Fate of the pulp and paper chemicals market is completely dependent on the paper industry and hence reflects the trends in the industry. The global paper industry, already reeling under the onslaught of increasing substitution in publishing by Internet and in packaging by plastics, faced further deterioration with the onset of the global economic downturn. Though the market is on the recovery mode in line with the dissipating recession, growth is likely to be modest in Europe, North America and Japan, while China, South East Asia, East Europe and Latin America are projected to gain strength as stated by the new market research report on Pulp and Paper Chemicals.

Pulp and paper chemical companies are focusing on extensive research and development activities in order to enhance the quality of paper and to decrease the energy consumption in the paper industry. Water management is another area that is necessitating substantial research work. Owing to the global focus on environment protection, environmentally friendly chemicals such as sodium chlorate, hydrogen peroxide, and fillers including calcium carbonate are witnessing robust growth. Recycling has emerged as a major game changer in the paper industry, and is impacting demand for paper chemicals. The growing penetration of closed-loop water-circulation system is also facilitating the demand for specialty chemicals.

Rapid economic growth has boosted paper demand in Asia-Pacific with countries such as China, India, and the South East Asian nations emerging as significant markets. Asia-Pacific market for Paper Coating Chemicals, the largest pulp and paper chemicals segment, is projected to reach 4.47 million tons in 2013. The US has lost its pre-eminence in the global pulp and paper chemicals industry, with the recession aggravating the already depressed conditions. In addition, the market also faces threat from the growing tendency towards off shoring. However, the growing popularity of recycled paper presents a slight ray of hope to the depressed US pulp and paper chemicals market. Recycled fibers require substantial amount of deinking chemicals.

Globally the pulp and paper chemicals industry represents a highly fragmented market. Shifting of production to Asia and Latin America and the stagnation in developed markets is leading to a consolidation phase in the industry. Key players covered in the report include Akzo Nobel NV, Eka Chemicals, Ashland, Inc., BASF, Buckman Laboratories, Clariant, Cytec Industries, Enzymatic Deinking Technologies, ERCO Worldwide, FMC Corporation, Georgia-Pacific Chemicals LLC, Imerys, Kemira Chemicals, Nalco Holding Company, Omya, Solvay AG, and Solvay Chemicals, Inc.