Market Trends of Wood Pulp Industry
This section covers the major market trends shaping the Wood Pulp Market according to our research experts:
Rising Consumer Demand for Paper Products is Driving the Market
The rising global demand, along with consumption, for tissue paper, which is essentially used in kitchens, toilets, and households, is expected to drive the market's growth over the forecast period. As people become more aware of personal hygiene and sanitation, the use and production of pulp-based sanitary products are increasing. A recent trend is also pushing tissue-based manufacturers to develop sustainable and eco-friendly products by using wood fibers and recycled paper pulp and to avoid the use of plastic-based products. The demand from developing countries for tissue paper and other pulp-based sanitary products has been increasing in recent times. Though the demand has been on the rise and the production of wood pulp has been increasing in recent years, in 2020 the production was down due to the trade challenges faced across the globe in 2019, and the volume was estimated to be 188 million metric tons, which is expected to increase in the following years as there is no hindrance and the demand is increasing.
The United States is the largest consumer of tissue paper in the world; on average, 25 kg of tissue is consumed per person annually. About 37% of this consumption occurs via kitchen towels. Canada has 24% of the world's boreal forests and is one of the world's largest pulp and paper markets. The country produces a considerable amount of raw material, satisfying demand at both domestic and international levels. According to ITC Trade data. The total import of tissue papers across the globe in 2021 was valued at USD 11.6 billion, and the United States accounted for more than 12% of the import value. The major importers of tissue paper products are the United States, Germany, France, Canada, etc., and the major exporters are China, Germany, Italy, the United States, etc.
United States is the Largest Producer
The United States is the largest producer of wood pulp, globally, due to the presence of coniferous forest, which provides the raw material for the paper industry. In 2020 United states accounted for 26.8% of the world's total wood pulp production and was estimated to be 50.8 million metric ton a 3.2% increase from the 2017 volume, according to FAOstat data. The United States constitutes some of the biggest paper-producing companies in the world like International Papers, operating in more than 24 countries, Georgia-Pacific Corp, Weyerhaeuser Corporation, etc.
According to ITC Trade data, there has been a significant increase in the export of wood pulp from the United States from 2017 to 2021, the exports grew by more than 200% during the period and reached 63,727 metric ton. Though the United States is not a major exporter, especially due to the higher domestic consumption, the scenario is changing in recent years as consumption is decreasing but production is increasing which is boosting the export to cater to the demand. The production and export of in the United States for wood pulp are expected to increase as a strong demand is expected during the forceasted years.
