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The volatility in wood pulp prices may have an adverse impact on the growth of coated paper market during the forecast timespan. Economic cycles and global supply & trade disturbances cause a major shift in the prices of wood pulp. Moreover, the requirement for huge capital investment may hinder the market growth in the future. This investment covers costs associated with land, setting of production plant, necessary equipment, permits, etc.
Additionally, constraints related to locations having plenty of forest reserves, environmental clearances, and water availability may pose difficulties for coated paper manufacturers. However, major players are aligning their business models and adopting vertical integration strategies for improving their production output and enhancing efficiency of the overall process.