Albany, NY -- (SBWIRE) -- 01/22/2015 -- The growing packaging industry across the world is giving an impetus to the overall specialty pulp and paper chemicals market. The specialty pulp and paper chemical gets its name from the raw materials that are fundamentally used in the production of specialty papers. Specialty papers such as diazo paper, graphic papers, and tissues are widely used in the packaging of different perishable and non-perishable goods.

Compared to other commodity chemicals, these chemicals offer a wide range of benefits such as reduction in consumption of water and minimized wastages. As a result, the market for specialty pulp and paper chemicals is expected to grow tremendously in the coming years. The global specialty pulp and paper chemicals market has also experienced healthy growth in the recent past. It was valued at US$18.67 billion in 2013. However, expanding at a CAGR of 4.5%, the market is further expected to continue its growth momentum and reach US$25.41 billion by 2020. According to a leading research, the market in terms of volume stood at 28,283.8 kilo tons in 2013.

Market Insights into Specialty Pulp and Paper Chemicals Market :

Specialty pulp and paper chemicals increase the usage of wastepaper without affecting the functional and optical properties of the paper. They are used in special papers that otherwise do not find use in applications such as publishing and common printing. This market is a niche segment within the global paper market and accounts for merely 4% of the overall paper production. Specialty pulp and paper chemicals are anticipated to show high growth in the near future due to improvement in new technologies and chemicals, as well as adoption of sustainable practices by specialty chemical manufacturers. Specialty paper furnishes customized and state-of-the-art solutions for printing, packaging, and labeling in a broad range of industrial applications as well.

Moreover, packaging and filtration media observe specialty chemicals as useful and high-value products because they can be easily customized to accomplish any job requirement. One of the major driving forces in this market is the growing demand for eco-friendly products and implementation of sustainable practices by chemical manufacturers. Such factors are expected to serve as new growth opportunities for the market over the forecast period 2014 – 2020. They will boost the demand for this market across several rapidly developing economies, particularly the Asia-Pacific region.

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Nevertheless, certain restraining factors such as increasing health and environmental regulations pertaining to the effect of chemicals on humans are likely to slow down the demand for specialty pulp and paper chemicals in few regions of the world. High cost of raw material is also expected to hinder the market growth over the forecast period.

Specialty Pulp and Paper Chemicals Market Analysis - by Product Segmentation :

The market has been broadly divided into four major products such as:

- Functional chemicals
- Basic chemicals
- Bleaching chemicals
- Process chemicals

Among these, the functional chemicals market segment was the largest product segment of the specialty pulp and paper chemicals market in 2013. This sector accounted for over 45% of the market share in terms of volume in the same year. Due to the rising high demand for dyed, pigmented, and coated paper used in different industrial, consumer and art applications, functional chemicals segment is expected to be the fastest growing segment across the globe.

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Another rapidly growing market segment is the process chemicals segment. It includes biocides, chelating agents, and defoamers. Process chemicals add value to finished products, thus seeking high demand across developed markets. The process chemicals market segment is likely to witness significant growth over the next few years.

The competency and demand for specialty pulp and paper chemicals market is increasing in emerging regions such as China, Indonesia, and India due to rising literacy and growing demand for writing paper. Geographically, Asia-Pacific was the largest market for specialty pulp and paper chemicals in 2013. Nevertheless, the trend is expected to continue as this region is rapidly growing at a CAGR of over 4% in terms of volume between 2014 and 2020.

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