The new analysis finds that the market earned revenues of more than $1.78 billion in 2012 and estimates this to reach $2.03 billion in 2017. The research covers pulping chemicals sodium hydroxide and sodium sulfate, bleaching chemicals chlorine dioxide and hydrogen peroxide, and starch, a finishing and coating chemical. The finishing and coating chemicals segment is likely to witness the highest growth, fueled by greater awareness of paper quality.
"The increasing use of recycled paper in Brazil, which ranks twelfth in the world in terms of recycling paper recovery rates, accelerates the adoption of pulp and paper chemicals," said Lisse de Oliveira, Frost & Sullivan Chemicals, Materials, and Food Industry analyst. "Consumption of paper for packaging, coated and uncoated media, newsprint, and tissue, adds to market revenues."
The production costs of these varieties of paper, however, are high. Along with the rising operational costs of energy consumption, logistics, transportation, and delivery, these costs stall market growth to an extent. The limited access to pulp and paper raw materials requires companies to input additional resources for developing effective purchasing solutions and attaining higher quality materials.
Stringent environmental legislation pertaining to the pulp and paper production process, which establish the standards for water and soil contamination control as well as forestry and biodiversity protection, also limit the market's potential.
Nevertheless, pulp and paper manufacturers are looking to incorporate necessary changes to ensure compliance, in spite of the additional time, effort, money, and training required. For instance, the bleaching process, which included various chlorine-produced pollutants, has been modified to exclude chlorine and use hydrogen peroxide instead.
"Consumers themselves prefer new, innovative, and environmentally-friendly chemicals, and the challeng lies in offering these products at affordable prices," noted Oliveira. "Hence, technological advancements as well as investments in research and development are crucial, as superior pulp and paper chemicals eventually enhance the quality of the final product and enable paper companies to develop their brand image, in turn ensuring their loyalty."
Expanding product lines will help pulp and paper suppliers to achieve economies of scale, offer tailored solutions, and boost profits.
TAPPI
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