April 14, 2024
Converting paper Market

Converting paper Market is Estimated to Witness High Growth Owing to Technological Developments in Recycling and Sustainability

Converting paper includes a wide range of specialty papers and paperboards that are used for conversion into various end-use applications such as packaging, labels, stationary, and others. These papers offer advantages such as improved printability, foldability, and moisture resistance. The growing e-commerce industry has accelerated the demand for sustainable packaging solutions made from converting paper.

The Global Converting Paper Market size 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 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., Valneva SE. The growing demand for sustainable packaging from e-commerce and food & beverages industries has opened several growth opportunities for converting paper manufacturers. Technological advancements in recycling processes and usage of recycled fibers have improved the sustainability and eco-friendly credentials of converting papers.

Market drivers
The increasing regulatory pressures on plastic usage and bans on single-use plastic are a key market driver boosting the demand for converting paper. Growing environmental awareness among consumers and brands is encouraging the shift towards paper-based packaging. Furthermore, the advancements in paper recycling technologies have improved the cost-effectiveness of recycling converting paper waste. This has enhanced the sustainability image of converting paper and expanded its usage in different end-use industries.

Current Challenges in the Converting Paper Market
Rising environmental concerns regarding deforestation due to paper production have created challenges for the converting paper market. Growing preference for digital forms of communication over physical print is putting pressure on paper consumption. Strict regulations around the usage of chemicals and pollutants in paper manufacturing also increase compliance costs for producers. Supply chain disruptions caused by the ongoing COVID-19 pandemic have created issues around sourcing of raw materials and logistics for paper converters globally. Rising costs of raw materials like wood pulp adds to production costs.

SWOT Analysis
Strength: Paper remains an essential packaging and printing material. Established manufacturing infrastructure and expertise provides economies of scale.
Weakness: Vulnerable to shifts to digital media and sustainability pressures. Higher costs compared to alternative materials.
Opportunity: Developing recycled and sustainable paper grades to address environmental concerns. Tap emerging economies with growing print and packaging needs.
Threats: Stricter emission norms can increase compliance burdens. E-substitution threatens major end-use segments like publishing.

In terms of value, the converting paper market is currently most concentrated in Asia Pacific and North America. The Asia Pacific region accounts for around 35% of the global market value driven by high production and consumption in China and other developing economies. North America is another major regional market for converting paper supported by packaging and commercial printing industries in the United States and Canada.

The converting paper market in Central and South America is projected to witness the fastest CAGR during the forecast period from 2024 to 2031. This can be attributed to expanding industrial and construction activities coupled with a emerging retail and e-commerce sectors stimulating packaging paper demand across Brazil, Mexico and other major economies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it