Advanced Paper Making Materials: Specialty Additives/Chemicals and Synthetic Paper

Report Highlights

• The overall North American market for specialty paper additives and synthetic paper is estimated at 2.7 billion lbs. in 2005 and is expected to rise at an average annual growth rate (AAGR) of 3.4% to 3.2 billion lbs. in 2010.
• On a dollar basis, the market for synthetic paper in 2005 is valued at about $150 million compared to $2.3 billion for specialty additives.
• Synthetic paper is a niche market with high profits, but only a few major participants. Specialty paper additives are only one product area for most of the producers who are very large chemical companies with sizable overall paper chemical sales.
• For specific applications, labels are the dominant market for synthetic paper, while binders and defoamers lead an array of specialty paper additives.

INTRODUCTION

The synthetic paper industry has been commercial since the early 1980s and its growth pattern has seen significant changes. This is due to its participation in new markets and the entry of competitive plastic film packaging companies.

Specialty paper additives, as differentiated from commodity paper additives, are a significant market undergoing technical and market changes to meet increased demands due to lower-grade feedstock with higher recycled content and relatively flat production of many paper products.

This study provides an analysis of two chemical aspects of the paper industry, namely synthetic paper and specialty paper additives. The term “synthetic paper” has not been universally defined because it basically is an opaque plastic film that is both printable and writeable. Although the market has gone beyond its original intentions, this report will include those products that producers, converters and distributors market as synthetic paper even though, in many instances, it replaces a nonfiber-based paper product such as plastic films. Actually, the distinction between synthetic paper and white, opaque printable films has not been resolved.

SCOPE OF STUDY

The report contains:

• Descriptions of the various polymer films used to produce synthetic paper, fillers and coatings
• Analysis of their use in manufacturing, printing processes, new technologies and applications
• Detailed discussion of the major players and their respective products
• An industry structure and patent review
• Pricing considerations
• North American market estimates and forecasts by major applications through 2010, and other critical aspects of the market.

METHODOLOGY

A comprehensive review of technical and market information, along with a careful analysis of product literature was undertaken. Interviews were completed with key producers and marketers of these products to clear up any unresolved issues.