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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

South America Specialty Pulp & Paper Chemicals  | Coherent Market Insights

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. 

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South America Specialty Pulp & Paper Chemicals Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 20350.23 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 5.9% 2028 Value Projection: US$ 28741.66 Mn
Geographies covered:
  • Region: Argentina, Brazil, Mexico, Rest of South America
Segments covered:
  • By Type: Bleaching chemicals, Process chemicals , Functional chemicals, Basic chemicals
Companies covered:

AkzoNobelBASF SE, PQ Corporation, Evonik Industries, and Kemira

Growth Drivers:
  • Increasing demand for pulp &paper
  • Growing export of paper from region 
Restraints & Challenges:
  • Volatile price of raw material 

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

South America Specialty Pulp & Paper Chemicals  | Coherent Market Insights

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.

In the paper and pulp manufacturing industry, two main categories of chemicals are involved - pigments and bleaches. The pigments include alkyds (colors), which are liquid dyes that react with binding agents to form different colors, and alphahydroxy acids, which are usually water-soluble salts of the alkyds. Bleaches are made from hydrogen peroxide, which reacts with the minerals in the pulp to give out various colors, depending on the chemical reaction. There are also a few additional chemicals used in the pulp and paper industries, which are more generally known as "processing chemicals".

Market Dynamics:

Increasing demand for pulp &paper and growing export of paper are driving growth of the South America specialty pulp & paper chemicals market. Growing demand for eco-friendly chemicals for recycled papers due to growing environmental concerns is again uplifting growth of the market. For instance, in July 2021, Solenis, a global producer of specialty chemicals, has joined forces with Pulpex Limited and its global consortium partners for the Pulpex eco-friendly paper bottle. Solenis provide chemical solutions to optimize the PET-free paper bottle

On the other hand, the volatile price of raw materials is expected to hinder growth of the market.

Key features of the study:

  • This report provides in-depth analysis of the South America specialty pulp & paper chemicals market, and provides market size (US$ Million) and compound annual growth rate (CAGR%) for the forecast period (2021–2028), considering 2020 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the South America specialty pulp & paper chemicals market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include AkzoNobel, BASF SE, PQ Corporation, Evonik Industries, and Kemirato
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The South America specialty pulp & paper chemicals market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the South America specialty pulp & paper chemicals market

Detailed Segmentation:

  • South America Specialty Pulp Paper Chemicals Market, By Type:
    • Bleaching chemicals
    • Process chemicals
    • Functional chemicals
    • Basic chemicals
  • South America Specialty Pulp Paper Chemicals Market, By Region:
    • Brazil
      • By Type
        • Bleaching chemicals
        • Process chemicals
        • Functional chemicals
        • Basic chemicals
    • Argentina
      • By Type
        • Bleaching chemicals
        • Process chemicals
        • Functional chemicals
        • Basic chemicals
    • Mexico
      • By Type
        • Bleaching chemicals
        • Process chemicals
        • Functional chemicals
        • Basic chemicals
    • Rest of Latin America
      • By Type
        • Bleaching chemicals
        • Process chemicals
        • Functional chemicals
        • Basic chemicals

Frequently Asked Questions

The South America specialty pulp & paper chemicals market size is estimated to be valued at US$ 20350.23 Million in 2021 and is expected to exhibit a CAGR of 5.9% between 2021 and 2028.
Increasing demand for pulp &paper and growing export of paper from South America are the factors fuelling growth of the market.
The Functional chemicals type segment is the leading component segment in the market.
Volatile price of raw material and strict regulations is expected to hinder growth of the market.
Major players operating in the market include, AkzoNobel, BASF SE, PQ Corporation, Evonik Industries, and Kemira.

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