No.3636
11/15/2024

Specialty Paper Market in Japan: Key Research Findings 2024

Specialty Paper Market Impacted by U.S.-China Trading Tensions and Pandemic-Related Global Recessions Faces More Volatile Demand

Yano Research Institute (the President, Takashi Mizukoshi) has surveyed the specialty paper market in Japan, and found out the trends by product type, the trends at market players, and future market outlook. Here focuses on the market of high-performance paper for industrial use.


Transition and Forecast on High-Performance Paper for Industrial Use
Transition and Forecast on High-Performance Paper for Industrial Use

Market Overview

Because of its useful features and properties, specialty paper has a solid customer base and stable demand. With a wide range of applications, which extends from printing to various industrial uses, the market has been somewhat insensitive to demand fluctuations.
However, dramatic changes in the demand structure of the pulp industry have drastically reduced the demand for specialty paper for information media applications, which are affected by digitization and cost reduction in enterprises.
In addition, high-performance paper for industrial use is also facing tougher market conditions due to the disappearance of domestic industries caused by overseas relocation and increased competition with local manufacturers where industries have moved. Demand volatility is also becoming severer, impacted by the U.S.-China trade dispute and the pandemic-related global recessions. 

The market size of high-performance industrial paper, based on the shipment volume by domestic manufacturers, is estimated at 116,500 tons for FY2023, 94.5% of the size in the previous fiscal year. Demand for semiconductors and electronic parts has slowed sharply in the fall of 2022, as the surge in demand for digital devices during the pandemic stay-home period came to an end. As equipment manufacturers have built up their inventories as a measure against the semiconductor shortage, inventory adjustments by these manufacturers have been protracted. As a result, demand for high-performance industrial paper has remained sluggish. Against the backdrop of rising commodity prices, stagnant individual spending and heightened cost cutting consciousness have significantly affected the demand for high-performance industrial paper.

Noteworthy Topics

High Expectations for Growing Demand for Specialty Paper for Environmental and Energy Applications

One of the expected growth applications for specialty paper is the environmental energy sector, especially renewable energy related.
To achieve the decarbonized society, each of the countries around the world is striving to attain an energy mix, i.e., to shift from the total use of oil and coal to a balanced use of energy, partially using renewable energy with natural energy sources such as solar power, wind power, etc.
In such a situation, the demand for specialty paper is expected to grow in the medium to long term due to the expanding demand for battery separators resulting from increased installations of photovoltaic and wind power plants. Demand for battery separators is also expected to increase due to energy conservation in applications such as air conditioners and home appliances.

On the other hand, the Japanese government has drastically changed its nuclear energy policy to resume the new plant project amid the worsening global energy crisis triggered by the Russian invasions to Ukraine. This has generated new demand for transformers and rapidly increased the demand for pressboard, which is an insulator for transformers.
Domestic demand for pressboard is expected to continue to grow for the next few years, as the Japanese government has adopted a policy of using the resumption of nuclear power plants as a solution for a stable energy supply, an energy mix that does not rely on thermal power generation, and the realization of carbon neutrality.

Future Outlook

Semiconductors and electronic parts, the main applications for high-performance industrial paper, are expected to have high potential demand, as each of semiconductor manufacturers plan to increase production on a large scale, despite the volatile demand during the past few years. The market for semiconductors and electronic parts is on the road to recovery, caused by the expanding demand for communication facilities related to generative AI investments, promoted capital investment aimed at automation, labor saving, and environmental measures, and advances in automotive electronics technologies.
As a sign of the end of the prolonged inventory adjustment for semiconductors and electronic parts that has been observed since the beginning of FY2024, the size of the high-performance industrial paper market is projected to reach 120,830 tons in FY2024, 103.7% of the size of the previous year, and 122,860 tons in FY2025, 101.7% of the size of the previous year, indicating a period of expansion once again.

Research Outline

1.Research Period: May to August 2024
2.Research Object: Manufacturers of specialty paper, paper manufacturers, distributors, trading companies and other related companies
3.Research Methogology: Face-to-face interviews (including online) by specialized researchers, survey via telephone, mailed questionnaire, and literature research

What is the Specialty Paper? What is the High-Performance Paper for Industrial Use?

The term “specialty paper” does not have a concrete definition. However, it generally refers to the type of papers that are manufactured with characteristics and properties for specific end use, which puts them into a special grade in comparison to general papers. In this research, the specialty paper market includes about 30 types of papers: printer paper, sanitary paper, forge-proof paper for security printing, clean paper, grease-proof paper, medical grade paper for sterilization, colored high quality paper, decor paper, colored kraft paper (wrapping paper)/Kent paper, India paper, rice paper, synthetic paper, stainless steel inserting paper, insulating paper, condenser (capacitor) tissue paper/films, glass fiber paper, carrier tapes, filtering paper, adhesive labels, release liner paper, base paper for paper cups, etc.

The market size of high-performance paper for industrial use is calculated based on the shipment volume at domestic manufacturers. The market includes specialty papers for industrial use, such as clean paper, synthetic paper, stainless steel inserting paper, insulating paper (coil insulating paper, pressboard, vulcanized fiber), condenser (capacitor) tissue paper/films, glass fiber paper, and carrier tapes.

<Products and Services in the Market>

printer paper, sanitary paper, forge-proof paper for security printing, clean paper, grease-proof paper, medical grade paper for sterilization, colored high quality paper, decor paper, colored kraft paper (wrapping paper)/Kent paper, India paper, rice paper, synthetic paper, stainless steel inserting paper, insulating paper, condenser (capacitor) tissue paper/films, glass fiber paper, carrier tapes, filtering paper, adhesive labels, release liner paper, base paper for paper cups, etc.

Published Report

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