Indonesia Direct Thermal Paper Market - Industry Trends and Forecast to 2031

Indonesia Direct Thermal Paper Market, By Product Type (Top Coated, Non-Top Coated), Thickness (Upto 50 Microns, 51-80 Microns, More Than 81 Microns), Application (Tickets and Labels, Point of Sales (POS) Receipts, Lottery and Gaming, Others), End Use (Retail, Packaging and Labelling, Printing and Publishing, Healthcare, Others) - Industry Trends and Forecast to 2031.

 Indonesia Direct Thermal Paper Market Analysis and Size

Major factors that are expected to boost the growth of the direct thermal paper market in the forecast period are the rising number of automated teller machines (ATM) and widespread use across the printing and packaging industry. Furthermore, the stringent labeling requirements across various industries act as an opportunity for the market. On the other hand, increasing concerns over BPA toxic levels are anticipated to derail market growth.

Data Bridge Market Research analyzes that the Indonesia direct thermal paper market which was USD 43.94 billion in 2023, is likely to reach USD 68.47 billion by 2031, and is expected to undergo a CAGR of 5.70% during the forecast period of 2024 to 2031.  “Top coated” dominates the type segment of the direct thermal paper market owing to the more resistant nature of top-coated thermal paper to scratches and scuffs, light, moisture, and other environmental issues.

In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

 Indonesia Direct Thermal Paper Market Scope and Segmentation

Market Definition

Direct thermal paper refers to a type of specialty paper designed for thermal printing applications. This paper is chemically treated to produce high-quality images and text when heat is applied, eliminating the need for ink or ribbons. It is commonly used in point-of-sale systems, shipping labels, receipts, and other applications where efficient, cost-effective, and high-resolution printing is required. Indonesia, with its growing retail and logistics sectors, has a significant demand for direct thermal paper to support various businesses and industries in the country.

Indonesia Direct Thermal Paper Market Dynamics

Drivers

• Expanding Retail Industry in Indonesia

As the country experiences an increase in modern supermarkets, convenience stores, and other retail establishments, there is a rising demand for efficient and high-quality direct thermal paper products. Retailers require direct thermal paper for printing receipts, labels, and price tags, creating a substantial market for these products. This demand is further amplified by Indonesia's growing middle-class population, which is contributing to increased consumer spending and, subsequently, the expansion of the retail sector.

Furthermore, the retail landscape in Indonesia is evolving with the expansion of e-commerce platforms. Many retailers are shifting to online sales, and direct thermal paper is essential for shipping labels, invoices, and order receipts in the e-commerce ecosystem. The amalgamation of traditional and e-commerce retail channels in Indonesia strengthens the driver role of the growing retail sector in boosting the demand for direct thermal paper.

• Booming E-Commerce Sector

The country's expanding e-commerce industry, driven by increased internet penetration and smartphone usage, relies heavily on direct thermal paper for various functions, such as printing shipping labels, invoices, and packing slips. As consumers increasingly prefer online shopping, this trend has led to a surge in the volume of packages and orders that require direct thermal paper for documentation.

In addition, the COVID-19 pandemic accelerated the adoption of e-commerce in Indonesia as consumers sought contactless shopping options. This surge in online retail activity has had a profound impact on the demand for direct thermal paper, further solidifying its position as a critical driver in the market. As e-commerce continues to thrive, the direct thermal paper market in Indonesia is expected to witness sustained growth, driven by the digital retail revolution.

Opportunity

• Advancements in Direct Thermal Paper Manufacturing Techniques

Technological advancements have enabled paper manufacturers to enhance the quality, performance, and sustainability of direct thermal paper products. These advancements include improved coating technologies, enabling direct thermal paper to offer higher resistance to factors like moisture, heat, and light. This not only enhances the durability of the paper but also widens its applicability in various industries.

Moreover, the incorporation of automation and digital printing techniques in the manufacturing process has increased efficiency and reduced production costs, making direct thermal paper more cost-effective for businesses. These manufacturing advancements facilitate the production of high-quality, eco-friendly direct thermal paper, aligning with the growing preference for sustainable products in today's market. As Indonesian manufacturers continue to leverage these technologies, it opens up exciting opportunities for the direct thermal paper industry to expand its product offerings and cater to a broader range of applications, from retail and logistics to healthcare and beyond.

Restraint/Challenge

• Price Fluctuations in Raw Materials

Price competition in the paper industry is intense, and the cost of raw materials, particularly the chemicals used in thermal coatings, can be subject to fluctuations. This sensitivity to price is exacerbated by the need for advanced technologies to produce high-quality direct thermal paper. Consequently, manufacturers may face difficulty in maintaining competitive pricing while upholding product quality.

Furthermore, the price sensitivity can impact market stability as it may lead to thin profit margins, hindering investments in research and development or sustainable practices. The reluctance of some businesses to adopt direct thermal paper due to cost concerns could also limit the expansion of the market's customer base. Addressing price sensitivity by finding a balance between quality and cost remains a significant challenge for market players as they aim to capture and retain market share in Indonesia's dynamic and competitive direct thermal paper sector.

This direct thermal paper market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the direct thermal paper market contact Data Bridge Market Research for an Analyst Brief, our team will help you make an informed market decision to achieve market growth.

Recent Developments

• In April 2023, Nissha and Koehler Paper cooperated to create sustainable Metivo advanced packaging paper made with Koehler Nexplus barrier paper
• In September 2021, Appvion Operations, Inc. has launched a superior Dispersible Direct Thermal label solution. Dispersible is a unique material that looks, feels, and tears like ordinary direct thermal paper but has a distinguishing feature. It disperses in cold water, hot water, and most aqueous solutions. This product launch has helped the company to widen its product portfolio

Indonesia Direct Thermal Paper Market Scope

The direct thermal paper market is segmented on the basis of product type, thickness, application, and end use. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product Type

• Top Coated
• Non-Top Coated

Thickness

• Upto 50 Microns
• 51-80 Microns
• More Than 81 Microns

Application

• Tickets and Labels
• Point of Sales (POS) Receipts
• Lottery and Gaming
• Others

End Use

• Retail
• Packaging and Labelling
• Printing and Publishing
• Healthcare
• Others

Competitive Landscape and Indonesia Direct Thermal Paper Market Share Analysis

The direct thermal paper market competitive landscape provides details by competitors. details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Indonesia presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width, and breadth, application dominance. The above data points provided are only related to the companies' focus related to the direct thermal paper market.

Some of the major players operating in the direct thermal paper market are:

• Ricoh Electronics, Inc. (U.S.)
• Honeywell International Inc. (U.S.)
• MITSUBISHI PAPER MILLS LTD (Japan)
• UPM (Finland)
• Appvion Operations, Inc. (U.S.)
• AVERY DENNISON CORPORATION (U.S.)
• LINTEC Corporation (Japan)
• Asia Pulp & Paper (APP) Sinar Mas (Indonesia)
• Panda Paper Roll (Canada)