Trends and opportunities shaping the paper industry in 2025-26

The paper market is expected to have global growth of 1% between 2025 and 2030.¹

While market reports show the Asia-Pacific region has the highest market share, the region poised for the most growth in the next five years is Africa with a predicted annual rate of 2.7%.

Global growth for the coated paper market is expected to be higher than growth for non-coated paper.² Market growth is driven by increased demand for cost-effective, lightweight packaging solutions, while government regulations are driving alternative solutions to plastic packaging.³ E-commerce plays a role, as home delivery and online shopping require innovative packaging to protect goods and groceries. Coated paper is also in demand when producing high-quality print images for its high reflectivity and excellent printing surface. 

Emerging technologies like the integration of additives will play a role in development. Incorporating antimicrobial agents into paper coatings may help prevent food spoilage and extend shelf life.⁴ Additives like antioxidants can also enhance packaging functionality.⁵  

For the paper industry, demand for greater sustainability comes from two sources: customers and regulations. Global research shows most customers prefer paper packaging for online orders due to its environmental benefits and ease in recycling—and they are even willing to pay more for sustainable packaging.^6,7 At the same time, governments have established more stringent regulations for plastic packaging and introduced mandates for higher recycling rates, making paper a favourable option for e-commerce, retail, and food packaging. 

While widespread digitalisation across industries has environmental benefits, it may also limit market growth for the paper industry. In an effort to improve sustainability, the industry will have to address its harmful effects on the environment and manage the fluctuation of raw material prices, especially as new alternatives to wood fibres are explored.⁸ 

Particularly in the case of food packaging, only part of the packaging materials are recyclable. New formulations and technologies will be important in developing biodegradable, compostable, and recyclable packaging materials. To ensure the required barrier properties for food packaging, paper formulators are developing surface coatings with bio-based polymers.⁹ 

A. As a major user of natural resources, the paper industry is working on using them in a more sustainable way. Many companies have invested in startups and joint ventures to make useful products from their waste stream. The industry also plays a big role in creating a healthier future. "One example is to restrict the use of PFAS, forever chemicals, in single-use paper products." While the industry today is much more efficient than 30 to 40 years ago, the most crucial challenge for efficiency in the short term is securing supply.

A. I believe the industry will explore using more recyclable materials in their processes, as well as raw materials that can reduce the use of fossil-based products. A lot of water is used in the paper-making process, but when using natural water, avoiding contamination is a major challenge. The industry is facing price pressure on commodity products, so they will have to focus on raw material pricing when formulating solutions.

A. Given the industry’s relationship with our natural resources, the pressure to be more sustainable is increasing and driving development needs. While consumers are doing their part to recycle, they are also demanding greener products, and authorities continue to finetune legal regulations. At the same time, perhaps the waste stream from the paper process will play a more vital role in a paper company’s costs.