The global paper products market size is expected to reach USD 275.1 billion by 2025 with a CAGR of 0.3%, according to a new report by Grand View Research, Inc. Major factor driving the market includes rising demand for paper packaging in the FMCG, pharmaceutical, and hospitality industries. Growing awareness about the adverse effects of using plastic packaging is also boosting the demand for paper products. The packaging paper application segment accounted for 51.58% of the global market in 2018 and is also expected to witness the fastest CAGR from 2019 to 2025. Leading brands are replacing plastics in their product packaging with paper. For instance, in October 2017, Apple launched iPhone 7 with 84% less plastic content in its packaging than in the packaging of iPhone 6.
Growing hospitality and tourism industry across the globe is further expected to drive the market. Factors like increasing usage of tissue paper in restrooms and dining areas coupled with rising hygiene concerns among consumers are anticipated to augment the product demand. Moreover, increasing number of installations of new equipment by key manufacturers will support market growth. For instance, in May 2017, Georgia-Pacific announced installation proposal of new tissue machine, which is expected to start by 2019. Key manufacturers focus on expanding their product portfolio to capture larger market share and ensure sustainability within the U.S. market. For instance, in November 2018, Cascades Inc. launched a product range named Cascades PRO Signature. The product range includes brands, such as Cascades PRO Tuff Job, which has high absorbing capability and can be reused.
Additionally, capacity expansion has also been a prominent trend within the market. For instance, in March 2018, SOFIDEL, an Italian manufacturer of tissue papers, announced that it would initiate the construction of its second tissue mill at Inola/Oklahoma in U.S. The proposed facility will have a production capacity of 120,000 tons per year. The market is highly competitive with the presence of many private level brands. Some of the major companies in this market are Kimberly-Clark Corporation; Procter & Gamble; Georgia-Pacific; KP Tissue, Inc.; Essity Aktiebolag (publ); Cascades, Inc.; Irving Consumer Products Limited; Clearwater Paper Corporation; and First Quality Enterprises, Inc.
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Further key findings from the study suggest:
- In terms of revenue, packaging paper application is projected to ascend at the highest CAGR of 0.6% from 2019 to 2025
- Asia-Pacific led the global paper products market in 2018 in terms of revenue and accounted for 36.65% of the overall market share
- With increasing disposable income levels in emerging countries like India and South Korea, the APAC regional market is anticipated to witness the highest CAGR from 2019 to 2025
- The industry is highly competitive with the presence of many local and international companies. Some of the key companies include Kimberly-Clark Corp.; Procter & Gamble; KP Tissue, Inc.; Cascades, Inc.; and Georgia-Pacific
- These companies focus on new product launch and technological innovations to estimate existing and future demand patterns and to maintain their industry positions