Booming eCommerce sector to drive coated paper application

The eCommerce 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.

02 Mar 2020 | By PrintWeek Team

In the year 2019, total eCommerce sales in Europe grew to approximately 621-billion euros. It 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 a 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 USD 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 recognised entities to reduce the use of plastic bags across the globe. The ministry of commerce and industry, government of India has urged the eCommerce 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 favourable demand conditions for certain coated paper products.

Asia Pacific is poised to evolve as profitable revenue pocket for the processed food and beverages segment, fuelling 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 USD 216.8 billion worth of food and beverage products.

Rising penetration of internet has driven expansion in the eCommerce industry in APAC. Reportedly, the e-commerce sector in India is expected to cross USD 200-billion by the end of 2026, from USD 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.

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 matte-ness 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 calendars and felts. In specialty papers like coloured 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, USA-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 catalogues, 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.

For details, visit Global Market Insights