Packaging / Advertising & Office

The "Special Paper Chemicals Report" recently released by IHS Markit shows that the global consumption of specialty paper chemicals has been relatively stable for many years and is expected to grow slowly at a rate of 1.0% to 1.5% per year in the next five years. According to the report, due to the transition from printing to digital communication, small and inefficient paper mills will gradually close. In addition, the continuous integration of the paper-making chemicals industry has permanently affected the consumption of paper-making chemicals. However, the demand for packaging, sanitation and household paper will continue to grow, which will contribute to the growth of market demand for paper chemicals.

IHS Markit pointed out that different regions have different growth patterns. In mature regions such as North America, Europe and Japan, the consumption of paper chemicals is expected to gradually decrease or remain unchanged. The prospects for demand in Central and South America, China and other parts of Asia are weak. The growth rate of these markets may slow down.

According to the report, due to overcapacity in the paper industry and the government's promotion of stricter environmental regulations, the consumption of paper chemicals in China has slowed sharply. Another feature of China's specialty paper chemicals is that the output of low-value grade paper and cardboard is relatively high. The demand for specialty paper chemicals for the production of these papers and cardboards is relatively small. In terms of data for 2020, the global consumption of specialty paper chemicals used in paper and cardboard production is estimated at 15.2 billion U.S. dollars, of which China is the largest consumption area, accounting for about 25% of total demand. Europe and North America are the second and third largest consumption regions respectively.

Specialty papermaking chemicals can be divided into 3 categories according to the role and use process in the papermaking process. The first category is functional chemicals, including papermaking chemicals used to impart various properties to finished paper, from chemicals that increase strength and optical properties to enhance printing performance. They include dry and wet reinforcing resins, sizing agents, pigment binders, as well as dyes, pigments and optical brighteners. The second category is processing aids, including retention and drainage aids, resin control agents, defoamers, bactericides/tackicides, etc. The third category of specialty papermaking chemicals are pulp and fiber processing chemicals, such as bleaching and deinking specialty chemicals. It is reported that in 2020, China is the largest consumer of paper-making functional chemicals, while North America and Europe are the largest consumers of processing aids for paper and cardboard manufacturing.

It is understood that special papermaking chemicals can help reduce water and energy consumption, increase the recycling of waste paper, and save raw materials by reducing paper weight without sacrificing the function or optical properties of the paper. It can also greatly increase the speed of the paper machine.

The report pointed out that the specialty paper chemicals market was very fragmented in the past, because the demand has undergone profound changes, which has promoted the industry to accelerate integration. IHS Markit said that because paper companies are seeking larger supply contracts to obtain greater discounts, they also require suppliers to provide goods and services to all of their locations around the world.

Other issues affecting the specialty paper chemicals industry include: reduced R&D work by paper companies and increasing reliance on suppliers to develop new products and processes; conversion of factories that used to produce newsprint and printing/writing paper into packaging or tissue production factory. This will inevitably change the requirements for certain categories of specialty chemicals; closed-loop water systems that reduce waste water emissions and enhance new chemical requirements; faster papermaking and printing speeds, and the use of inkjet printing, which all require higher quality production And lower weight paper.

IHS Markit said that the massive use of recycled fibers from industrial waste and consumer waste to replace pure pulp is another issue affecting the industry. Using recycled raw materials to make paper will require more chemicals such as deinking agents, defoamers, chelates, thickeners, fillers, and paint pigments.