Global synthetic papers market is anticipated to rise with a CAGR of about 7% during the years 2016-2023. The market has been valued at $323.6 million by the year 2016 and is depicted to generate a total revenue of about $519 million by the year 2023. Rising demand for synthetic paper in publishing industries has acted as a major opportunities in the market. Furthermore, consistent growth in printing technologies has also acted as a crucial opportunity in the market. Some factors such as surging growth in labeling and packaging industries and increased demand for recyclable and sustainable products and high consumption of adhesive film taps in labeling and taping is driving the synthetic paper market are currently driving the growth in synthetic paper market.
Fluctuations in oil prices due to deliberate inflation by crude oil companies greatly affect the prices of synthetic papers that is a petroleum derived product. The prices of crude rose with a CAGR of 11.8% during the year 2004 to 2014. During the year 2015, huge drop in the crude oil price was observed, consecutively decreasing the prices of conventional plastics. However, in September 2016, prices rebounded with increase of 1.1%. In January 2016; the average crude oil price was valued at $29.38 per barrel that increased to about $52.62 per barrel by December 2016. Pricing strategies of synthetic paper industries are greatly affected due to this consistent fluctuation in the crude oil that act as a restraining factor for attracting new investments in the market.
The market has been segmented the by type of synthetic papers and by applications of synthetic papers. On the basis of applications, the market has been further bifurcated into label and non-label applications. The non-label application segment dominates the global synthetic paper market with a market share of above 60%, however the label applications has been anticipated to be the fastest growing market segment. On the basis of synthetic papers, the market has been classified as biaxially oriented polypropylene film (BOPP), high-density polyethylene (HDPE) and other types of synthetic papers. BOPP is estimated to be the leading market among other type of synthetic papers that is estimated to be above 60%. BOPP is also largely utilized in manufacturing labels.
It is also widely used in the packaging of food products such as Chips and snacks, biscuits and cookies, candies and other food packaging. The global synthetic paper market has been geographically segmented into North America, Europe, Asia Pacific and rest of the world. Asia pacific region is depicted to be the fastest growing region due to high consumption of synthetic paper based products in countries such as China, Korea and others due to increasing utilization of synthetic paper in food and beverage industries for packaging Increasing demand of synthetic paper as a substitute due to limited availability of conventional paper based raw material such as wood pulp is also backing the growth in this region. In Europe, high demands for packaging in pharmaceutical sector drives the market growth.
Some of the major players in the synthetic paper market are Seiko Epson Corporation, Neenah Paper?, Yupo Corporation, AGFA-Gevaert N.V., PPG Industries Inc., Nan Ya Plastics Corporation, Arjobex SAS, HOP Industries Corporation, DuPont, American Profol Inc., Transilwrap Company, Inc., Avery Dennison?, MDV Group, Relyco Sales, Inc., Taghleef Industries and others. Companies are adopting the strategies like acquisition, merger, product launch etc. in order to sustain and expand in the market.