Regions Covered
USA
SEA
Europe
LATAM
The global pulp market is estimated to be valued at USD 60 billion by the end of 2026. The market is expected to grow between 3-4 percent until 2026 with APAC emerging as the highest demand generating geography. Growth in global consumption of tissue paper led majorly by the US will remain the foremost growth driver for pulp. Companies focusing on projecting an eco-friendly brand image are increasingly adopting pulp packaging products. Around 9.3 million tonnes of capacities are estimated to enter the global pulp market between 2015 and 2018. To attain their full capacities, these additions will take well into the 2020’s indicating an over supplied scenario during that period. Though softwood pulp’s projected demand growth rate is lesser than hardwood’s, the latter doesn’t have as many capacity additions planned in the future to create an over supplied market. But since tissue is the biggest market for pulp, demand for hardwood pulp is expected to be higher than softwood. In a dramatic escalation of a trade war that's been brewing for months, China has announced 5-10% duties on $60 billion worth of US imports including market pulp. The duties, in short term, could boost demand for Canadian and European Northern Bleached Softwood Kraft (NBSK) pulp from Chinese buyers. Also, it could raise demand for Chilean and Russian BSK, while US producers may export more spot tonnes to other emerging markets in Asia and the Middle East/Africa (MENA) region.
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