Specialty Paper and Paperboard Market Development 2015–2021
STEADY GROWTH IN THE SPECIALTY PAPER MARKET
MILLION TONNES
YEARLY GROWTH, %
35
3%
MARKET VOLUME MARKET GROWTH
30
25
2%
20
15
As demand for traditional paper grades declines, the significance of the specialty paper market is growing. Fibre-based products are increasingly replacing plastic, and raw material producers are being confronted by new development challenges.
1%
10
5
0
0%
HEIDI HAMMARSTEN
2015
2016
2017
2018
2019
2020
2021
What do paper straws, protective masks and an online store’s mailing label have in common? They are all spe- cialty paper products, and demand for them is growing. These examples also demonstrate the wide range specialty papers cover. While there is no single correct way to examine the spe- cialty paper market, Alexander Watson Associates (AWA), a consulting firm monitoring the industry, identifies 11 market segments and over 100 paper grade categories within it. In 2019, the size of the specialty paper market moni- tored by AWA was roughly 29 million tonnes, equivalent to approximately six per cent of the world’s paper and paperboard production. In terms of value, though, the significance of specialty papers is greater. “The figures we follow in some market segments include some non-specialty paper products as well,” says Corey M. Reardon , President and CEO of AWA. Specialty papers are produced according to each custom- er’s requirements. Nor is it unprecedented for a product that entered the markets as a specialty paper to gradually become a basic paper. This is what happened to copy pa- per, for example. “For Metsä Fibre, specialty paper producers represent an important customer segment whose needs also drive product development. A specialty paper often sets distinct
demands for the fibre raw material,” says Metsä Fibre’s De- velopment Manager Emilia Vänskä . “The quality of our softwood fibre is suitable for the production of materials with high added value. Specialty paper customers are very specific about the kinds of fibre they want. One customer may appreciate pulp with a high degree of brightness and purity, while another puts the priority on it being easy to refine the fibres and to achieve paper density rapidly.” WHAT WILL HAPPEN TO THE FORECASTED GROWTH? Whereas demand for printing papers has declined slightly over the past decade, the market for specialty papers has grown steadily. According to AWA’s report, the growth in recent years has been approximately 2.3 per cent a year. Before the COVID-19 crisis, AWA forecast that the markets would continue to grow at a rate of 2.6 per cent a year until 2021. “COVID-19 has really disrupted the entire paper industry, and its impact may last for several years. In the long-term, however, it will not affect the trends shaping the specialty paper industry. Once the pandemic has receded, and the global economy has recovered, I believe the specialty paper market will also get back on track,” says Reardon. Packaging and labelling form the largest segment of the specialty paper markets, covering 40 per cent of them.
Specialty paper and paperboard market forecast 2018–2021
COMPOUND ANNUAL GROWTH RATE 2018–2021 BY MAIN MARKET SEGMENT
PACKAGING & LABELLING
BUILDING & CONSTRUCTION
FOOD SERVICE
BUSINESS & COMMUNICATION
INDUSTRIAL
PRINTING & PUBLISHING
CONSUMER
FILTER
MEDICAL
ELECTRICAL
SECURITY
0.0%
0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
THE MARKET SEGMENTS ABOVE ARE IN MARKET VOLUME ORDER WHERE THE LARGEST SEGMENT IS ON THE TOP
18
19
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