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(Construction.IndustryNews247.Com, October 24, 2019 ) Market Overview
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.
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 have 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 worlds 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, 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 surge in literacy rates in the developing countries such as India, China, and Brazil will create the 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 the raw material. Recycled paper is the major source of the raw material for most of paper mills in the developing as well as developed countries. Recycling of paper not only saves more and more natural resources but also saves lots of manufacturing expenses. Primary applications for the recycled paper are the newsprint paper, printing & writing paper, and packaging products. Therefore, it will fuel growth in the global market.
Market Segmentation
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 labelling. 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.
Geographical Analysis
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 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 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.
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.
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