Global market for chemical pulp is anticipated to witness growth on account of its growing application scope in end-use segments including paper, packaging, specialty products and tissue paper. Packaging industry growth in India, China and Brazil owing to increasing application scope in food & beverage, personal care and pharmaceutical industries is anticipated to fuel chemical pulp demand. Declining crude oil prices owing to rising inventory levels of crude oil is anticipated to open new market opportunities for chemical pulp.
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Increasing importance of hydraulic fracturing has played a vital role in increasing shale gas and tight oil output in U.S. and Canada, which is anticipated to ensure raw material supply for chemical pulp production. Emergence of synthetic paper as an alternative to plant-derived counterparts in labeling and non-labeling applications is likely to have appositive impact on market growth over the forecast period.
North America is expected to remain the largest chemical pulp market over the forecast period owing to robust manufacturing base of paperboard in the U.S. Application growth of packaging in Mexico on account of growing demand in food & beverage and personal care products is likely to have a positive impact on chemical pulp market. Asia Pacific is anticipated to witness growth owing to increasing demand for packaging and tissue paper fueled by food & beverage and pharmaceutical industries in China, India, Malaysia and Indonesia.
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Key market players include Bayer, BASF, Shell Chemicals, Dow Chemical Company, FMC Corp, ExxonMobil, Ashland Inc. and Kemira. In 2012, government of India launched Draft National Chemical Policy for increasing country’s share in global chemical industry from 3% in 2013 to 6% by 2020. This move is expected to open new opportunities for chemical pulp market over the forecast period.
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