Softwood Pulp Market

Softwood Pulp Market Outlook (2022-2032)

The global softwood pulp market is estimated to be valued at US$ 24.74 Bn in 2022. Detailed industry analysis reveals that softwood pulp sales are expected to increase at 7.2% CAGR and reach a market valuation of US$ 49.58 Bn by the end of 2032.

Report Attributes	Details
Softwood Pulp Market Size (2021A)	US$ 23.5 Bn
Estimated Market Value (2022E)	US$ 24.74 Bn
Forecasted Market Value (2032F)	US$ 49.58 Bn
Global Market Growth Rate (2022-2032)	7.2% CAGR
Asia Pacific Market Share (2021)	~42%
Asia Pacific Growth Rate (2022-2032)	9% CAGR
China Growth Rate (2022-2032)	10% CAGR
Market Share of Top 3 Companies	~32%
Key Companies Profiled	Ahlstrom-Munksjo UPM Arauco North America, Inc. BillerudKorsnäs AB Canfor Corp. Clearwater Paper Corp. Domtar Corporation Ilim Group Klabin SA Mercer International Metsä Fibre Nanaimo Forest Products Ltd Oji Paper Co. Ltd. Port Townsend Paper Company Rottneros AB Stora Enso Ovi. Tembec Inc. Verso WestRock Company

Softwood pulp market share is anticipated to account for nearly 35% of the global pulp market value by 2032.

Softwood pulp application in the production of dry tissues and paper products has increased over the past decade, and application for the same is projected to drive softwood pulp consumption over the forecast period. Rise in awareness towards hygiene has been identified as a major driver for the consumption of dry tissues, thereby driving demand for bleached softwood pulp.

Softwood Pulp Consumption Analysis (2017-2021) Vs. Market Forecast Outlook (2022-2032)

As per detailed market analysis by Fact.MR, a market research and competitive intelligence provider, market value for softwood pulp over the past five years increased at a CAGR of around 3.9%. Additionally, consumption of softwood pulp at the global level stood at around 25,207 KT in 2021, accounting for 28% of total pulp consumption in terms of volume.

Softwood pulp consumption for the production of absorbent core products accounted for the highest market share, which is mainly attributed to the properties of bleached and unbleached softwood pulp material, such as high absorption capacity.

In addition, over the past decade, there has been a rise in the income levels of people, thus encouraging them to spend more on hygiene products, especially in the Asia Pacific and MEA regions. Consumption of fluff in these regions is projected to see significant growth, which can be attributed to the rise in awareness regarding the importance of feminine hygiene.

Furthermore, consumption of bleached softwood kraft pulp for absorbent core products over the period of 2022-2032 is poised to increase at CAGR of 7.2%, thus driving the sales of bleached softwood kraft pulp over the forecast period.

What are the Demand Drivers for Softwood Pulp for the Forecast Period?

“High Usage of Softwood Pulp for Production of Diapers and Paper Products”

Softwood pulp demand has historically been driven by its use case in the production of dry tissues coupled with the production of paper products. In addition to that, rise in awareness towards feminine hygiene has provided an impetus to the sales of bleached softwood pulp.

Additionally, paper products are widely used in a range of applications, such as in the packaging and production of printing paper. Moreover, over the past decade, there has been growing demand for softwood pulp for disposable products made from paper. This rise is slowly replacing polyethylene with paper bags and is projected to continue over the forecast period as well.

Moreover, softwood pulp usage in the production of absorbent core products such as baby diapers and adult diapers has also seen significant rise, which is set to provide a positive outlook for market participants.

Attributed to these factors, global softwood pulp market value is projected to stand at US$ 49.58 Bn by the end of 2032.

Country-Wise Analysis

Why is China Seeing High Softwood Pulp Consumption?

“Huge Paper Industry in China Driving Market Growth”

The China softwood pulp market has been identified as the most lucrative market for the supply of softwood pulp for packaging. This is mainly attributed to the production of paper and paperboards in huge volumes in China.

For instance, in 2020, volume consumption of paper pulp in China was around 110 Mn MT, mainly for producing printing paper, boards, and tissues. This accounted for around 50% of total paper pulp consumption.

Additionally, China’s diaper and feminine hygiene market is highly fragmented and dominates the country’s fluff pulp consumption. Presence of key FMCG companies in China such as Kao Corporation, P&G, and Kimberly Clark with their production centres in the country has upheld the supply of fluff pulp and consequently softwood pulp for news printing.         

The China softwood pulp market is poised to provide a high absolute dollar opportunity worth US$ 7.2 Bn over the period of 2022-2032.

Category-Wise Analysis

Which Application of Softwood Pulp is Bringing in Huge Revenue for Market Players?

“Major Application of Softwood Pulp for Dry Tissue Manufacturing”

Softwood pulp application for the production of dry tissues is projected to account for a major share in the market. Softwood pulp has long fibres showcasing low density. This provides strength to the pulp for producing sturdy products. Other than that, softness of the pulp has been highly recognized to produce dry tissues.

Additionally, over the past half-decade, there has been an increase in the demand of unbleached softwood pulp owing to rising use case of fluff pulp for the production of absorbent core products such as wet wipes, diapers and sanitary napkins.

Thus, attributed to the application of northern bleached softwood kraft pulp in the production of dry tissues, the segment is projected to provide a high absolute dollar opportunity worth US$ 8.08 Bn over the forecast period 2022-2032.

Which Source of Pine is Most Preferred for Softwood Pulp Manufacturing?

“Bale – Most Demanded Softwood Pulp Source”

Bale has been identified as the most demanded softwood pulp for the production of dry tissues and paper products over the past half-decade, and is projected to dominate the global scenario over the forecast period as well.

Bale softwood pulp has been extensively used especially in production of dry tissues and paper products owing to its fibre longevity and low density.

Attributed to loblolly pine being the most preferred raw material in softwood pulp production, it is projected to account for around 68% of the market share by 2032-end.

Competition Landscape

Ahlstrom-Munksjo, UPM, Arauco North America, Inc., BillerudKorsnäs AB, Canfor Corp., Clearwater Paper Corp, Domtar Corporation, Ilim Group, Klabin SA, Mercer International, Metsä Fibre, Nanaimo Forest Products Ltd, Oji Paper Co. Ltd., Port Townsend Paper Company, Rottneros AB, Stora Enso Ovi., Tembec Inc., Verso, and WestRock Company are some of the major established players in the softwood pulp market.

• By 2020-end, Stora Enso’s annual UKP market pulp capacity was increased to 200,000 tonnes. This is mainly attributed to the completion of production conversion by Oulu Mill. This strategic capacity expansion has positioned the company to be the fourth-largest UKP pulp producer.
• In a recent announcement, Domtar confirmed its entry into the packaging business by converting its Kingsport Tennessee paper mill. Total production capacity is projected to be around 600 kilotons to be produced from 100% recycled content.

Fact.MR has provided detailed information about the softwood pulp market price points of the top softwood pulp suppliers positioned across regions, in addition to providing sales growth information, production capacity, and speculative production expansion in the recently published report.

Key Segments of Softwood Pulp Industry Survey

• Softwood Pulp Market by Source:

  • Bale
  • Fluff

• Softwood Pulp Market by Type:

  • Bleached Softwood Pulp
    • Northern bleached softwood kraft (NBSK)
    • Southern bleached softwood kraft (SBSK)
  • Unbleached Softwood Pulp
  • Semi-bleached Softwood Pulp

• Softwood Pulp Market by Application:

  • Paper Production
    • Printing Paper
    • Thin Wrapping Paper
    • Translucent Paper
    • Oil Proof Paper
    • Map Paper
    • Offset Paper
    • Others
  • Absorbent Core Products
    • Baby Diapers
    • Adult Diapers
  • Feminine Hygiene Products
    • Sanitary Napkins
    • Panty Liners
    • Under Pads
    • Breast Pads
  • Wet Wipes
  • Dry Tissues
  • Others

• Softwood Pulp Market by Region:

  • North America Softwood Pulp Market
  • Latin America Softwood Pulp Market
  • Europe Softwood Pulp Market
  • East Asia Softwood Pulp Market
  • South Asia & Oceania Softwood Pulp Market
  • Middle East & Africa Softwood Pulp Market