Synthetic substrates, once reserved for niche and specialty markets, have penetrated day-to-day applications and are finding a home in at least 33 percent of Flexographic Technical Association member print shops. That finding, revealed in FLEXO Magazine’s September 2018 Flash Poll, reflects trends being reported out by major market analysts.
Transparency Market Research’s analysis of the synthetic paper trade contends that compound annual growth rates (CAGR) will come in at 7 percent for the next two years, holding to a pattern that has been extending four years now. It explains, “The growing demand for synthetic paper from the tag and label industry is expected to augment market growth. Physical characteristics such as durability and high tear resistance, along with superior chemical properties, make synthetic paper ideal for labeling applications—wrap-around, in-mold, shrink, pressure-sensitive, cut and stack—over natural paper. Growing demand from end-user industries, especially from the cosmetics and chemicals industries, is expected to drive the market in the coming years.”
On a similar note, Grand View Research is projecting that the global synthetic paper market size will reach $1.3 billion by 2024, progressing at a CAGR of 7.1 percent during the forecast period (2018 to 2024). It recently stated, “Rising environmental awareness due to initiatives taken by environmental organizations and increasing demand from the packaging and label industry is likely to stoke the growth of the market.”
Photo courtesy of Yupo Corp
Analysts for both firms indicated key product segments of synthetic paper include biaxially oriented polypropylene (BOPP) and high-density polyethylene (HDPE). BOPP generally accounts for better than 60 percent of the global synthetic paper market. Grand View offered further observations:
- BOPP is expected to exhibit a CAGR of 6.4 percent in terms of volume over the next six years, owning to cost effectiveness along with superior strength
- HDPE is projected to post a CAGR of 7.7 percent in terms of revenue from 2016 to 2024. The low cost of HDPE with extensive application scope is expected to increase its utilization in emerging economies of Brazil, China, India and Russia
- Label applications are projected to experience a CAGR of 7.5 percent in terms of revenue, reflecting increasing use in flexible packaging
Synthetic papers are paper-like films made up of plastic or synthetic resins and contain the characteristics of both paper and plastic. These papers exhibit good printability, but in certain cases they are heat-proof, too. However, the feel, appearance and opacity of a synthetic paper are similar to any normal paper.
Durable characteristics make them suitable for a variety of blister packaging applications, according to Grand View. “Usage has been increasing in the pharmaceutical sector, especially with products known to have high pilferage rate. In addition to excellent physical characteristics, synthetic papers can deter tampering without sacrificing graphics fidelity.”
All market watchers contributing to this story point out that price fluctuations of crude oil are now widely expected to increase the prices of polypropylene and polyethylene, key resins used in the manufacturing of synthetic substrates. Polymer prices are expected to witness an increase over the coming years, which is likely to affect the market. Application growth and raw material availability are likely to remain key reasons for price fluctuations.
Major manufacturers of synthetic paper include Yupo Corp, PPG Industries, Arjobex, DuPont, Hop Industries, Taghleef Industries, Nan Ya Plastics Corp and American Profol.