Booming e-commerce sector to drive coated paper application landscape

E-commerce industry is witnessing robust growth across developed and developing nations due to the wide variety of products available on one platform at a relatively cheaper cost. Coated paper applications include packaging and printing products use in the shipping of goods.

In the year 2019, total e-commerce sales in Europe grew to approximately €621 billion will record a considerable boost owing to the high disposable income among people. Sales promotion initiatives such as offering discounts, sales and free delivery are some of the major factors steering the demand for online products.

Packaging plays an extremely vital role in the online purchase and sale of goods. It helps protect from spoilage, damage and wear and tear. Additionally, gaining popularity of ordering food and grocery items from home has led to a rise in the demand for advancements in packaging. Global coated paper industry size is projected to reach US$55 billion by 2026, with the packaging sector providing a major boost to the material demand.

Several initiatives are being undertaken by the governments and other recognized entities to reduce the use of plastic bags across the globe. The Ministry of Commerce and Industry, Government of India has urged the e-commerce industries across the country to gradually eliminate the use of single-use plastic in the packaging of products being sold. Companies have been advised to develop sustainable packing measures, spelling favorable demand conditions for certain coated paper products.

Booming food & beverage sector in Asia Pacific

Asia Pacific is poised to evolve as profitable revenue pocket for the processed food and beverages segment, fueling packaging industry trends. The packaging sector in India is growing at approximately 22% to 25% annually due to the developments in various sectors of the economy.

Rising disposable income among people in the region is steering production across industries such as electronics, food and beverage, cosmetics, healthcare, personal care items, and online purchases. In 2018, food processing industry in Japan produced more than US$216.8 billion worth of food and beverage products.

Rising penetration of internet has driven expansion in the e-commerce industry in APAC. Reportedly, the e-commerce sector in India is expected to cross US$200 billion by the end of 2026, from US$38.5 billion in 2017. Digital transformation in the country along with an increasing number of online startups from various industries selling their products online will be a major factor adding impetus to coated paper market forecast from packaging applications.

Key applications of talc in printing sector

With respect to coating materials, the market is bifurcated into calcium carbonate, talc, and clay. Clay facilitates wider range of surface finishing, from gloss to matte as per the demand of the customers. The use of clay-coated paper produces brighter and sharper images and delivers improved reflectivity as compared to uncoated papers.

The application of talc in the paper industry is also gaining traction as the material improves printability and reduces surface friction, providing significant improvements in productivity. Additionally, it improves mattness and lowers ink scuff in offset papers.

Talc cleans any sticky resinous particles in the pulp onto their platy surface during the papermaking process, preventing the deposition and agglomeration of these on the calenders and felts. In specialty papers like colored labels or papers, talc renders improved productivity and quality.

Owing to the growing demand for coated papers in both packaging and printing solutions, several leading industry players are carrying out innovations to meet the changing manufacturing and consumer needs.

Verso Corporation – an Ohio based paper mill company recently introduced Liberty® - a coated web printing paper provided in various forms of finishes such as dull, matte and gloss. It is particularly designed to work on web offset printing presses and is also considered ideal for printing of catalogs, retail inserts, magazines, and publication covers.

Environmental regulations impacting the industry

Constraints regarding the cutting of trees to produce paper and other environmental concerns may pose threat to coated paper industry growth. The shortage of raw materials in the industry possesses chronic problems among various paper manufacturing units.

For instance, in Tamil Nadu, India, paper manufacturers were resorting to the use of bamboo to produce papers however there could occasionally be a shortage of the product. Additionally, stringent environmental regulations and restrictions in the region related to the felling of trees poses a hindering effect.

Paper manufacturers are moving towards the use of alternatives such as bagasse – an industrial waste of sugar cane. Global coated paper market outlook will witness considerable momentum over the years to come with consistent packaging and printing demand as well as production of more eco-friendly paper.

 

Authors: Kiran Pulidindi