Analyzing Regional Market Trends in the Vegetable Parchment Paper Industry

Analyzing Regional Market Trends in the Vegetable Parchment Paper Industry

Vegetable parchment paper, also known as vegetable paper, is produced from cellulose fibers derived from wood pulp through a sulfite pulping process. Vegetable parchment paper has several advantages over conventional parchment paper such as it is odorless, tasteless, non-toxic and FDA approved for food packaging. Vegetable parchment paper is widely used for baking, food packaging, butter wrapping and other similar applications. The demand for vegetable parchment paper is increasing in the food and beverages industry owing to its grease and moisture resistance property and ability to provide texture and mouthfeel to bakery and confectionery items.

The global vegetable parchment paper market is estimated to be valued at US$ 1.33 Bn in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity in food packaging applications is expected to drive the growth of the vegetable parchment paper market over the forecast period. Vegetable parchment paper has high barrier properties against grease, moisture and gases which makes it suitable for food packaging applications. The increasing demand for convenience foods and longer shelf-life of packaged foods is augmenting the demand for effective food packaging materials like vegetable parchment paper. Additionally, properties like flexibility, transparency and wet strength of vegetable parchment paper allows it to retain food textures and improve handling of damp products making it preferred choice for various primary and secondary food packaging needs. The growth of the food Industry especially in developing regions is anticipated to present lucrative growth opportunities for vegetable parchment paper manufacturers during the forecast period.

Porter’s Analysis

Threat of new entrants: Vegetable parchment paper requires machineries for manufacturing which requires huge capital investment restricting new players to enter. Bargaining power of buyers: Buyers have moderate bargaining power as there are numerous established manufacturers providing vegetable parchment paper. Bargaining power of suppliers: Suppliers have low bargaining power as raw materials for vegetable parchment paper such as wood pulp are commodity products available from numerous suppliers globally. Threat of new substitutes: There exists threat from paper substitutes; however due to vegetable parchment paper's grease and moisture resistance properties, substitutes pose low threat. Competitive rivalry: The global market is dominated by few key players intensifying competition.

SWOT Analysis

• Strengths: Vegetable parchment paper is ecofriendly, non-toxic and ideal for baking. It provides grease and moisture resistance extending product shelf-life.
• Weaknesses: Vegetable parchment paper is more expensive than conventional parchment or greaseproof papers. It has limitations in application compared to plastics.
• Opportunities: Rising demand for recyclable and sustainable food packaging offers opportunities. Growth in bakery and confectionery industries especially in Asia Pacific induces demand.
• Threats: Fluctuating raw material prices and increasing substitution threatens market. Stringent environmental regulations regarding plastic usage may impact substitutions.

Key Takeaways

The global vegetable parchment paper market is expected to witness high growth over the forecast period of 2023 to 2030.

Regionally, Asia Pacific dominates the global market and is expected to grow at the fastest pace during the forecast period. Rising food production and processing industries drives demand.

Key players operating in the vegetable parchment paper market are Co, Amol Paper Mills Pvt. Ltd, Kalpataru, Livriite Ventures, JK Paper, Black Label Paper Company, Nordic Paper, Tesco, Ahlstrom-Munksjö, Pudumjee Paper Products, Shaoxing Tianming PaperIndustry CO.,LTD, Sunrise Papers., Rockdude Impex Pvt. Ltd., Kraft Interactions., Taian Baichuan Paper KK, McNairn Packaging., COREX Group and Scan Holdings.