The study noted that the global push for the use of sustainable materials is expected to aid the growth in the demand for recycled pulp. Among the end uses, the increasing use of paper-based packaging formats are expected to be the prominent drivers for the growth of the global pulp market.

According to the TMR study, Asia Pacific, holds 45% of the global market share in terms of pulp production, and it is expected to uphold its lead over the forecast period. China tops the charts for both the production and consumption of pulp.

Meanwhile, the pulp market in Japan is projected to continue its prominence, owing to its sharp shift towards greener packaging solutions, in which, corrugated and Kraft paper companies have a better development prospect. Also, the average operating income of pulp manufacturers based in the Asia Pacific region presents an upward trend.

However, this region houses many unorganised and small-scale manufacturers, which might not compete with the tier-1 pulp producers directly, but can impact the local pricing to some extent. Thus, the Asian pulp market could be considered as a highly competitive market, as it promises to offer lucrative opportunities.

While North America is still the largest wood pulp producer, followed by Europe, new pulp milling facilities are being created in South America (especially Brazil), Russia, Asia (Indonesia), and Northern Europe.

The report also forecasts that the United States represents 85% of the pulp market in North America, while Canada is expected to expand at a high CAGR. A large number of tier-1 and tier-2 pulp companies are based in North America.

Despite being a matured market, Europe represents an incremental opportunity of USD 15 bn by 2027. Europe holds approximately one-fourth of the global pulp market share; however, it is expected to lose some of its markets to Asia Pacific over the forecast period.