Albany, NY -- (SBWIRE) -- 01/23/2017 -- Raw materials used in the production of specialty papers are termed as specialty pulp & paper chemicals. Specialty pulp & paper chemicals are broadly classified into bleaching chemicals, functional chemicals, process chemicals, and basic chemicals. These chemicals are mixed into paper pulp to produce specialty papers. Functional chemicals such as dyes and coatings are used to give final texture and color to papers, which can then be used for various purposes such as printing and packaging. Various chemicals such as hydrogen peroxide, chlorine-based bleaching agents, deinking agents, optical brightening agents (OBA), and fluorescent brightening agents are currently used to ward off discoloration and brighten specialty papers. Presently, the specialty papers market is a niche market, which accounts for approximately 5% to 7% of the overall paper production in the paper industry. However, specialty paper chemicals accounted for about half the overall paper chemicals market in terms of volume at the end of 2013. Though the chemicals used for making specialty papers have applications in the manufacture of a variety of materials such as textiles and automotive, a significant share is consumed in specialty paper manufacturing.

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The specialty papers market is expected to grow significantly over the next few years, on account of high demand for these papers from various industries such as packaging, medical, office, and retail stores. This in turn is expected to drive the market for specialty pulp & paper chemicals over the next few years. Additionally, growing consumer preference toward print media, i.e., magazines and newspapers, is expected to augment demand for specialty paper chemicals over the next few years. Furthermore, several benefits associated with the use of specialty chemicals such as reduced consumption of water and energy is expected to boost growth of the market. However, stringent regulations associated with the use of chemicals, which are used in the manufacture of specialty papers, are expected to hamper growth of the market. Nonetheless, development of next generation enzymes for manufacturing specialty papers is expected to open up new opportunities for growth of the specialty pulp & paper chemicals market in near future.

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Functional chemicals accounted for over 45% of the specialty pulp & paper chemicals market in 2013 in terms of volume, and are expected to witness the highest growth over the next few years. Dyes, pigments, binders, sizing chemicals, and special coating agents are the various types of functional chemicals used in the manufacture of pulp & paper. Growing demand for colored papers of various sizes and thicknesses from the packaging sector is expected to drive the market for functional chemicals over the next few years. Additionally, dyes and pigments are being developed for pulp & paper, as they are resistant to fading when exposed to sunlight or moisture. Process chemicals such as chelating agents, wet strength adhesives, dry strength adhesives, and biocides are expected to witness significant demand for the pulp & paper manufacturing process, as these chemicals add value to the finished paper.

Asia Pacific and Europe were the largest markets for specialty pulp & paper chemicals in 2013, together accounting for over 70% of the global demand. With an expected increase in the pulp & paper production capacity, Asia Pacific is anticipated to witness the highest growth in the specialty pulp & paper chemicals market. South America is expected to witness significant growth during the forecast period, owing to the installation of new capacities in the region. North America and Europe are expected to witness slow growth in the specialty pulp & paper chemicals market over the next few years, owing to the shift of several pulp & paper manufacturers to Asia Pacific and South America.

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The global specialty pulp & paper chemicals market is highly consolidated in nature, with the top six companies accounting for over 80% of the market share in 2013. Kemira Oyj, BASF SE, AkzoNobel N.V., Ashland, Inc., Dow Chemical Company, and Nalco are some of the leading companies present in the global market.

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