Specialty Paper Market Size, Share & Industry Analysis, By Product Type (Packaging Papers, Decor Papers, Labelling Papers, Office Papers, and Others), By Material (Natural Material, Recycled Material), By Distribution Channel (Specialty Retailers, Online Stores, Others), and Regional Forecast, 2024-2032

Specialty papers are high-quality paper products that are made up of wood pulp or cotton fibre materials. These products are widely used for various purposes such as food wrapping, labeling, home decoration, and others. Companies are largely focusing on developing specialty papers made up of recycled materials to achieve their annual sustainability goals.

Additionally, they are producing high-performing printing specialty papers to cater to the large paper demand of the labeling industry. For instance, in August 2019, Mitsubishi HiTec launched a wide range of microporous, transparent inkjet coated specialty papers of high printing performance for the labeling and packaging industry.

The rising demand for specialty packaging papers coupled with the thriving packaging industry is expected to drive market growth. Additionally, rising home decoration trends are further driving the demand for the specialty kraft papers. Besides this, growing residential and commercial housing infrastructural facilities is likely to excel in the consumption rate of the specialty papers among the people, which thereby favor market growth. According to the data presented by the U.S. Department of Housing and Urban Development, in 2018, nearly 6 million new and existing houses were sold in the United States.

Moreover, the rising demand for online shopping activities across the globe is further excelling in the demand for the specialty packaging papers to pack the shipments. The growing demand for specialty label papers among hospitals and pharmacies is driving the growth of the specialty paper market.

However, governmental regulations regarding the limited usage of the wood materials for the paper production process is anticipated to restrain specialty paper market growth. Additionally, the uncertain occurrence of environmental threats such as heavy rain, fire in the mills, and others is expected to hamper the market growth. 

Key Market Driver -

Rising demand for the specialty packaging papers is expected to drive the market growth.

Key Market Restraint -

Governmental regulations regarding the limited usage of the wood materials is anticipated to restrain the market growth.

Key Players Covered:

• UPM-Kymmene Oyj


• Glatfelter Corporation


• Mondi


• Domtar Corporation


• Stora Enso


• International Paper


• Ahlstrom-Munksjo


• Sappi Ltd.


• Nippon Paper Industries CO. LTD.


• Robert Wilson Paper Corporation

Specialty Paper Market Regional Analysis:

By geography, the global specialty paper industry is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa.

The largest share of the European region is attributed to the large production capacity of the paper & paperboard products in the countries such as the U.K., Germany, and Italy which is likely to support the market growth of specialty paper products in the region. According to the data presented by the German Pulp and Paper Association, in 2019, packaging paper and board production volume in Germany reached 12,102 tonnes. Additionally, the rapid urbanization and globalization rate of the population is further driving the market growth in the region.

Asia Pacific region is expected to grow at a faster rate for the global specialty paper industry owing to the rising infrastructural facilities related to the pharmacy stores in the countries such as India and China which is likely to drive the consumption rate of the medical purpose specialty papers in the region. According to the data presented by the Pharmatutor Organisation, in 2019, the number of pharmacy retail stores in India reached 850,000. Additionally, rising home decoration trends are driving the demand for specialty kraft papers in the region.

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Segmentation

By Product Type 

Based on the product type, the specialty paper market is segmented into packaging papers, décor papers, labeling papers, office papers, and others. The packaging papers segment is expected to hold a significant share of the market owing to the large demand for specialty papers for food packaging purposes in the industries. Additionally, growing online shopping trends is further likely to drive segmental growth.

By Material 

By material, the global specialty paper market is segmented into natural material and recycled material. The natural material segment is expected to hold a major of the market owing to the cost-effectiveness in its processing over to that of the recycled materials. Additionally, manufacturers largely prefer to produce papers made up of natural materials as they can get higher margins from such papers over to that of another type which thereby results in higher segmental revenues.

By Distribution Channel 

Based on the distribution channel, the global specialty paper industry is segmented into specialty retailers, online stores, and others. The specialty retailers’ segment is projected to exhibit a significant share of the market owing to the wide availability of a variety of paper products at such stores. Additionally, customers can get bulk discounts on the purchase of a large volume of paper products from such stores which thereby results in larger segmental revenues.

Key Industry Developments:

• In February 2020, Resolute Forest Products Inc. acquired three U.S. based sawmills of a company Conifex Timber Inc. to scale its specialty papers production capacity.


• In November 2019, Pixelle Specialty Solutions, a North American specialty paper supplier acquired a specialty paper mill from Verso Corporation to increase the paper production capacity to 425,000 tons per year.