Pulp & Paper Chemicals Market - Forecast(2023 - 2028)
Pulp & Paper Chemicals Market Overview
Pulp & Paper Chemicals Market size is expected to be valued at US$44.8 billion by the end of the year 2027 and is set to grow at a CAGR of 3.2% during the forecast period from 2022-2027. The increase in waste-paper importing by various countries across the globe is driving the pulp & paper chemicals market. Pulp & paper chemicals are produced with sodium hydroxide and urea formaldehyde uf for enhancing the properties of the paper such as printability, color, texture and strength by acting as a chelating agent. The growing demand for pulp and paper chemicals for use in various applications of packaging industry, printing and labelling industry is hugely driving the pulp & paper chemicals industry. Furthermore, the rise in demand for biodegradable, bio-based and lightweight packaging materials from various key use industries such as consumer goods, pharmaceuticals and others are also contributing to the growth of the pulp & paper chemicals market.
During the Covid-19 pandemic, the pulp & paper chemicals market witnessed a sharp decline in its growth. The economic shutdown caused by the Covid-19 pandemic hindered the development and growth of the pulp & paper chemicals market. The operations of the pulp & paper chemicals market were abruptly put to a halt owing to the economic restrictions across the globe. The sales and distribution of pulp & paper chemicals products were also affected as a result of the lockdown and restriction in inter-state and inter-country business activities. The restriction in imports and exports also affected the import of waste paper, which is one of the important raw materials used in the production of paper chemicals. However, the pulp & paper industry is set to improve in the coming months of the year 2021.
The report: “Pulp & Paper Chemicals Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Pulp & Paper Chemicals Market Industry.
By Product Type: Bleaching Agents, Fillers, Pulping Chemicals, Sizing, Specialty Pulp
& Paper Additives, Binders, Blowing Agents and Others.
By Form: Basic and Functional.
By Application: Printing (Newsprint, Writing Papers, Industrial Papers and Paperboard & Tissue), Packaging & Labelling and Pulp Mills.
By Geography: North America (USA, Canada, Mexico), Europe (Germany, UK, France, Italy, France, Netherlands, Belgium Spain, Russia and Rest of Europe), APAC (China, Japan India, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia), South America (Brazil, Argentina, Colombia, Chile and Rest of South America) and RoW (Middle East and Africa).
- Asia-Pacific market held the largest share in the pulp & paper chemicals market due to the increase in the import of wastepaper products in countries like China and India.
- The increase in the demand from printing and packaging industry is driving the growth of the pulp & paper chemicals market.
- The increase in demand for bio-degradable and bio-based packaging from various end-use industries such as consumer goods and pharmaceuticals is driving the pulp & paper chemicals market.
- Amid the Covid-19 pandemic, the pulp & paper chemicals market witnessed many setbacks which lead to huge losses. It is however set to improve in the coming months of 2021.
FIGURE: Asia-Pacific Pulp & Paper Chemicals Market Revenue, 2021-2027 (US$ Billion)
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Pulp & Paper Chemicals Market Segment Analysis – By Product Type
Specialty Pulp & Paper Additives held the largest share of 30% in the pulp & paper chemicals market in the year 2021. Specialty pulp and additives is commonly used in textile and pulp industry. Specialty pulp and paper is used for improving the properties and quality of the paper and mesh. Specialty additives such as Defoamers, retention aids, flocculant polymers and others in water treatment for reducing biodegradable waste. Chelating agents and sodium hydroxide are used in the production of specialty pulp and paper additives in the pulping process to remove lignin and for pre-treatment of washing liquors and fatty acids.
Pulp & Paper Chemicals Market Segment Analysis – By Form
Functional segment held the largest share of 53% in the pulp & paper chemicals market in the year 2021. Functional chemicals such as dyes, coating binder and whitening agents constitutes of pigment and coating agents which is processed with sodium hydroxide. Sodium hydroxide is used in the pulping process to remove lignin which makes the pulp slimy and of a loose consistency. These are used as chelating agents which is used in the pretreatment of washing liquor in the chemical pulp bleaching for improving the properties and qualities of paper such as printability, color, texture, water repellency and strength.
Pulp & Paper Chemicals Market Segment Analysis – By Application
Packaging & Labelling segment held the largest share of 42% in the pulp & paper chemicals market in the year 2021. The ability of specialty pulp and paper chemicals to deliver outstanding print contrast, smooth finishing, lamination and vacuum metalizing applications is driving the demand for pulp & paper chemicals in the packaging and labelling industry. The demand for packaging in the United States was valued at US $ 20.7 billion in the year 2019. The growth in the packaging industry is set to drive the need and demand for pulp & paper chemicals as packaging requires pulp and paper which acts as chelating agents for chemical pulp bleaching. This is driving the demand and growth of pulp & paper chemicals in the packaging & labelling industry.
Pulp & Paper Chemicals Market Segment Analysis – By Geography
Asia-Pacific region held the largest share of 40% in the pulp & paper chemicals market in the year 2021. The increase in the import of wastepaper products in the Asia-Pacific region in countries like China, India and Japan is driving the pulp & paper chemicals market in the region. For instance, according to International Trade Center, China exported the highest value of paper and pulp standing at US$20.89 billion during the 2020, Japan exported US$2.41 billion worth of paper and pulp. Furthermore, during the year 2019, India imported 1 million short tons of mixed and waste paper from the U.S. The increase in activities related to paper and pulp in the region will increase the demand for pulp and paper chemicals products in the Asia-Pacific region as wastepaper are used in the production of pulp and paper chemical products. The increase in the awareness about eco-friendly and sustainable products is also driving the pulp & paper chemicals market.
Pulp & Paper Chemicals Market Drivers
Increase in the Packaging Industry
The increase in need and demand for pulp and paper chemicals in the packaging industry is driving the pulp & paper chemicals market. According to the World Packaging Organisation (WPO) the turnover of the packaging industry crossed US $ 500 billion in the year 2019, which is one of the factors that is driving the pulp and paper chemicals market. The products such as pulping chemicals, specialty pulp & paper additives and bleaching agents which is used in producing the packets, covers and the labels of the packages are driving the need and demand for pulp and paper chemicals products in the pulp and paper chemicals market.
Growing Awareness about Eco-Friendly and Sustainable Products
The increasing awareness about eco-friendly and sustainable products is one of the major factors driving the pulp & paper chemicals market. Pulp and paper chemicals do not include harsh chemicals and toxic substances such as fatty acids, as they are cleared out during the process of chemical pulp bleaching by the chelating agents used in the manufacture of pulp. This helps in reducing the pollution to a great extent and help in promoting environmentally friendly practises. Therefore, it is one of the major factors driving the growth of the pulp and paper chemicals market.
Pulp & Paper Chemicals Market Challenges
Strict Regulations on Water Treatment
The process of pulp bleaching involves water treatment which is hazardous to the water body and the living creature’s dependent on it. This causes huge damages to the water bodies in the long run. Therefore, the process of pulp bleaching has attracted the attention of many civic and legal bodies which has laid regulations on water treatment process. According to the wastewater discharge standards set by the Government of India, factories releasing wastewater should adhere to the 8-fold dilution in the receiving water body, and any point above 8-fold dilution of the wastewater content will attract legal actions.
Pulp & Paper Chemicals Industry Outlook
Collaborations, partnerships, investments, facility expansion, production expansion, acquisitions and mergers are some of the key strategies adopted by players in the Market. Pulp & Paper Chemicals top 10 companies include:
- Kemira Oyj
- BASF SE
- Imerys S.A.
- The Dow Chemical Company
- Ecolab Inc.
- Ashland Global Specialty Chemicals Inc.
- Buckman Laboratories International, Inc.
- SNF Group
- Solenis among others.
- On December 17, 2020, Kemira and DuPont Nutrition and Biosciences partnered for development and commercialization of new breakthrough biomaterials and biobased chemicals, and the partnership will give the access required to leverage the full potential of the technology in Kemira’s core markets such as paper and board industry and water treatment.