Converting paper market is driven by Growing Demand from Packaging...

Converting paper market is driven by Growing Demand from Packaging Industry

Posted 2024-02-21 07:01:23

The converting paper market involves the conversion of paperboard and paper into boxes, cartons, tubes, cores, and other forms used across varied industries. Converting paper finds widespread applications in the packaging of food products, medicines, electronics, and other consumer goods. The market is witnessing steady growth due to the expanding packaging industry globally. Converting papers offer advantages like lightweight yet sturdy nature, wide availability, ease of customization, and recyclability. Their usage makes packaging more cost-effective and environment-friendly.

The Global converting paper Market is estimated to be valued at US$ 498.41 Mn in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the converting paper are GlaxoSmithKline plc, Pfizer Inc., Merck & Co. Inc., Sanofi Pasteur SA, Johnson & Johnson, Serum Institute of India Pvt. Ltd., Bharat Biotech International Limited, Biological E. Limited, Astellas Pharma Inc., Seqirus (CSL Limited), Mitsubishi Tanabe Pharma Corporation, Novavax Inc., Bavarian Nordic, Emergent BioSolutions Inc., Valneva SE. Rapid growth in the packaged food and pharmaceutical industries is fueling demand for converting papers globally. Converting paper producers are expanding their manufacturing facilities across Asia Pacific, North America, and Europe to capture the growing market opportunities.

Market drivers

The increasing spending on consumer goods worldwide and rising demand from e-commerce are contributing to the growth of Converting Paper Market size significantly. Converting papers allow manufacturers to design attractive yet cost-effective packaging for different products sold through online retail platforms. Moreover, stringent government regulations regarding the usage of lightweight and eco-friendly packaging materials are further propelling the demand. Major companies are investing in research & development to introduce innovative converting paper grades with superior properties.

Impact of Geopolitical Situation on Converting Paper Market Growth

The current geopolitical situation across various regions is impacting the growth of the converting paper market. Rising geo-political tensions and conflicts between major economies have disrupted global supply chains for paper products. Manufacturing and transportation of converting paper from one region to another has become challenging due to stringent import-export restrictions and border closures imposed by different countries. This is negatively impacting the availability and accessibility of converting paper in many parts of the world. Moreover, economic sanctions on major paper producing countries by Western allies are limiting their trade relations and trade deals. As a result, paper prices are witnessing high volatility globally. Rising raw material costs due to scarcity and supply bottlenecks are further adding to the woes of converting paper producers.

To tackle these challenges and sustain long-term growth, converting paper companies will need to diversify their supplier and customer base globally. Producers must look at alternative sourcing options from geographically stable regions and expand into new growth markets. Developing a globally dispersed manufacturing footprint would help mitigate supply risks. Companies should also focus on building strategic partnerships and alliances locally to cater to regional demand. Adopting advanced technologies like artificial intelligence and blockchain can streamline supply chains and logistics management even during uncertain times. Forming trade alliances between key regions can support uninterrupted flow of converting paper materials.

Geographical Regions with High Concentration of Converting Paper Market

The converting paper market in terms of revenue is highly concentrated in the Americas region currently. Countries like the United States, Canada, Brazil, Mexico are among the top producers and consumers of converting paper globally. Abundant availability of raw materials like wood pulp, easy access to modern paper manufacturing facilities, and large domestic consumer bases housing major end-use industries contribute to high market revenue shares for these countries. Developed economies in Western Europe like Germany, France, the UK also account for a significant portion of global converting paper demand led by their flourishing packaging, printing, and publishing industries.

Fastest Growing Region in the Converting Paper Market

The Asia Pacific region is poised to be the fastest growing regional market for converting paper over the forecast period. Developing nations like China, India, Vietnam, Indonesia and others are driving high demand from packaging, printing, and business paper segments. Rapid urbanization, rising disposable incomes, growing e-commerce industries are key growth influencers. Expanding manufacturing sectors, favorable government policies supporting paper production and usage, and an increasing number of foreign investments in the pulp and paper industry are fueling market growth. Strengthening trade relations and economic cooperation between Asia Pacific and other parts of the world also provide growth opportunities.