Originally published on The Griff Network Blog, September 23, 2015.
Despite a the slow economic recovery, the markets for coated paper and specialty film are continuing to grow quickly. While the specialty film industry is projected to grow between 4.8 – 5.2% annually to $8.4 billion, the coated paper industry will be worth $48.21 billion by 2020. What is driving these consumer demands for the continuous expansion of these industries?
For specialty film, the answer can be found in two unlikely allies. The meat industry is one of the biggest consumers of barrier films. As the demand for case-ready meat packaging grows, so does the need for the supply, creating a market of over 65% of the demand for specialty films. However, the fastest-growing market resides in construction, which uses films in windows for safety, security and light control.
Barrier film is favored for its modified atmosphere capabilities and vacuum skin packaging, while medical packaging requires protection from contamination. As demand for barrier and safety films increases, the demand for sustainable practices, such as biodegradable and water-soluble films, comes alongside it.
Meanwhile, the packaging industry is doing favors for the coated paper industry because of the rise in Internet trade. There is the expectation that coated paper will have a few struggles competing with the cheaper plastics and uncoated papers. However, with greater innovations in coating technology and improving recycling techniques, coated paper is expected to be more readily accepted as demand climbs towards 2020.
Coated fine paper, while the highest in demand in the paper industry, is expected to have the slowest growth rate while the cheaper groundwood paper is improving in quality to better compete with fine paper. The paper industry is turning its focus towards bio-based and degradable flexible paper packaging, though there is not yet exceptional growth in that segment of the industry.
Rayna J Lewis 