South Korea Paper Products Market– Forecast (2024-2030)

The South Korea paper products market size is forecast to reach USD 18.5 billion by 2030, after growing at a CAGR of 5.2% during 2024-2030. The paper products market encompasses the production, distribution, and sale of various goods made from paper and paperboard materials. The emphasis on environmental sustainability is a significant factor in paper packaging. Companies focusing on producing eco-friendly and recyclable packaging materials to meet the growing demand for sustainable and responsible packaging solutions are driving the South Korean paper products market.  This includes developing new types of paper products, improving manufacturing processes, and creating sustainable packaging solutions.

A growing number of South Korean cosmetic enterprises are adopting eco-friendly packaging in response to the rising demand for KBeauty products and the need to minimize the use of single-use plastic. Consequently, the Korea Cosmetic Association initiated the '2030 Cosmetics Plastic Initiative' in January, intending to eliminate non-recyclable materials by 2030. In May 2021 Kolmar Korea, a cosmetics and pharmaceuticals company based in South Korea, created environmentally friendly paper packaging specifically for tube-shaped beauty creams. According to the Korea Paper Association Corrugated support paper domestic consumption increased from 4,775,394 tons in 2019 to 5,171,959 tons in 2022.

The report “South Korea Paper Products Market– Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the South Korea paper products market.

By Type: Paper Cups, Paper Packaging, Paper Straws, and Others

By Coating: PE Coated, PLA-coated, Water base barrier coating, Others 

By End User: Quick Service Restaurants, Offices and Educational Institutions, Residential, Courier Companies, Food Delivery Companies, Others

• Research and development (R&D) initiatives in the paper products market in South Korea can lead to innovative solutions, improved product quality, and a competitive edge. In 2022, Researchers at the Korea Research Institute of Chemical Technology have created readily mass-produced and environmentally friendly paper straws, 100% biodegradable, and function better than traditional paper straws. Presently on the market, paper straws are not composed of paper.

• Sustainable packaging solutions are in high demand in South Korea. Packaging waste has steadily increased as a result of the rapid expansion of the e-commerce business, the skyrocketing popularity of HMR items, and the increase in single-person dwellings, among other factors. This tendency was further fueled by the COVID-19 epidemic, which awakened all aspects of Korean society to the environmental effect of packaging waste and the necessity for sustainable packaging alternatives. 

• The rapid growth of e-commerce is an opportunity for paper packaging while raising expectations for packaging sustainability. Domestic e-commerce sales have been rising over the previous years, reaching $168.5 billion in 2021 from $135.1 billion in 2020, according to the International Trade Administration (ITA). The market is currently expanding due to the growth of the e-commerce and retail industries, as well as the increasing need for ecologically friendly packaging materials.  

 

Paper Packaging dominated the South Korea paper products market in 2023. Due to their hectic lifestyles and growing awareness of the impact packaging materials have on the environment, people in the nation are choosing easily accessible and environmentally friendly packaging solutions. Thus, it is expected that the need for packaging supplies made of paper will rise. The government of South Korea banned all single-use plastics in 2019 due to the country's excessive use of these materials.

The market is currently expanding due to the growth of the e-commerce and retail industries, as well as the increasing need for environmentally friendly packaging materials. South Korea's domestic internet sales increased to USD 168.5 billion in 2021 from USD 135.1 billion in 2020, as reported by the US Department of Commerce's International Trade Administration. The proliferation of online shopping platforms has led to a significant growth in the demand for secondary and tertiary paper packaging items.

PLA-coated dominated the South Korea paper products market in 2023. PLA-coated paper conforms to ASTM D6400 and EN13432 Bio-standards. In a composting environment, it can break down into carbon dioxide and water. It benefits the environment and the human body in a non-toxic way. According to FDA and EU food contact regulations, disposable paper containers made of PLA-coated paper are safe to come into contact with food service. Paper goods, particularly cups, were commonly lined or coated with plastic or polyethylene (PE). Plastic is bad for the environment and does not biodegrade. With none of the negative environmental effects of PE, PLA performs the same function. It can drastically cut down on how much plastic film is used in paper packaging.

Quick Service Restaurants dominated the South Korea paper products market in 2023. The paper products market in South Korea's quick service restaurants is thriving, driven by the growing demand for convenient and on-the-go food options. With the focus on eco-friendly and sustainable practices, the market is witnessing an increased demand for biodegradable and compostable paper products. 

The South Korean Ministry of Environment declared on January 24, 2022, that as of June 10, 2022, a deposit program for single-use cups from chain cafés and restaurants would be put into place. Consumers of South Korean chains with over 100 locations will pay 300 KRW (0.25 USD, 0.22 EUR) for each throwaway cup. This trend has led to an increase in the demand for biodegradable and compostable paper cups and plates in QSRs.

The South Korean Ministry of Environment declared on January 24, 2022, that starting on June 10, 2022, a deposit program for single-use cups from chain cafés and restaurants will be implemented put into place. Consumers of South Korean businesses with over 100 locations will pay 300 KRW ($0.25) for each disposable cup. Returning cups to any franchise that is part of the deposit scheme is permitted. 

The Ministry has established guidelines for both paper hot cups and plastic cold cups to guarantee superior recycling capabilities. The new approach will apply to around 80% of disposable cups sold in South Korea. Governments may implement regulations aimed at reducing the use of single-use plastics and encouraging the adoption of eco-friendly alternatives. This can create a favourable environment for the paper products industry, as paper is often considered a more sustainable option. 

According to the International Trade Administration (ITA), With 13.3% of all e-commerce transactions in 2021 coming from Korean e-commerce platforms, food delivery services were the most popular services. However, before the COVID-19 pandemic, food delivery services made up only 2.2% of all e-commerce revenues, with travel and transportation services accounting for the majority at 12.9%. In 2021, Koreans purchased more food from restaurants via delivery services, spent a lot less money dining out, and traveled less than previously.

Online sales of food delivery services increased by 48.2% year over year to 25.7 trillion won, while sales of food and drink increased by 26.3% to 24.9 trillion won. The significant amount of food and drink in e-commerce transactions might lead to a rise in the country's demand for paper packaging.

One of the primary challenges with paper packaging is the potential for deforestation and habitat destruction. For instance, through its subsidiary firm, Moorim Paper, a South Korean corporation involved in the production and sale of paper and pulp products, took off almost 6,000 hectares of forest between 2015 and 2021. They oversee 64,000 hectares of land, so in the upcoming years, additional forests might be cut down. If the demand for paper is not managed sustainably, it can lead to negative impacts on biodiversity, local communities, and the overall health of forests. Unsustainable logging practices can lead to resource depletion and a loss of biodiversity in forests.

In certain cases, paper packaging might have a shorter shelf life compared to materials with better barrier properties. This can impact the suitability of products with longer shelf lives. Paper packaging may not have the same inherent strength and durability as materials like plastics or metals. Heavy goods require packaging that can withstand the weight and potential impact during transportation and handling. The necessity for the paper to package highly heavy goods presents the biggest obstacle for the paper packaging business, which has led to competition from the plastics and metal packaging sectors. In certain cases, consumers might perceive paper packaging for heavy goods as less reliable or protective than alternatives like plastic or metal.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the South Korea paper products market. In 2023, the South Korea paper products market share has been fragmented by the major players accounting for 17.5% of the share. Major players in the South Korea paper products market are Asia Paper Manufacturing. Co., Ltd, Hansol Paper Co., Ltd., Korea Export Packaging Ind.Co., Ltd, Moorim Paper CO., LTD., Sambo Corrugated-Board Co., Ltd., Paper Corea Inc., Dongwon Systems, Youlchon ChemicalLtd, Daeyang Paper Industry Co., Ltd., ACE Pack among others.

In September 2023, Hansol increased the range of products it offers for direct thermal face stock through the addition of products with phenol- and bisphenol S (BPS)-free developers. The company designs and produces all-around label products and services from face stock to release liner.

In January 2022, Renowned Korean paper maker Hansol Paper created Hansol EB (Eco Barrier), a flexible packaging substitute for aluminum foil and plastic film. On prepared base paper, Hansol EB creates a barrier layer using coating technology that is exclusive to Hansol Paper.