Introduction

Paper chemicals are group of chemicals that are utilized for paper manufacturing, or improve the characteristics of paper. These chemicals can be used to change the paper in many ways, comprising changing its color and brightness, or by enhancing its strength and resistance to water

Market Dynamics

Global Paper Chemicals Market Size was USD 18.67 billion in 2013 and is projected to reach USD 20.41 billion by 2017 and is calculated to reach up to USD xx.xx billion in 2025. According to latest study conducted by our analysts and industry experts, the global market is expected to grow at a CAGR of XX.XX% during the forecast period, i.e. 2017-2025. Consistent growth in packaging paper production is the significant factor anticipated to drive the growth of market. However declining production of graphic paper due to digitization is hampering the market growth. On contrary, bio-refineries offering lucrative growth opportunities for paper chemical producers.

In order to stay competitive, companies operating in the global paper chemicals market have adopted numerous strategies such as product launch, business expansion, partnership, collaboration to strengthen their market shares and reinforce their geographical presence, globally. For instance, In May 2018, Solenis and BASF inked an agreement. The aim of the agreement is to create a customer-focused specialty chemicals company. The combined company is anticipated to operate under the Solenis and will offer expanded offerings and cheap solutions for customers specifically in two specialty chemicals which are paper technologies and industrial water technologies. 

In addition, In July 2014, Kemira acquired AkzoNobel�s paper chemicals business. This acquisition has reinforced Kemira�s geographical presence, especially in the APAC region.

Segment Analysis  

On the basis of form, the market is bifurcated into specialty chemicals, commodity chemicals. The growth of the segment is majorly driven by the rising demand for specialty paper in the packaging industry for packaging of food beverage products. The increased demands for durability and aesthetics of paper products have propelled paper producers to develop specialty paper. This, in turn, is expected to drive the specialty chemicals segment.

On the basis of type, the market is classified into process chemicals, pulp chemicals, and functional chemicals. Pulp chemicals are anticipated to be the largest segment of the paper chemicals market during the projected period. The growth of this segment is significantly driven by increased demand for bleaching chemicals such as chlorine oxide, hydrogen peroxide, sodium bisulfite, and sodium chlorate. Oxygen and ozone are now being utilized as bleaching agents, which is expected to propel the segment during the analysis period. The capacity expansion by pulp producers in Latin America and Asia-Pacific (APAC) is anticipated to drive the demand for pulp chemicals.

Regional Analysis of Paper Chemicals Market

On the basis of region the paper chemicals market is analyzed across North America, Europe, Asia-Pacific (APAC), and LAMEA.  Asia Pacific region is expected to grow at the considerable growth rate during projected period. Asia Pacific is one of the leading markets for paper chemicals, and is mainly driven by the shift of production sites from North America and Europe in the region.  China, India, and Japan are some of the major contributors to the pulp and paper production in the region. In addition, the significant growth of the packaging industry in Asia-Pacific, owing to the rising per capita expenditure on food and beverages and growing industrialization is anticipated to generate a demand for paper-based packaging in the region. This, in turn, is expected to propel the paper chemicals market in the region.

Key players operating in Paper Chemicals Market

Key players of global paper chemicals market are Kemira OYJ, Ecolab, BASF SE, Solenis, Akzo Nobel N.V., Ashland Inc., Ashland Inc., Buckman Laboratories International, Inc., Archroma, and IVAX Paper Chemicals Ltd.  The other players in the value chain include Chemisphere Paper Technologies, KLK Kolb, Peroxychem, Axchem Group, Flourish Paper and Chemicals Ltd., Thermax Global, Papertex Speciality Chemicals Pvt. Ltd., and Shree Chlorates