Market Analysis and Insights
From 2023 to 2032, the global thermal paper market is estimated to be worth USD 7.98 billion, increasing at a CAGR of 4.63%.
The increasing need for electronic transactions, POS networks, and the increasing availability of ATMs is driving the expansion of the thermal paper market. Investing in the development of improved thermal paper will significantly expand the market. Because conventional inks are not used, this paper may be printed in remote places, making it appealing for use in e-commerce labels and ticketing operations.
Thermal Paper Market scope:
Metrics | Details |
Base Year | 2023 |
Historic Data | 2018-2022 |
Forecast Period | 2024-2032 |
Study Period | 2018-2032 |
Forecast Unit | Value (USD) |
Revenue forecast in 2032 | USD 7.98 billion |
Growth Rate | CAGR of 4.63% during 2023-2032 |
Segment Covered | by Printing Technology, Application , End-User, Region. |
Regions Covered | North America, Europe, Asia Pacific, South America Middle East and Africa |
Key Players Profiled | Oji Holdings Corporation, Koehler Group, Hansol Paper Co. Ltd., Gold Huasheng Paper Co. Ltd., Henan Province JiangHe Paper Co., NCR Corporation, Appvion Inc., Fujitsu Frontech Limited, Domtar Corporation, Mitsubishi Paper Mills Limited, and Nippon Paper Industries Co., Ltd. |
Market Definition
Thermal paper is a form of substrate that has a single side laminated with a heat-sensitive synthetic composition. It is designed for use in devices like thermal printers, cash registers, point-of-sale (POS) systems, and label printers. When heat is applied to the coated surface through a thermal printhead, it causes a color change or darkening in the areas where heat is applied, resulting in the generation of text, images, or graphics on the paper without the need for ink or ribbons.
Thermal paper is commonly used in various applications, including printing receipts, tickets, labels, and other documents. It is appreciated for its simplicity and speed in printing, making it a popular choice in retail, hospitality, and other industries where quick and convenient printing is essential.
The global thermal paper market comprises the production and distribution of specialty paper that is chemically coated to react to heat, enabling it to produce text or images through thermal printing technology. This specialized paper finds extensive applications in point-of-sale (POS) systems, labels, tickets, receipts, and other transaction-related documentation. Its key attributes include efficient and reliable printing, cost-effectiveness, and suitability for a variety of retail and industrial purposes.
Key Market Segmentation
Insights on Printing Technology
The Thermal Transfer segment emerged as most lucrative
Thermal transfer printing is an expensive process, but it produces higher-quality images and text that are more durable and resistant to fading. Thermal transfer paper is coated with a layer of wax or resin that is transferred to the paper using a heated ribbon. This printing technique is commonly used for barcode classifications, packaged goods, and medical identification.
Direct thermal printing is the most economical type of thermal printing. It's a straightforward and economical procedure that does not involve ribbons or ink. Direct thermal paper is coated with a layer of heat-sensitive chemicals that turn black when exposed to heat. This type of printing is often used for point-of-sale (POS) receipts, lottery tickets, and shipping labels.
The other printing technology segment includes inkjet and laser printing. These technologies are not as commonly used for thermal paper printing as direct thermal and thermal transfer, but they are sometimes used for specialty applications such as printing on glossy or coated paper.
Insight on Application
The tags and labels category is the most significant and rapidly developing section of the global thermal paper market.
The rising need for thermal paper labels in the retail could, food & beverage, and pharmaceutical industries is driving the expansion of this market. These industries use thermal paper labels because of its longevity, cost-effectiveness, and convenience of printing.
The POS segment is another major segment of the global thermal paper market.The increased usage of POS systems in retail outlets and other business enterprises is attributable to the growth of this industry. Thermal paper is used by POS systems to print receipts and invoices.
The ticketing industry is also a big contributor to the global thermal paper market. Thermal paper is used to print event tickets, boarding passes, and other types of tickets. The growing recognition of live shows and an increasing desire for air transportation are driving the expansion of this market.
Another significant component of the global thermal paper market is the lottery and gaming industry. Thermal paper is used to print lottery tickets and other gaming materials. The growth of this segment is attributed to the increasing popularity of lottery games and the rising number of casinos and other gaming establishments.
Medical, administration, and transit are examples of applications in the Others category. In the medical business, thermal paper is used for printing medical records and labelling. Thermal paper is also used in the logistics and transportation industry to print shipping labels and other documentation.
Insights on End-User
The Heathcare Segment Accounted for the Highest Share
The healthcare industry is a major end-user of thermal paper, accounting for 25% of the global market share in 2023. Thermal paper is utilized in a wide range of healthcare applications, including the production of patient wristbands, medical tags, and ECG values. The growing demand for healthcare services and the increasing adoption of electronic health records (EHRs) are driving the growth of the thermal paper market in the healthcare sector.
The retail industry is another major end-user of thermal paper, accounting for 30% of the global market share in 2023. Thermal paper is utilized to print invoices, labels, and markers in retail businesses. The retail industry's need for thermal paper is being driven by the expansion of e-commerce and the expansion of retail stores.
The entertainment industry is a growing end-user of thermal paper, accounting for 15% of the global market share in 2023. Thermal paper is used in the entertainment industry to print tickets, wristbands, and other promotional materials. The growing prominence of live concerts and other performances is fuelling thermal paper consumption in the realm of entertainment.
The packaging industry is a significant end-user of thermal paper, accounting for 20% of the global market share in 2023. Thermal paper is used in the packaging industry to print labels and tags for various products. The rising appeal of e-commerce and the expanding need for packaged items are boosting the marketplace for thermal paper in the packaging sector.
The "others" segment includes other end-user industries of thermal paper, such as transportation, logistics, and manufacturing. Thermal paper is used in these industries to print labels, tags, and other documents.
Insights on Region
The APAC Region Accounted for the Highest Share
Asia Pacific is the largest market for thermal paper, accounting for over 34% of the global revenue share in 2022. The retail and healthcare industries in the region are seeing fast expansion, which is increasing demand for thermal paper. The increased popularity of online shopping and electronic payments is also supporting the development of the Asia Pacific thermal paper market.
Europe is the second-busiest thermal paper marketplace, generating more than 25% of worldwide sales in 2022. The region has a large retail sector and a growing healthcare industry, which are the major drivers of the thermal paper market. The increasing adoption of digital billing and other electronic solutions is also boosting the demand for thermal paper in Europe.
North America is a significant market for thermal paper, accounting for over 15% of the global revenue share in 2022. The region has a large and well-developed retail sector, which is the major driver of the thermal paper market. The booming healthcare business in North America is also driving up demand for thermal paper.
South America and Middle East & Africa are relatively smaller markets for thermal paper, accounting for a combined revenue share of less than 20% in 2022. However, these regions are witnessing rapid growth in the retail and healthcare sectors, which is driving the demand for thermal paper.
Key Company Profiles
This industry's competitive landscape displays a relatively concentrated market, with the top five businesses accounting for a majority share of the market. The market's major players are investing heavily in the research and development of thermal paper grades and applications. Companies are working on BPA-free paper research and development, as well as novel coatings to increase performance against temperature variations and smearing, in order to win market share. Furthermore, prominent market players have implemented a capacity expansion and acquisition of smaller firms strategy to boost their product portfolio and services.
The main corporations have strong regional manufacturing and marketing networks are Oji Holdings Corporation, Koehler Group, Hansol Paper Co. Ltd., Gold Huasheng Paper Co. Ltd., Henan Province JiangHe Paper Co., NCR Corporation, Appvion Inc., Fujitsu Frontech Limited, Domtar Corporation, Mitsubishi Paper Mills Limited, and Nippon Paper Industries Co., Ltd.
COVID-19 Impact and Market Status
In the near term, the COVID-19 outbreak had a substantial influence on the worldwide thermal paper business. In 2020, the market experienced a decline of around 10% due to lockdowns and restrictions on business activity. However, the market commenced to rebound in 2021 and is predicted to expand more in the years ahead.
One of the main reasons for the decline in thermal paper demand during the pandemic was the decrease in retail activity. Many stores were closed or had reduced hours, which led to a decline in the need for receipts and other printed materials. Additionally, the shift to online shopping and remote work also contributed to the decline in thermal paper demand.
The demand for thermal paper did, however, rise in some regions as a result of the crisis. For example, the demand for thermal paper labels for medical supplies and test samples increased significantly. Additionally, the demand for thermal paper tickets for public transportation and other events also increased, as governments and businesses began to implement contactless payment systems to reduce the spread of the virus.
Latest Trends
Digital transformation in retail: The retail sector is undergoing a massive digital transformation, and traditional paper receipts are being replaced by digital receipts and e-invoices. To stay pertinent thermal paper producers are focused on inventiveness and developing value-added thermal paper merchandise with enhanced resilience and safety attributes.
Growing demand for packaging and labeling: The rising demand for packaging and labeling is another key driver of growth in the thermal paper market. Thermal paper is widely used in the packaging and labeling of food and beverage products, pharmaceutical products, and other consumer goods.
Rising use of POS terminals: Thermal paper demand is also being driven by the rising usage of POS systems in warehouses and retail outlets. POS terminals use thermal paper to print receipts and other documents.
Recent Developments in the Global Thermal Paper Market: A Snapshot
In July 2023, the Japanese company Nippon Paper Industries announced that it had developed a new type of thermal paper that is made from recycled materials. The new paper is reportedly just as strong and durable as traditional thermal paper, but it is also more environmentally friendly.
In August 2023, the Chinese company Zhejiang Jinyi Thermal Paper Co., Ltd. announced that it had invested in a new production line for BPA-free thermal paper. The new production line is expected to come online in early 2024.
In September 2023, the American company NCR Corporation announced that it had partnered with the Swedish company Stora Enso to develop a new type of sustainable thermal paper. The new paper will be manufactured from a mix of wood pulp and repurposed resources.
Significant Growth Factors
Increasing demand for POS terminals and digital billing systems: Thermal paper is widely used in POS terminals and digital billing systems in retail stores, restaurants, and other businesses.
Expanding packaging and labeling industry: Thermal paper is also used in the packaging and labeling industry for printing barcodes, QR codes, and other information on product packaging. The burgeoning worldwide e-commerce sector and rising demand for packaged goods are propelling the packaging and labeling industry forward, generating demand for thermal paper.
Rising disposable income and urbanization in developing countries: The rising disposable income and urbanization in developing countries are leading to an increase in demand for consumer goods and services. This is driving the growth of the retail, food and beverage, and pharmaceutical industries in these countries, which is in turn boosting the demand for thermal paper.
Technological advancements: Thermal paper printing technological improvements are resulting in the development of new and novel thermal paper products. For example, thermal papers with improved image quality, durability, and resistance to fading are now available. Thermal paper is becoming more appealing to a broader range of businesses and applications as a result of these improvements.
Restraining Factors
The rise of e-receipts: With the increasing popularity of online shopping and mobile payments, consumers are demanding more and more e-receipts instead of paper receipts. Concerns about BPA: Bisphenol A (BPA) is a compound that is used to protect thermal paper. It is an endocrine disruptor, implying it may alter the body's functions. This has led to concerns about the health risks of exposure to BPA, especially for pregnant women and young children. As a result, the use of BPA in thermal paper has been prohibited or limited in various nations and areas.
High raw material costs: Thermal paper's primary basic resources are paper pulp and thermal coating. The pricing of these raw ingredients can vary greatly, affecting the profitability of thermal paper makers.
Concerns about the environment: Thermal paper is not recyclable and might emit dangerous chemicals when burned. This is raising environmental concerns about the use of thermal paper.
Despite these obstacles, the worldwide thermal paper market is likely to expand in the approaching years. This is due to the increasing demand for thermal paper in emerging markets and the development of new applications for thermal paper, such as in the automotive and healthcare industries.