Global paper doilies market is facing significant challenges due to the increasing availability of substitute products like plastic doilies. Plastic doilies offer various advantages over paper doilies such as increased durability and resistance to water. They can withstand moisture and do not get soggy easily like paper doilies. This makes plastic doilies a more suitable option for applications where they will be in direct contact with food items or drinks. Plastic doilies are also becoming increasingly cheaper to produce compared to paper doilies. This is putting pricing pressure on paper doily manufacturers. Several plastic doily manufacturers are promoting their products as more economical and eco-friendlier compared to paper doilies made from raw wood fibers. The shifting consumer preference towards sturdier and cost-effective plastic substitutes poses a serious growth impediment for the paper doilies market.
Market Opportunity: Growth in e-commerce sector
The growth of the e-commerce industry worldwide presents significant opportunities for expansion for the global paper doilies market. For instance, according to data published by Invest India in April 2024, the future of e-commerce in India looks exceptionally promising. Projections indicate that the sector will experience annual growth rates of approximately 18% through 2025. This robust growth trajectory is expected to be driven by several factors, including increasing internet penetration, a growing middle class, and rising smartphone usage. E-commerce platforms are increasingly using food packaging solutions and other ancillary products to provide enhanced customer experiences. Paper doilies are commonly used to package bakery products as well as gifts including cakes, pastries and chocolates delivered via online retail channels. They help absorb moisture and maintain freshness. As e-commerce penetration increases across various regional markets, the demand for effective packaging from the food and beverage industry is also expected to rise rapidly. This will drive more sales of paper doilies which are cost-effective packaging additions to maintain product quality during shipments. Both third-party e-commerce intermediaries as well as direct-to-consumer e-tailers can potentially boost paper doilies consumption going forward.
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