Increased Demand to Drive Bulgarian Paper Market through 2020

 

Technavio, London, U.K., analysts forecast that the paper manufacturing market in Bulgaria will grow at a CAGR of more than 12% during the next four years. The research study, titled Paper Manufacturing Market in Bulgaria, 2016-2020, covers the current scenario and growth prospects of the paper manufacturing market in Bulgaria for 2016-2020. 

To calculate the market size, the report considers the value of paper manufactured in the country. It also presents the manufacturer landscape and a corresponding database of the key manufacturers involved in the production of paper.

Technavio chemicals and materials analysts highlight the following three factors that are contributing to the growth of the paper manufacturing market in Bulgaria:

• Investment destination for paper manufacturing industry
• Increased demand for paper and paper products
• Intense competition among manufacturers of tissue paper and hygiene products.

Bulgaria is a major exporter of paper and paper products in Eastern Europe. In terms of revenue, the paper industry registered a strong growth of 23.9% in 2010, which increased to 68.4% in 2013. The paper manufacturing industry in Bulgaria is dominated by foreign players because of favorable government policies, availability of cheap labor, and its strategic location near markets in the EU.

"Bulgaria’s accession to the EU in 2007 provided it with a significant cost advantage because of the fixed exchange rate of the Bulgarian Lev. This made Bulgaria a very attractive destination for investors in the paper manufacturing market," said Chandrakumar Badala Jaganathan, a lead analyst at Technavio for textile, fiber, and composites research.

The demand for paper and paper products has increased significantly over the past few years. Paperboard is a key product that can be folded, is lightweight and strong, and resistant to lasers used in high-speed automated filling. High-quality printing on paperboard packaging can enhance the aesthetic appeal of packaged goods and their sales, and this has led to retailers opting for this type of packaging. The popularity of paperboard packaging is also on the rise due to 30% of companies focusing on redesigning their existing packaging to make it more attractive.

 

Paper and paperboards are also versatile in terms of the variety of products that can be packaged using these materials. "The demand for paperboard containers has led to demand for corrugated paper, which is used to wrap these containers to enhance the safety of packaged products. Such an increased demand for paper and paper products has enhanced the potential for growth," added Jaganathan.

In 2015, 50%-60% of the demand for tissue paper in Bulgaria was catered to by the top four players in the industry. These included Belopaper, Ficosota Syntez, Interpred Partner, and Procter & Gamble. However, competition among the top players has intensified, especially in sub-categories such as toilet paper, sanitary pads, and baby wipes because of aggressive advertising and distribution strategies. This has also led to the diversification of products by the players, resulting in the availability of a wide variety of choices, which has contributed to the growth of the market.