Paper Chemicals Market Report 2025

The paper chemicals market size has grown steadily in recent years. It will grow from $39.85 billion in 2024 to $40.96 billion in 2025 at a compound annual growth rate (CAGR) of 2.8%. The growth in the historic period can be attributed to rising paper consumption, focus on sustainable paper production, increasing demand for specialty papers, urbanization and industrialization, government regulations and standards, consumer preferences for sustainable packaging, globalization of paper supply chains.

The paper chemicals market size is expected to see steady growth in the next few years. It will grow to $47.76 billion in 2029 at a compound annual growth rate (CAGR) of 3.9%. The growth in the forecast period can be attributed to economic growth, biodegradable packaging trends, increasing smart packaging applications, increasing focus on paper recycling, stringent environmental regulations, emergence of bio-based chemicals. Major trends in the forecast period include growing preference for functional paper additives, technological advancements in paper manufacturing, focus on water and energy conservation, shift towards digitalization in paper mills, preference for alkaline papermaking, customization of paper chemical solutions.

The rising adoption of paper-based packaging is fueling the growth of the paper chemicals market. Paper containers, commonly known as paper packaging, provide a highly efficient and cost-effective option for transporting, carrying, and storing various items. Many paper packaging products, such as soup jars, plates, and bowls, contain PFAS (a type of paper chemical). Additionally, paper-based packaging is easily recyclable and promotes sustainability. For instance, in October 2023, Eurostat, a Luxembourg-based government agency, reported that approximately 80 million tons of packaging waste were generated in Europe, with paper and cardboard making up the majority at 41%, followed by plastic (19%), glass (19%), wood (16%), and metal (5%). The recycling rates for municipal packaging waste were 82% for paper and cardboard packaging, 78% for metal packaging, 76% for glass packaging, 41% for plastic, and 31% for wooden packaging. Thus, the growing use of paper-based packaging and its sustainable attributes are expected to drive the paper chemicals market in the forecast period.

The rising demand for wood is anticipated to accelerate the growth of the paper chemicals market in the future. Wood, a natural and organic material, constitutes the structural tissue of trees and woody plants and is widely recognized for its versatility. It plays a vital role in producing paper chemicals during the pulping process and is a primary source for obtaining cellulose fibers, tall oil, and rosin. For example, in December 2022, the Natural Resources Institute, a Finland-based government office, indicated that Finland's total round wood usage in 2021 reached 85.2 million cubic meters, representing a 9% increase compared to the previous year. Furthermore, the amount of by-products and other types of wood waste utilized was 27.7 million cubic meters, marking a 17% rise from the prior year. Therefore, the increasing demand for wood is driving the expansion of the paper chemicals market.

Technological advancements are a significant trend in the paper chemicals market. Leading companies are concentrating on developing efficient paper chemicals to enhance the overall quality of the produced paper. For example, in 2022, Vertex Chem, an industrial chemicals company based in India, launched a new range of chemicals specifically for the pulp and paper sector. The VERPAP-SA (slushing aid) was designed to minimize pulping time by quickly wetting the fibers, which helps reduce the refining load and fines in the system, leading to better formation.

Key players in the paper chemicals market are dedicated to innovating products like the Valmet Polarox6 to provide dependable services to their customers. The Valmet Polarox6 is an inline measurement tool for pulp bleaching aimed at optimizing the bleaching process by enhancing measurement and control precision. For instance, in May 2023, Valmet Oyj, a Finland-based technology firm that offers automation systems for the pulp, paper, and energy sectors, introduced the Valmet Polarox6. This device includes a sensor that prevents the under- or overdosing of bleaching chemicals, ensuring the precise dosage needed for the pulp bleaching process.

In February 2023, Solenis, a US-based specialty chemicals manufacturer, acquired the paper process chemicals division of KLK Kolb Group for an undisclosed amount. This acquisition allows Solenis to enhance its offerings and provide cost-effective solutions for its pulp and paper clients. KLK Kolb Group is a Switzerland-based producer of paper process chemicals.

Major companies operating in the paper chemicals market are Kemira Oyj, BASF SE, Solenis International LLC, Akzo Nobel N.V., Ecolab Inc., Ashland Global Holdings Inc., Chemisphere Ltd., Dow Inc., Evonik Industries AG, Georgia-Pacific Chemicals LLC, Huntsman Corporation, Imerys S.A., Kurita Water Industries Ltd., Nalco Water, Omya Group, PPG Industries Inc., Solenis LLC, Minerals Technologies Inc., Stepan Company, Synthomer PLC, Tate & Lyle PLC, The Chemours Company, Lubrizol Corporation, The Procter & Gamble Company, Sherwin-Williams Company, WestRock Company, Zhejiang Kefeng Silicone Co. Ltd., Buckman Laboratories International Inc., Archroma Corporation.

Asia-Pacific was the largest region in the paper chemicals market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the paper chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the paper chemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Paper chemicals are specific substances utilized in the production and processing of paper products to improve their properties, performance, and appearance. These chemicals encompass additives like fillers, coatings, sizing agents, and surfactants that enhance characteristics such as brightness, strength, and printability.

The realm of paper chemicals, there exist distinct categories, namely bleaching chemicals, pulping chemicals, and functional chemicals. Bleaching chemicals are specifically employed in the bleaching of pulp and paper. Chlorine dioxide (ClO2) stands out as the most commonly utilized bleaching agent, particularly in the environmentally preferable ECF chemical pulp bleaching process. Paper chemicals exist in various forms, categorized as specialty and commodity types, catering to diverse applications across packaging and board, printing and writing, as well as hygiene product manufacturing.

The paper chemicals market research report is one of a series of new reports that provides paper chemicals market statistics, including paper chemicals industry global market size, regional shares, competitors with a paper chemicals market share, detailed paper chemicals market segments, market trends and opportunities, and any further data you may need to thrive in the paper chemicals industry. This paper chemicals market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The paper chemicals market consists of sales of optical brightening agent, pigment, retention agent, caustic soda, sizing agent, and wet strength additive. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.