Thermal Papers Market

Thermal Paper Market Growth Outlook (2023-2033)

Based on the analysis by Fact.MR, the global thermal paper market is valued to be US$ 4.6 billion in 2023 and it is anticipated to grow at a CAGR of 4.5% to reach US$ 7.1 billion by the end of 2033. The thermal paper market is likely to grow due to the increasing demand for digital payments, POS systems, and a growing number of ATMs as well.

Report Attributes	Details
Thermal Paper Market Size (2022A)	US$ 4.4 Billion
Estimated Market Value (2023E)	US$ 4.6 Billion
Forecasted Market Value (2033F)	US$ 7.1 Billion
Global Market Growth Rate (2023-2033)	4.5% CAGR
Key Companies Profiled	Koehler Paper Group Nakagawa Manufacturing (USA), Inc. Siam Paper Public Company Limited, Jujo Thermal Ltd. Ricoh Company, Ltd. Shandong Chenming Paper Holdings Ltd.

Historic and Future Pathway Analysis for the Thermal Paper Market

The prevalence of mobile POS terminals in public facilities, transportation, and retail markets contributes to the rapidly growing demand for thermal paper. Further, the growing popularity of cashless transactions in emerging markets is driving the use of POS transactions, thereby increasing demand for thermal paper.

• Short Term (2023-2026): Rapid growth in the retail industry coupled with growing healthcare will surge the demand for thermal papers during the projection period.
• Medium Term (2026-2029): Europe and East Asia especially India are anticipated to witness comparatively high thermal paper demand due to increases in acceptance of online transactions.
• Long Term (2029-2033): With the augmentation of digitalization, the need for POS systems is increasing at a rapid pace and thus leading to an increase in the demand for thermal paper.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 4.5% CAGR between 2023 and 2033.

Market Dynamics Outlook

“Increase in POS systems at Retail Stores Thrives the Demand for Thermal Paper”

The logistics and e-commerce sectors are showing strong demand for sustainable direct heat solutions. The demand for sustainable labeling processes is driving the label industry towards more renewable processes using recycled direct thermal paper.

POS systems are becoming increasingly popular as grocery chains, restaurants, and grocery stores transition to inventory systems. In rapidly changing lifestyles, thermal paper is increasingly used for tickets, parking tickets, admission tickets, and others, due to which the demand for eco-friendly paper is increasing.

The market for thermal paper in retail stores is driven by the increasing number of hypermarkets and supermarkets in several regions. If POS commerce remains a viable option for commerce, thermal paper will remain in demand for years to come.

Moving ahead, the thermal paper also offers excellent color retention, even at high speeds, and a very durable surface that resists fading. This feature allows printed barcodes to be used for POS food labels and other applications. Hence, increasing the global demand for thermal paper during manufacturing and shipping as well as the growing importance of product labels is having a positive impact on the thermal paper market.

“Growing Online Transaction Impede Market Growth”

Market growth is expected to slow as the transaction practice becomes more digital, reducing the requirement for printing at POS terminals. Furthermore, the concept of paperless "electronic receipts" has become more realistic as more retailers and businesses start transacting online. Increased use of the monetary transaction services such as GPay, Paytm, PhonePe, Paypal, and other services could replace paper receipts and thus restrict the growth of the market.

Bisphenol A (BPA) is an organic synthetic compound used as a color former in thermal paper. It is recognized as an endocrine disruptor that is harmful to health. Adverse effects of thermal paper containing BPA on hormonal function may be a risk for thermal paper growth.

Growing consumer awareness of the harm of ingesting BPA has led to the adoption of electronic receipts in place of paper-based receipts, further hindering the growth of the thermal paper market.

Country-wise Insights

What are the Factors Driving Thermal Paper Demand Across India?

The Indian thermal paper market is expected to register the largest revenue share during the forecast period. Rising demand for healthcare and pharmaceuticals and growth in the retail industry are increasing the use of products in the billing process. In addition to the industries mentioned above, manufacturing is also booming, especially in the packaging and food and beverage sectors further increasing the demand for the product.

The market is benefiting from the growing interest in cashless transactions. Also, infrastructure development in countries such as India has increased the demand for tickets in the travel and entertainment sector, leading to increased market revenue.

Why is the Germany Thermal Paper Market Expected to Be Highly Lucrative?

In 2022, Europe holds a substantial share of the global market share. Various end uses such as insert packaging and labels, and cumulative acceptance of the thermal paper in various applications such as in gaming coupled with a rise in warehouses are expected to support market growth in the region.

Moving ahead, growing interested in sustainable products in Europe, particularly in Germany is expected to impact local thermal paper production.

Regulations set by European governing bodies contribute to the introduction of environmentally friendly coatings such as powders and water-based paints in the production of thermal paper.

Category-wise Insights

Why is Thermal Paper Usage Surging across the Printing & Labeling Industry?

With the rising application of thermal printing to many industries such as shopping malls, grocery stores, hospitality, and lottery systems, the printing industry has become more and more popular with thermal printing due to its accuracy and quality and low maintenance, and fast printing speed. Further, the demand for paper is increasing, with reduced printing costs, and time-saving properties.

Thermal printing has a wide range of applications for companies looking to improve packaging quality. Additionally, the rise in the demand for printing from the pharmaceutical industry boost the demand for the thermal paper during the projected year.

Why does Direct Thermal Technology are in High Demand?

The direct thermal division is projected to account for a significant portion of global market sales. Direct thermal technology has greatly increased its use in shipping labels, registration certificates, receipts, kiosk cards, tourist tags, and parking ticket coupons. Further, with high flexibility, noise reduction, and supreme graphics capabilities, it has been widely accepted in the printing and packaging industry and has become a major industry benchmark for demand in this field.

This technology is the most common printing method in commercial printing, with images and text created by direct thermal transfer systems. This printing method uses a chemically formulated, heat-sensitive media that darkens as it passes through the print head. This technology provides longevity for parcel POS, printed tickets, labels and tags, and numerous barcode applications useful for RFID identification.

The direct thermal segment accounted for the largest share, owing to increased demand from the food and beverage industry and thus increasing the food service sector across the globe leading to an increase in the sales of thermal paper in the upcoming year.

Eminent Players Key Stratagems

Prominent thermal paper manufacturers are Koehler Paper Group, Nakagawa Manufacturing (USA), Inc, Siam Paper Public Company Limited, Jujo Thermal Ltd., Ricoh Company, Ltd., Shandong Chenming Paper Holdings Ltd., and other players.

Manufacturers of thermal papers are focused on mergers and acquisitions and an expansion of the product portfolio and production. Further rise in the healthcare and retail industry increases the sales of thermal paper across the globe.

Additionally, with Growing awareness of the negative effects of thermal paper containing BPA, manufacturers are looking for sustainable products that are major drivers of demand for industrial thermal papers. Also, the manufacturers strategize long-term growth with the market players to increase the sales of the product.

Fact.MR has provided detailed information about the price points of key manufacturers of thermal paper positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Thermal Paper Industry Research

• By Thickness Type:

  • 60-80 microns
  • 80-90 microns

• By Technology:

  • Direct thermal
  • Thermal transfer

• By Application:

  • Lottery & Gaming
  • Labels & Tickets
  • Other

• By End User:

  • Retail Industry
  • Healthcare
  • Packaging & Labelling
  • Printing & Publishing
  • Entertainment & Transit
  • Other

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa