Market Overview
The Global Pulp and Paper Chemicals Market is expected to grow at a CAGR of 4.1% during the forecast period (2024-2031).
Pulp and Paper Chemicals designate a group of chemicals that are used for paper manufacturing or modify the properties of paper. These chemicals can be used to alter the paper in many ways, including changing its color and brightness, or by increasing its strength and resistance to water. Chemical pulping involves dissolving lignin in order to extract the cellulose from the wood fiber.
Market Scope
| Metrics | Details |
| Market CAGR | 4.1% |
| Segments Covered | By Type, By End User and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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The growth of the paper chemicals market can be attributed to the growing production of packaging paper due to the high demand for paper-based packaging over plastic-based packaging.
There has been a trend in recent years for pulp and paper operations to become part of large, integrated forest product companies. These companies have control of forest harvesting operations (see the Forestry chapter), lumber milling (see the Lumber industry chapter), pulp and paper manufacturing, as well as converting operations. This structure ensures that the company has an ongoing source of fiber, efficient use of wood waste, and assured buyers, which often leads to increased market share. Moreover, the increasing awareness about sustainable packaging and increasing per capita expenditure on food and beverages has created a high demand for paper-based packaging. These factors are expected to fuel the paper chemicals market during the forecast period.
The manufacture of pulp, paper, and paper products ranks among the world’s largest industries. Mills are found in more than 100 countries in every region of the world and directly employ more than 3.5 million people. The major pulp and paper producing nations include the United States, Canada, Japan, China, Finland, Sweden, Germany, Brazil, and France.
Market Dynamics
The global Pulp and Paper Chemicals Market is primarily driven due to rise in the demand for flexible paper packaging, owing to growing consumer awareness regarding harmful effects of plastic on the environment along with eco-friendly nature and economic form of paper packaging, which is expected to propel pulp & paper chemicals market growth. Paper packaging includes rigid and flexible paper packaging formats, such as paper sacks and bags, corrugated boxes, wrapping paper, cartons, display packaging, cups and trays, inserts and dividers, tapes and labels, and clamshells. Packaging performs an important function by protecting goods from damage, from the point of manufacture to the final consumer. It prevents wastage of goods and energy.
Increasing urbanization and middle-class population with a surge in literacy rates in developing countries such as India, China, and Brazil will create a huge demand for paper products such as newsprint, packaging, and writing paper. Also, changing consumer preferences towards convenient packaging solutions along with sustainability in mind will diminish the demand for plastic packaging and hence fuel the paper and paperboard industry. Recycling of paper has become a major trend in the paper and paper board industry, primarily due to unavailability or scarcity of raw material. Recycled paper is the major source of the raw material for most paper mills in developing as well as developed countries. Recycling paper not only saves more and more natural resources but also saves lots of manufacturing expenses. Primary applications for recycled paper are newsprint paper, printing & writing paper, and packaging products. Therefore, it will fuel growth in the global market.
Market Segmentation Analysis
By application, the global Pulp and Paper Chemicals Market is segmented into Packaging, Writing and printing, Packaging, Labeling, Building and construction, and others.
Writing and printing application is leading the segment with majority share, followed by labeling. Packaging is also another key segment in the market. Applications include bags, carton side seam & closures, cigarettes, and filters, composite containers and tubes, corrugated board, cups, disposables (non-wovens), envelopes, film: film and film: foil laminates, flexible packaging, labels/signs/decals, remoisten able products, and specialty packaging. Almost all of the industrial products are sold in packaging – either due to stability requirements for storage and transport or for aesthetic reasons, resulting in significant growth during the forecast period.
Paper products find their major uses in the publishing industry, for writing, cardboards, brown paper, etc. The pulp and paper processing utilizes various stages and at different stages, various chemicals are used. These chemicals enhance the physical and chemical properties of the end product along with making the process easy and more economic. Due to increasing requirement of paper from various end-use industries, the demand for pulp and paper processing chemicals is expected to increase at a high CAGR during the forecast period.
Market Geographical Share
By geography, the global Pulp and Paper Chemicals market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and Middle East and Africa (MEA).
APAC region is expected to register the highest CAGR during the forecast period. High industrialization growth in the region, especially in China and India, is estimated to fuel the demand for paper products in the region. Driven by the regulations on the plastic products, and the growing application base for paper, the pulp and paper processing chemicals market is anticipated to witness a significant growth in both the developed and developing countries over the coming years.
North America is the second-largest market for pulp & paper chemicals owing to the increasing demand for paperboard in packaging applications. The European market for pulp & paper chemicals is expected to grow as a result of rising demand from the Eastern European countries and increasing use of recycled paper.
Companies and Competitive Analysis
Pulp and Paper Chemicals market is highly competitive and thus manufacturers continuously focus on developing new strategies in order to grab more number of customers across the globe. Over the coming years, companies are expected to focus on potential growth markets for Pulp and Paper Chemicals. To that end, besides expanding their presence, companies are expected to formulate effective distribution strategies to make their presence felt in the upcoming markets for Pulp and Paper Chemicals. Merger, acquisition, and product development are key strategies adopted by leading players.
The major players include Akzonobel N.V., The Dow Chemical Company, Ashland Inc., BASF SE, and Nalco Holding Company. Other key players in the market are Buckman Laboratories Internation, Inc., Evonik Industries, Kemira Oyj, Shell Chemicals, and SNF Floerger.
