The usage of recycled paper has largely been borne out of the globally increasing concern over the increasing rates of deforestation needed to produce enough paper for the world’s needs. Recycling of paper is also the prime reason for the steady drop in the overall demand for virgin paper, or paper that has been directly manufactured from trees and primary raw materials and has not involved the use of recycled paper. This is mostly regular paper made from freshly cut trees, commonly renamed as virgin paper. It should also be noted that the processing and manufacturing cost of virgin paper can be greater than that of recycled paper over time.
What are the factors limiting growth of the virgin paper packaging market?
The relative size of both markets and therefore the overall availability of high manufacturing capacities, virgin paper or regular paper is cheaper than recycled paper. In the coming years, however, the cost of each is expected to shift adversely due to the overall savings in critical resources that can be brought about by using recycled paper.
The current quality of virgin paper is also better than most types of recycled papers. Over time, this is expected to change due to increasing developments in manufacturing of quality recycled papers. At the same time, virgin papers are valuable in a large number of fields in packaging and personal hygiene, creating a greater focus on these areas by manufacturers of virgin paper.
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Which region is dominating the global market for virgin paper?
Geographically, the virgin paper packaging market can be segmented into five key regions North America, Asia-Pacific, Europe, Latin America and Middle East & Africa (MEA). Virgin paper packaging industry have been dominated by North America region higher disposable income among consumers. The Asia-Pacific and Europe are currently in the growth phase as the industries have started investing in these regions driven by China and India as the people have adopted to more eco-friendly ways and replaced plastic bags with paper bags, thus promoting the demand in the region. Latin America and MEA is also expected to have a growth phase over the years owing to growing environmental concerns.