TAPPI Over The Wire Paper 360
Past Issues | Printer Friendly | TAPPI.org | Advertise | Buyers Guide | Travels with Larry Archive FacebookTwitterLinkedIn

Paper Coating Additives Market Expected to Reach $2.56 Billion by 2020

Print Print this Article | Send to Colleague

A new report by WhaTech (Mount Macedon, Australia) released on Tuesday (June 21) promoting the December 2015 published market research report "Paper Coating Additives Market: Type (Dispersant, Defoamer, Rheology Modifier, Others), By Formulation (Waterborne, Solventborne, Powder and High Solids) Paper Type (Packaging, Printing & Writing, Specialty Coated, Others) - Forecast(2015-2020)," published by IndustryARC, has made available more information about market and industry specifics not available in the original preview of the report without purchase.

IndustryARC made public the research group's valuation of the industry.

The paper coating additives market in 2014 was reported at $2,545.8 million, dominated by APAC region accounting for more than 44.4% market revenue share. In addition to what is noted in the original report description, APAC is the emerging market and specifically has a continuous growth for paper coating additives market due to increasing demand for packaging paper in countries such as China, South Korea, India, and others.

It is projected that APAC would share a market of 47% of the global paper coating additive market by 2020.

Among paper coating additives, dispersants have the major market share in 2014. The dispersant paper coating additives market is estimated to grow at a CAGR of 0.7% during the forecast period of 2015-2020.

The formulations in paper coating additives can be classified into waterborne, powder, solventborne, and high-solids. The paper coating additives market in high solids formulation is major during the estimated period of 2014-2020. 

The countries such as China, India, Indonesia, and South Korea are the top four countries in APAC for the paper coating additives market. Among the four, India, China, and South Korea have a major share in the food packaging additives.

It is evident from the market that packaging paper as well as food packaging paper has been witnessing growth from the past few years across the globe, especially in emerging markets of APAC, thus a major drive factor for the paper coating additives demand in APAC.

The raw materials price for paper production in China is far cheaper when compared with India. Hence, the finished product price is also lower. China, one of the major exporters to international markets, also serves Indian customers. Due to various subsidies, China can export its paper at a low cost to Indian markets. This price is much lower than the Indian paper price and is attracting distributors and customers in domestic markets to import huge volumes of paper. Within the past five years, imports from China have almost doubled, with $111 million in 2010-11 to $194 million in 2014-15.

The nearly doubled imports from China had a negative impact on domestic paper manufactures in India. On the other hand, even though the cost of raw materials was increased in India, the domestic manufacturers are unable to increase the paper price as they want customers to buy from them rather than import from China.

Major manufactures in India such as ITC paper and Ballarpur Industries have reported a decline in their profits in FY15, even though India is one of the fast growing markets across the globe.

Overall, global production for coated paper has reduced, and as a result, the usage of paper coating additives has fallen. Paper coating additives market is estimated to decline further in the next few years due to an increase in demand for high quality uncoated paper, which is of low cost comparatively and also a decrease in usage of printing and writing paper, with the increased demand for electronic devices such as laptops, personal computers, tablets, and so on.

Compared with other regions, APAC is still expected to experience positive growth during the forecast period. The rise in demand from food packaging paper, digital print paper, and art paper has led to an increase in demand for coated paper additives, especially in emerging economies such as China, South Korea, India, and Indonesia. The paper coating additives market share in the APAC region is estimated to be almost half of the global market by 2020.

The major players in this market, according to IndustryARC, include:
  • BASF SE(Germany)
  • The Dow Chemical Co. (U.S.)
  • Ashland Inc.(U.S.)
  • Kemira OYJ (Finland)
  • Evonik Industries AG (Germany).
The various end applications studied in this paper coating additives market report include:
  • Packaging paper
  • P&W paper
  • Specialty coated paper
  • Others. 
The overall market is also presented from the perspective of different geographic regions and the key countries for this industry. Competitive landscapes for each of the product types is highlighted and market players are profiled.

Back to TAPPI: Over The Wire

Share Share on Facebook Share on Twitter Share on LinkedIn