The global Unbleached Softwood Kraft Pulp Market is estimated to register a worth of USD 1,481.5 million in 2023. Future Market Insights projects the market to expand at 4.6% CAGR between 2023 and 2033.
The market is projected to record a Y-o-Y growth of 3.5% in 2023. This is due to the improvement in demand for sustainable packaging applications by using unbleached softwood kraft pulp over the conventional paper & pulp used for packaging solutions. Consequently, the market is anticipated to reach USD 2,322.84 million by 2033.
The future of unbleached softwood kraft pulp in the end-use industries with advancements is not limited to the further incorporation of connective technologies. Achieving goals such as using chemical grade for packaging and printing to create brand awareness need good quality unbleached softwood kraft pulp.
Artificial intelligence is likely to play a key role here, allowing manufacturers to create a systematically automated and predictive production line. With the growth of printing & packaging applications, sustainability is becoming extremely important to protect the environment by replacing plastics.
The popularity of unbleached sack kraft paper is significantly contributing to the market. The unbleached sack kraft paper market share in the industry can vary depending on various factors, such as the demand for packaging products, the availability of raw materials, and the competition from other types of packaging materials.
| Attributes | Details (in Value) |
|---|---|
| Unbleached Softwood Kraft Pulp Market CAGR (2023 to 2033) | 4.6% |
| Unbleached Softwood Kraft Pulp Market Size (2023) | USD 1,481.5 million |
| Unbleached Softwood Kraft Pulp Market Size (2033) | USD 2,322.84 million |
| Attributes | Details (in Volume) |
|---|---|
| Unbleached Softwood Kraft Pulp Market CAGR (2023 to 2033) | 4.4% |
| Unbleached Softwood Kraft Pulp Market Size (2023) | 2,358 Units |
| Unbleached Softwood Kraft Pulp Market Size (2033) | 3,627 Units |
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Research regarding customized products having high efficiency is expected to propel the demand for unbleached softwood kraft pulp during the forecast period. Due to the packaging applications of unbleached softwood kraft pulp, the market was expanding at a CAGR of 4.6% between 2018 and 2022.
| Particulars | Details |
|---|---|
| Jan-Jun (H1), 2021 (A) | 0.1% |
| Jan-Jun (H1), 2022 Projected (P) | 2.1% |
| Jan-Jun (H1), 2022 Outlook (O) | 2.3% |
| BPS: H1, 2022 (O) - H1, 2021 (P) | (+)20↑ |
| BPS: H1, 2022 (O) - H1, 2021 | (+)220↑ |
Unbleached softwood kraft pulp made up of northern softwood is expected to be the most lucrativeones because of its functional characteristics, such as being white in color and high strength properties.
Northern unbleached softwood kraft pulp is likely to expand at a CAGR of 4.4% in the forecast period. North America holds a market share of 23.8% of the global unbleached softwood kraft pulp sector in 2023.
Some new advances that have taken place in the market include the use of Kodiak Kraft and Polar Kraft, which are manufactured from forest resources and are popular for their efficiency, high strength, and fine northern fibers. In June 2022, Kruger acquired Kamloops Pulp Mill, a manufacturer of northern bleached softwood kraft pulp and unbleached softwood kraft pulp.
Short-Term (2023 to 2026): Since it is a type of pulp containing wood resin, it is crucial in the production of many products, including tissue paper and packaging, which aids in achieving suitable water resistance and is expected to see a 6% Y-o-Y rise by 2026.
Medium-Term (2027 to 2029): During this period, the packaging manufacturing industry's growing demand for sustainable and all-natural ingredients like pulp from different woods and their extensive use in pulp mills support the market growth. This lead to the expected market valuation of USD 2,068.3 million by 2029.
Long-Term (2030 to 2033): Long-term market growth is expected to be quite strong, as unbleached softwood kraft pulp is the vitally practical unrefined substance for the pulp and paper industry. It has a wide scope of uses, beginning from printing to wrapping, making it profoundly required everywhere.
The rising adoption of e-commerce and online shopping is expected to contribute to the demand for unbleached kraft boards, as companies seek to develop packaging solutions that are suitable for shipping products directly to consumers. Moreover, increasing demand for food and beverage packaging is expected to drive the growth of the unbleached kraft board market.
Manufacturers and consumers are always on the lookout for environment-friendly and easy-to-reuse packaging products. Diverse industries are taking notice of customers' growing choice for strong, lightweight paper packaging, which could fuel a 5.9% market rise for unbleached softwood kraft pulp by 2030.
Several packaging manufacturers are embracing unbleached softwood kraft pulp owing to the recycling efficiency and being lightweight,. Also, the overall costs during production and energy utilization are low.
Paper and paperboard packaging continue to dominate some packaging applications, such as corrugated boxes, cartons, liners, bags and sacks, wrapping, and others.
Pulp & paper packaging can smartly replace the use of conventional metal & steel packaging. Packaging with materials such as metal and steel is costly and harmful to the environment, whereas pulp-based products are the best packaging option due to their biodegradable nature and lightweight. Therefore, demand for unbleached softwood kraft pulp is expected to have a positive growth outlook.
Principal Consultant
The price of pulp is the most significant driver in determining the prices of end-products, such as paper and paperboard. Market pulp prices have continuously increased across the world since the year 2018, including both - bleached softwood kraft pulp and unbleached softwood kraft pulp.
Increasing paper and board production is bolstering the demand for wood pulp. It takes time before the pulp supply can suffice the unbleached softwood kraft pulp when the demand for pulp is high. Downward pressure on the pulp prices is seen when pulp supply increases, often resulting in a clear oversupply, especially in an economic downturn.
Pulp is a global commodity, and the prices in all the markets are hugelyimpacted by the demand from the notably growing consumer of pulp, that is China. The trade battle between China and other countries is further complicating the matter.
For instance, the United States and China have already put tariffs on a large number of products, including pulp and paper. This can be a restraining factor in the growth of the unbleached softwood kraft pulp sector.
Substitute to Plastic and e-Commerce Fueling Demand for Pulp and Paper
Due to increasing environmental concerns and stringent government regulations, plastic packaging formats are being replaced by paper. The increasing consumers’ preference for sustainable packaging formats is the new biodegradable alternatives for plastic packaging products.
With robust pulp and paper demand, the market is addressing two mega-trends in plastic substitution, which are e-commerce and food packaging. There is a mounting public interest in paper-based food packaging for quick-service restaurants and packaged goods.
Due to adverse effects on health because of plastic food packaging, the unbleached softwood kraft pulp for food packaging gets impacted positively. Products included in the segment are bags and sacks, wrapping paper, tissue paper, and others. Similarly, due to the anti-plastic drive, the market for paper and plant-based formats is expanding.
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| Country | United States |
|---|---|
| Market Value (2023) | USD 286 million |
| Market CAGR (2023 to 2033) | 3.1% |
| Market Y-o-Y (2023) | 2.1% |
| Country | Canada |
|---|---|
| Market Value (2023) | USD 66 million |
| Market CAGR (2023 to 2033) | 4.5% |
| Market Y-o-Y (2023) | 3.5% |
The United States is one of the significant producers of unbleached softwood kraft pulp in the world, with several leading companies operating in the country. These companies have invested heavily in research and development to improve the quality and performance of their products, as well as to develop new products to meet the changing needs of the market.
The United States has an expected 79.7% share in North America market by 2033. Furthermore, the growth of the e-commerce industry has also contributed to the growth of the Unbleached Softwood Kraft Pulp sector in the United States.
This is due to the unbleached softwood kraft pulp being used in a wide range of packaging products, including corrugated boxes, bags, and cartons, which are essential for shipping and storing products purchased online.
| Country | The United Kingdom |
|---|---|
| Market Value (2023) | USD 64 million |
| Market CAGR (2023 to 2033) | 3.9% |
| Market CAGR (2018 to 2022) | 4.1% |
| Country | Germany |
|---|---|
| Market Value (2023) | USD 57 million |
| Market CAGR (2023 to 2033) | 4.0% |
| Market CAGR (2018 to 2022) | 4.2% |
Europe remains at the top in the market, with a valuation of USD 422 million in 2023. Although the CAGR is expected to decline from 3.8% between 2018 and2022 to 3.6% during the forecast period, the region still has lot of scopes. This is due to the widespread usage of unbleached kraft liner board, a sturdy packaging material manufactured from agricultural resources that are utilized in a variety of sectors.
| Country | China |
|---|---|
| Market Value (2023) | USD 174 million |
| Market CAGR (2023 to 2033) | 6.0% |
| Market CAGR (2018 to 2022) | 6.1% |
| Country | India |
|---|---|
| Market Value (2023) | USD 107 million |
| Market CAGR (2023 to 2033) | 6.7% |
| Market CAGR (2018 to 2022) | 6.7% |
The market in Asia Pacific has been experiencing significant growth due to several factors. One of the key drivers of growth is the increasing demand for paper-based products in the region, particularly in emerging economies such as China and India. As consumers in the area become more environmentally concerned, the increased focus on sustainable packaging solutions is another factor driving growth.
Unbleached softwood kraft pulp is an interesting alternative for businesses want to fulfill the rising demand for sustainable packaging solutions in the area, as it's a natural and renewable resource that can be used to create eco-friendly packaging products.
There are many significant businesses engaged in the fiercely competitive unbleached softwood kraft pulp industry. These companies compete based on factors such as product quality, price, and customer service. They also invest hugely in research and development to improve the quality and performance of their products, as well as to develop new products to meet the changing needs of the market.
They focus is given on sustainability and environmental responsibility by using renewable resources and implementing sustainable practices throughout their operations. Overall, the unbleached softwood kraft pulp sector is highly competitive, with several key players vying for market share through innovation and sustainability.
Recent Developments:
The global market to be valued at USD 1,481.5 million in 2023.
From 2018 to 2022, the worldwide market registered a CAGR of 4.6%.
The market is expected to reach USD 2,322.84 million in 2033.
The United States will hit USD 286 million through 2023.
Rising demand for sustainable packaging is a key opportunity for the market players.
1. Executive Summary | Unbleached Softwood Kraft Pulp Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Northern Unbleached Softwood Kraft Pulp 5.2. Southern Unbleached Softwood Kraft Pulp 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Grade 6.1. Chemical Pulp 6.2. Mechanical Pulp 6.3. Other Pulp 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 7.1. Printing and Writing 7.2. Newsprint 7.3. Packaging 7.4. Tissue & Toilet Paper 7.5. Other Applications 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-use 8.1. Packaging 8.1.1. Food and Beverages 8.1.2. Building and Construction 8.1.3. Agriculture and Allied Industries 8.1.4. Cosmetics & Personal Care 8.1.5. Electrical & Electronics 8.1.6. Others 8.2. Non-Packaging 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Stora Enso Ovi 17.2. Canfor Corporation 17.3. Ahlstrom-Munksjo 17.4. Nippon Paper Industries Co., Ltd 17.5. Domtar Corporation 17.6. Arauco North America, Inc. 17.7. Ilim Group 17.8. Rottneros AB 17.9. Port Townsend Paper Company 17.10. SCG Packaging Plc 17.11. Canadian Kraft Paper Industries Ltd. 17.12. Smurfit Kappa Group Plc 18. Assumptions & Acronyms Used 19. Research Methodology
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Unbleached Softwood Kraft Pulp Market
