Posted on :Tuesday , 8th December 2020
A rise in disposable income coupled with a high standard of living is escalating the use of paper for packaging, which in turn boosts the growth of the market for paper chemicals. The demand has also fuelled a rise in the use of paper for printing and writing applications.
The size of the Paper Chemicals market is expected to hit $42 billion by 2025, after a 3% rise in the CAGR during 2020-2025. Paper chemicals are a category of chemicals used in the manufacture of paper, along with the enhancement of paper properties. The increase in the use of paper for packaging applications raises the market share of paper chemicals during the forecast period. These chemicals change the paper in many ways, including its hue, brightness, intensity and resistance to water. In addition, growing environmental issues and the use of environmentally friendly packaging materials are also driving the growth of the market size of paper chemicals during the forecast period.
Functional chemicals have the highest share of more than 25% of the paper chemicals market in 2019. It is made up of pigments, latex, coating binders, dyes and additives. Functional chemicals are used to enhance the properties of paper, such as colour, strength, printability, and water absorbency, which in turn stimulate the growth of the demand for paper chemicals. Some of the widely used functional chemicals include sizing additives, retention agents, wet strength and dry strength additives. Wet strength additives such as melamine, urea formaldehyde and polyamines are used to improve the strength of the paper under wet conditions, while dry strength additives are used to ensure that the paper does not lose its strength while undergoing strain or compression.
Based on the application, the packaging and board segment had the largest market share of more than 30% in paper chemicals in 2019. Packaging of paper requires rigid and flexible packaging. Increasing the use of paper in food packaging items, including paper plates, cups and trays, is driving the growth of the demand for paper chemicals. Packaging protects the product from abrasion and complies with strict safety, technological and hygienic criteria. The increase in demand for flexible paper packaging, due to an increasing awareness of the harmful effects of plastics on the environment, leads to the growth of the market for paper chemicals.
accessibility to raw materials and the presence of the paper and pulp industries are driving the growth of the paper chemical industry. In addition, growing demographics, coupled with rapid industrialization, are also boosting the growth of the demand for paper chemicals in emerging economies.
Paper-based goods are environmentally friendly and have no adverse impact on the environment. Degradability and ease of recycling are pushing the paper industry to further expand the demand for paper chemicals. In addition, the ban on plastic bags has boosted the demand for paper bags in supermarkets and grocery stores. The Government of several countries has taken a big move towards reducing the use of plastic bags. In Africa, in May 2019, the United Nations Environmental Program (UNEP) prohibited the importation, processing, selling and use of plastic bags in Tanzania. With this ban, Tanzania has become the 34th African country to ban plastics which has opened opportunities for the Paper Chemicals market.