Packaging / Advertising & Office

The global fluff pulp industry, as well as the hygiene and nonwovens market, is facing a pivotal year, according to a new report from Smithers. In the short term, the price of fluff pulp hit a record high in the first quarter of 2022. The international trade market will also face capacity challenges, need to adapt to changes in hygiene product design, and think about how to exploit the potential of the most sustainable nonwovens development.

With record prices and growing demand, future supply is a central issue for the industry. North America will provide 83.5% of global capacity by 2022. Fluff pulp cultivation is largely confined to eight southeastern states, and three U.S.-based companies—International Paper, Georgia-Pacific and Domtar/Paper Excellence—now account for three-quarters of world production.

Smithers noted that 2022 will see a boom year for the fluff pulp industry, with record prices and recovering demand driving global consumption to 6.9 million air-dried metric tons (ADMT), with a market value of $8.31 billion, up from $68.8 in 2021 billion dollars.

At the beginning of 2022, the price of fluff pulp is close to 2000 US dollars / air-dried metric ton, almost 2-4 times the historical average level, and the recovery of the global economy in the post-pandemic era has stimulated demand.

Global fluff pulp supply remains constrained as demand continues to increase. To this end, the shift of mills from dissolving or paper pulp to fluff pulp production will be key to meeting customer demand in the short to medium term.

Smithers pointed out that by 2027, total world consumption of fluff pulp will increase to 8.13 million tons air-dry tons, equivalent to a compound annual growth rate (CAGR) of 3.4% in 2022-2027. While the international trade market will not be able to sustain the record prices seen in the first half of 2022, it will remain active.