The specialty paper industry has recently seen a flurry of price hikes, signaling a clear recovery in the market.

Several leading companies have announced price increases for their products. Among them, Sun Paper and Wuzhou Specialty Paper both plan to raise the prices of their white kraft paper products by 300 yuan per ton, effective March 5, 2026, based on current prevailing prices. This price hike covers high-end specialty paper categories such as food packaging, label liner paper, and medical packaging, representing an increase of nearly 4%. It reflects the industry’s collective entry into a price-raising cycle.

Behind this round of price adjustments lies the combined effect of multiple factors:

Cost pressure transmission Wood pulp accounts for more than 60% of the production costs of specialty papers. Since 2026, overseas quotations for hardwood pulp have continued to rise, and coupled with soaring costs for energy, logistics, and environmental compliance, companies’ profit margins have been squeezed. Therefore, passing on these increased costs downstream through price hikes has become an essential measure.

Downstream demand is picking up. After the Lantern Festival, printing, packaging, and logistics companies have fully resumed operations and replenished their inventories, gradually restoring supply and demand in the kraft paper market. Stable growth in sectors such as food delivery and chain restaurants is also providing strong demand support for food-grade white kraft paper.

Industry structure optimization Leading companies possess stronger pricing power and greater ability to pass on costs. This coordinated price increase reflects a rising industry concentration and increasingly sophisticated business strategies, signaling that the specialty paper sector is transitioning from the bottom of the cyclical downturn toward a path of profit recovery.

From a long-term perspective, the specialty paper market still has room for growth. According to a forecast by the Smithers Institute, global consumption of specialty paper will surpass 31.3 million tons by 2030, with a compound annual growth rate of 2.1% over the next five years. Among these factors, the “paper-for-plastic” policy, breakthroughs in bio-based material technologies, and rising demand for papers used in new energy applications—such as battery separator papers—are emerging as new drivers of industry development.

China has become a major global hub for innovation in specialty papers. Graphene-based conductive paper developed by Jiangsu-based enterprises is being used as a substrate for flexible displays; Sichuan’s technology for extracting bamboo fiber has reduced raw material costs by 40%; Guangdong’s photocatalytic self-cleaning paper can degrade formaldehyde in real time; and the northwest region has leveraged papermaking sludge to create flame-retardant paper capable of withstanding fire for up to 180 minutes—all demonstrating deep-seated innovative vitality within the industry. Meanwhile, regions such as Xintai in Shandong and Quzhou in Zhejiang are accelerating the development of specialty-paper industrial parks, driving synergistic upgrades across the entire industry chain.

Currently, the market price of white kraft paper in Shandong Province is approximately RMB 7,200–7,400 per ton. Industry insiders expect that prices in the coming period will likely remain stable while gradually rising. In 2024, China’s production of specialty papers reached 7.62 million tons, representing a year-on-year increase of 2.56%. Export volumes totaled 1.8408 million tons, with major destinations including the United States, Russia, and Vietnam.