Smithers Predicts That The Specialty Paper Market Will Grow At An Annual Rate Of 2.1%.

According to data from Smithers, an authoritative institution in the global paper and packaging industry, the total consumption of specialty paper is expected to reach 28.1 million tons by 2025. Multiple competitive factors will drive total consumption up to 31.3 million tons by 2030, corresponding to a compound annual growth rate of 2.1% over the next five years.

Smithers' latest market report, "The Future of Specialty Paper: To 2030," tracks the consumption and technological trends of 45 independent specialty paper grades globally, by region and country.

Flexible packaging paper is becoming increasingly important to the industry. Demand for single-sided coated packaging paper is growing the fastest, currently accounting for about half of global sales. During the forecast period, sales of single-coated packaging paper are also expected to be strong; the United States will complete the conversion of multiple paper machines, while China will bring new machines into production.

Replacing plastics with paper in the packaging sector requires the development of higher-performance functional coatings and barrier coatings. Most companies active in this field are investing in new coating chemicals, advanced substrates, and innovative methods for applying barrier materials. Beyond coatings, the use of nanocellulose to enhance the performance of substrates and coatings is also becoming increasingly common.

Regulatory requirements are providing new incentives for brands to shift from plastic to paper, but they also pose challenges for specialty paper producers. For example, new regulations designed for recyclability will require additional scrutiny of how coated and metallized papers are effectively recycled.

Printing paper remains an important part of the overall market: despite its generally bleak outlook, thermal paper and opaque lightweight grades are forecasted to achieve strong incremental sales growth.

As demand increases, specialty paper mills are investing in the next generation of equipment. Major chemical suppliers have introduced smart control systems to manage add-on rates, start-up, and shutdown processes on paper machines, thereby improving overall efficiency. Curtain coating technology continues to advance, making it possible to apply multiple functional coatings using a single machine.

The Asia-Pacific region, especially China, is becoming the focus for specialty paper production and new paper machine sales, with a forecasted compound annual growth rate well above the global average. This region currently accounts for 46.0% of global output, and its share is expected to rise to 48.7% by the end of the decade, while demand in India is also increasing.