Pulp and Paper Market Size, Share & Industry Analysis, By Category (Wrapping & Packaging, Printing & Writing, Sanitary, News Print, and Others), and Regional Forecast, 2024-2032

The global pulp and paper market size was valued at USD 357.21 billion in 2023 and is projected to grow from USD 360.08 billion in 2024 to USD 391.39 billion by 2032, exhibiting a CAGR of 1.0% during the forecast period.

Pulp is the material derived from wood, fiber crops, waste paper, and rags. Further pulp is processed to manufacture paper and its products. The global pulp and paper industry holds its significance in being the foremost industry relying on forests. The major raw materials, such as wood, along with alternative materials, including wheat straw, bamboo, and rice husk, are utilized for the manufacturing of paper. The growing adoption of paper as a paper packaging material, wrapping paper, printing paper, writing paper, rolls, tissue paper, and specialty papers is expected to boost the market growth. The pulp and paper manufacturing and supply industry is labor-intensive and plays a vital role in socio-economic development. Moreover, the government's growing initiative for sustainable environmental development will fuel the market growth of pulp and paper.

During the COVID-19 pandemic, the leading applications of paper, such as news print, printing, and writing, were adversely disrupted owing to the continuous decline in demand from the end-users. However, the adoption of personal care & hygiene products including tissue paper increased due to growing safety & hygiene practices by the consumer to avoid the spread of the COVID-19 virus. As a result, leading tissue manufacturers globally increased their focus to meet the demand for tissue papers from healthcare facilities.

Pulp and Paper Market Trends

Rapid Penetration of Online Retail in Emerging Economies to Fuel Demand for Paper Packaging

Growing penetration of smartphones along with the internet has surged online retailing in emerging economies, such as India, China, Southeast Asian countries, Brazil, and others. Nowadays, many consumers prefer to buy online food, groceries, cosmetics, and many other goods due to their busy lifestyles and hectic schedules. Such factors lead to a surge in the adoption of packaging materials for the transportation of these goods, along with safety and security. Furthermore, the rising need for eco-friendly solutions in retail packaging to avoid the adverse effect of waste plastic packaging coupled with growing government regulations in packaging to come up with sustainable solutions is further boosting the adoption of paper packaging. The demand is majorly attributed to the ideal characteristics of paper & pulp packaging, such as convenient for logistics, lightweight, environment-friendly, cost-effective, and bio-degradable. Hence, the growing expansion of online channels along with supportive regulations will augment the adoption of paper bags and corrugated boxes and is projected to fuel the market growth during the projected timeframe.

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Pulp and Paper Market Growth Factors

Increasing Paper Recycling Activities by Companies to Foster the Product Adoption

Paper recycling is a well-established and capital-intensive industry. Companies involved in the recycling of other materials find paper recycling to be a helpful addition to their services. It supports entrepreneurs in services, including collection, sorting, and transportation.

As per the American Forest & Paper Association, 67.9% of recycled paper was consumed in the U.S. in 2022, maintaining a steady recycling rate compared to 2021. The paper recycling requirements differ by state in this country. The U.S. states, including Pennsylvania, Wisconsin, Rhode Island, New Jersey, and the District of Columbia, have made rules that all paper grades must be recycled. In California, businesses must recycle newspapers, and in Connecticut, all trash generators need to recycle white and colored office paper, newspapers, and periodicals. South Dakota, Maine, and Virginia have also made specific obligatory paper recycling laws. The adoption of supportive laws for paper recycling will increase recycling activities and further boost the pulp and paper market growth.

RESTRAINING FACTORS

Increasing Deforestation and Water Crisis to Hinder Market Growth

Paper industries consume a considerable amount of wood from forests. According to the Food and Agricultural Organization, from 2000 to 2015, there was a net decrease in the forest area of 3.3 million hectares. Also, governments mandated strict regulations on the sourcing of wood from forests. In addition, paper is one of the largest water-consuming industries. In general, to manufacture A4 size paper sheets, manufacturers need around 20 liters of water. Therefore, with increasing deforestation and water crisis, managing continuous raw material, and resource supply is a key challenge for the growth of the market.

Pulp and Paper Market Segmentation Analysis

By Category Analysis

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Wrapping & Packaging Segment to Hold Largest Market Share Owing to the Increasing Adoption of Paper Packaging

Based on category, the market is segmented into wrapping & packaging, printing & writing, sanitary, news print, and others.

Owing to the increased adoption of paper-based packaging materials, the wrapping & packaging segment is expected to hold dominant pulp and paper market share during the forecast period. Rapid penetration of the global e-commerce and retail sector has created a huge demand for both wrapping & packaging paper. For instance, the adoption of paper bags has emerged as a cheap & potential substitute for plastic bags. Also, with rising environmental awareness, both consumers and manufacturers in developing economies are adopting paper packaging products.

The sanitary segment is projected to register healthy growth during the forecast period, backed by rising disposable income and awareness of personal hygiene in emerging economies.

Printing and writing and news print segments are declining in developed countries due to increasing emphasis on digitization and digital marketing.

REGIONAL INSIGHTS

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Based on region, the market for pulp and paper is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

In the global market for pulp and paper, Asia Pacific is the leading region and is projected to dominate the market growth during the review period. The market size in Asia Pacific accounted for USD 179.16 billion in 2023. In this region, China is the largest manufacturer and consumer of the product globally. Additionally, the rising adoption of pulp and paper-based products, improving lifestyles, and healthier economic growth will provide lucrative opportunities for paper-based products in the country.

North America and Europe have matured markets for pulp and paper products and are expected to grow at a slow CAGR during the forecast period.

The presence of large-scale companies, such as International Paper, Georgia-Pacific Corporation, and WestRock, is creating a competitive environment in the U.S., owing to the rising consumption of fast-moving consumer products, thereby leading to increasing demand for packaging paper in the U.S. However, the printing & writing and news print segments are projected to indicate falling demand over the forecast period.

Europe is the second-largest consumer of paper in the global market. Also, the region holds the second-largest share in the production of paper. Recycling paper-based products to achieve sustainable goals is the key trend in the market.

Latin America is expected to show positive growth in the global market during the forecast period. In Latin America, Mexico is expected to register the fastest growth in the market. Increasing merger & acquisition activities and investment in the paper packaging sector increase the demand for paper in Mexico. Though per capita paper packaging consumption in Mexico is less than in the U.S. and many European countries, paper packaging consumption is expected to increase rapidly in the next decade.

In the Middle East & Africa, GCC and South Africa are expected to provide growth opportunities for paper-based products owing to the growing paper and packaging industry.

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List of Key Companies in Pulp and Paper Market

Growing Key Companies’ Focus on Sustainability to Gain Competitive Edge Drives Market Growth

Efficient use of resources to meet increasing demand from consumers is an important factor in the pulp and paper market. All leading paper producers are engaged in balancing the supply-demand scenario in the global paper industry. Currently, through its subsidiaries, the U.S.-based International Paper is the leading producer of paper in the world. The company offers different paper grades such as commercial printing papers, converting papers, digital papers, office papers, and specialty papers. The company is committed to strengthening people's lives by using available resources responsibly and efficiently.

LIST OF KEY COMPANIES PROFILED

• International Paper (U.S.)


• Georgia-Pacific Corporation (U.S.)


• Nine Dragon Paper Ltd. (China)


• Stora Enso Oyj (Finland)


• Sappi Ltd. (South Africa)


• Kimberly-Clark Corporation (U.S.)


• UPM-Kymmene Oyj (Finland)


• Svenska Cellulosa Aktiebolaget (SCA) (Sweden)


• Oji Holding Corporation (Japan)


• Nippon Paper Industries Co. Ltd. (Japan)


• The Smurfit Kappa Group (Ireland)


• WestRock (U.S.)

KEY INDUSTRY DEVELOPMENTS

• August 2023: Atlas Holdings ("Atlas") has closed the previously announced acquisition of the pulp, newsprint, and directory paper mill operations in Thunder Bay, Ontario from Resolute FP Canada Inc.


• January 2022: Stora Enso invested USD 40.67 million in advancing its fluff pulp production site in Skutskär, Sweden. The company is aiming to reduce its carbon footprint and focus on cost-effective processes. The produced pulp will be used for healthcare applications, including baby care, adult incontinence, and feminine care.


• August 2021: Smurfit Kappa Group agreed to acquire the containerboard business from Burgo Group. The Verzuolo Mill, owned by the Burgo Group, has reached a capacity of 600-kilo tons of recycled containerboard. This acquisition will benefit the Smurfit Kappa Group in terms of production optimization and serving consumers in Southern Europe & associated markets.


• June 2021: Mondi Group will invest millions in upgrading its paper mill in Kuopio, Finland. The investment was approved to increase the plant capacity by 55 kilotons. The investment will be used to update the fiber line, wood yard, paper machines, and evaporation plants.


• June 2021: Stora Enso announced the investment of millions of dollars at the Anjala-Ingerois and Nymölla pulp processing sites. With this investment, the company is aiming to increase its competitiveness in the market and softwood pulp production capacity to 245 kilotons per annum.

REPORT COVERAGE

The research report provides both qualitative & quantitative insights on pulp and paper across the world. Quantitative insights include market sizing in terms of value (USD Billion) across each segment, sub-segment, and region profiled in the scope of the study. Also, it provides market analysis and growth rates of segments, sub-segments, and key counties across each region. Qualitative insight covers the elaborative analysis of key market drivers, restraints, growth opportunities, and industry trends related to the market. The competitive landscape section covers detailed company profiling of the key players operating in the industry.

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Report Scope & Segmentation