PACKAGING PAPERS A KEY SPECIALTY PAPER GROWTH SEGMENT
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1 PACKAGING PAPERS A KEY SPECIALTY PAPER GROWTH SEGMENT RISI European Conference, Packaging Seminar, Amsterdam, March 8, 2017 Riitta Salo, AWA Alexander Watson Associates
2 AGENDA Introduction Definitions Global Market for Specialty Papers and Boards Specialty Packaging Papers Markets Competitive Environment Conclusions 2
3 INTRODUCTION 3
4 AWA ALEXANDER WATSON ASSOCIATES Founded in 1971, AWA has a unique industry focus on the specialty paper, film, packaging, coating and converting sectors. AWA publishes global / regional market and technology reports in the following key verticles: Labeling & Product Decoration Pressure Sensitive Materials Release Liners Metallizing & Vacuum Coating, Extrusion Coating Specialty Paper and Paperboard AWA organizes an array of global and regional conferences, seminars and workshops AWA provides a wide range of tailor made services to individual clients and companies 4
5 AWA ALEXANDER WATSON ASSOCIATES 5
6 DEFINITIONS 6
7 DEFINITION OF SPECIALTY PAPER & PAPERBOARD It is important to establish the definition before we discuss our assessment of the market, as most studies and many companies have a different definition and perception of what a specialty is. Of course, this results in a widely varying range of market sizes and growth patterns. Source: AWA 7
8 AWA PAPER & PAPERBOARD GRADE CLASSIFICATIONS Source: AWA 8
9 DEFINITION OF SPECIALTY PAPER & PAPERBOARD A paper or paperboard for end uses which require properties (physical, optical, electrical, chemical and/or other special considerations) that are different from the norm for the market sector and application being served. Performance related products that are found in all paper and paperboard market sectors. Higher volume specialties are considered specialized commodities. Source: AWA 9
10 DEFINITION OF SPECIALTY PAPER & PAPERBOARD They all exhibit special performance characteristics, including: Physical properties Optical properties Electrical properties Chemical properties Other special considerations Source: AWA 10
11 GLOBAL MARKET FOR SPECIALTY PAPERS AND PAPERBOARDS 11
12 SPECIALTY PAPER & PAPERBOARD SHARE OF TOTAL GLOBAL PAPER & PAPERBOARD Specialty Paper & Board in ,7 million tonnes 12
13 SPECIALTY PAPER & BOARD DEMAND BY REGIONS Add map 13
14 MARKET GROWTH AND VALUE Relative Value of All Sector Grades Printing & Publishing Consumer Business & Communication Industrial Security Medical Food Service Building & Construction Electrical Filter Packaging & Labeling Relative Growth of Sector
15 SPECIALTY PAPER & BOARD FOR PACKAGING 15
16 PACKAGING MARKET SEGMENTS SERVED BY SPECIALTY PAPERS & PAPERBOARDS Release Aseptic Packaging Liquid Packaging Boards Packaging, C1S Foil Mounting Bag, Grease and Stain Resistant Metallizing Base Glassine & Greaseproof Label, Speciality C1S Packaging, Speciality Uncoated Bag, Carrier Tobacco Packaging Label, Speciality Uncoated Pouch & Packet Papers Ovenable Board Wrap, Lightweight Thermal Transfer Wrap, Anti corrosion Twisting Gumming Base, Bleached Soap Wrap 1000 tonnes ,000 1,500 2,000 2,500 3,000 16
17 PROJECTED GROWTH Release Aseptic Packaging Liquid Packaging Boards Packaging, C1S Foil Mounting Bag, Grease and Stain Resistant Metallizing Base Glassine & Greaseproof Label, Speciality C1S Packaging, Speciality Uncoated Bag, Carrier Tobacco Packaging Label, Speciality Uncoated Pouch & Packet Papers Ovenable Board Wrap, Lightweight Thermal Transfer Wrap, Anti corrosion Twisting Gumming Base, Bleached Soap Wrap 17
18 KEY TRENDS SPECIALTY PAPER & BOARD IN THE PACKAGING SEGMENT Demographics Consumer life styles Economy Manufacturing Sustainability Legal Population growth Urbanisation Convenience Services Disposable incomes Growth Competitiveness Digitalisation Renewability Recyclability Health & Safety Security Aging Number of households Luxury & Premium Products Retail sector development Materials / Competition Waste reduction Circular Economy Labelling requirements 18
19 SPECIALTY PACKAGING PAPERS INDUSTRY DYNAMICS Suppliers New Entrants Industry Alternative Materials Government Buyers Technology B r a n d o w n e r s C o n s u m e r s 19
20 CONCLUSIONS Packaging is the largest market segment for speciality papers There many different grades within the segment with varying growth outlooks The industry is vibrant and growing, though difficult for new entrants 20
21 AWA GLOBAL PAPER MARKET STUDIES 21
22 THANK YOU! bv.com bv.com bv.com 22
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