by The global dissolving pulp market is estimated to be valued at US$5,540.34 million in 2023 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023-2032, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Dissolving pulp is a type of chemical pulp that is primarily used in the production of various cellulosic products such as viscose rayon, acetate fibers, and lyocell. It offers superior absorbency, strength, and biodegradability, making it a preferred choice in the textile industry for manufacturing eco-friendly and sustainable fibers. The increasing demand for apparel and textile products made from natural and biodegradable fibers is expected to drive the market growth.
Market key trends:
With the growing consumer awareness regarding sustainability and environmental impact, the demand for dissolving pulp is expected to witness significant growth. The adoption of eco-friendly manufacturing processes and the development of innovative and sustainable fiber applications are key trends shaping the dissolving pulp market. Manufacturers are focusing on expanding their production capacities and investing in advanced technologies to meet the increasing demand. Additionally, collaborations and strategic partnerships among key players are further fueling market growth by leveraging their expertise and resources. These trends are anticipated to propel the dissolving pulp market over the forecast period.
Porter’s Analysis
Threat of New Entrants:
The dissolving pulp market is expected to witness a moderate threat of new entrants due to the presence of high entry barriers such as upfront capital investment for setting up dissolving pulp production facilities. Additionally, the market demands adherence to stringent environmental regulations, which further limits the entry of new players. However, the growth potential and profitability of the market may attract some new entrants, leading to increased competition.
Bargaining Power of Buyers:
Buyers in the dissolving pulp market have a moderate bargaining power. The high competition among the key players in the market provides buyers with various options to choose from, giving them leverage to negotiate for better prices and quality. However, the market demand for dissolving pulp is expected to grow significantly, which may reduce the bargaining power of buyers.
Bargaining Power of Suppliers:
Suppliers in the dissolving pulp market have a relatively low bargaining power. The market is supported by a wide range of suppliers, providing ample options for key players to source raw materials at competitive prices. Furthermore, the dissolving pulp market heavily relies on wood pulp suppliers, giving the suppliers limited control over bargaining.
Threat of New Substitutes:
The dissolving pulp market faces a moderate threat of new substitutes. While dissolving pulp is widely used in various end-use industries such as textiles, pharmaceuticals, and cosmetics, the development of alternative materials may pose a challenge to market growth. However, the market is expected to continue its upward trajectory due to the unique properties of dissolving pulp that cannot be easily replaced by substitutes.
Competitive Rivalry:
The dissolving pulp market is characterized by intense competitive rivalry among key players. Companies such as Sappi Limited, Rayonier Inc, and Nippon Paper Industries Co., Ltd. dominate the market with their well-established distribution networks, strong product portfolios, and technological advancements. The high market concentration and continuous efforts by key players to enhance their market share through mergers, acquisitions, and collaborations contribute to the intense competition within the industry.
Key Takeaways
The global dissolving pulp market is expected to witness high growth, exhibiting a CAGR of 3.3% over the forecast period of 2023-2032. This growth can be attributed to the increasing demand for dissolving pulp in industries such as textiles, pharmaceuticals, and cosmetics. The unique properties of dissolving pulp, including high tensile strength, durability, and biodegradability, make it a preferred choice in these industries.
In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the dissolving pulp market. This can be attributed to the rapid growth of the textile and apparel industry in countries such as China, India, and Bangladesh. Additionally, the presence of a large consumer base and increasing disposable incomes are driving the demand for dissolving pulp in the region.
Key players operating in the dissolving pulp market include Sappi Limited, Rayonier Inc, Nippon Paper Industries Co., Ltd., Bracell, Tembec Inc., The Lenzing Group, Aditya Birla Group, Phoenix Pulp & Paper Public Co., Ltd., Sun Paper Group, and Yueyang Forest & Paper Co Ltd. These players have a strong market presence, extensive distribution networks, and a wide range of product offerings, enabling them to acquire a significant market share in the dissolving pulp industry.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
