Parchment Paper Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Parchment Paper Market is segmented By Product Type (Bleached, Natural, Resin Treated, Others), By End User (Bakery & Confectionery, Paper Industry, Others), By Distribution Channel (Supermarket/Hypermarket, Convenience Stores, Online Sales, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024 - 2031

Market Overview

The Global Parchment Paper Market shares, recent trends, and market player analysis. Asia Pacific is expected to hold the fastest-growing market for parchment paper over the forecast period 2024 - 2031. The Competitive rivalry intensifies with Delfort Group AJ, Nordic Paper AS, Kalpataru Papers LLP.

Parchment paper, or vegetable parchment, is a cellulose-based composite that has been processed to give it additional properties like non-stick, grease resistance, resistance to the humid state. It is commonly used as a greaseproof paper in baking as a disposable non-stick, grease resistant surface. Parchment paper is generally made using unbleached chlorine-free grease resistant paper that provides high density and non-sticky properties to the paper. Parchment papers meet all the regulatory compliances, including FDA approvals and is thus widely used by bakeries, restaurants, caterers, and individuals.

Market Summary

For More Insights Download Sample

Market Dynamics

Rising health consciousness has been affecting the growth of the parchment papers market in recent years

Bakeries, restaurants, and food delivery services are shifting from non-biodegradable packaging materials and adopting parchment paper owing to the implementation of strict environmental laws, especially on usage of plastic and other materials. Sales in China and India will rise at a high pace, backed by expansion of food service sector at an accelerated pace. Increasing plastic pollution is a major environmental concern, globally. For instance, according to Central Pollution Control Board, around 4 Mn tons of garbage is disposed every day, out of which 15% (0.60 Mn tons) comprises plastics. Plastics are expected to account for 20% of the entire pollution over the following 25 years, as compared to an estimated 7% currently. These factors are expected to boost demand for recyclable and/or biodegradable options such as parchment paper, which in turn is expected to drive growth of the parchment paper market.

Coupled with this, focus on sustainable packaging solutions will remain a chief growth driver. Some restaurants are using parchment paper as a tool for marketing and brand promotion by printing their logos on these papers. Increasing utilization of parchment paper in fancy and convenient packaging styles will guarantee growth in the coming years. Parchment paper has emerged as a suitable alternative to clamshell packaging. To reduce the logistical cost, packaging manufacturers are working towards cutting down on the use of clamshell as a primary packaging source. This trend is expected to continue in the coming years, presenting a conducive environment for parchment paper sales growth.

Market Segmentation

Unbleached parchment paper is widely used as it is free of chemicals

Unbleached paper is widely preferred in market owing to very little or no presence of fluorochemicals on the paper. Due to this, unbleached paper held more than 50% of market share in 2020. Stringent rules are implemented on the use of bleached paper for food packaging in to curb the cases of food poisoning. This might restrict sales of bleached parchment paper. Moreover, bleached paper, if exposed under sunlight causes reaction of fluorochemicals present on paper with UV light. It might also leave traces of chemicals over food products which can cause food poisoning and other harmful effects. Considering these factors, usage of unbleached parchment paper is expected to grow with a CAGR of XX% during the forecast period.

Bakery & confectionary segment is expected to lead the global parchment paper with market revenue share of XX% in the year 2020. It has been witnessed that the consumption of bakery products among millennials is exponentially increasing due to changing lifestyle and eating habits. As parchment paper is grease resistant and nonstick paper, it ensures quality of food products. Therefore, in the global parchment paper market, bakery & confectionery segment is expected to grow with a CAGR of XX% during the forecast period. In 2020, Nordic Paper AS started a campaign targeting professional bakers. Bakers are particular about ingredients they use in their products, because many baking paper contain fluorochemicals, which may migrate to baked goods. To prevent this, Nordic Paper launched a campaign in collaboration with National Swedish Baking Team. Also, this resulted in a positive surge in sales of unbleached parchment paper in Europe.

Market Geographical Share

Asia Pacific is expected to be the fastest growing region with CAGR of XX%

Among regions, Asia Pacific is expected to hold the fastest-growing market for parchment paper over the forecast period. This is majorly due to increasing demand for convenience products from end-use industries such as baking & confectionery, in turn, driving growth of the parchment paper market in emerging economies such as China and India. The ever-increasing production of food services product by India, means rise in demand for paper packaging solutions such as parchment papers. Also, the in-state consumption of packed foods has risen due to population surge. These factors directly impact the growth of parchment paper market. Also, key food and food services players in the region are undergoing a transition from clamshell products to parchment paper which is sustainable to reduce generation of carbon footprint.

North America is expected to hold significant market revenue share of XX% in the year 2020. Implementation of stringent food safety regulations is set to boost the market for safe and hygienic food packaging solutions like unbleached parchment paper in the U.S. Parchment paper is mostly used for wrapping of food products such as burger, bakery and confectionery products. Many of the end users are opting for parchment paper while transporting food products, as this paper keeps the quality of the food products intact for a longer duration. Therefore, parchment paper is the most favored choice for exporting confectionary products in bulk across the globe.

Market Key Players

Key players are Kalpataru Papers LLP, Pudumjee Paper Products, JK Paper, Ahlstrom Munksjo Oyj., Delfort Group AJ, METSA Tissue, McNarin Packaging, Nordic Paper AS, KRPA Paper AS and Georgia-Pacific Corp.

The Parchment Paper market is highly competitive, with a large number of domestic and international players competing for market share and leading players Companies operating in the parchment paper market are aiming at expansion and strategic partnerships with other manufacturers to expand their product manufacturing capabilities, product portfolio and global presence. For instance, in August 2020, one of India's leading premium stationery brands launched a product line called "TopCare" to promote healthy and sustainable food packaging and cooking. The product line started with food wrapping as well as baking and cooking paper. In July 2019, JK Paper signed an US$201.7 Mn MOU with Gujarat government to set up a new plant with 300,000 TPA capacity to facilitate modernization and expansion of Songadh unit. This increased the production of food packaging paper which will facilitate the consumption needs of parchment paper in the Indian subcontinent. In November 2018, Ahlstrom-Munksjö inaugurated new production capacity in Saint Severin, France to meet demand of Genuine Vegetable Parchment products such as baking papers, cooking papers and food packaging. The company invested US$ 7.4 million for construction of this new facility to meet the growing demand of vegetable parchment paper.

COVID-19 Impact on Market

Global Parchment Paper market is expected to witness positive impact owing to the pandemic

Global crisis of COVID-19 pandemic had negative impact on the sales of parchment paper. Lack of availability of raw pulp and paper materials in paper mills has halted the manufacturing process of parchment paper. Lockdown in the regions such as Asia Pacific, Europe, South & East Asia and North America has induced considerable impact on the manufacturing of parchment paper. COVID-19 pandemic temporarily hampered the sales of parchment paper due to closure of restaurants and manufacturing plants. Scarcity of raw materials in paper mills due to lockdown hindered the manufacturing process of parchment paper. Also, supply chains were disrupted and strict guidelines led to a complete closure of manufacturing plants for months. In general, the sales for parchment paper nearly halted during the lockdown.

But during the last few months of the year 2020, supply chains were restored and trade routes re-opened due to which target market has begun gaining traction, contributing for market growth positively. With lockdown and other restrictions gradually getting lifted, the market is expected to showcase a rapid recovery in next few years.