The global thermal paper market generated a revenue of around 1,457.50 million in 2021 and is expected to reach a valuation of US$ 3,183.69 million by 2030 at a CAGR of 9.6% over the forecast period 2022-2030. 

The key factors contributing to this growth include increasing application areas such as electronics and automotive components, rising demand from the printing industry, and increasing focus on environmentally-friendly products. In particular, the environmental benefits of thermal paper are gaining increasingly attention from end users and vendors globally.

Furthermore, technological innovations such as smart textile printing are expected to revolutionize the way we use textiles and generate new opportunities for thermal paper products in the future.

The demand for thermal paper is high in end-user industries such as transportation, food & beverage, electrical & electronics, and printing sector among others. The increase in electronic systems usage and adoption of Multi-page Printing Specification (MPS) has driven the thermal paper market worldwide. Another major contributor to this growth is the increase in domestic production of thermal papers due to stringent environmental regulations in Europe and Asia Pacific region.

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MARKET DYNAMICS

Drivers

Rising Use of POS Terminals in Retail Stores

Factors such as rising use of POS terminals in retail sector is accelerating the thermal paper market growth since the product is majorly used in POS machine for bill printing. Also, with the growing focus on digitalization and shifting preferences for digital payment, POS terminals are increasingly being used in warehouses and retail stores. 

It has been also found that retailers are increasingly deploying a centralized inventory management system in their stores as it helps in managing bulk payments and products efficiently. This has further scaled up the demand for POS terminals that uses thermal paper for bill printing thanks to its smoother and speedier response than regular paper printing. 

Retailers are seeing a rising trend in the use of point-of-sale terminals, with thermal paper playing a significant role in this increase. This kind of paper has been seen as more secure and reliable than traditional check paper, and it is also less likely to be lost or stolen.

The market for thermal paper is growing rapidly as retailers increasingly seek to reduce processing time and costs. Thermal paper offers several benefits over other payment methods, such as being able to process transactions quickly and easily. Additionally, thermal paper is not affected by environmental factors, such as humidity or light. This makes it a popular choice for businesses that need to accept payments from customers in close quarters, such as restaurants or convenience stores.

Increasing Demand from Packaging and Labelling

The packaging and labelling industry has seen an increase in demand from consumers for thermal paper products in recent years. This is due to the growing popularity of electronic devices that use a variety of screens, including smartphones, laptops, and tablets. Thermal paper helps keep these devices cooled by absorbing the heat generated from the screen.

One of the main reasons why thermal paper is so versatile is that it can be print on both sides without affecting the product's quality or performance. This makes thermal paper a perfect choice for labels and packaging where visual appeal is important as well as functionality. Manufacturers can also choose from a variety of printing textures and colors to create unique products that stand out from the competition.

Thermal paper is used in a variety of applications including printing labels, stickers, and flyers. These products are also popular among small businesses because they do not require extensive printing or cutting capabilities. Consumers can easily print out labels or stickers at home and then attach them to their items. Thermal papers also have a long lifespan and can be used multiple times before needing to be replaced.

Restraints 

Growing Digitalization of Transaction

As the use of digital payment methods continues to grow, the demand for thermal paper may decline. This is because thermal paper is used primarily for transactions that take place in person, such as cash transactions or payments made with cards. However, as digital payment methods become more popular, customers are likely to shift their spending towards these options. In fact, a recent survey found that 93% of respondents would switch to a digital payment method if it offered greater convenience.

This trend may have a negative impact on thermal paper manufacturers and retailers, as traditional thermal paper products are not compatible with most digital payment methods. For example, thermal paper is not compatible with Apple Pay or Samsung Pay. Therefore, consumers who want to make use of these platforms must rely on other means, such as using a card reader or mobile app. Consequently, the demand for thermal paper could decline as customers switch to more convenient options.

Market Segmentation

Type Analysis

Based on type, the global thermal paper market is bifurcated into top coated and non-top coated. 

The top coated segment held over 72% market share in 2021. We are expecting that the segment will keep its dominance throughout the forecast period. As compared to non-top coated, the top coated are less effected by moisture, light, chemicals, and other contaminants, which make them the most liked or preferred product in the market. Apart from this, the segment’s growth is further spurred by the high-speed printing ability, which is very helpful in printing more labels in a shorter time.

Width Analysis

On the basis of width, the global thermal paper market is segmented into 50-60 Microns, 60-70 Microns, 70-80 Microns, and 80-90 Microns. The 70-80 microns segment was valued at US$ 527.60 Mn in 2021. Therefore, it emerged as the highest revenue generating segment in the market. Moreover, it also projected to grow at the fastest CAGR of 10% during the forecast period. 

Also, 70-80 microns are considered to be heavy weight receipts and highly durable. Therefore, POS machine are often fitted with thermal paper having a thickness of 70-80 microns. 

Printing Technology Analysis

In terms of printing technology, the market is divided into direct thermal and thermal transfer. The thermal transfer segment holds the largest share in thermal paper market in 2021, registering a revenue of US$ 830.71 million. Thermal transfer printing uses wax-based ribbons that melt onto printing media and generates a long lasting and high-quality picture which comes with durability. In terms of climate condition and lifetime of printing media, thermal transfer printing is more useful and beneficial. 

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Application Analysis

In terms of application, the global thermal paper market is divided into thermal printers, lottery systems and ticketing centers, point of sale terminals, document and labels and others. 

The point-of-sale terminals segment accounted for 71.6% market share in 2021 and is projected to grow at a CAGR of 9.9% during the forecast period. The point-of-sale terminals segment generated a revenue of $1,043.60 million in 2021. 

End User Analysis

By end users, the global thermal paper market is classified into healthcare, retail, printing and publishing, entertainment and transit, packaging and labelling, and others. 

The retail segment held the highest market share of 71.6% in 2021 and is projected to expand its market share to 73.1% by the end of 2030. At the same time, the segment is also expected to growth at a CAGR of 9.9% during the forecast period. Today, thermal papers are mostly used at grocery stores, retail outlets for different applications such as Point of sale (POS) receipts, and faxes. In fact, every retail transaction requires a receipt that retailer’s issue to customers let it be a bill or warranty slip .

Regional Analysis:

Asia Pacific is expected to grow at the highest CAGR of 11% followed by South America at a CAGR of 9.7%. Asia Pacific is the largest consumer of POS terminals. Wherein, India, China, Japan, and Australia are leading market growth. Our study suggests that several governments across the region especially in India and China are taking every possible effort to become a cashless economy and support digital transaction. 

Apart from this, the region is a strong presence of pharmaceutical and manufacturing sectors wherein product labeling and packaging propel the demand for thermal paper market. 

In 2021, North America was second-largest regional market. The region's demand for products has been driven by a number of advanced payment technologies, including contactless payments and credit card transactions.

Competitive Landscape:

Ricoh Industries, Oji Holdings Corporation, Mitsubishi Paper Mills, Koehler paper group and Appvion Incorporated are some of the key players in the global thermal paper market. These players collectively held around 75% of the market share. 

List of Key Companies Profiled:

• Appvion Incorporated
• Domtar Corporation
• Hansol
• Henan Jianghe Paper Co. Ltd.
• Jujo Thermal Paper
• Rotolificio Bergamasco
• koehler paper group
• Lecta Group
• Mitsubishi HiTech Paper
• Nakagawa Manufacturing (USA) Inc.
• Oji Holdings Corporation
• Ricoh Industry
• Thermal Solutions International Inc.
• Other Prominent Players

Segmentation Overview

By Type segment, the global thermal paper market is sub-segmented into: 

• Glass
• Plastic
• Ceramic
• Others

By Width segment, the global thermal paper market is sub-segmented into:

• 50-60 Microns
• 60-70 Microns
• 70-80 Microns
• 80-90 Microns

By Printing Technology Segment, Global Thermal Paper Market is Segmented Into: 

• Direct thermal
• Thermal transfer

By Application, the Global Thermal Paper Market is Segmented Into: 

• Thermal Printers
• Lottery systems and ticketing centres
• Point of Sale Terminals
• Document and Labels
• Others

By End User, The Global Thermal Paper Market is Segmented Into: 

• Healthcare
• Retail
• Printing and Publishing
• Entertainment and Transit
• Packaging and Labelling
• Others

By Region, the Global Thermal Paper Market is Segmented Into: 

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America