Global Paper Chemicals Market to Reach USD 40.2 Billion by 2023
According to Research & Markets paper Chemicals Market is estimated to be USD 36.4 Billion in 2018 and is projected to Reach USD 40.2 Billion by 2023, at a CAGR of 2.0 percent between 2018 and 2023. Paper chemicals are a group of chemicals that are used in pulp and paper mills to convert wood pulp into paper products. Various types of chemicals are used depending on the pulp and paper manufacturing process. The pulp and paper chemicals are classified into three types - pulp chemicals, process chemicals, and functional chemicals. Pulp chemicals mainly include bleaching chemicals and pulping chemicals. Caustic soda and sodium sulphide are the widely used pulping chemicals. Wood pulp is bleached to remove colour from the trace amounts of lignin, which is not extracted during the chemical pulping process.

Chlorine, sodium chlorate, chlorine dioxide, hydrogen peroxide, and oxygen are the widely used bleaching agents. Process chemicals mainly include biocides, coagulants and flocculants, defoamers, deposit control materials, and retention and drainage aids. Functional chemicals mainly include dyes, pigments, and colorants, fillers, surface coatings, sizing agents, and softeners and binding agents. APAC was the largest paper chemicals market in 2017. It is projected to reach USD 14,014.2 million by 2023 at a CAGR of 3.3 percent between 2018 and 2023. APAC accounted for a share of 32.4 percent of the overall paper chemicals market in 2017. The growth of the packaging industry in the region contributes to the growth of the paper chemicals market. The packaging industry generates a considerable demand for paper and paperboard in the region.

The paper chemicals market is mainly driven by the persistent growth in the production of packaging paper. The demand for several paperbased packaging products for the packaging of food and beverages is boosting the development of specialty paper chemicals. The global trend of digitization has decreased the demand for printing and graphic paper, which has resulted in the closure of many pulp and paper mills in Europe and North America. This has restrained the paper chemicals market. The market growth is challenged by the downturn in paper production in China due to the implementation of stringent regulations in the country regarding effluent disposal and old pulp and paper processing equipment. On the other hand, pulp mill biorefineries are creating new growth opportunities for pulp and paper chemical companies to convert pulp into valuable bioproducts such as bio -based phenols, binders, and polyesters.