Synthetic Paper Market Size, Share & Industry Analysis, By Material (Polypropylene, Polyethylene Terephthalate, and Others), By Application (Labelling and Non-labelling), and Regional Forecast, 2024-2032

The global synthetic paper market size was valued at USD 718.2 million in 2023 and is projected to grow from USD 767.5 million in 2024 to USD 1,378.9 million by 2032, exhibiting a CAGR of 7.6% during the forecast period. Asia Pacific dominated the synthetic paper market with a market share of 39.% in 2023.

Synthetic paper is a durable substrate engineered to provide the properties of traditional paper while offering enhanced durability, water resistance, and tear resistance. It is mainly composed of synthetic resins, such as polypropylene (PP) or polyester, and is produced through a combination of extrusion, coating, and calendaring processes. The growing demand for this paper in applications, such as printing, packaging, and labeling, owing to its ability to withstand harsh environmental conditions along with its durability, makes it a preferred choice. Additionally, advancements in manufacturing technologies have led to improvements in printability, recyclability, and cost-effectiveness, further driving product adoption across industries.

The plastic industry experienced mixed effects of the COVID-19 pandemic. High demand for PPE kits resulted in a boost in the production of propylene and other polymers. However, the lower availability of raw materials for non-emergency products, including synthetic paper production, impacted the market.

Synthetic Paper Market Trends

Increasing R&D to Develop Better Products is the Latest Trend in Market

Synthetic paper is generally manufactured using polymers, such as Biaxially Oriented Polypropylene (BOPP) and Polyethylene Terephthalate (PET). However, new research suggests the use of fillers and other polymers to increase the workability and durability of papers. For instance, a mixture of liner low-density polyethylene and polystyrene with 40% filler contents is suitable for synthetic paper applications. Fillers are composed of 80% dolomite and 20% talc. The additions of these fillers reduce the tensile strength, folding strength, and dart impact, which makes it able to behave like paper. Employing fillers and low amounts of incompatible polymers helps the material attain paper-like properties. Moreover, the easy availability and lower cost of these fillers and polymers are among the benefits for manufacturers.

Synthetic Paper Market Growth Factors

Increasing Demand for Labels to Propel Market Growth

Synthetic papers are majorly employed in manufacturing labels that are used on all sorts of products, including pharmaceuticals, food & beverage containers, cartons, convenience food packets, and daily-use commodities. Excellent properties of these papers, such as durability, printability, tear resistance, and resistance to chemicals, oil, and water are expected to drive their demand. Additionally, these papers provide a broad range of functionalities for pharmaceuticals, cosmetics, printing, labelling, and packaging applications. These papers can be tough and durable and can support high-quality printing. High demand from multiple end-use sectors for labeling and printing is expected to drive synthetic paper market growth in the coming years.

RESTRAINING FACTORS

Product Disposability May Hamper Market Growth

Synthetic papers are mainly manufactured from polymers. Most of the polymers are non-decomposable or take time to decompose. Though many polymers are recyclable, a very small amount of the plastics is recycled. For instance, according to Plastics Europe data, in 2022, only 8.9% of overall plastic produced was recycled, and most of the plastic is discarded in the environment. The increasing awareness among consumers regarding the disposability of plastic is likely to hamper the synthetic paper market growth over the forecast period.

Synthetic Paper Market Segmentation Analysis

By Material Analysis

Polypropylene Segment to Hold the Key Share Attributed to Easy Availability

Based on material, the market is segmented into polypropylene, polyethylene terephthalate, and others.

The polypropylene segment is expected to hold the largest synthetic paper market share due to easy availability, lower cost, and superior properties. Furthermore, the growing expansion of packaging industry will further boost the demand for polypropylene paper.

The polyethylene terephthalate segment is expected to show significant growth by the end of the prediction period. Rising demand in the manufacturing of water bottles, shopping bags, and videotapes will boost the segment growth.

By Application Analysis

Labelling Segment to Hold Significant Share due to its Characteristics

Based on application, the market is segmented into labelling and non-labelling.

The labelling application segment dominated the market in 2023. The high demand for labels from multiple end-use sectors is likely to drive the segment growth. The rising demand for synthetic labels and stickers, as they offer excellent durability and provide resistance to outdoor and chemical environments, will fuel its demand in many industries including healthcare and packaging.

The rising adoption of printed media and the increasing use of signage and banners will propel the demand for non-labelling products, as they offer resistance to tearing and moisture, thereby making them suitable for outdoor and rugged environments.

REGIONAL INSIGHTS

Based on region, the synthetic paper market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The market in Asia Pacific was valued at USD 280.1 million in 2023. The growth is attributed to the large manufacturing base for plastic in countries, such as China, India, South Korea, and Japan. Additionally, the availability of raw materials and lower labor costs are the prime factors expected to drive market growth over the forecast period.

Europe is one of the key global markets. The drive of consumers to replace PVC in the packaging industry is the prime factor boosting product demand. For instance, in Europe, the multiwall sacks used for pet food are being replaced by synthetic papers from Harrier packaging which is made of three-layer HDPE.

North America is expected to grow steadily owing to the high demand for durable paper for applications, including maps, posters, game boards, menus, and manuals. The presence of ample number of manufacturers is also likely to boost regional growth.

Latin America and Middle East and Africa are expected to show sluggish growth. Synthetic paper in Latin America is cost-competitive to wood-pulp paper due to the high duty charges on cellulosic paper. However, increasing industrialization and improving living standards are expected to exhibit growth.

List of Key Companies in Synthetic Paper Market

Top Players Focus on Strategic Agreements to Boost Their Market Positions

The market is consolidated in nature with a large number of global players. PPG Industries, Yupo Corporation, DuPont, Cosmo Films, and American Profol, are some of the leading companies in the market. Major market participants work primarily on the basis of the product's cost and application appearances. Many top producers are continuously implementing several tactics to stimulate their market revenue and gain a competitive advantage. They focus on strategic agreements to strengthen brand image and sales.

LIST OF KEY COMPANIES PROFILED:

• PPG Industries (U.S.)


• Yupo Corporation (Japan)


• DuPont (U.S.)


• Seiko Epson Corporation (Japan)


• AGFA-Gevaert N.V. Corporation (Belgium)


• Cosmo Films (India)


• American Profol Inc. (U.S.)


• Mobil Chemical Films Div. (U.S.)


• Granwell Products (U.S.)


• Formosa Plastics (Taiwan)


• HOP Industries Corp (U.S.)


• Toyobo Co. Ltd. (Japan)


• Neenah (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2021 – Cosmo Films launched opaque, non-tearable synthetic paper for lamination, flexible packaging, and labeling applications. This has increased the company's product offerings.


• January 2021- AGFA launched a new product under the brand name SYNAPS XM110, in the synthetic paper product portfolio. The paper has a thickness of 100 microns and is the thinnest amongst SYNAPS XM.

REPORT COVERAGE

The global market report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, applications, and Materials. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation