PaperFIRST Mag #3 - Autumn 2020

Page 12

Market outlook

The market for specialty papers in North and South America Article by John Nelson, Smithers

The specialty papers market in the Americas will face a series of new challenges and opportunities over the ne t five years.

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hile offering attractive revenue, the specialty papers market in the Americas will face a series of new challenges and opportunities over the ne t five years. hese are profiled and e amined in a brand ne study from Smithers – The Future of Specialty Papers in North and South America to 2025. In this exclusive content for PaperFIRST, Smithers examines ho this mar et ill change over the ne t five years. hile paper mar ets such as ne sprint, maga ines, and office papers have been in decline for many years due to electronic alternatives, most specialty papers serve a function that an electronic product cannot replace. ey factors driving change in the orth and outh American specialty papers mar et re ect society s increasing interest in developing options that are lo er cost, more efficient, and more environmentally friendly. As larger, faster paper machines making commodity grades are shut down due to declining markets, some are transferring to producing high-volume specialty paper grades, such as release liner and e ible pac aging. As an incentive to their customers, they are using innovative technologies to offer lighter, stronger paper, or higher uality finishes. echnology allo ing better connectivity and using ndustry . tools for more precise process control is particularly valuable for faster machines. pecialty paper customers often have very specific re uirements for such properties as basis eight, caliper, smoothness, gloss or et strength, and grade changes bet een customers, hich can lead to a lot of transition paper that does not meet specifications, can be minimised ith automation, resulting in more efficient production. eaching customers through advertising and relying on customer loyalty to sell products is becoming more difficult in a orld here customers have more information at their fingertips. ac aging that stands out, especially in food stores, is one ay to attract shoppers attention to ne products and to convince them that a product offers added value over alternatives. his can create demand for lu ury pac aging grades, hich typically use higher basis eights, have higher brightness, and more coatings. he emergence of e boo readers ate into sales of printed boo s, but e boo sales seem to have stabili ed at about of all boo s. he use of specialty papers for covers and binding of boo s is declining at a slightly lo er rate than in previous years. e business opportunities in the food industry, including take-out, ready-to-eat meals from the deli section of grocery stores, and delivery services such as ber ats, all provide convenience to last minute shoppers and have created opportunities in the specialty paper mar et, especially for e ible raps, bags, and light eight disposable pac aging, such as paper cups.

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PAPERFIRST MAG Autumn 2020


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