Thermal Paper Market Growth & Trends
The global thermal paper market size is expected to reach USD 5.56 billion by 2030, according to a new report by Grand View Research, Inc. This growth is attributed to the rising usage of POS terminals for monetary transactions in applications such as warehouses, supermarkets, and retail outlets.
Thermal papers are majorly used in printing receipts at POS terminals and in the production of tags used by industries such as pharmaceuticals and food and beverages to package and label their end-use products. Thermal papers are preferred over other modes of printing due to the lower cost of production, and maintenance of the printing set-up due to the lack of use of ribbons and ink in the printing process.
The increasing use of retail outlets and supermarkets in developing economies such as China, Brazil, and India are expected to augment the growth of the market during the forecast period. The rising demand for specialty paper in packaging by e-commerce and logistics market players is also expected to help in the market growth. However, rising digitalization and increasing substitute products are expected to restrict the market growth.
Growing demand for food & beverage, FMCG, and electronics goods in the Middle East and African countries considering population growth and urbanization in major markets of Saudi Arabia, UAE, and Qatar is expected to increase the use of POS terminals, tags, and labels. In addition, favorable support for promoting investments at the domestic level is expected to have a positive impact on the market growth in the region.
The market is anticipated to witness strong competition during the forecast period on account of the growing demand for thermal paper from the end-use industries such as ATMs, e-commerce industries, retail, and others. Public and private companies operating in the market are increasingly investing in the development of new products and new manufacturing technologies to optimize the production process. They are also focusing on expanding their production facilities to maintain their supply chain for thermal paper.
Major players in the industry have established production units in different regions to cater to specific geographical locations. They also use other distribution channels in local regions such as agreements with roll-converters to ensure continuous product supply. Manufacturers also engage in direct supply to end-users such as POS and label manufacturers.
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Thermal Paper Market Report
Thermal Paper Market Report Highlights
- POS application segment dominated the market with a market share of 64.6% in terms of revenue in 2021 due to expansions in retail outlets in emerging economies in the Asia Pacific region.
- The tags and labels application segment is expected to show significant growth during the forecast period due to the rising e-commerce sector which has led to a rise in the use of thermal papers for labels and packaging.
- The Asia Pacific dominated the market with a market share of about 34.5% in terms of volume due to the increased investment in the region in manufacturing industries leading to a rise in demand for thermal paper.
- Central and South America are expected to show significant growth during the forecast period due to the rising manufacturing and industrial activities in the region leading to a rise in the use of thermal paper in labeling.
- The market is expected to show slow growth due to the increase in digitalization and reduced use of printing across end-uses such as monetary transactions. The presence of internal substitutes is also expected to hamper market growth.
- The market consists of limited players who control most of the global market. Strategies followed by key players include vertical integration, localized production units, and product innovation to gain a competitive edge in the market.
