Market Prospect of Paper Yarn

The market prospect of paper yarn is generally promising with steady growth. It is mainly driven by global plastic restriction + carbon neutrality policies and the upgrading of green consumption.

1. Market Scale and Growth Rate (2025-2029)

2025: RMB 14.21 billion (up 10.5%)

2026: RMB 15.78 billion (up 11.1%)

2029: RMB 21.64 billion

The compound annual growth rate from 2025 to 2029 reaches 9.8%, far higher than that of traditional textiles.

Production capacity: In 2025, China total production capacity of paper yarn is 450,000 tons, output 410,000 tons, with a capacity utilization rate of 91.1%, showing a well-balanced supply and demand structure.

2. Core positive factors — Three Major Driving Forces

Policy promotion: Global plastic bans, China’s carbon peaking and carbon neutrality goals, and the EU Carbon Border Adjustment Mechanism (CBAM). As a fully biodegradable natural fiber, paper yarn has huge potential to replace plastics and chemical fibers.

Booming market demand:

Packaging: Strong market demand for environmentally friendly handles, paper cords and gift box ribbons, replacing plastic ropes and adhesive tapes.

Apparel & Home textiles: Rapid market penetration in summer breathable antibacterial products such as sun-protective clothing, bedding and curtains.

3. Prospect Summary & Development Trend

Long-term (5 years and beyond): Paper yarn will become one of the mainstream materials in green textiles, achieving structural substitution of chemical fibers in carbon neutrality-related scenarios, such as eco-friendly product lines of brands and biodegradable packaging.