Market Report Suggests Global Pulp Market Faces Stiff Competition by 2026

Transparency Market Research (TMR) headquartered in Albany, N.Y., USA, completed their most recent market research report on the global pulp market this past summer (Aug. 2018). A summary published this past month (Jan. 2019) by MarketSights Newswire Service (Houston, Tex., USA) stated that their report concluded that competition is stiffening in the global pulp market because of the presence of numerous players capable of producing quality products on a level not seen in previous decades when considering global competition.

 

So as to "up the ante" against their rivals, companies currently and in the years ahead during the forecast period are focusing on a better product (fulfilling the quality standards needed for global competition in pulp trade) while at the same time implementing appropriate global competitive pricing. These two things are noted as a primary key to growing sales in the global pulp trade during the 2020s. 

• TMR believes that bigger, deep-pocketed players are banking upon expansion strategies to grow their footprints and improve sales. They are also entering into long-term contracts with users to address that matter. 
• The report finds that the global pulp market will rise steadily at a CAGR of 3.7% during a 10-year forecast period (beg. 2017 to 2026-end) to be valued at approximately $60 billion by the beginning of 2027. 
• Chemical wood pulp is seeing rising uptake in various applications, particularly in the manufacture of HQ paper.
• From a geographical standpoint, the global pulp market is and will be led by Asia Pacific except Japan specifically which holds an outsize market share. A surging demand for paper-based products has pushed up demand for pulp production in the region. 

High demand for sustainable packaging solutions that involve lightweight, smaller, and recyclable materials (bio-based) has provided a major boost to the global pulp market during the forecast period. Thrust on better packaging and logistical solutions has also enabled the market to progress during this time. The lead analyst of TMR's full report elaborated in this summary:"Pulp finds major application in producing both primary and secondary packaging materials owing to its high protective cushioning properties and affordability. Reprocessing of pulp along with its biodegradable offerings is generating more opportunities in the market."

Semi-chemical pulping is comparatively cheaper than pulp manufactured from other chemicals, and this is boding well for their uptake in manufacturing magazines, paperboard, cartons, and tissue paper. TMR's in-house analyst added: "Tissue paper in the form of facial and paper towels is seeing massive uptake both in private homes and public, commercial spaces. This has generated massive demand for semi-chemical pulping, which in turn has proved beneficial for the global pulp market." 

Fluff pulp is also seeing a surge in demand for making of feminine hygiene products, adult incontinence products, pet pads, and baby diapers. TMR's report reinforces this current trend and future expectation that has been stated by other firms and analysts of the market, but is the first OTW has reported on that foresees this trend to definitely continue in force up to the beginning of year 2027.