The converting paper market comprises a wide range of products including specialty papers, coated papers, and uncoated papers that are used for various end-use applications such as packaging, printing, and labeling. Papers used for converting include kraft paper, parchment paper, greaseproof papers, glassine papers, and barrier coated papers. Kraft papers offer high tensile strength and are widely used as wrappers for food products. Barrier coated papers provide moisture, oil, and grease resistance and find applications in food packaging. The increasing demand for packaged food and goods from the expanding retail industry is a key factor driving the demand for converting papers globally.

The global converting paper market is estimated to be valued at US$ 498.41 Mn in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the converting paper market are GlaxoSmithKline plc, Pfizer Inc., Merck & Co. Inc., Sanofi Pasteur SA, Johnson & Johnson, Serum Institute of India Pvt. Ltd., Bharat Biotech International Limited, Biological E. Limited, Astellas Pharma Inc., Seqirus (CSL Limited), Mitsubishi Tanabe Pharma Corporation, Novavax Inc., Bavarian Nordic, Emergent BioSolutions Inc., and Valneva SE. The strong presence of major players and the entry of emerging players have made this a highly competitive market.

The growing demand from the food packaging and healthcare industries is a major factor driving the growth of the Converting Paper Market size. Paper is increasingly preferred over plastic for food packaging due to sustainability concerns. Additionally, robust growth in pharmaceuticals and rise in vaccination programs across the world have boosted the demand for papers used in drug packaging and labels.

Technological advancements have enabled paper manufacturers to develop specializedpapers with features such as oil, grease, and moisture resistance. Barrier coating and nanocoating technologies help papers provide effective protection and extend product shelf-life, increasing their usage in various packaging formats. Advanced printing techniques allow vibrant graphics and detailed information to be printed on papers.

Market Trends

Sustainable and recyclable paper-based packaging solutions have gained immense popularity owing to the global commitment towards environmental preservation. Paper manufacturers are developing eco-friendly paper varieties with reduced chemical usage. Furthermore, the demand for barrier papers with plant-based and compostable barrier coatings is on the rise.

Digital printing technologies are enabling the production of smaller batches of customized labels and packaging. Variable data printing allows incorporating real-time information and targeted marketing content on packaging. This trend is well-supported by the converting paper industry.

Market Opportunities

The emerging retail sector in developing economies presents lucrative growth opportunities. The growing middle-class population and changing lifestyles are propelling the demand for packaged and branded consumer goods in countries such as India and Brazil.

Alternative barrier materials from renewable plant-based sources can further expand the applications of paper packaging in moisture-sensitive products. R&D initiatives aiming to develop papers mimicking plastic packaging functionality will also create new prospects.

Impact of COVID-19 on converting paper market growth

The COVID-19 pandemic has severely impacted the converting paper market growth. The lockdowns imposed by various governments led to the closure of manufacturing facilities and disrupted the supply chain globally. This resulted in a significant decline in demand for converting paper products across industries like packaging, retail, healthcare, and food & beverage in 2020. However, there was increased demand for converting papers used in sanitary and hygiene products as well as pharmaceutical packaging during the pandemic. With restrictions easing and economies gradually reopening in 2021, the demand started recovering. However, continuous supply chain issues, inflationary pressures, and workforce shortages due to new COVID variants posed challenges. Going forward, the demand is expected to steadily rise owing to increased focus on healthcare, hygiene, and sustainable packaging post pandemic. Market players need to explore opportunities emerging from changing consumer preferences and focuses more on efficient distribution networks and alternative sourcing to mitigate risks arising due to future disruptions.

Geographical regions concentrated in converting paper market in terms of value

The converting paper market in terms of value is highly concentrated in North America and Europe. Countries like the USA, Canada, Germany, UK, France accounts for more than 50% of the global converting paper market revenue. Well-established packaging, personal care, pharmaceutical industries driving the demand in these regions. Stringent regulations regarding the use of sustainable and recycled content in packaging boost the converting paper usage. High living standards and awareness regarding eco-friendly products contribute to premium products demand. The Asia Pacific is also a significant and fast-growing market for converting paper attributed to growing industries, urbanization, and rising disposable incomes in developing economies like China and India.

Fastest growing region for converting paper market

The Asia Pacific region is poised to be the fastest growing region in the global converting paper market during the forecast period. This rapid growth can be attributed to factors like rising population, increasing industrialization, growing middle-class population with higher spending power on packaged goods in the region. Countries like China, India are witnessing tremendous economic development which is augmenting the growth of industries favoring converting paper like food & beverage, pharmaceuticals, personal care & cosmetics. In addition, government initiatives encouraging sustainable practices and use of eco-friendly materials further propels the demand. Ongoing trade relations and technology transfers with developed markets also support the regional market expansion. Thus, the Asia Pacific region is expected to unleash massive opportunities for converting paper market players in the coming years.

Get more insights on Converting Paper Market