Wood Pulp Market

Wood Pulp Market Size and Share:

The global wood pulp market size was valued at USD 174.30 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 223.87 Billion by 2033, exhibiting a CAGR of 2.68% during 2025-2033. Asia-Pacific currently dominates the market and holds the largest market share in 2024. The market is experiencing stable growth driven by the increasing demand for paper products for various purposes, rising preferences for sustainable packaging solutions due to the thriving e-commerce sector, and the burgeoning construction sector.

The expansion of the global packaging industry is a major market driver for wood pulp. Packaging serves as a crucial part of branding and consumer appeal. As e-commerce continues to thrive, especially with the shift in shopping habits, there has been a surge in demand for cardboard and paper-based packaging. These packaging materials are often made from wood pulp due to their strength, durability, and sustainability compared to plastic. According to a report by IMARC Group, the e-commerce industry is expected to reach USD 214.5 trillion by 2033, with an astounding growth rate of 25.83% from 2025-2033. Additionally, as per industry estimates, India is anticipated to rank first between 2023 and 2027, among 20 countries in retail e-commerce development, with a CAGR of 14.1%. This surge in e-commerce has encouraged companies to become more environmentally conscious and move away from plastic to reduce their carbon footprint. As a result, wood pulp-based packaging materials such as cardboard and corrugated boxes are increasingly being used in various sectors, including retail, food and beverages (F&B), electronics, and pharmaceuticals.

The United States is a major market disruptor owing to its increasing population that creates the need for consumer goods, including paper-based products. The country’s population grew by nearly one percent between 2023 and 2024 surpasses 340 million people. This translates to more demand for everyday items like food, hygiene products, and packaging, all of which rely on wood pulp for production. Moreover, the growing improvements in living standards and urbanization are contributing to greater demand for packaged food, personal care products, and educational materials. The expanding middle class in the country is also fueling the demand for more modern consumer products that rely heavily on paper and packaging materials. Just over half of Americans, accounting for 51% of the total population, were considered middle class in the year 2023. As people in these areas continue to increase their purchasing power and change their consumption habits, wood pulp remains a key raw material to meet the growing needs.

Wood Pulp Market Trends

Increasing demand for paper products

Paper mills generally use wood pulp from various trees, such as bamboo, eucalyptus and subabul, to make paper products. It is used to produce paper, tissue, board, and specialty paper. According to reports, the global production of pulp for paper amounted to around 191.6 Million Metric Tons in 2021. The increasing need for notebooks and books among students in schools and universities across the globe is impelling the market growth. Moreover, the growing demand for wood pulp due to the rising need for sustainable products among individuals is offering a positive market outlook.

Rising preferences for sustainable packaging

Increasing preferences for sustainable packaging solutions on account of the thriving e-commerce sector is contributing to the wood pulp market growth. People are preferring eco-friendly packaging options that benefit in reducing harmful pollution levels in the environment while maintaining sustainability goals. They are relying on online channels to make purchases for a variety of products due to their enhanced convenience and home delivery solution. As per IMARC Group’s research report, the global e-commerce market size was USD 21.1 Trillion in 2023. It is projected to exhibit a growth rate of 27.16% during 2024-2032 on account of the expansion in cross-border trade opportunities.

Thriving construction sector

Wood pulp fibers are employed in construction materials, such as particleboard, medium-density fiberboard (MDF), chipboards, and oriented strand board (OSB), to improve strength, durability, and moisture resistance. It is a potential raw material source for producing bio-based building materials. The growing demand for construction materials due to increasing residential and commercial spaces worldwide is offering a positive wood pulp market outlook. India Brand Equity Foundation reported that the residential property market observed a value of home sales reaching USD 42 Billion in the financial year 2023. It also claims that real estate sector in India is expected to reach USD 1 Trillion by 2030.

Wood Pulp Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global wood pulp market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on type, grade, and end use industry.

Analysis by Type:

• Hardwood
• Softwood

Hardwood stands as the largest component in 2024. Hardwood trees include oak, birch maple, cherry, mahogany, and walnut. Hardwood is more durable and has higher density as compared to softwood. It is versatile, withstands heavy use, and provides an aesthetic appeal. It is also more resistant to decay than softwood when used for exterior work. The rising employment of hardwood to produce furniture, decks, and flooring is impelling the market growth. The increasing focus on adopting high-quality furniture products that provide enhanced aesthetic appeal to a space is supporting the market growth. The furniture market worldwide is anticipated to generate a revenue of USD 664.9 billion in 2024 as stated by reports.

 Analysis by Grade:

• Mechanical
• Chemical
• Semi-Chemical
• Others

Mechanical grade leads the market share in 2024. Mechanical grade wood pulp involves the separation of fibers without the addition of any chemicals. It comprises stone groundwood pulping (SGW), refiner pulping, thermomechanical pulping (TMP), chemithermomechanical pulping (CTMP), and recycled paper pulping. It is produced by mechanically grinding or refining wood chips against a rotating abrasive surface. It retains much of the natural lignin and other components of the wood, resulting in shorter and coarser fibers as compared to chemical pulp. Moreover, it is widely used to produce newsprint, magazine paper, and telephone directories, where brightness is not a major concern. According to reports, the print newspapers and magazines market worldwide is anticipated to witness USD 123.50 billion growth by 2024.

Analysis by End Use Industry:

• Packaging
  • Food and Beverages
  • Pharmaceutical
  • Personal Care and Cosmetics
  • Automotive
  • Others
• Paper
  • Newspaper
  • Books and Magazines
  • Tissues
  • Others
• Others

Packaging leads the market share in 2024. The rising utilization of wood pulp in the packaging sector is contributing to the market growth. Wood pulp cardboard boxes and cartons are widely utilized for the packaging of food and beverage (F&B) products, such as cereals, snacks, beverages, and frozen food items. Moreover, wood pulp-based paperboard and cardboard are employed in pharmaceutical sector for packaging medications. These materials offer barrier properties to protect medications from moisture, light, and contamination, that assist in ensuring product integrity and safety. Reports claims that the global cardboard production output is forecasted to increase to USD 254.4 billion by 2033.

Regional Analysis:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

In 2024, Asia-Pacific holds the majority of the market share. The rising need for eco-friendly packaging solutions to mitigate carbon footprint in the Asia Pacific is impelling the market growth. The growing environmental concern among individuals is offering a positive market outlook. There is an increase in the utilization of wood pulp for numerous purposes in China. Many countries in Asia Pacific are focusing on meeting the rising wood pulp market demand domestically and globally by investing in paper manufacturing infrastructure. As per reports, China was the world largest importer of wood pulp in 2022, accounting for nearly 37.91% of the total wood pulp imports.

Key Regional Takeaways:

North America Wood Pulp Market Analysis

The North American wood pulp market is growing steadily due to the rising demand for paper products, primarily in packaging, hygiene, and tissue applications. The United States and Canada offer a great market for this product because of their mature paper and pulp industry that have been serving a multitude of sectors such as retailers, food packaging, consumer goods, among many others. Demand for wood pulp is also being fueled by the continuous shift toward sustainable and eco-friendly materials, as these products are now preferred by business and residential consumers, who favor materials that are recyclable and biodegradable. The growth of e-commerce also plays a huge role in this increase in demand for packaging materials, such as corrugated boxes and paper bags, that are made primarily from wood pulp. The advancement in technology in pulp manufacturing, and the commitment to responsible forest management, also contribute to growth in the region. It is expected that the North American market will maintain this growth momentum, considering continued emphasis on sustainability and innovation in production processes.

United States Wood Pulp Market Analysis

The use of wood pulp has been increased due to the high demand for paper products in the United States. For example, growing paper consumption in the US has driven the number of projects demanding higher wood pulp production. As such, the increase of paper mills in 2023 with almost 187 operational facilities has led to high production of wood pulp. The ongoing shift toward sustainable packaging and environmentally friendly alternatives has also intensified the demand for paper and cardboard materials in industries such as those involved in publishing, retails, or packaging. Increased concern about reducing plastic wastes and the need for promoting improved recycling practices also drives the movement toward these alternatives. The growing acceptance of wood pulp has additionally been fostered by the increasing demands arising from e-commerce and the need for product packaging. These boxes, composed of paperboard and corrugated materials, mainly depend on pulp-base material in logistics. The strong movement of consumers to adopt more sustainable options is expected to continue the steady rise in wood pulp use.

Asia Pacific Wood Pulp Market Analysis

Automobiles are increasingly being adopted in the Asia-Pacific region, and this demand is steadily contributing to heightened wood pulp adoption. The automobile sector, according to India Brand Equity Foundation, attracted cumulative equity FDI inflow of USD 35.40 billion from April 2000 to September 2023, boosting the demand for automobiles. This increasing demand leads to the need for lightweight components in interior panels, packaging, and protective wraps. As a result, wood pulp products, such as moulded pulp and paper-based composites, are being used because of their strength, eco-friendliness, and cost-effectiveness. Such products provide a lightweight alternative to traditionally plastic materials, hence reducing emissions and fuel consumption as per regulatory requirements. With a greater emphasis on sustainability, the increasing use of wood pulp in multiple aspects of the automotive industry, such as their application in vehicle production cycle like interiors and packaging is also a contributing factor for the market's growth in the region. Also, the increasing awareness among people of environmental problems are driving producers towards adopting eco-conscious manufacturing of vehicles, thus strengthening the demand for wood pulp in future automotive applications.

Europe Wood Pulp Market Analysis

The continued growth of the food and beverage sector in Europe has greatly impacted the use of wood pulp. For instance, the food and drink wholesaling industry has seen growth in Europe over the years, and it boasts approximately 445K businesses in that sector, indicating robust expansion in the food and beverage market. As ecological considerations are given prominence, the advantages of using wood pulp have pushed food manufacturers to adopt pulp-based materials for their packaging, such as paper cups, cartons, and trays. These are said to be biodegradable, recyclable, and are believed to be a sustainable alternative with regard to plastic packaging. Besides this, increased awareness among the consumers about environmental degradation as a result of plastic waste drives a change to solutions made from pulp. Furthermore, wood pulp also serves other purposes like food preservation using papermakers for filters, absorbent pads, and protective covers for perishables. Stricter regulations and user demand for alternatives is also increasing the adoption of wood pulp through packaging and other food-related applications. The rising preference for sustainability and green practices in food and beverage industries has led to heightened use of wood pulp in packaging solutions.

Latin America Wood Pulp Market Analysis

The growing pharmaceutical sector in Latin America is driving the adoption of wood pulp due to its use in packaging applications. As per the International Trade Administration, healthcare expenditure in Brazil, the largest healthcare market in Latin America, amounts to 9.47% of its GDP, equivalent to USD 161 Billion, thus driving the use of wood pulp in Brazil's pharmaceutical sector. The increasing demand for pharmaceuticals leads to the need for eco-friendly sustainable packaging. Wood pulp has thus become an effective replacement to traditional plastics in some applications whereby medicine cartons, blister packs, and other forms of protective packaging can be replaced with it. Therefore, it further strengthens its renewability and biodegradability with the industry's increased orientation towards sustainability targets as well as reduction impacts of packaging on environmental sustainability. With consumers and regulatory bodies, the movement has increased the attention on the environmental footprint of products. Hence, wood pulp is now taking precedence as a preferred material for pharmaceutical packaging.

Middle East and Africa Wood Pulp Market Analysis

The wood pulp consumption has increased in the construction sector across the Middle East and Africa, as construction spearheads the growth of these regions. Reports indicate that Saudi Arabia's construction sector is booming, with over 5,200 ongoing projects worth USD 819 Billion. This shows a strong growth and investment into infrastructure development. The greater use of wood pulp as a raw material in construction materials like insulation and cement additives because of its sustainability and affordability is another catalyzing factor. Pulp is a significant raw material in manufacturing fiberboard, drywall, and other building materials, all of which possess strength and eco-friendly qualities. As the construction projects in this region becomes more focused on green and sustainable ways of building, adopting renewable materials like wood pulp is proving to be more popular. Furthermore, pulp-based products are also being increasingly adopted as packaging material for construction materials, offering effective and sustainable alternatives to plastic packaging. The expanding construction industry, with its emphasis on eco-friendly materials and practices, is expected to continue driving the growth of wood pulp in the region.

Competitive Landscape:

In order to satisfy rising demand, major market participants are putting a lot of effort into sustainability, technology development, and increasing production capacity. Major companies are spending money on eco-friendly industrial techniques like reducing carbon emissions, boosting the use of recycled fibers, and optimizing water consumption. By implementing cutting-edge technology that enhance pulp quality and lower operating costs, these businesses are also improving their pulp manufacturing processes. As the need for paper-based goods and packaging materials rises as a result of urbanization and population expansion, many companies are increasing their footprint in emerging countries. Additionally, businesses are concentrating on expanding the range of products they provide by adding eco-friendly packaging options that complement the worldwide trend away from plastic. Partnerships with organizations like the Forest Stewardship Council (FSC) that help ensure responsible sourcing of raw materials, is further aligning with consumer preferences for sustainable and ethically produced products.

The report provides a comprehensive analysis of the competitive landscape in the wood pulp market with detailed profiles of all major companies, including:

• APRIL Group (RGE Pte Ltd)
• ARAUCO
• Canfor Corporation
• Metsä Group
• Nippon Paper Industries Co. Ltd
• Oji Holdings Corporation
• Sappi Limited
• Södra, Sonoco Products Company
• Stora Enso Oyj
• Suzano Papel e Celulose
• UPM-Kymmene Oyj
• WestRock Company

Latest News and Developments:

• December 2024: Suzano has inaugurated the world’s largest single-line pulp mill in Brazil, valued at USD 4.3 Billion, located in Ribas do Rio Pardo, Mato Grosso do Sul. With a pulp production capacity of 2.55 million TPA, the new mill boosts Suzano’s total capacity by 20%, reaching 13.5 million TPA. The facility’s unique design, with the smallest structural average radius of the forest base, reduces logistical costs, environmental impact, and greenhouse gas emissions by minimizing transportation distance and fossil fuel use.
• December 2024: AFRY has been awarded an EPCM contract for the Balance of Plant at Arauco’s new greenfield pulp mill in Inocência, Brazil. Arauco, a Chilean forestry group, will invest USD 4.6 Billion to build the world’s largest bleached eucalyptus pulp mill, with a production capacity of 3.5 million tonnes per year. The mill, set to begin operations in 2027, will produce wood pulp used in paper and hygiene products. AFRY's role includes detailed engineering and construction management for various auxiliary facilities, focusing on sustainability and energy efficiency.
• November 2024: ABB announced the launch of a new range of industry papers under its global Real Progress sustainability program, focusing on advancements in the pulp and paper industry. The three-part series highlights how the industry is evolving toward a more sustainable future, with a special focus on wood pulp. The reports emphasize technology leadership in electrification and automation, helping mills reduce carbon emissions and improve resource efficiency. Industry leaders have contributed valuable insights, showcasing best practices for a more sustainable and resource-efficient pulp and paper value chain.
• November 2024: Mitsubishi Heavy Industries and Hokuetsu Corporation launched a CO2 capture demonstration test at Hokuetsu's Niigata Mill in Japan to decarbonize the pulp and paper industry. The test uses MHI’s CO2MPACT™ Mobile system to capture CO2 from chemical recovery boilers fueled by black liquor, a by-product of pulp production. This pioneering project marks the first application of CO2 capture technology in the pulp and paper sector, supporting sustainability efforts in the industry.
• February 2024: Mondi has completed the acquisition of Hinton Pulp mill in Alberta, Canada, from West Fraser Timber for USD 5 Million. The mill, with a capacity of 250,000 tonnes of wood pulp annually, strengthens Mondi's access to high-quality local fibre. The company plans to invest in improving productivity, sustainability, and expanding the facility, including a new kraft paper machine to support growth in its paper bag operations in the Americas.

Wood Pulp Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the wood pulp market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global wood pulp market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the wood pulp industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.