The wood pulp market size is estimated to be worth USD 80.2 billion in 2024 and is anticipated to reach a value of USD 101.0 billion by 2034. Sales are projected to rise at a CAGR of 2.4% over the forecast period between 2024 and 2034. The revenue generated by wood pulp in 2023 was USD 78.9 billion.
Wood pulp is being used in large quantities in the food industry for making wide ranges of packaging products, thus capturing more than 44% market share within the end-use segment over the forecast period. This is because it plays an essential role in sustainable packaging, which suits the increasing eco-friendly trends. Biodegradable materials, like paperboard and molded packaging, made from wood pulp provide safety for food products and decrease plastic waste.
Wood Pulp Industry Forecast
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 78.9 billion |
| Estimated Size, 2024 | USD 80.2 billion |
| Projected Size, 2034 | USD 101.0 billion |
| Value-based CAGR (2024 to 2034) | 2.4% |
Softwood pulp is likely to lead the wood pulp market due to its longer fibres, which have higher strength and durability properties, thus suitable for high-grade paper products such as packaging, printing, and tissue paper. Furthermore, its adaptability for mass production and superior performance in mechanical pulping processes increase its preference in the market.
The wood pulp market is likely to witness profitable growth in the forecast period. It will be able to create an incremental opportunity of USD 22.1 billion and rise 1.2 times its current value by 2034.
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Growing Tissue Paper Usage Fuels Global Wood Pulp Market Expansion
The rising consumption of tissue paper products is highly contributing to the growth of the global wood pulp market. Tissue papers, which include toilet paper, facial tissues, and paper towels, are essential in residential as well as commercial spaces with the demand increasing continuously. In Europe, in the year 2023, sanitary and household papers amounted to 10.3% of total paper and board production- according to CEPI.
Furthermore, tissue products are always in great demand because they are consumed daily, also people all over the world are becoming more hygiene-oriented. Increased urbanization and population development, especially in developing regions, have contributed significantly to adopting tissue products.
This leads to an increase in wood pulp as the pulp is basically an essential raw material for manufacturing tissue items, consequently pushing the demand for wood pulp across various regions.
Rising Demand for Eco-Friendly Textiles Boosts Wood Pulp Market
Growing demand for fiber-based textiles such as lyocell and modal, derived from wood pulp, forms the major driving force for the global wood pulp market. Softness, breathability, and sustainability make these fabrics a popular choice over synthetic fibers like polyester. Biodegradable nature and reduced environmental footprint in production are also aligning with the growing preference of consumers for sustainable fashion and home textiles.
Both regulatory pressure and brand strategies to become more eco-friendly are driving industries to increasingly incorporate these fibers into clothing, bedding, and upholstery. Innovation in pulp processing, which improves fiber quality and scalability, makes wood pulp a critical resource in transforming the textile industry.
Growing Competition from Alternatives May Restrict Wood Pulp Market Expansion
Increasing competition by recycled and alternative fibers has grown with the emergence of sustainability concerns that the world wood pulp market faces. The recycled paper pulp, which has been advanced through recycling technologies today, quite competes both in quality and in cost; thereby reducing dependency on virgin pulp, which also aligns with circular economy objectives. Such trends are presently shifting markets from traditional wood pulp as a source due to demand and regulatory trends.
Among non-wood alternative fibers, bamboo, hemp, and bagasse offer rapid harvest cycles characterized by low environmental footprints, thus providing viable alternatives to healthy substitutes and addressing deforestation issues of eco-sensitive industries. The rising popularity of these sustainable alternatives can limit the growth of the wood pulp market and will require innovative measures and adaptations to maintain competitiveness.
The global wood pulp market recorded a CAGR of 1.3% during the historical period between 2019 and 2023. Market growth of wood pulp was positive as it reached a value of USD 78.9 billion in 2023 from USD 75.3 billion in 2019.
Over the historic period, global wood pulp sales increased as demand from the packaging and hygiene sectors rose continuously. A demand shift among eco-conscious consumers from synthetic to pulp-based materials accompanied steep growth in the market despite supply-chain challenges and switching costs towards raw materials.
In the future, from 2024 to 2034, there are expectations of steady growth that will be propelled by biodegradable and recyclable product innovations. Growing textile, tissue, and specialty paper applications will spur demand. However, regulatory drives to make materials sustainable will boost further use of wood pulp globally.
Principal Consultant
Tier 1 companies comprise market leaders capturing significant market share in global market. These market leaders are characterized by high production capacity and a wide product portfolio. These market leaders are distinguished by their extensive expertise in manufacturing across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including recycling and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include Suzano Papel e Celulose, The International Paper Company, UPM-Kymmene Oyj, and Domtar Corporation (Paper Excellence).
Tier 2 companies include mid-size players having presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong market knowledge.
These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Metsä Group, Eldorado Brasil Inc, Klabin SA, Altri SGPS SA, Canfor Corporation, and Ence Energía y Celulosa, S.A.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment. They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
The section below covers the future forecast for the wood pulp market in terms of countries. Information on key countries in several parts of the globe, including North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe and MEA is provided. Mexico is anticipated to remain at the forefront in North America, with a CAGR of 1.5% through 2034. In Western Europe, Nordic is projected to witness a CAGR 2.2% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 0.6% |
| Germany | 0.5% |
| China | 3.2% |
| UK | 0.4% |
| Spain | 1.1% |
| India | 5.3% |
| Canada | 0.9% |
Wood pulp market in the USA is expected to have a CAGR of 0.6% in the forecast period.
The United States' rich coniferous forests and a large pulpwood harvest volume of over 246,110 (000 m³), as per the United Nations Economic Commission, account for the key growth factors of their wood pulp market. Coniferous forests offer softwood with long fibers, which are well suited for producing strong, high-quality pulp for use in packaging, printing, and hygiene products.
This huge natural resource provides a steady and low-cost supply of raw materials, thus reducing reliance on imports and promoting large-scale production. High demand in the domestic market with an extended export market makes the pulpwood from these forests a big boost for growth and competitiveness in the USA wood pulp industry.
The growing e-commerce industry and investments in improved pulp production technologies in China offer a lot of opportunities for the expansion of the wood pulp market in the country. The country is anticipated to record a CAGR of 3.2% during the evaluation period.
With the pace of rapid urbanization and expansion of the e-commerce industry in China, wood pulp consumption is expected to increase. All of this will result in growing consumption of paper products tissue to specialty papers as a result of associated hygiene awareness and improved living standards.
The booming business of e-commerce creates mammoth demands for sustainable packing solutions - cardboard and paper-based materials retailers are looking out for an environmentally friendly alternative to plastic packaging. The country's massive manufacturing industry also generates export-oriented packaging demand for pulp-based products.
Additionally, investments in high-end pulp production technologies have been made by the country to satisfy local demand with reduced environmental impact. The policies of the government, encouraging the use of renewable resources, are expected to push the demand for wood pulp in the upcoming years.
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The section contains information about the leading segments in the industry. In terms of applications, printing & writing papers are estimated to account for a share of 33.8% by 2034. By end use, food industry is projected to dominate by holding a share of 44.0% by the end 2034.
| Application | Printing & Writing Papers |
|---|---|
| CAGR (2034) | 2.1% |
Out of several wood pulp applications, printing & writing papers are expected to lead the applications segment in the wood pulp market and grow at a CAGR of 2.1% over the forecast period.
Wood pulp is used the most for printing and writing papers because of its superior properties including strength, smoothness, and opacity, which are important when it comes to making superior-quality sheets. Chemical and mechanical pulps are suitable for numerous grades of printing and writing materials, such as books, magazines, and office paper, because of their brightness and durability. Additionally, wood pulp is inexpensive and abundant.
As such, it is the raw material of choice compared to others for high-volume production. Increasing literacy and education efforts and campaigns in developing economies ensure more utilization of pulp for writing & printing papers. The paper pulp is also compatible with modern printing technologies, making the product relevant to meeting the various paper quality demands arising from these applications.
Wood Pulp Preference for Food Packaging With Sustainability and Safety Benefits
| End Use | Food |
|---|---|
| CAGR (2034) | 2.4% |
The food industry is estimated to lead the end use segment in the wood pulp market and account for market share of 44.0% at a growth rate of 2.4% till 2034.
Wood pulp is used widely for food packaging purposes because its properties match all the major requirements related to safety, sustainability, and performance. Because it is a renewable product that is biodegradable, and non-toxic, wood pulp can help meet growing global needs for eco-friendly packaging alternatives, particularly with governments moving away from plastic-based alternatives as consumers demand less plastic material in packaging.
Its structure enables the creation of highly strong, lightweight, yet very durable structures for packaging products without them becoming contaminated, thereby preserving their freshness. Moreover, pulp processing innovations enable making grease-resistant and moisture-proof papers without employing harmful chemicals, which can increase the interest in these papers for food applications.
The recyclable nature of its pulp-based packaging industry supports the growing concerns with circular economy practices. These factors together position wood pulp as the preferred choice within the food packaging industry.
Key players of wood pulp industry are developing and launching new products in the market. They are integrating with different firms and extending their geographical presence. Few of them are also collaborating and partnering with local brands and start-up companies for new product development.
Key Developments in Wood Pulp Market
In terms of source, the wood pulp market is divided into hardwood pulp and softwood pulp.
By pulp type, the wood pulp market is segmented into bleached pulp and unbleached pulp.
In terms of application, the wood pulp market is segmented into printing & writing paper, tissue & towel products, specialty papers, packaging products and non-paper applications. Printing & writing paper further includes magazines, catalogs, office paper and newsprint. Specialty paper are sub-segmented into décor paper and technical paper. Packaging products segment include corrugated boxes, cartons, liners, bags & sacks, wrapping paper and other packaging products.
Some of end users in the wood pulp market include food, beverages, pharmaceuticals, cosmetics and personal care, textile, homecare and other industrial. The food industry further includes bakery & confectionary, dairy products, fresh produce, baby food, pet food, ready to eat and other food products. The beverages segment include alcoholic beverages and non-alcoholic beverages. The homecare sector is sub-segmented into toiletries, laundry care, personal hygiene and air fresheners.
Key countries of North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe, Middle East and Africa are covered.
The wood pulp industry is projected to witness CAGR of 2.4% between 2024 and 2034.
The global wood pulp industry stood at USD 78.9 billion in 2023.
Global wood pulp industry is anticipated to reach USD 101.0 billion by 2034 end.
South Asia & Pacific is set to record a CAGR of 4.1% in assessment period.
The key players operating in the wood pulp industry are Suzano Papel e Celulose, The International Paper Company, UPM-Kymmene Oyj, and Domtar Corporation (Paper Excellence).
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Wood Pulp Market
