CONVERTING PAPER MARKET ANALYSIS

The global converting paper market was valued at US$ 417.4 million in 2022 and is expected to register a CAGR of 3.65% in terms of revenue over the forecast period (2023–2030), to reach US$ 556.2 million by 2030. Paper conversion is a process that comes from taking the paper and converting it into another product. Converting paper finds use in various applications such as hygiene paper, writing paper, newsprint, printing paper, and others. Increasing demand for converting paper from various applications is expected to propel the growth of the global converting paper market. Among pulp types, chemical wood pulp is a pulp obtained Kraft pulping process and it is the most common process used for cooking or digestion of wood treated with different solutions of chemicals. The paper produced from chemical wood pulp is colorless and the products which are manufactured are quite strong. Usually, chemical pulps are used to make writing and printing papers, paper bags, shipping containers, and various other paper product categories that require strength.

Global Converting Paper Market- Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic has had a significant impact on the global converting paper market, as it has affected the supply chain, demand, and pricing of paper products. In supply chain disruptions, the pandemic has disrupted the supply chain of raw materials, leading to shortages and price increases. Lockdowns and restrictions on transportation have also resulted in delays and cancellations of orders. Moreover, the supply and demand imbalances caused by the pandemic have also led to changes in prices. For instance, the price of pulp, a key material used in paper production, has increased due to supply chain disruptions. Overall COVID-19 pandemic has had a mixed impact on the global converting paper market, with some sectors experiencing increased demand while others have seen a decrease. The supply chain disruptions and pricing changes have affected the industry as a whole, and it remains to be seen how long-lasting these effects will be.

Global Converting Paper Market – Drivers

• Surging usage of converting paper in the packaging industry

In the packaging industry, converting paper is widely used to produce corrugated boards, carton boards, and flexible paper. Converting paper is in high demand due to the packaging industry's growth and expansion. For example, the Wisconsin Economic Development Corporation (WEDC) stated in 2017 that the Indian packaging industry provided significant business opportunities and accounted for approximately 4% of the global packaging industry. As a result, the increasing use of converting paper in the packaging industry is expected to drive the market's growth rate.

• Increasing demand for online shopping

The growing popularity of online shopping is expected to boost the growth of the global converting paper products manufacturing market. Manufacturers can now sell their products on a larger platform than before, expanding their geographical customer base and fuelling the growth of the global converting paper products manufacturing market. For instance, E-commerce portals have increased the sales of paper product manufacturers in countries such as India by providing greater exposure to producers who were previously confined to a single geography where their respective community was located.

Global Converting Paper Market - Restraints

• Digitalization and increasing usage of mobiles

Digitalization and increasing usage of mobiles with high internet speed is adversely affecting newsprint and writing & printing paper markets. Growing adoption of digitalization and high usage of mobile phones for social media networking is expected to reduce the demand for newsprint and printing & writing paper. Paperless communication and digital media are expected to have a negative impact on the converting paper market for types of paper and newsprint products.

Figure 1. Global Converting Paper Market, By End Use Industry, 2022

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Among End Use Industry, packaging and Wrapping segment accounted for the largest revenue share in 2022, with 44.10% in the global converting paper market. Converting paper is used in the packaging industry for the production of carton boards, corrugated boards, and flexible paper. Growth in the packaging industry leads to high demand for converting paper. For instance, in 2017, Wisconsin Economic Development Corporation (WEDC) stated that the Indian packaging industry offered significant business opportunities and held nearly about 4% of the global packaging industry. Furthermore, India's per capita packaging consumption was only 10.5 kg per year, as compared to other countries such as 109 kg in the U.S., 32 kg in Brazil, and 45 kg in China.

Global Converting Paper Market - Regional Insights

Asia-Pacific was the largest region in the global converting paper products market in 2022. With a revenue share of 41.60%. Asia Pacific is expected to record the fastest growth in the global converting paper market over the forecast period, owing to increasing demand for newsprint supported by the increasing population and improving literacy rates of the populace in the Asia Pacific region. For instance, in 2018, according to Credit Analysis & Research, an increasing number of magazines and newspapers and rising circulation in India is likely to boost newsprint demand, which is expected to reach 2.7 million tons in 2019. Therefore, a significant increase in demand for newsprint is expected to boost the global converting paper market during the forecast period.

North America is expected to be the fastest developing region during the forecast period of 2023-2030 because of the usage of biodegradable water bottles to lessen plastic waste in this region.

Europe is expected to hold a significant market share in the global converting paper market over the forecast period. According to the Confederation of European Paper, paper, and board production was stable in 2018, compared to the last three years. The total production of paper reached 92.2 million tons in 2018 from 91 million tons in 2016. This target was achieved due to up gradation of existing machines and a net capacity increase of 1.3 million tons. 

Figure 2. Global Converting Paper Market, By Region, 2022

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Global Converting Paper Market - Recent Developments

• In January 2018, American Eagle Paper Mills introduced recycled printing papers, Eagle Inkjet 100. Eagle Inkjet 100 is engineered to deliver exceptional print performance across multiple high-speed inkjet platforms. Produced from 100% post-consumer recycled fiber, Eagle Inkjet 100 offers a high quality, sustainable paper option for consumers and corporations looking to minimize their environmental footprint. It is an ideal and environmentally conscious choice for direct mail, Tran’s promotional marketing and transactional printing.
• In October 2018, GP (Georgia Pacific) Pro introduced Dixie Ultra Insulair Paper Hot Cup, which is equipped with air pockets that insulate the hot beverage from the cup holders hand. Georgia-Pacific and its subsidiaries are among the world's leading manufacturers and marketers of bath tissue, paper towels and napkins, tableware, paper-based packaging, cellulose, specialty fibers and building products.
• In February 2018, Canfor Corporation announced the establishment of a new sawmill in Georgia with an approximate investment of US$ 120MN, and production capacity of 275 MN, board feet. Canadian Forest Products Ltd. (Canfor) is a leading Canadian integrated forest products company based in Vancouver, British Columbia (BC), involved primarily in the lumber business, with production facilities in Canada (British Columbia and Alberta) and the United States (North Carolina, South Carolina, Alabama, Georgia and Mississippi) and forest operations in British Columbia and Alberta
• In November 2017, Stora Enso launched a new product called fiber cup, a paper board-based product, for use in packaging dairy products and other chilled foods. Stora Enso develops and produces solutions based on wood and biomass for a range of industries and applications worldwide, leading in the bio economy and supporting our customers in meeting demand for renewable eco-friendly products.

Global Converting Paper Market - Key Players

International Paper Company, Georgia-Pacific LLC, Finch Paper LLC, Burgo Group SPA, Alberta Newsprint Company Ltd., Rolland Enterprises Inc., P.H. Glatfelter Co., American Eagle Paper Mills, Asia Pacific Resources International Holdings Ltd., Canfor Corporation, Domtar Corporation, Twin Rivers Paper Company Inc., UPM-Kymmene Oyj, BillerudKorsnäs AB, Catalyst Paper Corporation, Clearwater Paper Corporation, Stora Enso Oyj, Verso Corporation, Mitsubishi Paper Mills Limited, Delta Paper Corp., and others

Definition: Paper converting can be described as a process by which paper is used to fabricate another paper product. For example, this process can be used to produce such products as envelopes, paper bags, boxes, containers, and a full range of similar items. Operations involved in paper converting may include treating, slitting, sheeting, grooving, punching, and folding. Some operations may also call for perforating, blocking, binding, gluing, and laminating as well.