South America has a well-established pulp and paper industry with sizeable production capacities for various types of wood pulp, paper, cardboard and tissue products. Growing paper packaging demand from food & beverage and e-commerce sectors along with initiatives to promote domestic paper production boosts the consumption of specialty chemicals in the pulp and paper manufacturing processes. Various types of functional and process chemicals including fillers & coatings, deborders & binders, biocides, bleaching chemicals and sizing & binders are used in pulp treatment and different papermaking steps.
Market Dynamics-
South America specialty pulp and paper chemicals market growth is driven by robust growth in paper packaging consumption in the region. Factors such as rising e-commerce activities, increasing preference for packaged food amid busy lifestyles and expanding food processing industry can boost demand for corrugated boxes, folding cartons and flexible packaging. This has necessitated higher production of kraft liner and test liner grades of paper, thus, boosting consumption of specialty process chemicals. Rising initiatives by governments to promote domestic pulp production through investments and incentives for capacity additions can drive the market growth. However, stringent wastewater discharge norms imposed by environmental agencies can hamper the market growth. Growing adoption of advanced production technologies and increasing R&D in bio-based and eco-friendly specialty chemicals can offer growth opportunities for market players. However, stringent environmental regulations surrounding pulp and paper mill effluents can hamper the market growth. Availability of substitutes like plastic packaging also poses a threat to market growth.
Key features of the study-
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