Europe and MENA Pulp Market Size

Europe and MENA Pulp Market Analysis

The wood pulp market is expected to witness a CAGR of 3.78% during the forecast period (2021 - 2026). With the focus now shifting towards eco-friendly and sustainability, paper packaging is expected to gain traction with many countries pushing for paper packaging products over plastic packaging, which poses a significant threat to the environment. Higher recycling demand will drive the use of paper as packaging material further, with consumers and businesses looking for solutions which helps in cost reduction as well as helps in keeping the environment safe while keeping government regulations intact.

• In MENA, changes in lifestyle and improvement in living standards, and an increase in consumer preference toward packaged and fresh food, is expected to boost the demand for paper packaging, thus raising the growth opportunities for the pulp market in the region. For instance, According to the BMI Risk/Reward Index report, the import net of re-exports was around AED 43 billion, with a domestic consumption size of AED 112 billion. 62% of the domestic food and beverage needs are derived from the local manufacturing industry that accounts for AED 69 billion. And so, the food and beverage sector is by far one of the most critical areas in terms of packaging, leading to increased growth of the pulp industry in the region.
• Due to the existence of established industries, like the pharmaceutical, food, and beverage Germany is the largest market in the region, owing to its dominance in the packaging industry. But due to the spread of COVID-19, as several European countries limit travel to stop the spread of coronavirus, the most significant paper pulp makers in the region stated transportation logjams are delaying shipments of the raw material. Germany and Spain shut their borders to non-essential travel in March, resulting in a shortage of pulp, which is used in products such as tissue paper and diapers and increased cost due to delays in raw material shipments causing machines to stop. This might increase prices and impact the market negatively.
• Many countries in Europe and Middle East & Africa have shut down in efforts to contain the spread of COVID-19. With reduced packaging demands comes reduced demand for pulp to make those products. But at the same time, toilet paper has witnessed radical shifts in supply and demand. However, mills working with recycled material are using deinking grades, which is a white waste paper with ink that must be removed are now in short supply. Therefore though, the manufacturers in the industry are still operating, even after faced by significant supply chain problems.