Research and Markets, Dublin, Ireland, has added the Indonesia Pulp and Paper Chemicals Market Forecast and Opportunities, 2020 report to its offering. The report notes that the pulp and paper chemicals market in Indonesia is projected to grow at a CAGR of around 12% through 2020.

 

Indonesia is one of the major global markets for pulp and paper chemicals, the report points out, adding that rising demand for tissue and packaging paper coupled with new investments planned in the Indonesian pulp and paper industry are expected to drive the demand for chemicals over the next five years. Increasing use of pulp and paper chemicals across a wide range of end-use industries for various applications is expected to continue driving the sales of these specialty chemicals in the country. 

 

Industries in Indonesia are increasingly using these chemicals for pulping and bleaching fiber obtained from timber. However, increasing demand for pulp and paper has led to significant deforestation, which is posing a threat to the country's flora and fauna. In addition, rising raw material prices in Indonesia as well as across the globe is another major factor that is restricting the growth trajectory of the pulp and paper chemicals market in Indonesia.

 

As Indonesia is one of the largest pulp and paper manufacturing countries in South East Asia, the country continues to be a major hotspot for chemical companies operating in the pulp and paper chemicals market. Segment wise, functional and coating chemicals dominated the market in 2014 due to their increasing use in tissue and packaging paper production. In addition, Indonesia largely exports pulp and paper to other major markets across Southeast Asia, which is further propelling the demand for pulp and paper chemicals in the country.