Bleached Eucalyptus Kraft Pulp Market size is set to grow by USD 2.74 billion from 2024-2028, Rise in the use of personal care and hygiene products boost the market, Technavio

NEW YORK, July 10, 2024 /PRNewswire/ -- The global bleached eucalyptus kraft pulp (BEKP) market size is estimated to grow by USD 2.74 billion from 2024-2028, according to Technavio, at a CAGR of over 4.36% during the forecast period. The rise in the use of personal care and hygiene products is driving market growth, along with a trend towards forestry and plantation management. However, instances of forest fires pose a challenge. Key market players include ALTRI SGPS S.A., Asia Pulp and Paper APP Sinar Mas., Billerud AB, Domtar Corp., and others.

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Market Driver

The global bleached eucalyptus kraft pulp market is witnessing significant focus from vendors on sustainable business models, particularly in the area of plantation and forest management. Companies such as Suzano and UPM are leading this trend, with integrated forest and plantation areas for raw material procurement. These vendors prioritize sustainable management of these resources, ensuring social and environmental responsibility. UPM, for instance, invests in plantations for low-cost production and self-sufficiency, while also absorbing carbon dioxide and preventing soil erosion. Community involvement is a crucial aspect, offering employment opportunities. Developing and emerging countries like Brazil, Indonesia, and China are embracing this approach, securing eucalyptus supply and contributing to market growth during the forecast period. 

The Bleached Eucalyptus Kraft Pulp market is experiencing significant growth due to increasing urbanization and the rising working population. This trend is driven by the demand for eco-friendly packaging solutions, particularly in cartons and corrugated board. Eucalyptus trees are the primary source of this pulp due to their strength, brightness, and adaptability. The pulping process involves harvesting eucalyptus trees, turning them into wood chips, and separating the cellulose fibers from the lignin using the Kraft pulping technique. The resulting pulp is then bleached using either chlorine or oxygen/ozone to meet the brightness requirements of various applications, including cartonboard, tissue paper, graphic paper, newsprint paper, and specialty papers. Environmental programs and plastic packaging laws are fueling the shift towards sustainable packaging solutions, making bleached eucalyptus kraft pulp an attractive option. Packaging machinery manufacturers are also investing in smart packaging technologies to enhance product protection and shelf life. The geographical demands for this pulp vary, with Asia-Pacific being the largest consumer due to its large population and high urbanization rates. 

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Market Challenges

• The bleached eucalyptus kraft pulp industry relies on trees as its primary raw material. Each tree comprises 25% branches and 75% trunk wood or logs. A log contains 27% lignin and 73% fiber. One tree requires 130 gallons of water for growth and 50 gallons for processing into paper. On average, 17 trees are needed to produce one metric ton of paper. For white office paper and newsprint, 24 and 12 trees, respectively, are used, along with 25 cubic meters of water, 10,061 kWh of electricity, and 680 gallons of oil. Forest fires, whether natural or human-induced, pose a significant threat to the industry. Human-caused fires, often due to negligence, can destroy vast amounts of raw materials, leading to substantial losses and revenue decreases. Asia, a significant paper and pulp producer, has been affected by forest fires, particularly in Malaysia, where acres of trees and land have been devastated, negatively impacting the global bleached eucalyptus kraft pulp market's growth during the forecast period.
• The Bleached Eucalyptus Kraft Pulp market is experiencing significant growth due to the adaptability of eucalyptus trees for Kraft pulping, resulting in strong and bright pulp. However, challenges persist, such as the high-pressure and temperature process required, which can increase manufacturing costs. Lignin content in eucalyptus wood fibers poses challenges in bleaching, requiring the use of chemicals and bleaching agents. Geographical demands, economic situations, and customer preferences influence the market. Digital media and eco-friendly production methods are driving the shift from traditional paper products to sustainable alternatives. Sustainability imperatives and technological innovations, including closed-loop pulping and energy-saving procedures, are key trends. Regulations and certifications, such as FSC, play a crucial role in ensuring sustainable and efficient processing. Specialized applications, including high-value packaging, hygiene products, and composite cans, are driving quick growth. Minimal resource requirements and the sustainability surge make this market attractive, despite regulations and certifications adding to manufacturing costs. Efficient processing, technological advancements, and changing consumer preferences are shaping the market. Kraft pulp is used in various applications, including Envelopes, Sacks, Bags & pouches, and Composite cans. The market is expected to continue growing, with developing nations presenting significant opportunities.

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Segment Overview 

This bleached eucalyptus kraft pulp market report extensively covers market segmentation by  

1. Application 
• 1.1 Tissue paper
• 1.2 Printing and writing paper
• 1.3 Others
2. Type 
• 2.1 Regular grade
• 2.2 High quality grade
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Tissue paper-  The tissue paper segment is the largest application area for bleached eucalyptus kraft pulp, accounting for a significant market share in 2023. This trend is expected to continue throughout the forecast period. Eucalyptus kraft pulp is a key raw material for manufacturing tissue papers due to its added softness. Tissue papers are essential for maintaining personal hygiene and reducing the risk of communicable diseases. The global tissue paper market is projected to expand due to socio-economic factors like urbanization, rising disposable income, and consumer expenditure. Additionally, factors such as increasing hospitalizations, healthcare expenditure, and the growth of hospitality and wellness industries are boosting demand for tissue papers. The middle-class consumer shift towards high-quality tissue paper products further fuels market growth. Consequently, the global bleached eucalyptus kraft pulp market is anticipated to grow substantially during the forecast period.

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Research Analysis

The Bleached Eucalyptus Kraft Pulp market is fueled by the unique properties of eucalyptus trees, whose wood fibers offer superior strength and brightness. The adaptability of eucalyptus trees to various climates and minimal resource requirements make them an ideal choice for pulp production. The process involves converting eucalyptus wood chips into pulp through a chemical reaction, separating cellulose fibers from lignin using high pressure and temperature. Bleaching agents are then added to achieve the desired brightness. Digital media and technological innovations have transformed traditional paper products, expanding the market beyond the conventional realm. Eco-friendly production methods, efficient processing, and specialized applications in high-value sectors like packaging and hygiene products are driving growth. Regulations and certifications ensure sustainable and closed-loop pulping processes, while energy-saving procedures contribute to cost savings and environmental sustainability.

Market Research Overview

The Bleached Eucalyptus Kraft Pulp Market is experiencing quick growth due to the adaptability of eucalyptus trees for Kraft pulping technique. This technique separates wood fibers through high pressure and temperature, resulting in strong and bright pulp. Eucalyptus trees provide an abundant and sustainable source of raw material, with minimal resource requirements. The pulping process involves the conversion of wood chips into cellulose fibers and lignin. Bleaching agents are then used to remove lignin, enhancing the pulp's brightness and improving its suitability for various applications. Geographical demands, economic situations, and customer preferences influence the market's dynamics. Digital media and changing consumer preferences are driving the shift towards eco-friendly production methods and sustainable packaging. Technological innovations, such as closed-loop pulping and energy-saving procedures, are reducing manufacturing costs and minimizing the environmental impact. Regulations, certifications, and sustainability imperatives, including FSC, are shaping the industry. Applications for bleached eucalyptus kraft pulp include Kraft paper, envelopes, sacks, bags & pouches, composite cans, cartons, urbanization, environmental programs, and various paper products like packaging paper, tissue paper, graphic paper, newsprint paper, specialty paper, cartonboard, and corrugated board. The market is experiencing a surge in demand due to the quick growth in high-value applications, such as smart packaging, packaging machinery, and plastic packaging laws. Developing nations are also contributing to the market's expansion. Efficient processing and specialized applications in industries like hygiene products and composite cans are further driving the market's growth. The pulping process involves bleaching, including chlorine bleaching and oxygen/ozone bleached, which affects the final product's quality and applications. In conclusion, the Bleached Eucalyptus Kraft Pulp Market is a dynamic and evolving industry, influenced by various factors, including geographical demands, economic situations, customer preferences, sustainability imperatives, technological innovations, and regulatory requirements. The market's growth is driven by the versatility of eucalyptus trees, the efficiency of the Kraft pulping technique, and the increasing demand for eco-friendly and sustainable packaging solutions.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Tissue Paper
• Printing And Writing Paper
• Others
• Type
• Regular Grade
• High Quality Grade
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio