Specialty P&P Chemicals Market Embracing Green Chemicals for Competitive Advantage

 

The global specialty pulp and paper chemicals market was valued at $18.67 billion in 2013 and is likely to reach $25.41 billion by 2020, expanding at a CAGR of 4.5% during the forecast period, between 2014 and 2020, according to a new report published by Transparency Market Research, Albany, N.Y., USA.

 

The global specialty pulp and paper chemicals market relies on the use of specific chemicals to lend its products a unique texture, appearance, moisture-repellent qualities and strength. The variants of these chemicals are basic, bleaching, functional, and process chemicals – each of which serves a specific purpose. In addition, several types of functional chemicals--typically coatings and dyes--are also used for giving final color and texture to specialty papers that are used in packaging and printing applications.

 

Commonly-used chemicals in the specialty pulp and paper chemicals market are chlorine-based bleaching agents, hydrogen peroxide, optical brightening agents, deinking agents, and fluorescent brightening agents. These chemicals are integral to the paper manufacturing process because they help brighten the appearance of specialty papers and protect against discoloration. Currently, the market for specialty papers can be best described as a niche market as it holds a meager 5% to 7% share of paper production within the larger paper industry.

 

However, it is worth noting that the production of specialty paper chemicals accounted for nearly 50% of the entire paper chemicals market in volume terms, as of 2013. The demand and supply dynamics of specialty pulp and paper chemicals are influenced by the fact that these very chemicals are also in demand in other industries such as material manufacturing and automotives. 

 

Many of the regulations imposed on the chemical industry at large will have a cascading impact on the specialty chemicals industry as well. This could affect the growth potential of the specialty pulp and paper chemicals market. While larger companies will carry a sharper competitive edge when in this context, because they have the necessary R&D facilities, smaller companies might feel the heat from the ever-changing regulatory landscape. 

 

To successfully maneuver in such market conditions, manufacturers will have to find ways to produce chemicals that will gain quick approvals. This can be achieved via the development of novel, next-generation enzymes that are both green and efficient.

 

A copy of the report is available online.  

 

As evidenced by numerous research reports in the recent past, the market for specialty papers is expected to show significant growth until 2020. Much of this increased demand will come from industries such as packaging, retail stores, office, and medical products consuming more specialty papers. This will consequently impel the overall demand for specialty pulp and paper chemicals. 

 

Compared with conventional chemicals, specialty chemicals carry benefits such as low water and energy wastage. This aspect has whetted the interest of many industries in specialty chemicals in general and specialty pulp and paper chemicals in particular. 

 

Functional chemicals can be of several types, such as pigments, dyes, sizing chemicals, binders, and special coating agents. These chemicals are extensively used in the production of colored paper. Hundreds of different applications today need to use papers in as many colors, creating a sizable demand for functional chemicals. Thus, it is easy to see why the functional chemicals segment accounted for more than 45% of the global specialty pulp and paper chemicals market as of 2013 (by volume). Interestingly enough, this segment is also expected to report the highest growth rate among all segments, at least until 2020.

 

Significant demand is also expected in the process chemicals segment, which is composed of wet strength adhesives, chelating agents, biocides, as well as dry strength adhesives, because these chemicals add several desirable aesthetic attributes to finished paper.