Synthetic Paper – Technavio Publishes Market Drivers and Growth Forecast

LONDON--()--Technavio analysts forecast the global synthetic paper market to grow at a CAGR of close to 7% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the global synthetic paper market for 2016-2020. Based on type of material type, the market can be classified into the following segments: biaxially-oriented polypropylene (BOPP), high-density polyethylene (HDPE), and others.

In 2015, the BOPP segment was the largest material segment for synthetic paper due to its unique properties, such as easy printability, superior strength, versatility, and cost effectiveness. BOPP is a thermoplastic polymer and is widely used in labeling and packaging. Applications for BOPP synthetic paper in flexible packaging account for 60% of global consumption demand. “The BOPP synthetic paper segment is one of the high-growth segments in the packaging and labeling industry. The segment is expected to grow at a CAGR of 6% during the next five years,” says Sharan Raj, a lead analyst at Technavio for research on tags and labels.

Request a sample report: http://www.technavio.com/request-a-sample?report=53729

Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.

Technavio analysts highlight the following three factors that are contributing to the growth of the global synthetic paper market:

  • Strong demand from beverage industry
  • Product differentiation using HDPE
  • Reduced cost of procuring raw materials

Strong demand from beverage industry

During the forecast period, the demand from different segments of the beverages industry such as milk, juices, and water will be the key driver of the HDPE synthetic paper packaging market. Vendors use eye-catching labels in beverage packaging to make the products stand out. Beverage labeling solutions with sophisticated decorations in alcoholic beverages and high-end soda bottles stand out on retail shelves. Vendors opt for the no label transparent look, as these transparent labels flawlessly adhere to the surface of bottles to create an impression of purity and quality. The labeling end-user market is expected to be the fastest growing market application of synthetic paper, growing at a rate of over 6.6% during the forecast period. Increased consumption of packaged foods and beverages is expected to augment labeling demand which will benefit synthetic paper market.

Product differentiation using HDPE

PET is the biggest substitute of HDPE synthetic papers in the packaging market. It can be evident from the fact that over 70% of plastic water bottles are made of PET. However, despite low cost and more transparency, PET has one major disadvantage compared with HDPE synthetic papers: PET packaging products are not available in many colors. HDPE packaging is available in different colors and, thus, helps in product differentiation. The colors of the packaging products increase the aesthetic value of the products and draw the attention of the consumer resulting in more sales.

Reduced cost of procuring raw materials

Crude oil prices have reduced drastically since 2014 from more than USD 100 per barrel to less than USD 40 per barrel in 2016. As crude oil is a raw material used in making HDPE and more than 70% of virgin HDPE is used in the overall HDPE synthetic paper, the fall in the price of crude oil has benefitted both consumers and vendors in the HDPE synthetic papers market. Although there are factors other than the price of crude oil that affect the price of HDPE such as the relative value of the USD against other currencies, the impact of crude oil price is the most prominent of all other factors.

Browse Related Reports:

Do you need a report on a market in a specific geographical cluster or country but can’t find what you’re looking for? Don’t worry, Technavio also takes client requests. Please contact enquiry@technavio.com with your requirements and our analysts will be happy to create a customized report just for you.

About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at media@technavio.com.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com

Release Summary

Technavio analysts forecast the global synthetic paper market to grow at a CAGR of close to 7% during the forecast period, according to their latest report.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com