SOUTH AMERICA SPECIALTY PULP AND PAPER CHEMICALS MARKET ANALYSIS

Specialty pulp and paper chemicals are used in the production of paper for bleaching and improving the properties of the paper. Specialty chemicals are derived from acids, alcohols, amines, fatty alcohols, surfactants, solvents, and betaines. Different raw materials used in the manufacturing of specialty paper and pulp are derived from caustic soda, chelating agents, and biocide.

South America specialty pulp & paper chemicals market is estimated to be valued at US$ 20350.23 million in 2021 and is expected to exhibit a CAGR of 5.9% over the forecast period.

Recent Developments:

• On December 17, 2020, BASF has reached an agreement to sell its manufacturing site in Kankakee, Illinois and the associated businesses of vegetable-oil-based raw material sterols and natural vitamin E, anionic surfactants and esters produced there to an affiliate of One Rock Capital Partners, LLC, a U.S.-based private equity firm.
• On December 16, 2020, BASF announces new MRO station in Shanghai for Deoxo™ aircraft ozone and ozone/VOC converters. The BASF Shanghai MRO (Maintenance Repair and Overhaul) Station will support customers in Asia Pacific with high quality maintenance service and faster turnaround time.
• On November 15, 2021, Benchmark analysis versus market standard was conducted by CUSTOMCELLS®, a leading technology provider for lithium-ion batteries. Licity® anode binders pass tests in electrochemical, mechanical performance and processability, partially outperforming the market standard

Figure 1. South America Specialty Pulp & Paper Chemicals Market Value (US$ 20,350.23 Mn), by Countries, 2020

Brazil held dominant position in the South America specialty pulp & paper chemicals market in 2020, accounting for 40% share in terms of value, followed by Mexico and Argentina respectively. Increasing demand for specialty pulp and paper in several end-use applications such as labeling, printing, and packaging is predicted to propel the market growth over the forecast period. Brazil and Mexico are projected to exhibit remarkable growth owing to rising industrialization supplemented by rapid economic growth and low labor cost.

Drivers:

Growing demand for specialty paper is projected to foster the market growth of the South America Specialty pulp and paper chemicals. Thermal papers, release liners, flexible packaging paper, decor papers, art matte, and fire retardant paper are some of the specialty paper which are widely used in the packaging, labeling, and barcode printing applications. Specialty paper for flexible packaging is also used in the food & beverages and medical packaging application.

The growing export of the paper and pulp from the South America region is projected to fuel the market growth of the specialty pulp and paper chemicals. According to the Brazilian Tree Industry, Brazil's Forest Products sector exported $10.7 Billion in 2018, Up 25.5% over 2017. Increases were seen in exports of pulp (+31.5%), wood panels (+7.3%), and paper (+8.3%). The main market for Brazilian pulp is China, which imported US$3.5 billion of this product, an increase of 37.7% compared to 2017.

Market Opportunities

Increasing development of next-generation enzymes to create lucrative opportunities for the specialty pulp & paper chemicals market. Endoglucanase is one such example of enzymes widely used in the pulp & paper industry. Endoglucanase works over a wide pH and temperature range and the use of these enzymes helps in reducing energy consumption by 20% during the pulp refiner process. This reduces the overall paper production cost thereby increasing the profit margin of the manufacturers.

The growing use of functional chemicals in the paper industry for various applications is expected to serve major growth opportunities in the near future. The rising popularity of coating as a protective material to offer smoothness and decrease ink absorbency in specialty paper is again accelerating the market growth of the South America Specialty pulp and paper chemicals. Hence, the use of functional chemicals in the paper industry will favor market growth over the forecast period. 

Market Trends

Growing strategic partnership and agreement between key players in order to cater to rising demand around the globe is contributing to market growth. For instance, in May 2018, BASF and Solenis have signed an agreement to join forces by combining BASF’s paper wet-end and water chemicals business with Solenis. The goal of the partnership is to create a customer-focused global solutions provider for the industry to deliver additional value for paper and water treatment customers.

Increasing demand for eco-friendly chemicals for recycled papers is one of the emerging trends in the market. For instance, in December 2018, Century Pulp & Paper launched the biodegradable cellulose film “Natura Wrap”. Natura Wrap is a cellulose film that not only ensures superior aroma retention property that preserves freshness but also safeguards food quality. Natura Wrap is completely biodegradable making it an absolutely environment-friendly product.

Figure 2. South America Specialty Pulp & Paper Chemicals Market Share, By Type, 2020

Key Takeaways of the Graph:

• The Functional chemicals type segment held dominant position in the market and accounted for 53% share in the South America specialty pulp & paper chemicals market in 2020. The segment is expected to reach US$ 15520.49 million in 2028. Wide application of specialty paper in food packaging products including corrugated clamshell, carryout boxes, paper tubes, plates, and cups is another factor augmenting the overall market demand.

Market Restraints

Fluctuating price of raw materials and chemicals used in the production of paper and pulp due to political scenario and other economic factors are expected to hinder the demand for specialty pulp and paper chemicals. This in turn is projected to restrict market growth.

Strict FDA regulations regarding the usage of bisphenol A in the manufacturing of thermal papers owing to its adverse effect on the human endocrine system is expected to hamper the demand for the product. This in turn is restricting the market growth of the South America Specialty pulp and paper chemicals.

Competitive Section:

Company Names 

• AkzoNobelBASF SE
• PQ Corporation
• Evonik Industries
• Kemira

Recent Developments

In May 2018, BASF and Solenis have signed an agreement to join forces by combining BASF’s paper wet-end and water chemicals business with Solenis. The goal of the partnership is to create a customer-focused global solutions provider for the industry to deliver additional value for paper and water treatment customers.