Wood pulp market seen reaching $242.1B by 2030

Allied Market Research says the global wood pulp market was worth $165.3 billion in 2020 and could climb to $242.1 billion by 2030 as packaging and tissue demand rises. Asia-Pacific led the market in 2020 and is projected to grow fastest through the decade.

Why it matters: - Demand for wood pulp is being pulled by two big end markets: paper products and tissue. - Packaging and tissue consumption are shaping where producers, suppliers and investors see the strongest growth. - The market faces a constraint from stricter environmental rules on logging and pulp manufacturing. - Sustainable production technologies and eco-friendly pulp processing could open new growth opportunities.

What happened: - Allied Market Research projected the global wood pulp market will grow from $165.3 billion in 2020 to $242.1 billion by 2030. - The report forecast a compound annual growth rate of 3.9% from 2021 to 2030. - Asia-Pacific led the global market in 2020 with more than 40% of market share. - The report covered wood pulp by type and by end-use industry, including packaging, paper and others.

The details: - Hardwood accounted for more than three-fifths of global revenue in 2020. - Hardwood is also expected to be the fastest-growing type, with a projected CAGR of 4.6% through 2030. - Hardwood pulp use in packaging applications is helping support that segment's position. - The paper segment is projected to post the highest CAGR among end-use industries at 4.4% through 2030. - Packaging was the largest revenue contributor in 2020, with more than half of the global market. - Packaging demand from pharmaceutical and food and beverage customers is supporting growth, especially in India, China and Japan. - Asia-Pacific is expected to record the highest regional CAGR at 4.7% through 2030. - Expansion in pharmaceuticals, food and beverage, and consumer goods is boosting regional demand. - Demand for sustainable packaging materials is also supporting growth in Asia-Pacific.

Between the lines: - The market outlook points to a shift from broad paper demand to more targeted growth in packaging and tissue. - Asia-Pacific's lead reflects both industrial expansion and changing materials preferences in large consumer markets. - Environmental pressure may slow some supply growth, but it also favors producers that can scale cleaner pulp processes.

What's next: - Allied Market Research identified leading players including International Paper, Nippon Paper, Metsä Group, Sappi, Oji Holdings Corporation, Stora Enso, Sonoco Products, UPM-Kymmene Corporation, Svenska Cellulosa Aktiebolaget (SCA) and WestRock. - The report said the paper segment and Asia-Pacific region are set to outpace other categories through 2030. - More detail is available in the sample pages of the research overview and the purchase options page.

The bottom line: - Wood pulp demand is expected to keep growing, with packaging, tissue and Asia-Pacific driving most of the momentum.