Paper Chemicals Market Size Forecast to Reach $42 Billion by 2025

Paper Chemicals Market size is forecast to reach $42 billion by 2025, after growing at a CAGR of 3% during 2020-2025. Paper chemicals are a group of chemicals that are used for manufacturing paper along with enhancing the properties of paper. Increase in use of paper for packaging applications is augmenting the growth of paper chemicals market share during the forecast period. These chemicals alter the paper in many ways including its color, brightness, strength and resistance towards water. Moreover, increasing environmental concerns and usage of eco-friendly packaging materials is also driving the growth of paper chemicals market size during the forecast period.

Full Report Link @ https://www.industryarc.com/Report/18387/paper-chemicals-market.html

Chemical Type - Segment Analysis

Functional chemicals hold the largest share of more than 25% in the paper chemicals market in 2019. It consists of pigments, latex, coating binders, dyes, and additives. Functional chemicals are used to improve the properties of paper such as color, printability, water absorbency and strength which in turn propels the growth of paper chemicals market. Some of commonly used functional chemicals are sizing additives, retention agents, wet strength, and dry strength additives. Wet strength additives such as melamine, urea formaldehyde, and polyimines are used to increase the strength of paper in wet conditions whereas dry strength additives are used to ensure that paper will not lose its strength while undergoing tension or compression.

Request for Sample of the Report @ https://www.industryarc.com/pdfdownload.php?id=18387
Report Price: $ 4500 (Single User License)

Application – Segment Analysis

Based on the application, packaging and boards segment holds the largest share of more than 30% in paper chemicals market in 2019. Paper packaging includes rigid and flexible packaging. Increasing application of paper in food packaging products including paper plates, cups and carryout boxes is driving the growth of paper chemicals market. Packaging protects the product from abrasion and meets stringent safety, technical and hygienic requirements. Rise in demand for flexible paper packaging, owing to growing awareness regarding harmful effects of plastics on ecosystem is aiding the growth of paper chemicals market.

COVID-19 has badly impacted the paper chemicals market. The fear of getting affected by coronavirus has led people stuck in their houses. Companies are shuttered all around the world resulting decline in production and sales. Whereas, due to the economic crisis in 2020 the press industry has witnessed a tremendous loss. For instance, on order to overcome from the loss, the Indian Newspaper Association has written to Indian government seeking urgent interventions and assistance to keep newspaper industry on track. Moreover, lack of workforce and disruption of global supply chain along with newspaper demand subsequently hampering the growth of paper chemicals market.

Geography - Segment Analysis

Asia-Pacific has dominated the paper chemicals market with a share of more than 35% in 2019 followed by North America and Europe. Easy access of raw materials and presence of paper and pulp industries is driving the growth of paper chemical market in APAC region. According to environmental paper network (EPN), paper use is steadily increasing year on year and exceeded to 400 million tons per year in 2018. More than half of this is consumed by China, U.S and Japan whereas Africa accounts for only 2% of global paper use. Furthermore, rising population coupled with rapid industrialization is also boosting the growth of paper chemicals market in emerging economic nations like China and India.

Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=18387

Drivers – Paper Chemicals Market

Growing demand from end use industries

Increase in disposable income coupled with high standard of living is escalating the use of paper for packaging which in turn boosts the growth of paper chemicals material market. Increase in use of papers for printing and writing applications has also fueled the market. According to Japan paper association total paper and paperboard demand for domestic applications such as tissue paper, newsprint, boxboard etc. reached to 26,581 thousand metric tons in 2017 in Japan. Rising health concerns and toxicity of plastic bags has also increased its use in food industries further augmenting the growth of paper chemicals market.

Increasing environmental concerns and ban of plastics bags

Paper based products are ecofriendly and do not have any harmful effect on environment. Degradability and ease of recycling is driving the paper industry further augmenting the paper chemical market. Additionally, ban of plastic bags has increased the demand of paper bags in supermarkets and groceries stores. Government of many countries took major step for minimizing the use of plastic bags. For instance, California has introduced regulation known as SB270 in July 2015 for prohibiting use of plastic bags at groceries, pharmacies and other stores. In addition, In India, in 2018, the Tamil Nadu state government banned the use, sales, manufacture, storage and supply of plastics. Moreover, in February 2019, in European Parliament members were voted as 571-53 in favor of the single-use plastics ban like plastic cutlery, cotton buds, straws and stirrers. In Africa, in May 2019, United Nations Environmental Programme (UNEP), Tanzania banned the importation, production, sale, and use of plastic bags. With this ban Tanzania become the 34th African country to ban plastic.

Challenges –Paper Chemicals Market

Growing digital Industry and harmful effects of dioxins

Deforestation to acquire raw material and release of dioxins during the manufacturing of papers hinders the growth of paper chemicals market. Exposure to dioxins may cause adverse heat issues including hormonal problems, infertility, cancer and diabetes. Additionally, the growing digital industry due to its cost effective and easy accessibility of data has decreased the use of papers. Furthermore government initiatives to minimize the use of paper has also hampered the paper chemicals market. For instance, Indian government’s initiative DigiLocker which is a cloud based digital locker to save documents online, thereby eliminating the use of physical documents. Also, the increase in use of digital platforms during coronavirus pandemic is a major challenge for paper chemicals market.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the paper chemicals market report. In 2019, the market of paper chemicals 10 companies accounting for xx% of the share. Major players in the paper chemicals market industry outlook are, Kemira Oyj, BASF, Solenis, Ecolab, Ashland Inc., Harima Chemicals Group, Buckman Laboratories International Inc., Archroma, and Chemsystems, Dow Chemical Company, among others.

Acquisitions/Technology Launches

In May 2018, BASF and Solenis have signed an agreement to join BASF’s paper wet-end and water chemicals business with Solenis. 49% share of the combined entity was hold by BASF that will operate under the Solenis name and be headquartered in Wilmington, Delaware, USA.

In September 2017, BASF has expanded paper coatings business with a new low odor binder which is based on styrene butadiene and specially designed for odor sensitive applications in the board and packaging market in the Nordic region.

Key Takeaways

Increasing consumer consciousness regarding sustainable packaging and regulations imposed by government for the ban of plastic bags is propelling the demand of paper, further boosting paper chemicals market.

Presence of substitutes such as polyethylene and polyurethane for packaging purposes acts as a restraint for the growth of paper chemicals market.

Fluctuation in raw material prices also hampers the growth of paper chemicals market. For instance, BASF has globally increased the prices for paper and water chemicals by 5 to 10% in 2017.

According to International Trade Centre (ITC) Trade Map report, total chemical wood pulp imported in the world was 55,061,559 tons in 2019 and China alone imported 21,519,647 tons.

Related Reports :

A. Sodium Carbonate Market
https://www.industryarc.com/Report/16251/sodium-carbonate-market.html

B. Fine Chemicals Market
https://www.industryarc.com/Report/15895/fine-chemicals-market.html

For more Chemicals and Materials Market reports @ https://www.industryarc.com/Domain/4/chemicals-materials-market-research.html

Venkat Reddy
Sales Director
Email: venkat@industryarc.com
Website: https://www.industryarc.com
Phone: (+1) 970-236-3677

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.

This release was published on openPR.