Dissolving Pulp Global Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Application, Product Type

Dissolving Pulp Market Overview

The global dissolving pulp market is poised for significant growth, with a projected compound annual growth rate (CAGR) of 5.2% from 2025 to 2030. The market, valued at approximately $8.5 billion in 2025, is expected to reach $11.2 billion by 2030. This growth is driven by increasing demand for sustainable and eco-friendly materials in various industries, including textiles, packaging, and specialty papers.

Market Size and Share Analysis

The dissolving pulp market is segmented by product type, process, application, end-use, and region. In 2025, the market was dominated by Rayon-grade Pulp, accounting for 65% of the total market share. Specialty-grade pulp, on the other hand, held a share of 35%. The market is highly competitive, with key players such as Sappi, AV Terrace Bay, and Fortress Global Enterprises leading the industry.

By Product Type

• Rayon-grade Pulp: 65% market share in 2025, expected to grow at a CAGR of 5.5% from 2025 to 2030.
• Specialty-grade Pulp: 35% market share in 2025, projected to grow at a CAGR of 4.8% during the same period.

By Key Players

The market is dominated by major players such as Sappi, AV Terrace Bay, Fortress Global Enterprises, Rayonier, Lenzing, Cosmo Specialty Fibers, Borregaard, Georgia-Pacific, Sateri Holdings Limited, Bracell Limited, Paper Excellence, AV Group NB/Aditya Birla Group, Sun Paper, Double A, Sodra, Stora Enso, AustroCel Hallein, Anqing Huatai, Altri, Oji Paper, Nippon Paper, Yinge, and Fujian Qingshan Paper. These companies collectively hold over 70% of the market share.

By Process

The market is segmented into Kraft Process and Sulfite Process. The Kraft process held a dominant share of 75% in 2025, while the Sulfite process accounted for 25%. The Kraft process is expected to maintain its dominance, growing at a CAGR of 5.3% from 2025 to 2030.

By Application

• Viscose Rayon: 50% market share in 2025, expected to grow at a CAGR of 5.7%.
• Cellophane: 15% market share in 2025, projected to grow at a CAGR of 4.5%.
• Molding Material: 10% market share in 2025, expected to grow at a CAGR of 4.2%.
• Cellulose Derivatives: 12% market share in 2025, projected to grow at a CAGR of 4.8%.
• Specialty Paper: 8% market share in 2025, expected to grow at a CAGR of 5.0%.
• Others: 5% market share in 2025, projected to grow at a CAGR of 4.0%.

By End-Use

The market is segmented into Textiles, Packaging, Specialty Papers, and Others. The textiles segment held the largest share of 55% in 2025, followed by packaging at 25%, specialty papers at 15%, and others at 5%. The textiles segment is expected to grow at a CAGR of 5.8% from 2025 to 2030.

By Region

• Asia-Pacific: 45% market share in 2025, expected to grow at a CAGR of 5.9%.
• North America: 25% market share in 2025, projected to grow at a CAGR of 4.8%.
• Europe: 20% market share in 2025, expected to grow at a CAGR of 4.5%.
• Latin America: 6% market share in 2025, projected to grow at a CAGR of 4.2%.
• Middle East & Africa: 4% market share in 2025, expected to grow at a CAGR of 4.0%.

Market Trends and Drivers

The dissolving pulp market is driven by several key trends:

• Sustainability: Increasing demand for eco-friendly and biodegradable materials is driving the growth of the dissolving pulp market. The shift towards sustainable textiles and packaging solutions is a major factor contributing to market growth.
• Technological Advancements: Innovations in pulp processing technologies are enhancing the efficiency and quality of dissolving pulp, making it more attractive for various applications.
• Growing Textile Industry: The expanding textile industry, particularly in Asia-Pacific, is a significant driver of the dissolving pulp market. The demand for viscose rayon, a key application of dissolving pulp, is on the rise.
• Government Policies: Supportive government policies and regulations promoting the use of sustainable materials are positively impacting the market.

Market Challenges

Despite the positive outlook, the dissolving pulp market faces several challenges:

• High Production Costs: The production of dissolving pulp involves high costs, which can limit market growth, particularly in developing regions.
• Environmental Concerns: The environmental impact of pulp production, including deforestation and water pollution, remains a concern. Companies are under pressure to adopt more sustainable practices.
• Supply Chain Disruptions: The COVID-19 pandemic highlighted vulnerabilities in the global supply chain, which could impact the dissolving pulp market in the short term.

Market News on Policy and Companies

Recent developments in the dissolving pulp market include:

• Sappi announced a new investment of $200 million to expand its dissolving pulp production capacity in South Africa. The project is expected to be completed by 2026.
• Lenzing has committed to achieving carbon neutrality by 2030. The company is investing in sustainable production technologies and renewable energy sources.
• Government Policies: The European Union has introduced new regulations promoting the use of sustainable materials in textiles and packaging, which is expected to boost the demand for dissolving pulp in the region.

Segment Forecasts (2025 - 2030)

The dissolving pulp market is expected to witness significant growth across all segments:

• Rayon-grade Pulp: Expected to grow at a CAGR of 5.5%, driven by increasing demand from the textile industry.
• Specialty-grade Pulp: Projected to grow at a CAGR of 4.8%, supported by demand from the packaging and specialty paper industries.
• Viscose Rayon: Anticipated to grow at a CAGR of 5.7%, driven by the expanding textile industry in Asia-Pacific.
• Textiles: Expected to grow at a CAGR of 5.8%, supported by increasing demand for sustainable textiles.
• Asia-Pacific: Projected to grow at a CAGR of 5.9%, driven by rapid industrialization and urbanization in the region.

Conclusion

The global dissolving pulp market is set for robust growth from 2025 to 2030, driven by increasing demand for sustainable materials, technological advancements, and supportive government policies. While challenges such as high production costs and environmental concerns persist, the market is expected to overcome these hurdles through innovation and strategic investments. Key players in the industry are well-positioned to capitalize on the growing demand, particularly in the textiles and packaging sectors. The Asia-Pacific region is expected to remain a key driver of market growth, supported by its expanding industrial base and rising consumer demand for eco-friendly products.