Thermal Paper Market Expected to Reach $5.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Thermal Paper Market," The thermal paper market was valued at $3.4 billion in 2021 and is estimated to reach $5.7 billion by 2031, growing at a CAGR of 5.4% from 2022 to 2031.

Thermal paper is a form of specialty paper that is made with a chemically active coating on one or both sides to facilitate printing without ink. This coating is a chemical mixture that produces an image when exposed to high temperatures mostly used in direct thermal printers, which include collections of tiny heating elements that heat and cool in alternating cycles while printing. As the thermal paper passes between the print head and the platen roll, the print head's heating and cooling elements alternate to create images on the surface material. Thermal paper is a recording media that may be printed by a thermal printer utilizing heat. This paper is imprinted by transferring thermal energy directly. The utilization of thermal papers in the production of lottery and gaming tickets is expected to enhance the demand for thermal papers.

The emergence of digitization in growing regions, such as India has increased the demand for point-of-sale (POS) systems and, consequently, the market demand for thermal paper rolls. In addition, the increasing significance of product labeling against counterfeiting has had a favorable effect on the market for thermal paper rolls. In addition, the thermal paper offers outstanding coloring capabilities at fast rates and a highly durable surface that is resistant to fading. This capability enables the use of printed bar codes in point-of-sale food labeling and other applications throughout their manufacturing and transportation, which has increased the global need for thermal paper rolls.

On the other hand, the use of BPA in the thermal paper has a harmful effect on human health, which may hinder the growth of the market for thermal paper rolls in the near future. As a result, numerous businesses are implementing digital receipt software applications that are compatible with their existing POS systems, and they only print customer receipts upon request to reduce their thermal paper consumption. The introduction of breakthroughs in thermal transfer technology and other industries presents significant opportunities for expansion for the thermal paper business. In addition, a recent estimate from the U.S. Census Bureau indicates that supermarket and grocery store sales in 2019 exceeded $ 650 billion, which is more than three times the amount recorded a decade earlier. Such reports are viewed as the primary growth potential for the thermal paper sector as a whole.

The thermal paper market is segmented on the basis of printing technology, application and region. On the basis of printing technology, the market is categorized into direct thermal, thermal transfer and others. On the basis of application, the market is categorized into point of sale (POS), tags & labels, lottery & gaming, ticketing, and others. On the basis of region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Major players operating in the global thermal paper market are Appvion, Domtar Corporation, Hansol Paper Co. Ltd., Henan Province JiangHe Paper Co. Ltd., Jujo Thermal Ltd, Kanzaki Specialty Papers Inc, Koehler Paper, Lecta, Mitsubishi Paper Mills Limited, Nakagawa Manufacturing (USA), Inc, Oji Holdings Corporation, Panda Paper Roll, Rotolificio Bergamasco Srl, Thermal Solutions International Inc., and Twin Rivers Paper Company. Other players operating in the thermal paper market are Avery Dennison, Ricoh Company, Ltd., and Siam Paper.

Key findings of the study

• By printing technology, the thermal transfer segment is expected to grow at a CAGR of 5.9%, in terms of revenue, during the forecast period.
• By application of thermal paper market, the tags and label segment is expected to grow at a CAGR of 6.7%, in terms of revenue, during the forecast period.
• Region-wise, Asia-Pacific garnered a share of $ 1697.1million in 2021 in terms of revenue.

IMPACT OF COVID-19 ON THE GLOBAL THERMAL PAPER MARKET

Due to the rise in emergency situations and COVID-19 cases globally, the demand for labels and tags for medical supplies and test samples increased. Throughout the pandemic, the quantity of laboratory test samples, which are necessary for discriminating between blood samples, grew, which in turn increased the demand for labelling. These attributes were considered to be the key market growth drivers for thermal paper.

Due to the expansion of the retail sector in developing nations like China and India, the POS category has the biggest market share. In addition, the rising number of supermarkets in advanced economies is anticipated to accelerate the development of POS terminal applications. Many nations are still in lockdown as a result of COVID-19, and businesses are coming up with new strategies to accommodate the rising demand for e-commerce. The pandemic has benefited the e-commerce sector since it has necessitated the implementation of preventative measures like social segregation. The market expansion for thermal paper is hampered by these digital transactions.