Global Dissolving Pulp and Paper Market - 2022-2029

Global Dissolving Pulp and Paper Market - 2022-2029

Market Overview

The global dissolving pulp and paper market size was worth US$ XX million in 2021 and is estimated to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of XX% within the forecast period (2022-2029).

Dissolving pulp is a high-quality cellulose pulp with low hemicellulose, lignin and resin content. The pulp has unique characteristics, including a high brightness level and consistent molecular weight distribution. Dissolving-grade pulps are typically employed to synthesize cellulose derivatives and regenerate cellulose.

Dissolving pulps meet certain parameters to produce high-quality goods, such as high cellulose content, low hemicellulose content, uniform molecular weight distribution and high cellulose reactivity. Dissolving pulps produce cellulosic materials such as cellophane, acetate and rayons. The manufacturing process of dissolving pulp is characterized by the derivatization and solubilization of highly purified cellulose.

Furthermore, the global demand for natural products grows with each passing day. Apart from that, the abundant supply of natural cellulose polymer on the planet has made the task of pulp and paper manufacturers a pleasure. Due to its vast application in textile, cigarette, cosmetics and personal care, medicines and other sectors, dissolving pulp is manufactured in large numbers.

Market Dynamics

Increasing demand for sustainable renewable natural products drives the market share for the dissolving pulp and paper market. Growing demand for dissolving pulp in the textile industry boosts the market share for the product.

Increasing demand for sustainable renewable natural products drives the market share for the dissolving pulp and paper market.

The growing global demand for environmentally renewable natural products is likely to generate multiple chances for the growth of the dissolving pulp market. The easy availability and long-term sustainability of dissolving pulp are projected to propel the global dissolving pulp industry forward.

For instance, the latest evidence for the rising tide of public concern about the environment comes from a new worldwide analysis commissioned by the World Wildlife Fund (WWF) and done by the Economist Intelligence Unit (EIU) across 54 countries.

According to the survey, internet searches for sustainable items have surged by 71% globally in just five years. That number has continued to rise even while the COVID-19 pandemic continues. The good news isn't restricted to industrialized countries and established economies. A similar tendency was discovered in numerous developing countries and emerging economies, according to the EIU analysis. Thus, the growing shift towards adopting sustainable natural products boosts the market share for dissolving the pulp and paper market.

Furthermore, dissolving pulp can be made into a film, a sponge, or a textile fiber. The production of various goods from dissolving pulp without dissolution is also possible. The whiteness of dissolving pulp is due to its high purity, making it suited for paper products such as vulcanized fiber and filter paper. Dissolving pulp mechanically disintegrates into fine precipitate during acid hydrolysis, which can be utilized as filler for various polymers. Thus, the mentioned advantages and easy processing steps of dissolving pulp have made the product a popular choice in the market.

Growing demand for dissolving pulp in the textile industry boosts the market share for the product.

The widespread use of dissolving pulp in the textile industry is expected to boost the worldwide dissolving pulp market's expansion in the forecast period. Dissolving pulp is being investigated as a possible cotton substitute, which is expected to drive the global dissolving pulp market forward.

Environmental trends and concerns about pollution and climate change are exerting increasing pressure on the textile industry. The textile industry produces more CO2 emissions than international flights and maritime transport combined, making it one of the most carbon-polluting businesses globally.

As new wood-based textile fiber technologies mature, they are expected to offer a viable, ecologically sound option for oil- and cotton-based textile fibers and an attractive profit opportunity for the dissolved pulp and paper industry. The usage of viscose and related fibers (such as Lyocell) has continuously increased as the demand for textiles has constantly climbed and technology has improved. However, wood-based textiles account for approximately 6% of the over 100 million metric tpy of yearly manufacturing.

Furthermore, improving government measures to promote environmentally sustainable products and the growing acceptance of sustainable dissolved paper are predicted to significantly drive global market growth in the textile industry.

For instance, Spinnova, based in Finland, is a front-runner in the race for novel wood-based textile fibers, having finished its new pilot facility in December 2018. Spinnova's method employs micro-fibrillated cellulose to manufacture textile fabric mechanically without chemicals or waste streams. In collaboration with the Japanese Itochu Corporation, Metsä Spring (part of Metsä Group) proposes establishing a trial facility capable of generating textile fiber using paper-grade captive pulp from the änekoski mill. The pilot plant will have a capacity of 500 metric tpy of staple fiber.

The growing shift of manufacturers toward dissolving pulp and paper might lead to the threat of overcapacity of dissolving pulp

The growing awareness and improving shift of consumers and manufacturers towards eco-friendly products creates huge opportunities for the dissolving paper and pulp market. However, the transition of paper-grade pulp producers to dissolving pulp production could result in dissolving pulp overcapacity. As a result, it may impact price and is predicted to slow the growth of the worldwide dissolving pulp market.

Furthermore, the initial investment cost in the dissolving pulp plant is another factor hindering the market share of the product. For instance, Rayon is a flexible fabric that shares many of the benefits of cotton. It's soft, comfy, absorbent and breathable and it colors easily. It's also made from renewable resources. However, wood is a less expensive raw material than any textile fiber. Creating dissolving pulp and converting it into rayon results in higher fiber costs than cotton, thus making rayon an expensive option.

COVID-19 Impact Analysis

The outbreak of COVID-19 has severely affected the textile industry and hampered the dissolving pulp and paper market during the 2019-2020 period. The disruption in the supply chain and global limits on trading operations have resulted in a decrease in material consumption by various firms worldwide.

The changing epidemiologic landscape in key sourcing countries has impacted worker availability and production and the multimodal logistics that underpin global value chains. One of the concerns is that fashion goods production could be moved away to other sourcing countries that are resuming activities faster in the Asian region or closer to retailers to diversify their supply chain risk.

Although governments in several economically stable countries are taking various measures to overcome the hurdle and revive the textile industry, creating opportunities for the dissolving pulp and paper industry post-pandemic.

The growing expansion of the dissolving pulp and paper market would be dependent on the recovery of manufacturing activity and enhanced distribution. Due to the spread of technology expertise, consumers are more likely to adopt sustainable solutions over traditional materials dissolving pulp and paper in the forecast period.

Segment Analysis

The global dissolving pulp and paper market can be segmented on process, raw material, end-user and region.

The high percentage of pulp extraction from wood boosts segmental growth in the global dissolving pulp and paper market.

The global dissolving pulp and paper market based on raw material is segmented into wood pulp, cotton linters and bamboo. Of the mentioned fabrics, wood pulp is the dominating segment among the mentioned raw materials. Cotton linter and woods have traditionally been used as raw materials in creating dissolving pulp.

About 85% of the dissolving pulp is made from softwood (spruce, pine) or hardwood (beech, eucalyptus), with cotton linter accounting for the remaining 10%, thus making wood pulp the fastest-growing segment. The linter-based dissolving pulp can be used to make high-purity cellulose derivatives like cellulose nitrate, cellulose acetate and cellulose ethers with high viscosity.

Dissolving pulp is mostly made chemically from pulpwood in a low-yielding technique (30 – 35% of the wood), accounting for around 85 to 88% of the total output. The sulfite process or the kraft process with an acid pre-hydrolysis step to remove hemicelluloses produce dissolving pulp. It is made from fast-growing hardwoods with minimal non-cellulose content for the best results.

Furthermore, the high percentage of pulp extraction from wood boosts segmental growth in the global dissolving pulp and paper market.

Geographical Analysis

The growing textile industry and increasing adoption of dissolving pulp by various end-user is triggering the market share for the Asia-Pacific region

The Asia-Pacific, excluding Japan, is expected to dominate the worldwide dissolving pulp market since it is the biggest producer and consumer of dissolving pulp. Textile and cigarette industries will be the key sources of demand in Asia-Pacific. China and India are the top countries producing and consuming dissolving pulp in Asia-Pacific.

Due to rising demand from the textile and other industries, North America is the second-largest producer and supplier of dissolving pulp. Western Europe closely follows North America in terms of value and volume. Middle East and Africa area is a prominent shareholder in the dissolving pulp market, with positive growth expected over the forecast period. South Africa produces the most dissolving pulp in the region because it is home to the world's largest dissolving pulp facility.

Competitive Landscape

The dissolving pulp and paper market is highly competitive with the presence of local and global companies. Some prime companies contributing to the market's growth are Bracell Limited, Neucel Specialty Cellulose, Aditya Birla Group, Sappi Limited, Rayonier Advanced Materials, LENZING AG, NIPPON PAPER INDUSTRIES CO., LTDSCG PACKAGING PUBLIC COMPANY LIMITED, Jilin Shixian Paper Industry Co., Ltd, Fujian Qingshan Paper Industry Co., Ltd, Yueyang Forest & Paper Co., Ltd and others.

The major companies are adopting several growth strategies such as acquisitions, product launches and collaborations, contributing to the market growth of dissolving pulp and paper globally.

For instance, In April 2018, AFRY was awarded a contract to expand the world's largest dissolving pulp mill in South Africa and expand its capacity.

Bracell

Overview: Bracell is one of the world's leading manufacturers of dissolving pulp and specialized cellulose, having plants in Camaçari, Bahia and Lençóis Paulista, So Paulo. Bracell has sales offices in Europe, Asia-Pacific and U.S. and a management office in Singapore and its mill operations in Brazil.

Product Portfolio

Dissolving pulp – Rayon-grades: The rayon-grade pulp is utilized in textile fibers such as viscose and lyocell, non-wovens such as baby wipes, cosmetic masks and viscose filament for textiles and tissues. Its specialty-grade pulp can make acetate flakes for cigarette filters, plastics and other applications, microcrystalline cellulose for food and pharmaceuticals, cord yarns for tires and conveyor belts and specialty applications like sausage casings, cellophane and sponges.

Key Development

On July 29, 2019, Bracell Group, a subsidiary of Singapore-based RGE, presented details of the R$ 7 billion Project Star expansion undertaking in the state of So Paulo to expand dissolving pulp production.

Why Purchase the Report?

Visualize the dissolving pulp and paper market segmentation by process, raw material, end-user and region, highlighting key commercial assets and players.

Identify commercial opportunities in the dissolving pulp and paper market by analyzing trends and co-development deals.

Excel data sheet with thousands of data points dissolving pulp and paper market-level 4/5 segmentation.

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

Product mapping in excel for the key product of all major market players

The global dissolving pulp and paper market report would provide approximately 61 market data tables, 58 figures and 215 pages.

Target Audience 2022

Service Providers/ Buyers

Industry Investors/Investment Bankers

Education & Research Institutes

Research Professionals

Emerging Companies

Manufacturers

Logistics companies

Distributors