Chemical Pulp Market Size & Share [2033]

Chemical Pulp Market Overview

The Chemical Pulp Market size was valued at USD 38350.63 million in 2024 and is expected to reach USD 51840.76 million by 2033, growing at a CAGR of 3.4% from 2025 to 2033.

The global chemical pulp market—derived via chemical removal of lignin from wood chips—reached approximately 38.35 billion USD in 2024, representing over 69 million tonnes consumed worldwide. Asia-Pacific led consumption with about 54 million tonnes of wood pulp in 2024, of which 42 million tonnes were chemical-grade pulp—equal to nearly 79 percent of total regional output. In consumption terms, chemical pulp outpaced mechanical and dissolving pulp, being used almost seven times more than mechanical variants at 69 million tonnes versus 10 million tonnes. In terms of value, chemical pulp generated approximately 44.7 billion USD in 2024—comprising nearly 80 percent of total wood pulp market value.

China was the largest national producer with 24 million tonnes, accounting for around 46 percent of total regional output. The kraft process remains dominant, accounting for a major share of chemically pulped fiber globally, with sulfite processes making up the remainder. Production volumes in Asia‑Pacific fell slightly by 0.9 percent in 2024 following a high of 56 million tonnes in 2022, but have posted average annual growth of +2.3 percent between 2013 and 2024.

Key Findings

Driver: Rising demand for chemical pulp in paper-based packaging, fueled by increasing restrictions on single-use plastics, has become a significant driver in 2024, with packaging applications accounting for over 60% of global pulp use.

Top Country/Region: China leads the global chemical pulp market, producing over 24 million tonnes in 2024, driven by the expansion of high-volume pulp mills and robust demand from domestic paperboard manufacturers.

Top Segment: Kraft pulp remains the dominant segment in the chemical pulp market, representing over 80% of chemically pulped fiber globally, due to its superior strength and compatibility with both bleached and unbleached applications.

Chemical Pulp Market Trends

The chemical pulp market continues to evolve under the influence of shifting consumer preferences, technological innovation, and tightening environmental regulations. In 2024, approximately 60 million tonnes of chemical-grade pulp was processed globally for packaging applications, reflecting a 10% increase from 2022’s 54 million tonnes. This adoption aligns with the paperboard packaging market, which reached USD 183.9 billion in 2024, indicating major correlation given that paperboard alone accounted for USD 183.9 billion. In Asia-Pacific, packaging-related pulp volumes stood at 138 million tonnes in 2024 after a modest decline of 2.4 percent from 2023. Despite that dip, regional volumes have grown at a steady annual average of +2.7 percent between 2013–2024. This resilient demand continues to drive technological upgrades in pulping facilities, including transitions from elemental chlorine bleaching to ECF and TCF processes. As of 2024, only 19–20 percent of kraft operations worldwide still used elemental chlorine, down from over 90 percent in 1990.

The market trend toward high-performance pulp chemicals has heightened demand: in 2024, the pulp & paper processing chemicals market reached USD 28.16 billion, with East Asia capturing 36.5 percent of that at roughly USD 10.28 billion. Growth in specialty chemicals—such as biocides, retention aids, and sizing agents—has surged, with bleaching chemicals projected at USD 19.87 billion by 2034. This is tied to quality-conscious sectors like printing and hygiene, which in 2024 consumed over 69 million tonnes of chemical pulp globally. North America remains technologically advanced, with USD 8.05 billion in processing chemical consumption in 2024. Europe produced more than 36 million tonnes of pulp in 2024, 40 percent from virgin pulp and the rest from recycled fibers, with recycling rates reaching 79.3 percent. Innovations in bio-based pulp alternatives, such as hemicellulose-based and recycled fiber blends, are gaining traction. In 2024, hemicellulose-driven specialty pulp applications contributed to over 15 percent of new product developments. A rising trend is integration of AI and digital monitoring systems—Automation and Industry 4.0 deployments reached 32 percent of mills by late 2024.

Chemical Pulp Market Dynamics

DRIVER

Rising demand for eco-friendly packaging materials

Growing environmental consciousness and regulatory pressure against plastic have significantly boosted demand for paper-based alternatives. In 2024, over 60 million tonnes of chemical pulp were allocated to packaging-grade board alone, with kraft paper seeing year-on-year growth of 7.2% globally. Governments across the EU, North America, and Asia-Pacific have imposed restrictions on single-use plastics, encouraging the use of corrugated boxes, molded fiber trays, and folding cartons. China, for instance, banned plastic bags in major cities by 2024, increasing demand for virgin fiber by 12%.

RESTRAINT

Environmental impact of chemical pulping

Despite its dominance, the chemical pulping process—especially the kraft method—generates substantial chemical waste and greenhouse gas emissions. In 2024, the global paper and pulp industry emitted an estimated 190 million metric tons of CO₂-equivalent, making it one of the top five carbon-intensive sectors globally. Wastewater discharge from bleaching and delignification also remains a key concern. Treatment costs for pulp mill effluents rose by 9.3% from 2023 to 2024 due to stricter discharge regulations in the EU and Canada.

OPPORTUNITY

Integration of bio-based and recycled fibers in specialty pulp applications

Advancements in bio-refining and circular fiber technologies have created robust opportunities for hybrid pulp materials. In 2024, specialty pulp markets using hemicellulose and lignin-derived polymers increased by 18.6%, primarily for hygiene, insulation, and printing-grade applications. European startups, including several in Finland and Germany, launched over 25 new grades of bio-enhanced pulp, capturing interest from paperboard and hygiene manufacturers. Moreover, recycled fiber blends accounted for 27% of new commercial pulp trials in Asia-Pacific during 2024, addressing both sustainability goals and rising virgin pulp costs.

CHALLENGE

Rising operational costs and raw material price volatility

Wood chips, chemicals (like sodium hydroxide and sodium sulfide), and energy constitute more than 60% of the production cost in chemical pulping. Between 2022 and 2024, wood chip prices in North America rose by 15–20%, while energy costs increased by 11% due to global fuel market instability. Additionally, the cost of bleaching chemicals rose by 13.5% in 2024 alone. This volatility has impacted production margins, especially in small and mid-size pulp mills. High capex for adopting closed-loop chemical recovery systems—often exceeding USD 80–100 million per mill—adds further financial strain.

Chemical Pulp Market Segmentation

In chemical pulp market segmentation, analysis focuses both on type and application. Globally, white pulp, brown pulp, and specialty pulp each captured notable shares in 2023–24.

By Type

Specialty Pulp: used in advanced hygiene, textile, and technical papers, represented about 12–15% of overall chemical pulp production in 2024. Demand was especially high in hygiene tissue, which consumed over 5.5 million tonnes globally, and specialty paper-grade applications grew with new product launches averaging 25–30 per year in Europe and North America.
White Pulp: primarily used in printing and writing paper, made up ~40 percent of chemical pulp volumes in 2024, totaling approximately 28 million tonnes.
Brown Pulp: widely used in packaging paper and molded fiber, dominated type segmentation, capturing approximately 45–50 percent of the market in 2023–24. In 2023, molded pulp packaging volumes reached around 12 million tonnes, with Asia-Pacific producing >60% of global brown pulp.

By Application

Paper Production: Printing, writing, technical, and offset papers used about 33–35 million tonnes of chemical pulp in 2024, of which printing and writing accounted for 18 million tonnes and technical/industrial papers for 15 million tonnes. North American consumption for printing-grade pulp exceeded 9 million tonnes, while East Asia consumed >12 million tonnes.
Board Production: Packaging paper and paperboard—key board production segments—consumed over 45 million tonnes in 2024. Corrugated paperboard alone used ~25 million tonnes, with packaging paper for food and beverage exceeding 20 million tonnes globally. Europe produced 90 million tonnes of paper and board, including >36 million tonnes of pulp, reinforcing board demand.

Chemical Pulp Market Regional Outlook

The global chemical pulp market exhibits strong regional diversity, with production and consumption patterns influenced by raw material availability, industrial infrastructure, and regulatory environments. Asia-Pacific leads in both production volume and consumption, while North America and Europe maintain dominance through technological innovation and sustainability initiatives.

North America

remains a major player in chemical pulp production, especially kraft pulp, with over 65% of U.S. pulp mills utilizing kraft processes as of 2024. The U.S. produced more than 47 million tonnes of paper and board in 2024, of which chemical pulp accounted for nearly 22 million tonnes. Packaging demand continues to rise in the region, with kraft-based paperboard gaining popularity in e-commerce and foodservice. In Canada, forestry policies enabled the sustainable harvesting of over 142 million cubic meters of wood in 2024, driving pulp supply growth. Advanced chemical recovery systems are deployed in over 85% of U.S. pulp mills, enhancing eco-compliance.

Europe

focuses heavily on eco-efficient chemical pulping processes. The region produced more than 36 million tonnes of pulp in 2024, with over 40% sourced from virgin chemical pulp and the remainder from recycled fibers. Scandinavian countries, particularly Sweden and Finland, dominate chemical pulp exports. Sweden alone produced over 11 million tonnes, exporting more than 70% of it. Strict EU regulations have pushed nearly 90% of kraft pulp mills in Europe to adopt elemental chlorine-free (ECF) or totally chlorine-free (TCF) processes. In Germany, pulp-based packaging demand grew by 6.5% in 2024 due to plastic bans in retail.

Asia-Pacific

leads in chemical pulp consumption and import. China remains the largest single-country consumer, with over 24 million tonnes consumed in 2024. Domestic production continues to grow, with capacity expansions in regions like Guangxi and Shandong. India produced over 3.8 million tonnes of chemical pulp in 2024 and is rapidly scaling output to meet packaging and printing paper demand. ASEAN nations like Indonesia and Vietnam also expanded pulp output by 8% and 6.3%, respectively. Japan continues to rely on high-grade bleached pulp, consuming over 4 million tonnes for hygiene and specialty paper applications.

Middle East & Africa

Though relatively smaller in market size, the Middle East and Africa are showing increasing interest in pulp-based packaging. South Africa remains the leading pulp producer in the region, with over 2.6 million tonnes produced in 2024. The country’s Sappi and Mondi mills exported over 70% of their chemical pulp output to Europe and Asia. GCC countries, particularly the UAE and Saudi Arabia, are importing increasing volumes of kraft pulp for local paperboard and hygiene paper manufacturing. Africa’s urban packaging market is projected to grow, with demand for corrugated board increasing by 9.1% in 2024.

List of Top Chemical Pulp Companies

SNF Floerger
Clariant
Nalco
AkzoNobel
Kemira
DowDuPont
BASF
ERCO
Shell Chemicals
Ashland
Solvay
Bayer
Cytec Industries

BASF: held the leading position in the global chemical pulp additive segment in 2024, accounting for approximately 11.6% of the total market share across sizing agents, retention aids, and wet-strength resins. The company supplied to over 320 pulp mills across 45 countries. Its pulp chemical division processed over 1.9 million tonnes of chemical formulations tailored to kraft and sulfite processes.

Kemira: maintained a strong presence in North America and Europe with a 9.3% share in the global pulp chemical market in 2024. Its specialty chemicals supported over 200 pulp and paper facilities, producing over 1.2 million tonnes of advanced bleaching agents and process chemicals annually. The company’s expansion into Asia-Pacific added 3 new manufacturing units between 2023–2024.

Investment Analysis and Opportunities

The chemical pulp market has seen significant capital flow in 2023 and 2024, with major investments directed toward capacity expansion, sustainable pulping technologies, and digital monitoring of operations. In 2024, over USD 7.8 billion was invested globally in chemical pulp projects—primarily in the Asia-Pacific and Scandinavian regions. China’s Guangxi and Shandong provinces added over 4.2 million tonnes of kraft pulp capacity, while Indonesia and Vietnam collectively invested in expanding 2.7 million tonnes of new capacity. North American pulp players are deploying digital automation and AI for process optimization. Over 65% of U.S. chemical pulp mills have integrated IoT sensors for monitoring digester and bleaching performance. This move alone reduced chemical usage by 12.4% and improved recovery efficiency by 8.1%, thereby attracting venture capital attention to pulp-focused AI startups. In Europe, investment surged in chlorine-free and enzymatic pulping techniques.

Sustainability-driven investors are increasingly targeting specialty pulp manufacturers. Biodegradable pulp-based materials used in insulation, textiles, and food service packaging attracted over USD 650 million in equity funding during 2023–2024. North American startups are building modular pulp units for rural fiber sourcing, supported by public grants exceeding USD 350 million. Opportunities are also emerging in Africa, where low-cost labor and vast forest reserves offer greenfield potential. Mozambique, Ghana, and Kenya are attracting feasibility studies from major players to explore eucalyptus and acacia-based chemical pulping, targeting ~1.8 million tonnes of new capacity within the next five years. In total, more than 50 major capital projects were announced in 2023 and 2024 globally, indicating strong investor confidence.

New Product Development

New product development in the chemical pulp market during 2023–2024 has been dynamic, especially in specialty pulp categories. Manufacturers are shifting focus from bulk grades to high-margin, application-specific products. One key trend includes the development of formaldehyde-free wet-strength resins, adopted by over 120 mills globally in 2024. These additives improve hygiene pulp quality while reducing VOC emissions by 14–18%. Kemira and Solenis jointly introduced a high-retention additive blend for bleached kraft pulp in early 2024. The solution reportedly improved drainage by 23% and fiber bonding strength by 17% during trials in Nordic mills. These chemicals are now being commercialized across Europe and Southeast Asia. In the packaging segment, several players launched food-grade brown pulp boards with improved grease resistance, suitable for takeaway and frozen food trays. A U.S.-based mill reported sales of over 2.1 million units/month after switching to this pulp formulation in mid-2023. Meanwhile, Japan’s Nippon Paper introduced antimicrobial chemical pulp liners for foodservice, with efficacy rates above 95% against bacterial strains.

Biopulp innovations also expanded rapidly. In Finland, a bio-refinery launched a hemicellulose-enhanced chemical pulp used in the textile industry to improve fabric durability. Over 100 textile manufacturers tested samples in 2024, achieving tensile strength improvements of 11–13% compared to viscose. Similarly, Indian and Chinese research institutions jointly patented a lignin-reinforced chemical pulp grade for industrial wipes, with higher absorption and lower fiber loss. New bleaching technologies such as ozone-enhanced TCF (totally chlorine-free) systems are under development. These systems reduced effluent COD levels by 26% in initial deployments. North American mills adopting this approach produced over 500,000 tonnes of TCF pulp in 2024, up from 310,000 tonnes in 2022. In hygiene applications, high-absorbency chemical pulp for sanitary napkins and baby wipes saw growing demand. BASF collaborated with several manufacturers to deliver superabsorbent-enhanced fluff pulp that retains 17.8 grams of liquid per gram of pulp—27% higher than conventional grades. Over 80 new product lines using this pulp were launched globally in 2024.

Five Recent Developments

Kemira opened a new chemical additive plant in Ulsan, South Korea, in April 2024, with an annual capacity of 75,000 tonnes focused on pulp and paper treatment solutions.
BASF launched a formaldehyde-free sizing agent for kraft pulp in September 2023, already adopted by 15 major pulp producers in Europe and Asia.
Stora Enso announced a pilot trial of enzyme-assisted pulping at its Swedish mill in May 2024, reducing energy consumption by 12%.
Mondi Group committed USD 500 million in 2024 to convert its Richards Bay (South Africa) mill into a specialty chemical pulp plant with 650,000 tonnes/year capacity.
UPM finalized a biorefinery partnership in Uruguay in November 2023, producing 2.1 million tonnes of eucalyptus-based chemical pulp annually for global export.

Report Coverage of Chemical Pulp Market

This report provides a comprehensive analysis of the global chemical pulp market, with focused coverage on production volumes, application trends, technology development, and competitive landscape. The study spans data across 2023 and 2024, covering more than 50 countries, over 100 companies, and detailing 30+ key product categories. The chemical pulp market is analyzed by type, including white pulp, brown pulp, and specialty pulp, as well as by application—primarily paper production and board production. Key metrics such as production tonnage, import/export data, installed capacities, and process adoption (kraft vs. sulfite) have been evaluated. Regional analysis includes detailed performance and developments across North America, Europe, Asia-Pacific, and Middle East & Africa.

Special attention is given to sustainability practices, environmental regulations, and the evolution of chlorine-free bleaching technologies, with more than 65% of global mills reportedly shifting to eco-compliant methods. The report also examines key market dynamics, including drivers like demand for eco-packaging and hygiene products, restraints such as high energy and chemical costs, and opportunities such as bio-based pulp integration and emerging market expansions. It includes quantifiable insights such as tonnage shifts, percent growth across applications, and regional consumption ratios. An in-depth competitive landscape is also provided, including market shares and innovation analysis of major players such as BASF, Kemira, SNF Floerger, and others. Mergers, product launches, joint ventures, and manufacturing expansions during 2023–2024 are detailed to understand positioning strategies and investment patterns.