Market Trends of Europe and MENA Pulp Industry
This section covers the major market trends shaping the Europe & MENA Pulp Market according to our research experts:
Bleached Chemical Pulp to Have Significant Impact on The Growth
- The pulp and paper industry heavily relies on natural resources and hence, the efficient utilization of raw materials, energy, and chemical processing, drive sustainability in the industry while producing high-quality products. For instance, pulp produced in Europe comes from sustainably managed forests, for example, through programs, like PEFC (Programme for Endorsement of Forest Certification) and FSC (Forest Stewardship Council), and is increasingly used in various value chains.
- The rising demand, along with consumption, for tissue paper, which is essentially used in kitchen, toilets, and household, is expected to drive the bleached chemical pulp market’s growth over the forecast period. Technological advancements in the paper and pulp industry enhance plant performance, which enables higher quality improvement and lower cost, and simultaneously environmentally friendly plant operation and thus have
- However, Cepi announced that according to preliminary figures, the European paper and board production decreased by 3.0% in 2019 compared to the previous year. The slowing down of the EU's economy in 2019, from 1.9% in 2018 to 1.1% in 2019 combined with global instability and trade tensions, impacted the European paper and board consumption, which recorded a 4% decline. This will directly impact the bleached chemical pulp market in the region.
- According to the Environmental Paper Network, the entire continent of Africa accounts for just 2% of global paper uses. This is due to the presence of heavily populated forest regions. More than half of the paper used is then chemically bleached to be used for packaging (carton board and containerboard), and this area has been increasing consistently in recent years.
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Rising Consumer Demand for Tissue will Drive the Market Growth
- The Middle East & Africa have a production capacity of 4 million metric ton of pulp, paper, and packaging products and, thus, prove to be a major driver for the growth of the tissue paper industry in the region. Similarly, rising income levels, the presence of a relatively young population, and economic activity are driving the MEA Tissue paper market. Changing consumer lifestyle and government focus on environment-friendly packaging solutions has spurred up the demand for tissue papers and paper packaging products.
- In Europe, total pulp production (integrated pulp, plus market pulp) increased by 0.8% in 2019, the majority of which is used for various types of tissue paper production. It was over-performed by market pulp production, which jumped by 6.1%, as a result of recent massive investments in new capacities. This growth in production is driven by the export market demand. Similarly, exports of market pulp jumped by close to 40% in 2019.
- There is a sudden spike in demand for tissue papers due to the ongoing spread of the COVID-19 pandemic. The manufacturers of these tissues are producing 20% more than the normal levels, which might strain the supply chain.
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