Demand for Specialty Pulp & Paper Chemicals and Impact of COVID-19……..

Posted by Mrudula Anil Karmarkar on December 30th, 2020

The global specialty pulp and paper chemicals market size is anticipated to reach around USD 28.0 billion by 2027, expanding at a revenue-based CAGR of 3.1% over the forecast period, according to a new report by Grand View Research, Inc. Growing consumer demand for sustainable and high-quality packaging materials is expected to drive the product demand over the forecast period.

As China remains a hub for the paper and pulp industry, there has been an expected adverse impact of COVID-19 pandemic on the demand for bleaching, functional, and other process chemicals used in paper production. The outbreak has impacted consumer spending patterns, as well as the restrictions on non-essential goods by governments in many COVID impacted countries, have led to a drop in demand for paper packaging. However, positive growth is to be expected from paper towels and tissue papers with the increasing importance of hygiene and disinfection amongst consumers. The updated report will account for COVID-19 as a key market contributor.

These specialty pulp and paper products help in process improvement, weight reduction, increasing strength, and reducing water requirements thus lowering the production cost. These can be added during different stages of papermaking process including wet end size press or in the drying stage. Proper and efficient use of these chemicals involves details on addition sequence, knowledge of pH, and conductivity along with components in furnish. The functional chemical segment is likely to hold a significant market share owing to widespread use of products such as starch, latex, binders, and other agents to enhance the quality of paper. Bleaching chemicals such as sodium hypochlorite, hydrogen peroxide, and enzymes are also gaining popularity as they enhance final brightness of the product and decrease the effluent color.

Increasing demand for high quality paper is expected to augment the consumption of Optical Brightening Agent (OBA) and Fluorescent Brightening Agent (FBA) over the next few years. However, growing awareness regarding toxic nature and impact of these chemicals on the environment are anticipated to negatively impact the specialty pulp and paper chemicals market and restrict the growth over the forecast period.

Specialty Pulp & Paper Chemicals Market Report Highlights

  • Functional chemicals is projected to be the largest product segment and is expected to expand at a CAGR of 2.4% from 2020 to 2027
  • Increasing demand for high quality paper products is expected to drive the demand for pulp and paper chemicals over the forecast period
  • Increasing production cost and rising competition for premium packaging is projected to positively influence the specialty pulp and paper chemicals market growth in the coming years
  • Asia Pacific is anticipated to be the fastest as well as largest emerging regional segment. Growth in retail infrastructure development is expected to support the growing need for packaged good in this region.

Ashland, Incorporated; BASF SE, Buckman Laboratories International, Inc.; The Dow Chemical Company; and Royal Dutch Shell Plc. are the leading providers in the market. These companies account for a substantial market share and sale of the specialty pulp and paper products due to high production capacities and superior client base.

Specialty pulp and paper chemicals are downstream derivatives of a wide range of commodity chemicals including acids, amines, alcohols, fatty alcohols, solvents, surfactants, and betaines; wherein these commodity raw materials are bulk chemicals and can be supplied directly without preprocessing treatment. Mineral acids and bases are generally used as basic chemicals in the manufacturing of specialty pulp and papers.

Various raw materials used in manufacturing of these products include chelating agents, caustic soda, and biocide. Chelating agents provide the desired level of brightness to the paper when applied with hydrosulfite and hydrogen peroxide bleaches, thereby playing a vital role in the specialty pulp and paper industry. Biocides, however, are used to control and prevent microbial growth and to maintain efficiency in specialty pulp and paper manufacturing machines.

Over the past years, the demand for specialty paper and pulp chemicals has been declining or is relatively stagnant due to the digital revolution, which has also led to consolidation in the industry. However, growing demand from packaging, household, and sanitary applications has helped bring stabilization in the market. Increasing popularity of coating as a protective material to induce smoothness and reduce ink absorbency in specialty paper will amplify the usage of functional chemicals over the next few years.

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The market is highly fragmented in nature with the presence of established industry players and is characterized by mergers and acquisitions, joint ventures, capacity expansions, substantial distribution, and branding decisions to improve market share and regional presence. Key players include Ashland, BASF SE, Buckman, and Dow Chemical Company.

They are integrated through the value chain from sourcing the raw material to the finished product line. Also, they are involved in continuous R&D activities to develop new products as well as are focused on expanding the product portfolio. This is expected to intensify competition and pose a potential threat to the new players entering the market. Some of the prominent players in the specialty pulp and paper chemicals market include:

  •         Ashland
  •         BASF SE
  •         Buckman
  •         Dow Chemical Company
  •         Ecolab
  •         SNF Group
  •         Evonik Industries AG
  •         Nouryon
  •         Solenis

Grand View Research has segmented the global specialty pulp and paper chemicals market on the basis of product, application, and region:

Specialty Pulp & Paper Chemicals Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  •          Basic
  •          Functional
  •          Process                
  •          Bleaching

Specialty Pulp & Paper Chemicals Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  •          Printing
  •          Packaging
  •          Labeling
  •          Others

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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