Synthetic Paper Market

Market Overview

The global synthetic paper market size was valued at USD 1023.7 million in 2021 and is expected to reach USD 1573.44 million in 2030 expanding at a compound annual growth rate (CAGR) of 5.52% from 2022 to 2030.

The production of synthetic papers begins with the creation of a synthetic resin, which originates from the petroleum industry. The properties of tear resistance, water resistance, oil resistance, chemical resistance, and high durability are just some of the features that set synthetic paper apart from traditional paper made from wood pulp. These features, along with the fact that synthetic paper is highly applicable for a wide variety of industrial applications, make the synthetic paper an excellent choice. The global market for synthetic paper may be broken down into three categories: the material, the application, and the end user.

Since of the glossy surface coating that synthetic papers have, they are ideal for the printing of photographs because the colors come out looking more vibrant. These sheets can also be used for printing banners, booklets, posters, and other types of printed materials. They are utilized in the creation of paper bags due to the fact that they are beneficial to the environment and give an exceptionally high level of durability in comparison to traditional paper bags. They are also utilized in the food packaging industry as an alternative to the utilization of plastic.

Market Dynamics

Global Synthetic Paper Market Drivers

Synthetic Papers Are Environmentally Friendly and Have Excellent Physical Qualities

The production method for synthetic papers does not include the use of any trees or woodlands, as these papers are inorganic. They are constructed using a variety of polymers, including polyolefin resin and polypropylene, amongst others. Extrusion is a system-controlled procedure that reduces waste and other dangers while maximizing efficiency, and it is employed here to melt these polymers before using them. In addition to this, synthetic papers may be recycled and repurposed as plastic resins for use in a variety of applications. The expansion of the market for the synthetic paper throughout the world is being helped along by the product's environmentally favorable qualities. The majority of the major operational firms in the synthetic paper business advocate for the use of synthetic paper that is entirely recycled. Recycle, Reuse, Respect, and Reduce are the four tenets of the philosophy that Polyart adheres to in order to preserve and enhance environmentally friendly qualities. The ""3 Rs"" of Yupo Corporation, which stand for reuse, recycling, and repurposing, contribute to the production of environmentally friendly synthetic paper. The longevity of synthetic paper is high due to the fact that it is resistant to ripping at high levels of stress. Because it does not include any wood fibers, it is impervious to water and will not deteriorate when exposed to it. Additionally, synthetic paper can be folded without tearing and does not split when folded.

Global Synthetic Paper Market Restraints

Price Fluctuations in Raw Materials and Crude Oil

The synthetic paper market may be constrained as a result of variations in the prices of fundamental raw materials including polybutylene, polypropylene, and polyethylene. The unpredictability of the pricing of raw materials will have an even greater influence on the already high costs of manufacturing and output, and it might function as a limitation on an industry. The market is being hindered since there is a restricted supply of the plastic substance used to make synthetic paper. The price of crude oil, which is a significant limiter, also has an effect on the price of synthetic paper. It is anticipated that variations in the price of crude oil would lead to price increases in PP and PE. It is anticipated that the cost of polymers will continue to climb over the next few years, which will have an effect on the market. It is anticipated that the expansion of applications and the availability of raw materials will continue to be the primary drivers of price volatility. growth.

Global Synthetic Paper Market Opportunity

Stringent Government Rules and Growing Environmental Concerns over Pulp Paper

The global paper industry is estimated to be over 400 million tonnes, with pulp or paper based on wood constituting the vast majority of production. Because these pulp or wood-based papers use wood as their major resource and are less expensive than synthetic paper, forests are being cut down to make room for these products, which in turn leads to an increase in environmental issues. On the other hand, the production of synthetic papers is a technique that is favorable to the environment and contributes to the preservation of the ecosystem by lowering the demand for natural resources. Synthetic paper's market share in the paper sector might be bolstered with the support of various research and development efforts carried out by producers towards the goal of bringing down the price of synthetic paper, which would lead to a rise in the product's utilization.

Papers that may be recycled and reused are becoming more important to the waste reduction efforts of governments throughout the globe. The Indian government's Ministry of Environment and Forests published a draught document in 2019 titled ""National Resource Efficiency Policy 2019."" This document proposed several measures for improved waste management, including reduced use of landfills, improved management of construction waste, electronic waste, and waste from other rapidly growing sectors, and reduced use of landfills.

Regional Analysis

In 2021, the Asia Pacific region led the market and generated 35.9% of global revenue. Due to the rising demand in the packaging, printing, and pharmaceutical industries, the market for the product in the Asia Pacific region was estimated to be worth around USD 389.2 million in 2021. Additionally, during the course of the projection period, it is anticipated that the region's eCommerce retail would experience exponential expansion. Because of rising disposable income and rising living standards of the working-class population in developing nations like China and India, the growth in the Asia-Pacific region can be attributed to the expansion of end-user industries like pharmaceuticals, cosmetics, consumer goods, and food and beverages.

Over 28.0 % of global sales in 2021 were attributable to Europe. Due to the growing usage of the product in the food and beverage and pet food labeling sectors, the demand for synthetic paper in the U.K. is predicted to rise at the quickest rate for label application. For the packaging of pet food, many businesses use synthetic paper, notably Harrier Packaging. In 2021, the market in North America represented a revenue share of about 23.1 %. Wrap-around labels are being employed in beverage packaging, broadening beyond bottled water to include fruit juices and functional drinks, which is anticipated to propel the expansion of the label industry in North America and favorably impact the market.

Segmental Analysis

The synthetic paper market is segmented into the following: product, application, and region.

The market may be broken down into Biaxially-Oriented Polypropylene (BOPP), High-Density Polyethylene (HDPE), and PET, depending on the type of product. In 2021, the BOPP product segment dominated the market and was responsible for 57.5% of worldwide sales. Due to the greater strength provided by the material, which makes them perfect for packaging perishable things including snacks, fast food, vegetables, fruits, and confectionary, it is anticipated to see a remarkable CAGR of 5.3 % from 2022 to 2030. Due to the exceptional characteristics of BOPP, it is widely used in the packaging of chemicals, textiles, cosmetics, food, and drinks. Over the projection period, there is likely to be a significant increase in demand for BOPP film in the Asia Pacific due to the expansion of the aforementioned application sectors in developing nations like China and India.

HDPE-based synthetic papers, which are mostly used in the packaging of powder, cheese, frozen food, and electronic components, are anticipated to expand at a rate of approximately 6.1 % from 2022 to 2030, making them the fastest-growing product segment. The sheets are non-abrasive, non-scratch, and acid-resistant, and they have strong moisture barrier and temperature resistance capabilities. Because of its low cost and wide range of applications, HDPE is anticipated to grow in popularity over the course of the projected period in growing economies like Brazil, China, India, and Russia. Due to its superior release capability without silicone coating, HDPE films are also employed as release liners, interleaving sheets, foam-in-place, and box liners.

About 60.0 % of worldwide revenue in 2021 came from the non-labeling application category, which dominated the market. Synthetic paper is an excellent choice for non-labeling applications like packing because of its exceptional durability and tensile strength to support large objects. Additionally, the material's high resistance to moisture and intense heat is anticipated to further propel its rise in the packaging application market.

Fine printing on synthetic paper utilizing ink and adhesives is more practical, which raises demand for it across a variety of businesses. Synthetic papers are used because they are simple to print on, which makes it easier to print over packed goods. Additionally, they are scratch and stain-resistant, making it easier to use them for packing sensitive products.

Over the projection period, the labeling application category is anticipated to grow at a CAGR of 5.9%. From 2022 to 2030, the medical tags market in the label application sector is anticipated to grow at a CAGR of approximately 7.3%. Blood bags, test tubes, medications, medical equipment, medical machinery, bottles, and first aid supplies are just a few of the items that might employ medical tags. The market for medical tags is predicted to increase as a result of the healthcare sector's development, one of the fastest expanding businesses in the world. Due to their dependable functioning under adverse circumstances like tampering and extremely low temperatures, synthetic sheets are utilized for medical tags.

Recent Developments

2020 saw the complete acquisition of the MDV Group by Arjobex SAS, a specialized producer, and coater of specialty papers and films for the construction, packaging, medical, sign/display, and print sectors. MDV dominates the synthetic paper and film markets with names like Robuskin and Satinex and is the European market leader for fluorescent sheets under the trademark Fluolux. Arjobex's presence in Europe has significantly increased as a result of this purchase, making it the region's top supplier of specialist coatings solutions for paper and films.

The Agfa-Gevaert Group and Fujitex Co., Ltd., a worldwide trading firm in Japan, struck this deal in January 2019 to distribute synthetic paper under the brand name SYNAPS. Due to Fujitex's dominant position in the printer sector, the agreement also covers the distribution of SYNAPS XM products.

The ""SUPERYUPO Double"" (grade: FRBW) grade for oil-based offset printing, suited for double-sided printing on paper using oil-based ink, was introduced by Yupo Corporation in September 2020. A revolutionary synthetic paper called ""SUPERYUPO Double"" enables double-sided printing utilizing oil-based ink for paper without the need for special synthetic paper ink while maintaining the key qualities of YUPO, including superior durability, water resistance, and appropriateness for printing. The item is a member of the YUPO GREEN Series and is mixed in part with biomass resin obtained from plants, which lowers CO2 emissions.

In June 2019, Yupo Corporation created their novel synthetic paper for label applications, which is made from biodegradable plastic resin. These YUPO Green Synthetic papers, which replace conventional crude oil-based paper, are created from sugarcane bagasse. The Yupo Corporation took this action as part of its drive to make ecologically friendly goods and further the organization's objective of sustainable development.

A firm, opaque, glossy finished synthetic paper with varying thicknesses was introduced in rolls and sheets by Transilwrap Teslin Synthetic Paper in September 2017.