Global Pulp Industry Report 2024: Demand and Production Analysis, Trends and Forecasts 2022-2023 and 2024-2028 - ResearchAndMarkets.com

The "Global Pulp Market: Analysis by Demand, Production, Type, End Market, Region, Size and Trends with Impact of COVID-19 and Forecast up to 2028" report has been added to ResearchAndMarkets.com's offering.

Global pulp market demand stood at 66.02 million tons in 2022, and is expected to reach 73.84 million tons by 2028.

Pulp, a naturally derived wood-based material, possesses purity, organic composition, and biodegradability. Its versatile applications include the production of paper, tissue, sheets, and advanced paper, all ensuring the creation of 100% organic bioproducts.

Paper pulp, the fundamental ingredient for paper production, forms the basis for the entire paper-making process. With a longstanding presence as a crucial element in daily life, paper, driven by heightened demand from printing and writing sectors, is poised for market expansion, projecting growth in the pulp industry. The pulp market production is probable to reach 75.04 million tons by 2028.

The pulp industry is a global market, and heavily reliant on international trade and economic activity. The rise of bioeconomy initiatives is expected to drive the pulp demand in coming years. Pulp, as a renewable resource, aligns with the goals of bioeconomy, emphasizing the sustainable use of biological resources for various applications.

Innovations in biorefinery concepts are expanding the utility of pulp by extracting additional value from by-products, such as lignin and hemicellulose, for bio-based chemicals and materials. Moreover, in response to the digital age, there's a notable surge in paper and pulp applications beyond traditional uses. Specialty papers, 3D printing materials, and other high-value products are emerging as novel avenues for pulp utilization.

During the forecasted years, demand would show significant growth with China being the most significant growth driver. The pulp market demand is expected to grow at a CAGR of 2.06% over the years 2023-2028.

The global pulp market is consolidated. The companies are focusing on inorganic growth strategies such as mergers and acquisitions to increase their business reach. The majority of global hardwood kraft pulp production is highly centralized, with the top five global producers jointly accounting for around 60% of the total hardwood market pulp output worldwide.

This concentration emphasizes the considerable impact wielded by a limited number of major players in influencing the dynamics of the global hardwood pulp market. The merger between Suzano Pulp & Paper and Fibria, completed in 2019, played a crucial role in significantly strengthening the overall hardwood pulp capacity on a global scale. This consolidation resulted in a substantial improvement in the combined entity's capabilities and market position within the global pulp market.

Market Segmentation Analysis:

Bleached Hardwood Kraft segment generated the highest revenue in 2022. Derived from hardwood trees like eucalyptus and birch, this pulp type is favored for its versatility and strength. The demand for Bleached Hardwood Pulp is on the rise due to its widespread applications, especially in the production of printing and writing papers. The growth in the packaging industry, particularly for consumer goods, further propels the demand for this pulp type. Additionally, the pulp's suitability for various specialty papers and tissue products contributes to its expanding market share.

The tissue segment in the global pulp market is witnessing robust growth, driven by factors such as increasing hygiene awareness, population growth, and evolving consumer preferences. The demand for tissue products, including facial tissues, paper towels, and bathroom tissues, continues to rise globally. Growing middle-class populations in emerging economies contribute significantly to this demand, as does the trend towards premium and sustainable tissue products.

The Asia Pacific region has solidified its position as a formidable force in the global pulp market demand, propelled by a confluence of factors such as rapid industrialization, robust economic growth, and the burgeoning population that characterizes the region. The dynamic and diverse economies within the Asia Pacific have contributed significantly to the escalating demand for pulp and its derivatives. Rapid industrialization across several countries in the region has fueled an increased need for various paper and packaging materials, thereby driving the demand for pulp.

This industrial surge is driven by factors such as technological advancements, infrastructure development, and the establishment of manufacturing hubs, making the Asia Pacific region a key player in the global pulp industry. Over time, China has become an increasingly important importer of pulp. However, since much of this is used in the production of packaging for goods destined for re-export, the driving factor behind the surge in pulp demand in China is the growing reliance on paper-based materials as an environmentally sustainable alternative to plastic packaging.

The European market stands out for its robust paper and packaging industries, serving as key consumers of pulp. Ongoing innovations in pulp-based products, spanning from cutting-edge packaging materials to specialized papers, contribute to the sustained demand in the region. The circular economy approach, which places a strong emphasis on recycling and waste reduction, aligns seamlessly with Europe's commitment to environmental stewardship. This holistic approach not only drives the demand for sustainable pulp but also fosters a culture of responsible consumption and production practices in the European pulp and paper sector.

Market Dynamics

Growth Drivers

• Increasing Demand for Packaging Materials
• Rising Demand for Hardwood Pulp
• Shift Towards Eco Friendly Practices
• Growing Demand for Tissue and Hygiene Products
• Stringent Government Regulations
• Increasing Demand for Printing & Writing Paper
• Growing Trend of Substituting Plastic with Paper

Challenges

• Availability of Substitutes
• Changing Consumer Preferences

Market Trends

• Rising Demand for Specialty Cellulose
• Recycled Pulp and Waste Reduction
• Growing Applications of Nanocellulose

Company Profiles

• Canfor Corporation (Canfor Pulp Products)
• Suzano S.A.
• Arauco and Constitution Pulp Inc.
• Mercer International Inc.
• WestRock Company
• International Paper Company
• Stora Enso Oyj
• UPM-Kymmene Oyj
• Oji Holdings Corporation
• Billerud AB
• Metsa Group
• Paper Excellence
• Royal Golden Eagle (RGE)

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