Metallized Paper Market - A Key to Preserving the Integrity of Consumer Goods

Metallized Paper Manufacturers Target to Offer Customization Features for Brands Seeking Enhanced Recognition

1) The global metallized paper market size in 2018 was valued at ~US$ 3.5 Bn.

2) The metallized paper market is projected to grow at CAGR of ~ 4%, during the next ten years.

3) High application potential of metallized paper is identified in labels, which account for more than half of the total market share.

4) North America and Asia Pacific are expected to remain the leading markets for metallized paper, cumulatively accounting for nearly three-fifth of the revenue share.

5) Manufacturers of metallized paper are focused on increasing their production capacity to supply in African countries and it will soon be considered as an effective substitute to plastic packaging in the future.

Key Factors Shaping the Global Metallized Paper Market

Metallized Paper Gaining Traction as an Alternative to Plastic Packaging

Metallized paper is deemed to be an ideal substitute for plastic-based packaging, and it is majorly being used for labeling and packaging across the globe. Companies of packaging materials are moving towards eco-friendly solutions that will create a substantial demand for metallized paper in upcoming years.

The growing trend of exchanging gifts in the countries of Europe and North America will fuel the sales of metallized paper, according to Future Market Insights’ analysis, which is aimed at providing a holistic view of the evolution of the metallized paper market landscape.

A Spurt in Demand for Labels & Wraps for Myriad End Uses

The global metallized paper market is expected to register a steady growth during the next ten years, driven by the growing application in labels and wraps/overwraps. Moreover, the demand for packaged food & beverages has been gradually increasing at a robust speed in all the parts of the world.

Metallized paper of 50-100GSM thickness is witnessing a very high demand. In addition, demand for labels of metallized paper have grown in recent past, especially in the labelling of premium liquor, perfume, and cigarette packaging, which remains instrumental in the market growth.

High Demand for Glossy Finish Packaging to Bolster the Metallized Paper Market Growth

Sales of chocolate continue to remain uniform in European nations, especially in Germany, France and United Kingdom, but the demand for chocolate grew in Poland and India by 2% and 13% respectively. This is indicative of the high demand for metallized glossy paper for packaging of chocolate. The market for confectionery is estimated to grow nearly double in South Asian and Northern African countries, which is also likely to bolster the demand for metallized paper used for packaging of confectionery products in the aforementioned regions.

The confectionery market is further distributed into chocolate, sugar candy, and gum with an expected growth rate of 20%, 5% and 9% respectively. The total market is anticipated to be around 145 billion. In the same way, the global market of alcohol and perfumes is estimated to grow at a CAGR of 4%.

While purchasing products, consumers are more inclined towards the packaging of product items that have a good appearance with all the details in its labelling. The packaging of chocolate and candies has shown incremental rise in its sale due to glossy labelling. The growing demand for glossy labelling in packaged products is likely to push the growth of metallized paper market in the several regions of the world.

Minimalizing the Environmental Impression of Packaging

It has been observed that more than 100,000 people are being added to the city population each day in the developing countries, and it is anticipated that nearly three-fifth of the world’s population will be in urban areas by 2025. This will lead to immense demand in packaged consumer goods, especially from food & beverages sector.  In addition, the impact of plastic waste has adversely affected the overall environment resulting in many ecological changes around the world.

As consumers are more focused on consumption of products rather than its disposal, this is a major cause of environmental degradation around the world resulting in a change in the pattern of climate resulting in global warming.

Labelling and packaging done by the metallized papers on products helps the material decompose in minimum time-frame without emissions of hazardous gases in the environment. This will ultimately balance the deteriorating climatic conditions across the globe, and subsequnetly boost the growth of the metallized paper market.

Business Expansion – A Key Imperative to Capture High Share in Metallized Paper Market

The demand for metallized paper has been growing at a steady rate among all the main and supplementary industries of the world.

● In July 2019, Nissha Co. Ltd. extended its business operations in automotive market, and has projected its sales to surpass JPY 50 billion (US$ 0.47 billion) by the year 2025.

● In August 2018, Vacmet India Ltd. has expanded its production capacity by introducing 3300 mm metallizer, this expansion will help it to increase its capacity by 4500 tonnes per month.

● On February 7, 2019, UPM-Raflatan opened their slitting and distribution station in Johannesburg, South Africa which would cater to the supply of sustainable papers, films and other products in the markets of Sub-Saharan Africa.

● On February 6, 2019, Lecta SA launched its new product, “CREASET” HG HWS PAPER specially developed for beverage labelling. Creaset is a one-side coated paper liner, designed for labels and flexible packaging of beverages especially for the bottles of beer and wine, whose labels requires low temperature and high resistance.

Issues in Recyclability of Metallized Paper to Raise Pollution Concerns

Metalized paper is a process of amalgamation of aluminum and many other elements such as plastic coating, lacquer, and varnish. Due to its compound structure, metalized paper cannot be recycled in the traditional paper recycling method. Presently there is no existing process to recycle metalized paper. In the past year, it was treated as waste. The market needs a solution to recycle the metalized paper, in order for it to be reused in the future.

Battling Environmental Depletion and Counterfeiting Activities with Recyclable and Holographic Metallized Paper

Consumers across the world are highly focused on consumption of products instead of their disposal, resulting in global warming due to erratic climate changes. Labelling and packaging of products by metallized papers enable the material to degrade within minimum time-frame sans releasing toxic gases into the surroundings unlike legacy plastic-packaged products – paramount for tackling deteriorating climatic conditions.

Metallized papers are recyclable, and reusable, allowing manufacturers to package food products with metallized sheets for retaining the freshness of the consumables for a prolonged period. Metallized papers are recycled in the same recycling streams as posted printed paper following lean aluminium coating that does not hinder the recycling mechanism.

Counterfeiting attacks across the global market, especially food & beverages, and pharmaceuticals, are on a rise due to forged labelling and insufficient holography, leading to massive government revenue loss, as well as potential health risks to consumers from allergic reactions. Holographic sheets derived from metallized paper offer enhanced protection from counterfeiters.

High-resolution holographic logos with microtexts on consumer goods provide greater security, while high-resolution imagery for the background allows hologram movement for easier identification for the authenticity of the products. Further, with custom holography, manufacturers are able to create unique holographic images, making it difficult for counterfeiters to replicate the images.

Gold or Silver Metallized Paper – Retaining Gloss to Sustain Customer Base

Consumers exhibit greater allurement to products with attractive packaging and labelling. Brands are applying thrust on the packaging that sustains brand reputation, as well as complies with regulatory norms. Metallized papers offer eye-catching appearance to a broad range of consumer goods. Metallized gift wrap papers form a diffractive effect, enhancing the value, and interest for the present wrapped inside. Metallized gift bags garner greater customer attention, complementing the alluring packaged gift within.

Beauty & cosmetic products packaged in metallized gold, or silver papers fetch a larger consumer base, eventually leading to increased sales. Brewing and spirits industries heavily rely on metallized gold, or silver labels to produce premium packaging effects. Metallized papers designed for promotional items offer attractive and competitive uplift versus traditional white paper presentation.

Developed and Developing Countries – Surging Incidents of Forged Products

Rising cases of counterfeiting activities in countries – the US, China, and India – are grabbing the attention of market players. Reports suggest that India and China top the list of highest suppliers of counterfeited products into the international market landscape, while about a fourth of antibiotic drugs in Africa and Southeast Asia are counterfeited.

The cosmetic industry in the U.S has been witnessing a significant deficit in recent years - ~ $75 Mn. According to the FBI, pharmaceutical counterfeiting is responsible for about $600 Bn in the global market, overshadowing the economy, as well as human health. As such, makers of metallize paper are centering their focus on the target areas.

Stakeholders to Align with the Demand for Attractive Packaging & Labeling

The confectionery sector is embracing the idea of glossy packaging of items, helping them generate increased revenue as compared to ordinary packaging – a trend becoming prominent at a sweeping rate across the world. In addition, the confectionery industry is expected to expand at rapid pace in the upcoming years, influencing market players to increase the production of metallized paper for packaging confectionery items.

Realizing the growth of pop-up label market in the APAC, participants, such as UPM-Raflatac, are launching film labelling solutions in a bid to cater to industries - personal care, home care, food & beverages. Furthermore, manufacturers, including Vacmet India Ltd., are introducing one side acrylic and other side low-temperature seal (LTS) PVDC coated film on grounds of high transparency coupled with exceptional resistance. The coated film seals at a low temperature of 85 degrees Celsius on the PVDC side.

How Growth Will Unfold

Concerns apropos adverse effects of plastic wastes on the environment leading to ecological changes worldwide are fueling the demand for metallized paper in labelling to counter the issue of decomposing in the near future. Consumers are highly inclined towards packaging of products exhibiting a glossy appeal with all the insights in the labelling.

Such a packaging approach helps the consumers receive all the information in its packaging enabling them to compare with the substitutes. Further, rising incidents of counterfeited products are cultivating lucrative prospects for metallized paper manufacturers to deliver quality and genuine items to consumers.

Key Segment

By Thickness

Upto 50 GSM

51-100 GSM

101-150 GSM

Above 150 GSM

By Application

Labels

Wraps/Overwraps

Decoration

Mailing Envelopes

Graphic Paper

By End-use Industry

Food

Beverages

Home Care

Personal Care

Electrical

Chemicals

Banking

By Region

North America

Latin America

Europe

South Asia

East Asia

Oceania

Middle East & Africa