Specialty Pulp and Paper Chemicals Market Analysis

Specialty Pulp and Paper Chemicals Market Analysis

On the basis of product, the market is split by four segments which include bleaching, process, functional, and basic chemicals. Of these, functional chemicals had almost half of the total specialty pulp and paper chemicals market share in 2015. Functional chemicals include dyes, pigments, and coating chemicals.

Rising demand of value-added paper resulted in the highest consumption of functional chemicals in 2015. Functional chemicals are forecast to have the fastest growth at over 4.5% CAGR in terms of revenue from 2016 to 2024.

Bleaching and process chemicals together recorded over 45% of the total market share in the same year. They are expected to lose their market share to functional chemicals in the forecast timeframe. The rising demand for recycled papers owing to increasing awareness about environmental conservation will drive the specialty pulp and paper chemicals market for bleaching chemicals.

Global recycled paper consumption was recorded at more than 200 million tons in 2015. Bleaching chemicals may register a revenue growth at a CAGR over 4% from 2016 to 2024.

Process chemicals include chelating agents which help in removing scales from pulp manufacturing machines, thus improving their efficiency and extending their life span. This product segment is expected to cross the revenue of USD 6,700 million by 2024. Basic chemicals such as caustic soda and other mineral acids are used to increase the pH and help in easy breakage of fibers. They constitute less than 2% of the global specialty pulp and paper chemicals market.

Asia Pacific, led by China, dominated the revenue landscape in 2015 accounting for over 35% of the total volume. It is expected to have a steady growth throughout the forecast timeframe. With an increase in the production capacity in the region, Asia Pacific is forecast to be the fastest growing region with an anticipated 6% CAGR from 2016 to 2024.

Growing demand of packaging materials on the account of steady growth in retail market of China and India will influence the global rise in specialty pulp and paper chemicals market.

In 2015, Europe held close to 30% of global demand; however, the industry share may reduce as paper consumption trends move towards APAC. North America will also be affected with the advent of the digital age. With rise in advanced electronic media the demand for paper media for magazines will find a decline in the next eight years.

However, the increasing use of specialty papers for packaging will drive the growth for specialty pulp and paper chemicals market from 2016 to 2024. North America and Europe are expected to depict a CAGR of over 4% in terms of revenue in the forecast timeframe.

Latin America (LATAM) will find a significant market share because of new manufacturing facilities coming up in the area. The LATAM market is anticipated to cross $3,300 million by 2024 growing at a CAGR above 5% from 2016 to 2024.