In 2021, the U.S. cold seal paper market estimated to increase by 4.5% year on year, bucking initial skepticism about how the market would perform during a global pandemic. Across the whole of North America, total demand for of cold seal paper market is expected to reach new horizon attributing to optimizing production process and sustainability.
Global Cold Seal Paper: Market Outlook
Cold seal paper is a special adhesive-coated kraft paper that sticks to itself without using any substrates. It is an ideal solution for the safe and efficient packaging of spare parts in automobile or industrial applications.
The self-sealing property of the cold seal paper leaves no residue on the product after release thus helps in saving time and cost involved in applying staples or tapes to the item that may cause damage to the product inside it.
Additionally, the cold seal paper also protects the product inside it by preventing the formation of dirt and dust. Cold seal paper is also recyclable and can also be re-used for a variety of applications in e-commerce packaging, packing of auto components, furniture wrapping, among others.
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What Are the Key Trends Impacting Growth of the Cold Seal Paper Market?
The new emerging technology in the sealing jaws and flow-wrap formation unit for paper cold-sealing applications is gaining traction in recent days. Amplified Heat Sealing (AHS) technology is used in the horizontal flow-wrappers and helps in the faster processing of mono materials, especially in sustainable packaging materials, like cold-sealable paper.
The flow-wrap forming unit and jaws not only help the faster processing of manufacturing of cold-seal papers but also helps in effectively shaping the cold seal paper without tearing or creasing it. Therefore, the AHS technology ensures accurate heat input which makes the process sensitive in mono materials for products such as crackers and cookies.
How Is the Demand for Ease & Convenience in E-Commerce Industry Uplifting the Cold Seal Paper Market?
The e-commerce industry is evolving in recent years owing to the development and adoption of the latest technology and consumer shift towards the online platform for shopping. This had led to the increase in the demand for cold seal paper in the product packaging.
The packaging not only securely holds the product but also prevents it from moving during transport by creating a solid, protective shell-like covering around the product which in turn prevents the product from getting damaged. The cold seal paper prevents abrasion and also creates a shock-absorbing shell to protect the product inside it.
What Are the Key Challenges that Might Restrain the Growth of the Cold Seal Paper Market?
The manufacturing process of cold seal paper requires the high-technology with the costly cold seal paper manufacturing machinery/equipment, and this results in a cost-intensive process for the manufacturers.
Lack in the adoption of the latest technology and inability to purchase the costly machinery or equipment for manufacturing of the cold seal paper, especially for new entrants or local players may result in the slow or hampered growth of the cold seal paper market.
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The following global key players such as
- Packaging Products (Coatings) Ltd.
- American Printpak
- C-P Flexible Packaging
- FFP Packaging Ltd.
- Mondi Group
- Swiss Pack Europe
- Angloscand Limited
- Paper Bags Ethiopia
- sonoco Products Company
- PouchMakers Canada.
Key Asian players manufacturing cold seal paper are
- Safepack Industries Ltd.
- Gravure Packaging Products
- Getpac India
- Swiss Pac Private Limited
- Cosmo Films Limited
- Hunan Zekun Packaging Technology Co., Ltd.
- Adiambe Papers Pvt. Ltd.
What Strategies Are the Key Players Adopting for Increasing Their Market Share in the Cold Seal Paper Market?
The manufacturers involved in the manufacturing of cold seal paper are involved in the innovations in the raw material and the enhancement of the manufacturing process in terms of speed, time, and quality.
- In September 2020, Henkel launched the recyclable paper range for cold-sealable paper along with the sealable coatings which enable full recyclability of paper packaging in food and non-food applications.
- In June 2020, American Packaging Corporation has developed a recyclable PE, high-barrier, and innovative cold seal wrap that is suitable for the front store drop-off recycle streams. This new cold seal paper wrap is also meeting the standards in establishing sustainable packaging goals.
Why is the U.S. a Big Market for Cold Seal Paper Market?
Owing to the growth in the latest technology which has led to mark the innovation in cold seal paper manufacturing has created a significant demand for the cold seal paper. Also, presence of the key players involved in the manufacturing of the cold seal paper is creating a significant impact on the growth of the cold seal paper market.
How Has the COVID-19 Pandemic Impacted the Cold Seal Paper Market?
The COVID-19 pandemic has to the disruption in the collection of the raw material with causing the disturbance in the supply chain and logistics which has led to the decline in the manufacturing of cold seal papers. Also, the strict regulations and framework by the government have led to limit the production practices with a limited number of workers in the factory which has harmed the cold seal paper market.
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Key Segments of Cold Seal Paper Market Covered in the Report
Based on Material:
- Unbleached kraft paper
- Bleached paper
- Others (Silicone release paper, Blister paper, Films, etc.)
Based on Thickness:
- Less than 50 GSM
- 50-100 GSM
- Above 100 GSM
Based on End-use:
- Consumer Goods
- Retail & E-commerce
- Others (Textile, Furniture, etc.)
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