Thermal Paper Market Trends

Growth Drivers

• Growth of retail and e-commerce sectors: Retail and e-commerce continue to provide high demand for thermal paper due to the increased usage of POS systems and transaction records. The move towards digital payments, increased consumer expenditure worldwide fuel demand, and the development of effective printing solutions. Such demand has spurred corporations to expand into different markets: for instance, Amazon's expansion of its logistics network in April 2024 was inculcated with advanced POS systems, which, in return, increased demand in the market for high volumes of thermal paper.
• Advances in thermal printing technology: There has been rapid adoption of thermal paper due to advancements in printing technology to improve efficiency and quality in print outputs. Innovations such as speedy print speeds, high resolution, and energy-efficient printers are opening up prospects for growth. One major development was in May 2020, when Solenis launched a next-generation color developer in thermal papers to enhance the strength and the quality of prints in the paper.
• Rising demand for eco-friendly thermal paper: Consumers are increasingly seeking out thermal paper that does not contain harmful substances such as BPA, which further compels the demand for environmentally friendly thermal paper. Entry into the market of various sustainable replacements is becoming quite prevalent, especially in  Europe and North America. For example, in May 2024, Appvion launched its EarthChem portfolio, comprising sustainable thermal products meeting global trends in sustainability—proof that greener levels of practice are rising in this industry.

Challenges

• Environmental regulations and costs of compliance: The thermal paper industry is not out of challenges, partly as the stringency of environmental regulations in Europe constrains the use of harmful chemicals in the production of paper. This drives up production costs and demands heavy investments in research and development. For example, the European Chemicals Agency (ECHA) announced further restrictions on the use of BPA in 2023, compelling manufacturers to invest in alternative materials.
• Competition from digital and paperless technologies: The thermal paper market also faces competition from the rapidly increasing trend of digitalization and moving to paperless transactions. With the increase in electronic receipts and other digital notes among companies and customers, the demand for thermal papers is likely to be affected adversely. In February 2023, a report by Research Nester indicated a 12% surge in the adoption of digital receipts throughout major retail chains in the U.S. as people are moving to modern mechanisms instead of relying on traditional paper-based mechanisms.