Advanced Materials and Chemicals

Paper Chemicals Market is Expected to Reach USD 52.77 Billion by 2031

Mar 2024

Advanced Materials and Chemicals

As per the report published by Kings Research, the global Paper Chemicals Market was valued at USD 44.71 billion in 2023 and is projected to reach USD 52.77 billion by 2031, growing at a CAGR of 2.12% from 2024 to 2031.

The expansion of e-commerce platforms is propelling the demand for packaging materials, particularly paper-based products. The burgeoning trend of online shopping has necessitated efficient and sustainable packaging solutions to meet the growing demand for goods. As a result, there is an increased need for paper chemicals to enhance the quality, strength, and functionality of paper-based packaging materials.

This surge in demand underscores the vital role that paper chemicals play in supporting the e-commerce industry's packaging requirements. As e-commerce continues to flourish globally, the market for paper chemicals is anticipated to experience sustained growth, driven by the ongoing need for innovative and eco-friendly packaging solutions to meet the evolving demands of consumers.

Key Insights

  • Based on type, the bleaching agents segment generated the highest revenue of USD 17.94 billion in 2023
  • On the basis of region, Asia Pacific accounted for the largest market share of 40.12% in 2023

IFF and Kemira Partner to Supply Renewable Polymers for Use in Paper Chemicals Market

January 2024: IFF and Kemira joined forces to commercialize renewable polymers derived from IFF's innovative Designed Enzymatic Biomaterials (DEB) technology platform. These polymers, derived from plant sugars, were made available at an industrial scale for the first time, catering to various markets. The partnership addressed Kemira's growing demand for alternatives to traditional fossil-based synthetic polymers in the pulp, paper, and paper-based packaging markets. By leveraging cutting-edge technology and sustainability initiatives, the collaboration aimed to meet the evolving needs of the paper chemicals market, thereby promoting environmental responsibility and driving innovation in the industry.

Growing Demand for Specialty Papers to Drive Paper Chemicals Market Progress

The increasing demand for specialty papers in various applications such as labels, packaging, and hygiene products is a significant growth driver for the paper chemicals market. Specialty papers often necessitate specific chemical treatments to meet stringent performance requirements such as durability, printability, and resistance to moisture or chemicals. Consequently, this escalating demand for specialty papers fuels the need for specialized paper chemicals tailored to enhance the properties and functionality of these papers. As industries continue to innovate and develop new applications for specialty papers, the market for paper chemicals is expected to witness substantial growth, fueled by the ongoing demand for high-performance materials across diverse sectors.

Rise of Bio-based Paper Chemicals to Present a Lucrative Growth Opportunity

The development of bio-based paper chemicals presents significant growth opportunities, driven by the increasing demand for sustainable alternatives. As industries across the globe strive to reduce their environmental footprint, the shift toward bio-based chemicals derived from renewable sources is gaining momentum. This trend presents lucrative prospects for market players, encouraging investments in research and development to innovate sustainable solutions. Bio-based paper chemicals offer benefits such as reduced carbon footprint, lower environmental impact, and enhanced biodegradability compared to traditional chemical counterparts. By capitalizing on this growing sustainability trend, companies can not only meet the evolving demands of environmentally-conscious consumers but also position themselves as leaders in the transition toward a more sustainable future for the paper chemicals industry.

Asia-Pacific Set to Lead Paper Chemicals Market Growth with Highest CAGR of 2.61% Over 2024 to 2031

Based on region, the global paper chemicals market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific is primed to be the fastest-growing region in paper chemicals due to rapid industrialization and urbanization across countries such as China, India, and Southeast Asia. Additionally, the region's expanding middle-class population and rising disposable incomes are fueling consumption, particularly in the packaging and printing sectors. Moreover, governments in the region are increasingly emphasizing sustainability, leading to a growing preference for eco-friendly paper products. With these favorable conditions, Asia Pacific is poised to witness the highest CAGR from 2024 to 2031.

Major Industry Players Ink Collaborative Deals to Strengthen Market Foothold

The global paper chemicals market is fragmented with key players such as BASF SE, Kemira Oyj, Solenis LLC, Ecolab Inc., Akzo Nobel N.V., Ashland Global Holdings Inc., Dow Chemical Company, SNF Floerger, Buckman Laboratories International, Inc., Harima Chemicals Group, Inc., and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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