Barrier Paper Market

Barrier Paper Market Outlook (2022-2032)

Newly-released data on barrier paper shows that the global barrier paper market experienced year-on-year (YoY) growth of 4.5% to reach a market size of US$ 2.7 billion at the end of 2021. Worldwide revenue from the sales of barrier paper is projected to touch US$ 4.5 billion by 2032 as demand for barrier paper increases steadily at 4.6% CAGR over the decade.

The food and beverage sector is expected to create the highest demand for barrier paper, currently enjoying 46% market share in terms of value.

Report Attributes	Details
Barrier Paper Market Size (2022E)	US$ 2.8 Billion
Forecasted Market Value (2032F)	US$ 4.5 Billion
Global Market Growth Rate (2022-2032)	4.6% CAGR
North America Market Share (2021)	~29.4%
North America Market Growth Rate (2022-2032)	3.9% CAGR
U.S. Market Growth Rate (2022-2032)	4% CAGR
Market Share of Top 5 Companies	~26%
Key Companies Profiled	Mitsubishi Hitec Paper UPM speciality paper Pudumjee Mondi group AR Packaging Koehler paper Nine Dragons Paper Holdings Toppan Sappi Nippon Paper Sierra coatings Huhtamaki KRPA PAPER Company TRANSPARENT PAPER LTD Billerudkorsnas Cortec Corporation Nissha Metallizing Solutions Holland Manufacturing

Demand for using sustainable materials that are biodegradable and promote a circular economy is continuously rising. Food packaging especially is no more just concerned with food protection during storage and transportation. It now also focuses on keeping the quality of food intact and using materials that do not harm the environment. Increasing awareness of reducing plastic use and using eco-friendly products will drive the demand for barrier paper over the coming years.

The 'barrier' is a type of coating that not only protects food spillage but is also a recyclable product that makes the product safe for the environment in itself.

Consumption Analysis of Barrier Paper (2017-2021) Vs. Market Forecasts (2022-2032)

Based on the latest research and analysis by Fact.MR, a market research and competitive intelligence provider, the market for barrier paper progressed at a CAGR of 3.6% during the last four years.

Latest developments in food packaging applications continue to be relied on the commercialization of water-based barrier-coated papers to replace expensive and ecologically harmful fluorocarbons.

The packaging of food is experiencing continuous development. Consumer inclination towards small-size packs of ready-to-use products and rising interest in packaging products that are resistant to grease and are free from any sort of fluorochemicals is creating demand for an eco-friendly range of barrier paper.

The use of antimicrobial products and environment-sensitive coatings in the making of barrier paper is also a key factor driving consumption in various end-use verticals such as food and beverage and pharmaceutical packaging. It is being observed that more than 30% of total paper packaging involves using some form of functional and barrier coating.

• Short Term (2022 Q2 to 2025): Rising demand for home delivery of food, especially in Asia Pacific, will create demand for food packaging, in turn creating demand for barrier paper.
• Medium Term (2025-2028): Burgeoning demand for personal care and cosmetic products will drive demand for barrier paper.
• Long Term (2028-2032): Steady realization of the benefits associated with the use of barrier paper across various end-use verticals will drive higher revenue growth.

Over, worldwide demand for barrier paper is set to create an absolute dollar opportunity of US$ 1.6 billion by 2032.

Which Market Factors are Driving Demand for Barrier Paper?

“Steadily Rising Demand for Small Size Ready-to-eat Food Packets”

Small-size packs made from barrier-coated paper provide an option for lightweight and portable packaging. Barrier-coated paper made from biomaterial is also biodegradable, which helps in reducing the problems related to the disposal of packaging waste.

The need for biodegradable packaging materials such as barrier-coated paper for small-size packs will drive market demand. Consumers are becoming busier in their fast-moving lifestyles, which will gradually increase the need for pre-packed foods for all eating formats such as breakfast, lunch, and dinner.

In recent years, consumer preference for single-serve portion packs has been gaining traction. On-the-go lifestyles are making opportunities for paper packaging manufacturers to produce small portion packs. Barrier-coated paper is extensively used for paper portion packs owing to its ability to provide water and gas barrier protection for packaged items.

“Plastic Ban & Other Related Laws to Complement Market Growth”

Awareness regarding the harmful effects of plastic on the environment and human health has significantly increased in recent years. People are limiting the use of plastics and accepting the use of paper in every conceivable thing. The fact that barrier paper is safe for direct contact with edibles makes it an excellent option for packaging.

Plastic has a variety of applications, including the packaging of materials. Harmful effects on the environment and human health have shifted users to use eco-friendly materials. Plastics are non-biodegradable, and thus, they lay around in the soil, water bodies, and other places for a very long time, polluting the surrounding. Ingestion of plastics by animals and fish causes suffocation and various digestive problems, often leading to death. The governments of many countries have banned the use of plastic.

Attributed to the aforementioned factors, especially escalating barrier paper demand, the market is projected to grow 1.6X by the end of 2032 at a CAGR of 4.6%.

What Do Barrier Paper Producers Need to Focus On?

“Providing Recyclable Barrier Paper to End-use Industries”

Recyclability is a major concern for people concerning environmental safety. Governments are also promoting products that are recyclable. This will help in reducing landfills and promoting a circular economy.

Highlighting the facts related to recyclability in their products will help manufacturers drive sales. Also, eliminating the use of plastic and more use of eco-friendly functional coatings, making use of barrier paper, will be a key factor driving long-term growth for barrier paper manufacturers.

All end-use industries such as food and beverage packaging, pharmaceutical packaging, etc., are expected to propel in future; however, more focus on the food and beverage packaging segment will help manufacturers grow faster.

Country-Wise Analysis

What Makes the U.S. a Prominent Demand Generator for Barrier Paper?

Seven states in the U.S. - Connecticut, California, Delaware, Maine, Hawaii, New York, and Oregon - have completely banned the use of single-use plastics, and others are following suit. Moreover, in the United States, most consumers do not prefer plastic due to the adverse health effects involved.

Ready-to-eat food packets are more in trend in American countries, including the U.S., as compared to other regions. Demand for confectionary packaging also is on the rise in the U.S. market.

Various features of barrier paper are driving its demand in the U.S., such as being 100% free of plastic films, chemicals such as fluorocarbon, etc. Also, because of the high content of biodegradable ingredients, they are being promoted by the U.S. government as it is looking to maximize the use of biodegradable materials to reduce landfills and waste that affects the environment negatively.

The North America barrier paper market is forecasted to expand at a CAGR of 3.9% to reach US$ 1.2 billion by 2032, with the U.S. barrier paper market anticipated to evolve at a CAGR of 4% and expand 1.5X by 2032.

Why is Consumption of Barrier Paper Rising Steadily in China?

In Asia Pacific countries such as China, Thailand, India, and some states of Indonesia, government regulations have led to a ban on the use of Single Used Plastic (SUPs). Growth in China is projected to be strong over the coming years due to increased market share in food and beverages. China contributes a major share to the overall demand for barrier paper in the East Asia region.

Swiss packaging supplier SIG acquired Evergreen Asia, an Asia Pacific subsidiary of Pactiv Evergreen, and announced its entry into the chilled and fresh food and beverages market. SIG Combibloc has been already operating in the Chinese market for more than 25 years and is now expanding its business across the Asia Pacific region.

With continuously rising per capita expenditure on food & beverages and personal care & cosmetics, demand for paper barrier coating materials is set steadily in the country.

China’s barrier paper market is anticipated to expand at a CAGR of 6% and become 1.8X its current valuation by 2032, with the East Asia barrier paper market estimated to progress at a CAGR of 5.8% over the same period.

Category-Wise Analysis

Which Type of Barrier Paper is Most Attractive in the Market?

Coated barrier paper is way more effective than uncoated barrier paper. Demand for coated barrier paper is rising at a rapid pace because of the layer of coating that acts as a strong barrier to protect dry foods such as flour by keeping moisture out of the packaging.

For products such as baked bread, such a coating layer prevents the steam from escaping, thereby preventing the loaf/bread from getting soggy before it is consumed. Also, the materials used in coatings are now environment-friendly and biodegradable.

Pertaining to all the above factors, demand for coated barrier paper is expected to increase at a CAGR of 4.8% through 2032.

Will Consumption of Barrier Paper in the Food and Beverage Sector Keep Increasing?

Food and beverage industry revenue is expected to reach US$ 856.9 billion by 2025. Increasing demand for packed, frozen, and home-delivered food is creating high demand for food packaging, which, in turn, is creating a market for barrier paper. The COVID-19 pandemic is one of the most important reasons due to which demand for home food delivery has increased substantially.

Changing consumer patterns towards buying packaged food has led to the drastic growth of the industry across the world. Further, consistent product launches by industry players with the ongoing trend of healthy food and sugar-free products are propelling industry growth.

Among the applications considered in the scope of the study, demand for barrier paper from the food and beverage industry is anticipated to increase at the highest CAGR of 5.5% during the forecast period of 2022-2032.

Competition Landscape

Mitsubishi Hitec Paper, UPM speciality paper, Pudumjee, Mondi group, AR Packaging, Koehler paper, Nine Dragons Paper Holdings, Toppan, Sappi, Nippon Paper, Sierra coatings, Huhtamaki, KRPA PAPER Company, TRANSPARENT PAPER LTD, Billerudkorsnas, Cortec Corporation, Nissha Metallizing Solutions N.V., and Holland Manufacturing are leading manufacturers in the barrier paper market.

Key manufacturers of barrier paper are using various innovative ways to directly reach their end-user industries. Large-scale players are focusing on emerging markets of developing economies, which presents a lot of opportunities to raise the financial growth rate. Also, the food and beverage segment is set to generate high demand for barrier paper over the coming years.

Fact.MR has given in-depth information about the various strategies used by players in the barrier paper market, along with sales analysis of barrier paper, top barrier paper manufacturers, top coated barrier paper suppliers, and SWOT analysis and sales generated by top barrier paper manufacturers positioned across geographies.

Segmentation of Barrier Paper Industry Research

• By Printing Method :

  • Flexo
  • Offset
  • Rotogravure

• By Thickness (ISO 534) :

  • 0 to 50 µm
  • 51 to 75 µm
  • 75 to 100 µm

• By Coating Type :

  • Coated
    • Both Sided Coated
    • One Side Coated
  • Uncoated

• By Application :

  • Bags
  • Laminates
  • Pouches
  • Sachets
  • Sacks
  • Wraps
  • Others

• By GSM :

  • <40
  • 40-80
  • >80

• By End Use :

  • Food & Beverages
    • Primary Packaging
      • Fresh Produce
      • Frozen Food
      • Dry Food
      • Others
    • Secondary Packaging
  • Personal Care & Cosmetics Packaging
  • Pharma Packaging
  • Decorative Items
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South-East Asia & Oceania
  • Middle East & Africa