Vegetable Parchment Paper Market Forecast: Outlook for the Coming Years

Vegetable Parchment Paper Market Forecast: Outlook for the Coming Years

Vegetable parchment paper is widely used in food packaging industry as it acts as a non-stick surface, preventing food from sticking while baking or cooking. It also possesses properties like moisture resistance, grease resistance and transparency making it an ideal surface for baking, cooking, food handling and storage. The global vegetable parchment paper market is estimated to be valued at US$ 1.33 Bn in 2023 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 versatility of vegetable parchment paper provides a key opportunity for market growth. The waterproof and grease resistance properties of vegetable parchment paper allows it to be used for a variety applications beyond food packaging such as for transferring food, lining baking sheets, wrapping food items and more. This versatility increases its demand across various industries including foodservice, food retail and commercial industries. The ability of vegetable parchment paper to act as a substitute for regular paper, aluminum foil and other wrapping materials while delivering non-stick functionality gives it an edge over alternatives. With increasing popularity of ready-to-eat foods and demand for convenient packaging, vegetable parchment paper is poised to witness rise in adoption owing to its multi-purpose functionality.

Porter’s Analysis

• Threat of new entrants: Vegetable parchment paper requires specialized and expensive manufacturing equipment to produce. Established players have significant economies of scale and brand recognition which pose entry barriers for new players.
• Bargaining power of buyers: Buyers have moderate bargaining power as vegetable parchment paper is a commodity product with substitutes available. Buyers can negotiate on price and demand high quality and customized products.
• Bargaining power of suppliers: Key raw materials include wood pulp and sulfuric acid. Suppliers have low-to-moderate bargaining power as costs from switching to alternate suppliers are low for buyers.
• Threat of new substitutes: Substitute products include baking paper, aluminum foil and wax paper. However, vegetable parchment paper is increasingly preferred in premium food applications due to its safe, natural and eco-friendly properties.
• Competitive rivalry: The global market is moderately fragmented with presence of several regional and international players. Competition is high based on pricing, product differentiation, quality, and innovation.

SWOT Analysis

• Strengths: Vegetable parchment paper is eco-friendly, FDA approved and possesses high grease and moisture resistance qualities required for baking and food packaging.
• Weaknesses: Vegetable parchment paper has high production costs. Fluctuations in raw material prices impact costs.
• Opportunities: Growth in ready-to-eat market and rising demand for sustainable packaging presents opportunities. Developing regions offer high growth potential.
• Threats: Strict environmental regulations around paper production. Substitute products continue to erode market share. Decline in discretionary spending impacts demand.

Key Takeaways

The global vegetable parchment paper market is expected to witness high growth over the forecast period of 2023 to 2030 supported by increasing demand from food packaging, greaseproof paper and pharmaceutical end-uses.

Regional analysis: Asia Pacific dominates the global market and is forecast to grow at the fastest pace during the forecast period. This can be attributed to rising food consumption, growing disposable incomes and expansion of food processing industry in countries such as China, India and other Southeast Asian nations.

Key players: Key players operating in the vegetable parchment paper market are 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.