by Market Overview:
Seal paper refers to paper that is coated with materials to provide resistance against moisture, grease and heat sealing ability. Seal paper is manufactured using materials like polyethylene, polypropylene and others. It has wide applications in food packaging, pharmaceutical packaging and others due to its properties of providing excellent sealing and strong binding. The increasing demand for packaged and processed food has significantly propelled the demand for seal paper in the market.
Market key trends:
One of the key trends gaining traction in the seal paper market is increasing e-commerce penetration across the globe. The exponential growth of online retail industry has augmented the need for secure and effective packaging solutions. Seal paper provides strong seals that prevent tampering during transit. Moreover, it offers customizable print and graphics options along with ability to incorporate security features like tamper-evident seals. This has increased its adoption for packaging goods ordered online. Additionally, seal papers environmental friendly properties and ability to provide moisture and air resistance at low costs have further boosted its demand from e-commerce companies. Growing cross-border trade due to rising online retail is estimated to drive the consumption of seal paper during the forecast period.
The Global Seal Paper Market Demand is estimated to be valued at US$ 15.84 Bn in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: Low cost of production and expertise required for manufacturing seal paper poses low threat of new entrants. However, established players have strong brand name and distribution networks.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products like labels and tapes. But seal paper offers unique properties like transparency, breathability and durability.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of raw material suppliers and easy availability of machinery and equipment required for manufacturing.
Threat of new substitutes: Threat from new substitutes like labels and tapes is moderate as seal paper offers properties like transparency and durability which substitutes lack.
Competitive rivalry: Intense competition exists among existing players due to strong brand loyalty and established distribution channels.
SWOT Analysis
Strength: Wide range of applications in food, cosmetics, pharmaceuticals industries. Properties like transparency, breathability, durability and printability.
Weakness: Exposure to fluctuations in raw material prices. Significant R&D investments required to develop innovative products.
Opportunity: Increasing e-commerce sales and focus on product security and authenticity will drive demand. Rising regulations regarding product packaging and tampering will support growth.
Threats: Stringent environmental regulations around plastic packaging. Shift towards digital media can impact demand from document authentication applications.
Key Takeaways
The global seal paper market is expected to witness high growth, exhibiting CAGR of 7.0% over the forecast period, due to increasing demand from food industry for product safety and authentication. The market size is projected to reach US$ 27.4 Bn by 2030 from US$ 15.84 Bn in 2023.
Regional analysis – North America dominates currently with a share of over 30% owing to stringent regulations and protocols regarding product safety and authenticity in countries like US and Canada. Asia Pacific is expected to witness fastest growth owing to expanding e-commerce industry and growing food processing industry in China and India.
Key players operating in the seal paper market include Avery Dennison, 3M, Henkel, UPM Raflatac, CCL Industries, WS Packaging Group, Constantia Flexibles, R.R. Donnelley & Sons, Mondi, Amcor, Seiko Holdings, Reflex Labels, Coveris Holdings, Lintec Corporation, Stickythings, Torraspapel Adestor, Polylabel, Multi-Color Corporation, Secura Labels, Etisoftware. Major players are focusing on new product launches, mergers and collaborations to expand their product portfolio and geographical reach.
