North and South America consumption of specialty paper will increase in 2025

A recent study on the papermaking market in North and South America found that the total consumption of specialty paper in these two regions in 2019 was 5.88 million tons. According to the forecast in the article "The Future of Specialty Paper in North and South America in 2025", this Market demand will drop to 5.71 million tons in 2020, and then return to positive growth (a compound annual growth rate of 1.4%), and reach 6.13 million tons by 2025.

The key factors driving changes in the specialty paper market in North and South America indicate that society is increasingly interested in lower cost, more efficient, and more environmentally friendly options. Due to the downturn in the market, large-scale high-speed paper machines that produce conventional paper grades have ceased or reduced production, and many paper companies have switched to producing specialty paper varieties, such as release paper and flexible packaging. In return to customers, they are using innovative technology to provide lighter, tougher paper or higher quality finishes.

The focus on the environment and the circular economy model has driven the demand for more sustainable materials. The ideal material is not only biomass-based, but also reusable, recyclable and compostable, and paper meets all the above requirements. This includes the transition from multi-layer packaging made of paper, plastic and aluminum foil to paper-based packaging with water-based barrier coatings.

Smithers` detailed research provides an overview of 37 different paper types in each region of South America and North America, as well as 6 major national markets (the United States, Canada, Mexico, Brazil, Argentina, and Chile), in the past, current and future (2015-2025) Demand situation. The survey found that the fastest growing is the paper related to the retail of food and other items. In addition, single-sided glossy paper, greaseproof paper, parchment, single-sided coated packaging, single-sided coated labels and release paper, thermal sensitive Paper, etc. also show growth; on the contrary, demand for photographic paper, check paper, ticket paper, stamp paper, cigarette paper, etc. is declining.

The new crown virus epidemic has a certain impact on specialty paper sales, but not all specialty papers are affected equally. Paper related to food packaging has the least direct impact, and other types of paper related to retail are more affected, such as paper used for bar code labels for pricing. The most affected will be industrial paper, such as electrical paper and automobile filter paper; and the ticket paper that has been affected due to the general cancellation of cultural and sporting events.

Innovation will be a necessary condition for survival in the specialty paper market. Many new ideas and inspirations come from third parties, such as chemical suppliers or research institutions, or from open innovation concepts. Smithers` research found that the following technologies are most important to the future of the industry:

• Micro cellulose and nano cellulose used as reinforcing additives or coatings;

• Green chemistry concept that does not contain bisphenol A (BPA) and polyfluoroalkyl substances (PFAS);

• Water-based barrier coatings for food packaging, cups and lunch boxes;

• Coatings with anti-corrosion, antibacterial or other special functional characteristics;

• Implement the Industry 4.0 concept on the paper machine to achieve more precise control to produce higher quality paper varieties.