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Printing industry to fuel the demand for coated paper

Author : Ravi Chawat | Published Date : 2021-02-09 

The growing demand for superior quality print images for advertisement applications has supported coated paper development over the past several years. Coated papers have witnessed a paradigm shift in consumption from the developed countries to emerging economies in Asia Pacific and Latin America.

Coated paper is extensively used in printing and packaging since they deliver finer levels of detail, offer vibrant color reproduction for clean and crisp printing as well as higher contrast, ensuring that the images pop. These papers have a smooth clay coating applied over a freesheet or groundwood base paper. Coated papers are treated using a mixture of chemicals and materials to enhance the surface properties like weight, gloss, smoothness, and the retention of ink.

Growing popularity of home-delivered food, as well as household products like groceries, has magnified the demand for paper bags, waterproof bags for milk and fruit juices, and grocery bags. Global coated paper market size is anticipated to reach US$55 billion by 2026.

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Strict rules established by governments and other recognized regulatory authorities regarding the ban on the use of plastic packaging solutions has led to a shift towards the adoption of paper packaging measures. The year 2019 saw the Government of India impose restrictions on plastic food packaging with an aim to control the rising environmental degradation around the country.

Key manufacturers of coated paper market include Twin Rivers Paper Company, BURGO GROUP SPA, Verso Corporation, Dunn Paper Company, and Nippon Paper Industries Co., Ltd. among various others.

High demand for coated fine paper

Coated fine paper, in particular, has gained considerable demand over the years due to superior brightness of up to 96% as well as its high grammage. These are mainly produced for offset printing from chemically bleached pulp and comprise of lesser amount of mechanical pulp.

Coated fine papers find extensive usage to print magazines, annual reports, catalogs, and advertising materials. Coated papers provide gloss and thickness which is a viable feature for printing applications. It provides a smooth surface for printing books with sharp images and relatively reduced ink absorption.  

Printing has emerged as a key consumer of coated papers due to the vast demand for reading items like financial reports, printed magazines, and attractive brochures. The increasing establishment of commercial entities across different sectors of the economy has fueled developments in the printing technologies. Reports estimate that the printing industry in Europe contributes approximately US$99 billion to the economy, indicating a considerable customer based for coated paper.

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E-commerce in Asia Pacific to amplify demand for coated paper

The growing popularity of e-commerce in both developed and developing nations has facilitated the wide availability of various products at a cost-effective rate, leading to amplified online sale of small items to heavy equipment. Packaging plays a key role in the e-commerce sector to ensure the safe and reliable delivery of goods. In the year 2019, in Europe, the total value of online sales stood at US$700.34 billion.

APAC coated paper market has witnessed considerable gains over the years mainly due to the expanding end-use industries for the packaging sector like pharmaceutical manufacturing, food and beverages, personal care products, and pharmaceutical manufacturing.

Led by China, India, and Singapore, the region has witnessed unprecedented developments in the e-commerce sector due to the increase in penetration of the internet as well as the improvement in disposable income among people in the region. 

Coronavirus and its impact on the industry

The prevailing COVID-19 pandemic has temporarily restricted the movement of people and goods in order to control the spread of the virus. The unavailability of raw materials and the lack of workforce have adversely affected the manufacturing and printing industries over the globe, subsequently affecting the coated paper market.

Another major factor affecting the growth is the fluctuating prices of wood pulp. Economic cycles and the disturbances in supply and trade can caused a shift in the prices of wood pulp.

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About Author

Ravi Chawat

Ravi Chawat

Ravi Chawat holds a bachelor's degree in Electronics and Telecommunication Engineering. He has worked closely with industry specialists from different segments including chemicals, food and beverages, construction and manufacturing & energy and power. Ravi's article concentrates principally on balancing relevant data but never at the expense of making the content engaging. He believes in giving fair-minded information to guide significant business choices. [email protected] | https://twitter.com/RaviChawat

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