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Fluff Pulp
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Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

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Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

1

Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

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Assess Supplier Risk based on key risk and compliance parameters

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Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

2

Supplier assessment is powered by world’s leading data partners including D&B, CreditSafe, Dow Jones, Refinitiv, Orpheus

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Identify right fit suppliers based on your selection criteria including revenue, capabilities, certification, geography

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Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

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Benchmark your category performance against peers and the market

1

Measure category performance on 15 key parameters across cost, risk and strategy KPIs

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Get information on key factors affecting your supply

1

Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Report Coverage

  • Fluff Pulp Market Growth Drivers
  • Key Global Fluff Pulp  Spplier Profile
  • Cost Break-up of Fluff Pulp Industry
  • Innovations and Trends

Table of contents

  1. Fluff Pulp Executive Summary
  2. Global Fluff Pulp Market Outlook
  3. COVID-19 IMPACT - INDUSTRY WATCH (U.S)
  1. Fluff Pulp Market Analysis
  2. Value Chain and Manufacturing Process of Fluff Pulp
  3. Global Fluff Pulp Market Overview
  4. Regional Fluff Pulp Market Overview
  5. Major Players in the Market
  6. Capacity Expansions and Shutdowns
  7. US Fluff Pulp Analysis
  8. Global Fluff Pulp Demand Outlook
  9. Global Demand by End-use
  10. Fluff Pulp Market Growth Drivers
  11. Challenges for Fluff Pulp and Diaper Producers
  12. Innovations in Diaper Market
  13. Fluff Pulp Porters Five Forces
  14. Porter's Five Forces Model

 

  1. Fluff Pulp Market-Covid-19 Impact
  2. Covid-19 Impact - Sourcing Location Watch
  3. Covid-19 Impact - Supplier Watch
  4. Covid-19 Impact - Industry Watch

 

  1. Impact of US-China Trade War on Fluff Pulp
  2. Impact of US-China Trade War on Fluff Pulp

 

  1. Cost Analysis
  2. Cost Break-up of Fluff Pulp

 

  1. Annexure
  2. Distribution Model of Fluff Pulp
  3. Technical Specification of Fluff Pulp
  4. Balanced Market

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Global Fluff Pulp Market Outlook

  • The top three producers of fluff pulp control ~80 percent of global production.
  • Asia and the Middle Eastern markets will drive the demand for fluff pulp in the coming years.
  • North America is a well-matured region, showcasing lower growth rates, characterized by no increase in demand and end-uses demand already ripe.

fluff pulp market

Major Trends

  • Baby diapers remained the most significant end-use market for fluff pulp, due to rising volume and the value of the baby diapers market.
  • In the coming years, the air-laid market is expected to bring a notable growth in demand for fluff pulp, supported by increasing production of air-laid products.
  • Increasing aging population, female population, growth in baby diaper market, increased production of air-laid products, expanding patient population of incontinence, and rising disposable income are some factors that will propel the global fluff market.
  • Key trends of this market include favorable price trends and the development of fluff pulp from hardwood.
  • There are currently two huge up-and-coming trends that aim to revolutionize the everyday diaper by throwing technology into the mix-Diaper Alert with Smartphone Application, Smart Diapers to Track Child Health.

Fluff Pulp Regional Market Overview

  • APAC would continue to be the net importer of fluff pulp from North America. Demand from Asia-Pacific was anticipated to grow at a CAGR of about 5–6 percent until 2020, owing to the increasing consumption of personal hygiene products. Increasing working women population coupled with a low penetration rate of diapers drove the demand for fluff pulp in recent years.
  • Global fluff pulp operating rates moderated to a high 95.4 percent in 2016; they were expected to decrease at 92.4 percent and 91.3 percent in the subsequent years due to capacity additions.

Major Players in the Industry

  • There is sufficient capacity to meet the demand of fluff pulp customers, as producers typically switch to “unfluffed” paper-grade pulp production with excess SBSK mill capacity.
  • International Paper and Domtar,] are adding a combined potential fluff pulp capacity of 876,000 tonnes through mill conversions. Specifically, IP is adding up to 360,000 tonnes at its Riegelwood, NC mill, and Domtar is adding a potential 516,000 tonnes at its Ashdown, AR mill.
  • Also, the capacity expansions from Domtar and Stora Enso will push their market share to 13 percent and 4 percent as against their current share of 11 percent and 4 percent, respectively. This will also make Stora Enso one of the largest names by market share.
  • LATAM is to meet its domestic demand and move away from imports for fluff pulp.
  • Sun paper's entry into fluff was a major step for China and it is expected to become one of the largest pulp manufacturers.

Reasons for Grade Shift to Fluff Pulp Production –US

  • Less technical knowledge and process understanding required, as the commodity is a “one size fits all” category.
  • As the manufacturers can swing to producing BHK or BSK or fluff pulp as per the market dynamics, enabling the manufacturers to diversify.
  • Due to steady growth of 4-5 percent from 2014 through 2019, driven by Asia and the Middle East.
  • Due to premium pricing compared to other market pulp grades, resulting in higher returns (>15 percent ROI).

Steady Growth

  • Aggressively growing demand with expected 4-5 percent CAGR from 2014 to 2019.
  • US manufacturers capitalizing on the availability of raw material (slash and loblolly pine), with 83 percent of the production concentrated in the US.
  • Growing disposable income and ease of use, urging the emerging middle-class population to switch to disposable products.
  • Innovation and increased penetration by disposable product manufacturers' drive the consumption of their products, and thereby the consumption of fluff pulp.

Uncomplicated Production

  • Fluff pulp production does not require technical knowledge and process understanding, unlike cellulose specialty grades.
  • It is considered an uncomplicated pulp grade, which can be produced by market pulp manufacturers, with the addition of some equipment like drying unit, reel, and winder rebuilds.
  • The “one size fits all” attribute, enables manufacturers to swing between market and fluff pulp, helping them to leverage the supply-demand imbalance.
  • Fluff pulp requires an ISO brightness of 84-87, lesser than the paper grade's ISO brightness of 89-90. This results in a significant reduction of chlorine dioxide required for the bleaching process and hence less chemical cost.

Premium Pricing and Swing Capacity

  • Fluff pulp is priced at a premium to the market pulp, enabling manufacturers to lock in extra profits (>15 percent ROI), then producing market pulp.
  • Among 5.5 MMT of US fluff pulp capacity, ~2 MMT are swing capacities.
  • With a decline in paper consumption, due to the advent of digital technologies, many manufacturers are converting their market pulp lines to swing production, to produce both fluff pulp or market pulp, depending on the market dynamics.
  • For example, a pulp mill with a capacity of 500,000 MT/year produces both SBSK and fluff pulp on swing production. If the mill produces 250,000 MT/year of fluff pulp, the company's revenue is expected to increase by more than $15 Mn.

 

Frequently Asked Questions

  1. What’s the net capacity and demand for the fluff pulp market?
  2. As per Beroe’s study, the global capacity of the fluff pulp market is 6.8 MMT while the global demand stands at a valuation of 5.8 MMT.

 

  1. How many shares do the top three producers of fluff pulp control from the global production?
  2. According to the insights, the top three producers of fluff pulp control nearly 80 percent of global production.

 

  1. What factors will contribute and propel the growth of the fluff pulp market globally?
  2. The primary factors that majorly contribute to the expansion of fluff pulp market size include:
    -Increasing aging population
    -Female population
    -Considerable growth in the baby diaper market
    -Increased production of air-laid products
    -Expanding patient population of adult incontinence
    -Rising disposable income
  1. Will there be any growth in demand from the Asia-Pacific region within the fluff pulp market? What factors contribute to this increase?
  2. According to the fluff pulp market report generated by Beroe, APAC region would continue to be the net importer of fluff pulp from North America. The net demand from the Asia-Pacific will grow at a CAGR of about 5-6 percent. The factors that influence this CAGR growth include:
    -Increasing consumption of personal hygiene products
    -Increasing working women population
    -Low penetration rate of diapers
  1. Who are the top suppliers of the fluff pulp market?
  2. There are four suppliers that rank at the top positions. The names include:
    -Georgia Pacific
    -International Paper
    -Domtar Stora Enso

 

  1. What’s the ideal contract period applicable within the fluff pulp market?
  2. Usually, within the fluff pulp industry, the ideal contract period ranges from one to three years. The longer the period of the contract, the higher is the discount allowed.

 

  1. Can you list the major components that influence the total cost of fluff pulp
  2. According to Beroe’s insights, raw materials majorly influences the total cost of fluff pulp nearly by 40 – 45 percent. The raw material includes SBSK wood chips and other chemicals (like chlorine dioxide and calcium oxide)

 

  1. What’s the segregation of various products based on the demand by the end-user industry?
  2. According to Beroe’s report, diapers hold nearly 38% of the market demand, while tampons, adult continence, and other products hold 24%, 26%, and 12% share of the demand by the end-user industry.

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