The global specialty pulp & paper chemicals market size was estimated at USD 20.79 billion in 2017. Technological advancements and growing focus on developing sustainable methods to decrease environmental impact are anticipated to be significant factors driving industry expansion over the forecast years.
The global market is projected to register substantial gains over the coming years as a result of increasing product utilization in packaging and labeling applications. Soaring food consumption in Asia Pacific, especially China and India, is a major factor augmenting the flexible packaging industry.
In line with this, introduction of labeling manufacturing technologies, enhanced packaging practices, and use of case-ready packaging are likely to drive industry growth. Moreover, development of food processing technologies in Germany, U.S., France, and U.K. is forecast to further propel the packaged foods sector.
Asia Pacific is projected to lead the market throughout the estimated period owing to a flourishing food and beverages sector, especially in India and China. Rising consumption of packaged foods, along with rising disposable income of consumers, is likely to spur demand for rigid and semi-rigid packaging material over the next few years, thereby driving the overall market for specialty pulp and paper chemicals.
The market for coated paper is anticipated to witness significant growth as a result of rapidly increasing demand from packaging and advertising industries. Coated paper, incorporated with specialty substances, provides matte texture and gloss finish, leading to increasing applications in security products, advertising materials, newspaper inserts, catalogues, magazines, and converted materials.
In terms of raw material trends, overuse of biocides is harmful to the environment and to all living beings. Biocide, considered a pesticide in Europe, is governed under the European Union Directive 98/8/EC under the “Biocidal Products Directive”. The biocide is classified under 22 distinguished product types established for diverse applications.
Ethylenediaminetetraacetic acid (EDTA), one of the many chelating agents, is non-biodegradable in nature and has hazardous implications on the environment, thereby threatening to restrict industry growth over the coming years. Nevertheless, harmful effects of these substances are likely to promote development and utilization of advanced and bio-degradable product variants, which will present a remarkable opportunity for the overall market.
On the basis of product, the industry is segmented into process, basic, bleaching, and functional chemicals. The functional segment held around 51.7% of the overall market revenue in 2017 and constitutes of latex, pigment, starch, binders, dye, and miscellaneous coating agents.
High demand for colored, coated, and finished paper is likely to result in significant demand for functional chemicals. In addition, consumption of graphic paper and printing and writing products has increased, which in turn, is anticipated to spur the usage of specialty chemicals over the coming years. Demand is further expected to rise due to new product developments such as eco-friendly dyes, enzymes, and technologies such as sprinkling.
Various bleaching substances used in the manufacturing of specialty pulp and paper include hydrogen peroxide, hypochlorite, acetic acid, enzyme, deinking, and ozone chemicals. Consumption of these substances is likely to witness high growth owing to wide utilization of hydrogen peroxide as a part of bleaching chemicals in the pulp and paper industry. Not only can hydrogen peroxide be applied to recycled fibers and chemical pulp, it also augments final brightness and decreases effluent color in them.
Packaging, labeling, and printing are key application areas in the specialty pulp & paper chemicals market. In 2017, packaging dominated the industry and held around 40.4% of the global volume. Wide product application in food packaging, including takeout boxes, corrugated clamshell, paper tubes, paper plates, and cups, is a key factor supporting segment growth.
Prominent packaging applications include retail food, food service, consumer packaging, and quick service restaurants. Packaging infused with specialty paper is sustainable in nature and exhibits several properties such as compostable and recyclable, fluorochemical-free, and oil- and grease-resistant. Various companies providing these products for packaging are Twin Rivers Paper Company, Sappi Limited, Evergreen Packaging LLC, UPM Specialty Papers, Copamex, S.A. de C.V., and Griff Paper and Film.
Product consumption in labeling is likely to exhibit high demand as a result of growing utilization in several end uses such as retail labels, industrial bar code labels, transportation and distribution labels, and healthcare and medical labels. Other properties of these labels, such as compatibility with solvents, outstanding printability and runnability, and enhanced bar code readability, are projected to further propel market demand over the next few years.
In terms of region, Asia Pacific led the market in 2017 and is anticipated to retain its dominance over the foreseeable future. Demand for specialty pulp and paper for packaging applications has significant volume growth in the region. Surge in retail infrastructure development, supported by growing need for packaged goods in Asia Pacific, has driven the regional market.
Packaging is the largest and fastest growing application in this region owing to retained high economic growth, growth in general consumer goods market, and change in food culture with consumers shifting toward packaged products. This trend is more predominant in Southeast Asian countries. Moreover, with stabilizing domestic economic growth in China, the packaging industry in this country has been showing signs of recovery, posting higher retail unit growth.
Some of the major companies for specialty pulp and paper in China are Xianhe Co., Ltd. and Longkou Yulong. Prompted by lifestyle changes of its people and demand for packaging materials for tobacco, cosmetics, alcohol, and UV packaging ink, packaging and labels are expected to form the most lucrative application sector in the country.
North America is projected to witness sluggish growth on account of stringent regulations pertaining to the production of pulp and paper, imposed by environmental bodies such as the EPA. Nevertheless, the industry is anticipated to be driven by increase in application range of specialty papers and demand for eco-friendly substances for recycled papers. The region’s largest economy, U.S., is likely to implement the use of eco-friendly and 100% recyclable products, which will result market growth.
The industry is characterized by joint ventures, capacity expansions, mergers & acquisitions, and substantial distribution and branding decisions to improve the market share of manufacturers. An expanding manufacturing sector, along with rising demand in applications such as building and construction, packaging, and labeling products, is projected to lead to product price growth over the coming years.
High demand in writing and printing application in various countries such as China, India, Brazil, U.S., Thailand, Germany, and U.K. will fuel product demand over the next few years. Large companies are increasing their geographical presence in order to gain overall market share.
The market is identified by numerous players, including Ashland, Incorporated; Buckman Laboratories International, Inc.; The Dow Chemical Company; SNF Floerger; and Kemindo International. The industry is dominated by major product manufacturers who are engaged in activities ranging from manufacturing chemical intermediates and polymeric resins to distribution of finished products to the pulp and paper sector.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2018 - 2025
Volume in Kilo Tons, Revenue in USD Million & CAGR from 2018 to 2025
North America, Europe, Asia Pacific, Central & South America, MEA
Revenue forecast, company share, competitive landscape, growth factors and trends
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, The Netherlands, Russia, Turkey, Japan, China, India, Australia, New Zealand, Malaysia, Indonesia, South Korea, Thailand, Vietnam, Brazil, Venezuela, Argentina, Iran, UAE, Saudi Arabia
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global specialty pulp & paper chemicals market report on the basis of product, application, and region:
Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
Regional Outlook (Volume, Million Barrels; Revenue, USD Million, 2014 - 2025)
Central & South America
Middle East & Africa
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