaging materials such as uncoated paper and plastics. Most of the food products are packaged by using plastic packaging materials. Price comparison between coated paper, uncoated paper, and plastics show that uncoated packaging and plastic packaging materials are relatively low-priced than coated paper materials. This is another factor expected to hamper the demand for coated paper.

However, the growing awareness about environmental safety has increased the demand for paper and coated paper packaging materials. This is predicted to propel the global coated paper market in the long run. 

The use of coated paper is increasing in many industries operating across various locations. Based on region, the global coated paper market is divided into Asia Pacific, North America, Europe, and Rest of the World. In 2013, in terms of volume, Asia Pacific held a share of 33% in the global coated paper market. The demand for coated paper in Asia Pacific is expected to increase from industries such as food and beverages, packaging, and cosmetics.

Browse Full Global Coated Paper Market Report with TOC:

Key companies are focusing on introducing new coated paper packaging materials to meet the changing trends. Some of the key companies operating in the global coated paper market are Sappi Limited, Nippon Paper Industries Co., Ltd., Asia Pulp & Paper Co. Ltd, Verso Corporation, Dunn Paper Company, Arjowiggins SAS, and Oji Holdings Corporation.