The decor paper market is estimated to be valued at USD 4.42 Bn in 2024 and is expected to reach USD 6.25 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.1% from 2024 to 2031. The growth of the decor paper market can be attributed to the rising demand for Interior décor from both commercial and residential sectors across the globe.

Market Driver - Increasing Demand for Aesthetic and Decorative Interior Finishes in Residential and Commercial Spaces

Use of decorative wallpapers and home décor packaging has increased significantly over the past decade. It is driven by changing consumer preferences and rising standards of living. Decor paper plays a vital role in enhancing the overall aesthetics and atmosphere of any indoor space.

Residential real estate developers and homeowners recognize the value decor paper brings in terms of boosting curb appeal and visual impression. This drives the décor paper market up with growing demand from both individuals undergoing home makeovers as well as new construction projects.

Even commercial office spaces and public facilities are acknowledging the positive impact decor papers have on customer and employee experience. Medical centers, hotel lobbies, conference rooms are widely experimenting with wallpaper designs and luxury flooring papers that uplift the ambience.

The decor paper market is also innovating with new techniques, materials, patterns, and prints that appeal to evolving consumer preferences. Digital printing allows for customized photo realistic prints tailored as per the space. These highlight upcoming trends in the décor paper market.

Market Driver - Growing Urbanization and Disposable Income Leading to a Surge in Construction Activities

The decor paper market is witnessing considerable growth opportunities on the back of rapid urbanization observed globally. According to some estimates, nearly 68% of the world population is projected to reside in urban areas by the year 2050. This translates to continued infrastructure development activity.

Another important driver has been the steady rise in disposable income levels among the expanding middle class segment in developing economies. This empowered population now has greater spending power to splurge on better quality homes, indulge in home remodeling more frequently as well as commercialize some part of their premises.

Construction firms are also aggressively marketing the idea of ‘complete interior solutions’ to home buyers and commercial clients. Decor papers serve as an integral part of these customized offerings that elevate the overall interior ambience. Many suppliers now provide end-to-end installation services as well to tap into the growing addressable pie. The decor paper market is capitally placed to leverage new construction and refurbishment opportunities for substantial growth ahead.

Market Challenge - Availability of Alternative Materials Impacting the Demand for Traditional Decor Paper

The decor paper market has been facing the challenge of availability of alternative materials that are substituting traditional decor paper products. Decor papers have primarily been used for wall coverings, ceiling covers and other surface decorations purposes.

However, the last few years have seen a rise in the popularity and use of other materials such as laminates, wood, and metal sheets for such decorations. These alternative materials offer certain advantages over traditional decor papers such as better durability and damage resistance.

Manufacturers are also promoting these substitutes aggressively highlighting their properties. Availability of close substitutes with perceived better qualities has reduced the demand growth for conventional decor paper products in recent times. The decor paper market needs to work on enhancing the value proposition of their offerings to counter this challenge.

Market Opportunity - Expansion in Construction Activities, Especially in Emerging Economies

The decor paper market has been presented with significant opportunities stemming from the rising construction activities globally, particularly in developing regions. Emerging economies across Asia Pacific and Latin America are witnessing strong growth in infrastructure development and construction of new residential and commercial spaces. This has spurred the demand for interior and exterior decor materials including decor papers.

Decor papers continue to be widely used for wall paneling and covering ceilings in various construction projects due to their cost effectiveness. The booming real estate sector and spending on refurbishment of existing structures are driving consumption of decor paper products.

Countries like India, Indonesia, Vietnam and Brazil are high growth potential markets for decor papers riding on rapid urbanization and construction expansion. Manufacturers can leverage on emerging markets which act as a key demand driver for the decor paper market in the coming years.

Focus on innovation and new product development - For example, Kohler Co. launched its Artifacts decor paper collection in 2019 made from sustainable materials like grass paper and wood pulp. These unique textures and patterns helped Kohler gain market share.

Strategic acquisitions - For example, in 2017, South Australian Premium Paper acquired UK-based Blackman & White to increase presence in the European decor paper market.

Customer-centric approach - For example, Ahlstrom-Munksjo's consumer research revealed a shift towards natural textures. It launched non-woven wallpapers made from sustainable fibers like linen, helping capture the fast-growing eco-friendly segment.

Marketing and brand building initiatives - As an example, Liligo Decor consistently sponsors interior design events and awards to raise brand awareness among professionals and end consumers.

Partnerships and distribution channel management - Key players partner with retailers, installers, and e-commerce platforms to ensure strong product availability and visibility. For instance, Graham & Brown partnered with Home Depot in 2016 to launch an exclusive wallpaper collection.

Insights, By Product: Visual Appeal and Versatility Drive Printed Segment Leadership

In case of product, paper commands 41.6% share of the décor paper market due to its unparalleled visual appeal and versatility. Printed decor papers offer a wide range of pattern, color, and texture options that allow designers to set the desired aesthetic tone in any room or space.

This variety enables printed paper to be used on a multitude of surfaces from walls, ceilings, and furniture to flooring, panels, and store fixtures. Its moldability and adaptability grant maximum creative freedom to designers and end users alike. This transforms spaces and greatly enhances their perceived value, especially in high-end commercial and residential projects.

Additionally, printed designs hide minor surface imperfections very effectively. This makes printed paper a low maintenance option as it conceals small marks and scratches that may occur over time. Its ability to impart natural, organic looks while only using paper as the primary raw material is also eco-friendly. Sustainable decor solutions are gaining widespread popularity.

Insights, By Printing Technology: Technological Superiority Drives Rotogravure Segment Domination

In case of printing technology, rotogravure is expected to hold 42.2% share of the market in 2024, owing to its technological superiority. Rotogravure utilizes engraved cylinders to print large quantities at very high speeds. This makes it the most productive and economical technology for bulk decor paper production.

Rotogravure also provides unrivaled print quality and resolution. It can reproduce even the finest details and subtle color variations with amazing precision and clarity. The consistency it achieves across huge print runs far surpasses others. Quality and consistency increase perceived product value for manufacturers and brands. It helps them demand premium price points from customers.

Furthermore, rotogravure is capable of handling heavyweight paper and board substrates that may be required for applications like heavy-duty furniture, flooring, and construction material wrapping. This expands its addressable market scope significantly compared to competing flexography or screen printing.

Insights, By Application: Design Flexibility and Durability Drive Furniture Leadership

In case of application, furniture & cabinets capture the highest share owing to design flexibility and durability. Decor paper enables unique design possibilities in furniture by allowing wrap-around coverings, intricate inlays, distinct surfacing, and standalone motif applications.

This drastically enhances visual appeal and customization potential for furniture pieces. It drives higher average selling prices by transforming generic wooden furniture into conversation-starting statements. Moreover, decor paper is formable and moldable according to complex cabinet and furniture contours without compromise.

Decor paper also offers superior scratch, scuff, and moisture resistance compared to regular laminates or veneers. Furniture experiences years of heavy use, handling, and accidental damage exposure. Decor paper endures this rigorous lifecycle with grace. Combined with the design versatility, this durability enables decor paper to realize higher returns on investment for furniture brands.

• The decor paper market is largely driven by the rising demand for aesthetically appealing furniture and interior designs in both residential and commercial sectors.
• Companies in décor paper market are increasingly utilizing digital printing to offer customized designs, catering to consumer demand for unique and personalized interior solutions.
• Asia Pacific led the decor paper market in 2023, driven by increasing construction activities and a rising demand for home decor.
• North America is expected to experience the fastest growth in the decor paper market, supported by an increasing interest in home interiors and lifestyle upgrades.
• There's an increasing inclination towards premium furniture and flooring options, driving innovation in high-quality decor paper products.

The major players operating in the decor paper market include ITC Limited, Fakirsons Papchem Pvt Ltd, Shah International, Ahlstrom-Munksjö Oyj, Felix Schoeller India, Pudumjee Paper Products, Fortune Paper Mills, I. DECOR Exp.Imp Co., Ltd, WestCoast Paper Mills, Andhra Paper Limited, SILVERTON PULP & PAPERS PVT. LTD., and Toppan Holdings Inc.

• In March 2024, Christina-Lauren Pollack’s Inspirations & Celebrations and Sullivans Home Decor collaborated to launch new home decor designs including baskets, vases, and artisan candles. This collaboration aims to elevate home decor offerings in decor paper market.
• In February 2024, Rifle Paper Co. collaborated with Target to launch a home collection. This limited-time collection includes 14 new pieces, ranging from furniture like accent chairs and ottomans to decorative items such as wall art and storage boxes.
• In June 2023, Ahlstrom-Munksjö Oyj did announce an expansion of their decor paper production capacity to meet increasing global demand. This move was part of their strategy to enhance their position in decor paper market, especially in the high-end decor paper segment.

• By Product
  • Printed
  • Solid
  • Woodgrain
  • Metallic
• By Printing Technology
  • Rotogravure
  • Digital
  • Screen
  • Flaxographic
• By Application
  • Furniture & Cabinets
  • Flooring
  • Paneling
  • Store Fixtures