Wood Pulp Market

Wood Pulp Market Size:

The global wood pulp market size reached US$ 169.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 220.2 Billion by 2032, exhibiting a growth rate (CAGR) of 2.82% during 2024-2032. The market is experiencing stable growth driven by the increasing demand for paper products for various purposes, rising preferences for sustainable packaging solutions due to the thriving e-commerce sector, and the burgeoning construction sector.

Wood Pulp Market Industry Analysis:

• Major Market Drivers: The market is witnessing steady growth due to rising demand for biodegradable packaging alternatives, coupled with advancements in pulp manufacturing techniques.
• Key Market Trends: The market is showcasing rapid growth on account of the increasing demand for paper products and the burgeoning construction sector.
• Geographical Trends: Asia Pacific leads the market, driven by rising environmental concerns among individuals. However, North America is emerging as a fast-growing market due to favorable government initiatives to reduce carbon footprints.
• Competitive Landscape: Some of the major market players in the wood pulp industry include APRIL Group (RGE Pte Ltd), ARAUCO, Canfor Corporation, Metsä Group, Nippon Paper Industries Co. Ltd, Oji Holdings Corporation, Sappi Limited, Södra, Sonoco Products Company, Stora Enso Oyj, Suzano Papel e Celulose, UPM-Kymmene Oyj, WestRock Company, among many others.
• Challenges and Opportunities: While the market faces challenges, such as fluctuations in raw material pricing, it also encounters opportunities on account of rising collaborations among research institutes and companies.
   

Wood Pulp Market Trends:

Increasing demand for paper products

Paper mills generally use wood pulp from various trees, such as bamboo, eucalyptus and subabul, to make paper products. It is used to produce paper, tissue, board, and specialty paper. According to Statista, the global production of pulp for paper amounted to around 191.6 million metric tons in 2021. The increasing need for notebooks and books among students in schools and universities across the globe is impelling the market growth. Moreover, the growing demand for wood pulp due to the rising need for sustainable products among individuals is offering a positive market outlook.

Rising preferences for sustainable packaging

Increasing preferences for sustainable packaging solutions on account of the thriving e-commerce sector is contributing to the wood pulp market growth. People are preferring eco-friendly packaging options that benefit in reducing harmful pollution levels in the environment while maintaining sustainability goals. They are relying on online channels to make purchases for a variety of products due to their enhanced convenience and home delivery solution. As per IMARC Group’s research report, the global e-commerce market size was US$ 21.1 Trillion in 2023. It is projected to exhibit a growth rate of 27.16% during 2024-2032 on account of the expansion in cross-border trade opportunities.

Thriving construction sector

Wood pulp fibers are employed in construction materials, such as particleboard, medium-density fiberboard (MDF), chipboards, and oriented strand board (OSB), to improve strength, durability, and moisture resistance. It is a potential raw material source for producing bio-based building materials. The growing demand for construction materials due to increasing residential and commercial spaces worldwide is offering a positive wood pulp market outlook. India Brand Equity Foundation reported that the residential property market observed a value of home sales reaching US$ 42 Billion in the financial year 2023. It also claims that real estate sector in India is expected to reach US$ 1 Trillion by 2030. 

Wood Pulp Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with wood pulp market forecast at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, grade, and end use industry.

Breakup by Type:

• Hardwood
• Softwood
   

Hardwood accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes hardwood and softwood. According to the report, hardwood represented the largest segment.

Hardwood trees include oak, birch maple, cherry, mahogany, and walnut. Hardwood is more durable and has higher density as compared to softwood. It is versatile, withstands heavy use, and provides an aesthetic appeal. It is also more resistant to decay than softwood when used for exterior work. The rising employment of hardwood to produce furniture, decks, and flooring is impelling the market growth. The increasing focus on adopting high-quality furniture products that provide enhanced aesthetic appeal to a space is supporting the market growth. The furniture market worldwide is anticipated to generate a revenue of US$ 766.20 Billion in 2024 as stated by Statista.

Breakup by Grade:

• Mechanical
• Chemical
• Semi-Chemical
• Others
   

Mechanical holds the largest share of the industry

A detailed breakup and analysis of the market based on the grade have also been provided in the report. This includes mechanical, chemical, semi-chemical, and others. According to the report, mechanical accounted for the largest market share.

Mechanical grade wood pulp involves the separation of fibers without the addition of any chemicals. It comprises stone groundwood pulping (SGW), refiner pulping, thermomechanical pulping (TMP), chemithermomechanical pulping (CTMP), and recycled paper pulping. It is produced by mechanically grinding or refining wood chips against a rotating abrasive surface. It retains much of the natural lignin and other components of the wood, resulting in shorter and coarser fibers as compared to chemical pulp. Moreover, it is widely used to produce newsprint, magazine paper, and telephone directories, where brightness is not a major concern. According to Statista, the print newspapers and magazines market worldwide is anticipated to witness US$ 123.50 Billion by 2024.

Breakup by End Use Industry:

• Packaging
  • Food and Beverages
  • Pharmaceutical
  • Personal Care and Cosmetics
  • Automotive
  • Others
• Paper
  • Newspaper
  • Books and Magazines
  • Tissues
  • Others
• Others
   

Packaging represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the end use industry. This includes packaging (food and beverages, pharmaceutical, personal care and cosmetics, automotive, and others), paper (newspaper, books and magazines, tissues, and others), and others. According to the report, packaging represented the largest segment.

The rising utilization of wood pulp in the packaging sector is contributing to the market growth. Wood pulp cardboard boxes and cartons are widely utilized for the packaging of food and beverage (F&B) products, such as cereals, snacks, beverages, and frozen food items. Moreover, wood pulp-based paperboard and cardboard are employed in pharmaceutical sector for packaging medications. These materials offer barrier properties to protect medications from moisture, light, and contamination, that assist in ensuring product integrity and safety. Statista claims that the global cardboard production output is forecasted to increase to more than 72 million tons by 2022.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest wood pulp market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for wood pulp.

The rising need for eco-friendly packaging solutions to mitigate carbon footprint in the Asia Pacific is impelling the market growth. The growing environmental concern among individuals is offering a positive market outlook. There is an increase in the utilization of wood pulp for numerous purposes in China. Many countries in Asia Pacific are focusing on meeting the rising wood pulp market demand domestically and globally by investing in paper manufacturing infrastructure. As per Statista stated that China is the world largest importer of wood pulp in 2022, accounting for nearly 37.91% of the total wood pulp imports.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the wood pulp industry include APRIL Group (RGE Pte Ltd), ARAUCO, Canfor Corporation, Metsä Group, Nippon Paper Industries Co. Ltd, Oji Holdings Corporation, Sappi Limited, Södra, Sonoco Products Company, Stora Enso Oyj, Suzano Papel e Celulose, UPM-Kymmene Oyj, and WestRock Company.
• Key players are focusing on introducing new and unique products that are manufactured from wood pulp for catering to the diverse needs and preferences of various sectors and increase the wood pulp market price trends. For example, Klabin launched PineFluff eXcel, a fluff pulp made from a mix of eucalyptus hardwood pulp and pine softwood pulp on 17 October 2022.The product aims to target the hygiene products market, such as baby and adult diapers, sanitary pads, and pet mats. PineFluff eXcel is being produced by the Puma Unit in Ortigueira, Paraná, is designed to be delivered to clients in the form of single-ply reels and can be used in the production of different absorbent products.
   

Wood Pulp Market News:

• 6 June 2023, UPM inaugurated its Paso de los Toros pulp mill in the department of Durazno in Central Uruguay. The pulp mill has an annual production capacity of 2.1 million tons of eucalyptus pulp. The mill represents the latest and best available technology and is energy efficient with minimal environmental impacts.
• 1 June 2021, NOREXECO ASA, the international pulp and paper exchange, introduced two cash-settled China pulp futures contracts based on Fastmarkets' prices to meet growing demand for hedging in the international pulp market. The contracts, one for softwood pulp and one for hardwood pulp, are settled against the monthly averages of Fastmarkets RISI's NBSK CIF China assessment and Fastmarkets FOEX' PIX China BHKP Net index.

Wood Pulp Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the wood pulp market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global wood pulp market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the wood pulp industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.