South America Specialty Pulp And Paper Chemicals Market Size, Share & Trends Analysis Report, By Product (Functional, Bleaching), By Application (Packaging, Labeling), By Country,- Industry Analysis, Size, Share, Growth, Trends, and Forecast 2024-2033

South America Specialty Pulp And Paper Chemicals Market Size and Growth

The South America specialty pulp and paper chemicals market size was exhibited at USD 1.45 billion in 2023 and is projected to hit around USD 1.62 billion by 2033, growing at a CAGR of 1.11% during the forecast period 2024 to 2033.

South America Specialty Pulp And Paper Chemicals Market Key Takeaways:

• The functional chemicals segment dominated the market with a revenue share of 57.0% in 2023.
• The packaging segment dominated the market with a revenue share of 45.7% in 2023.

Report Scope of South America Specialty Pulp And Paper Chemicals Market

The wide usage of specialty paper in packaging, printing, and labelling is driving the demand for functional and bleaching chemicals utilized in their manufacturing. The growing demand for flexible packaging is expected to positively impact the market growth. Also, the advancements on processing technologies in the food sector in South America is estimated to further augment packaged foods market, which in turn will escalate the demand for flexible packaging.

One of the major driving factors for the market is rising use of paper in packaging industry. South America population becoming aware about environment friendly substances and the region is limiting its usage of plastic by using plastic alternatives for sustainability. Industries in the region have begun to implement methods to reduce the usage of single-use plastics. Using specialty paper as a substitute for single-use plastics in packaging industry is anticipated to drive the market growth during the forecast period.

The raw material, byproduct, and the main chemical itself are known to have an adverse impact on the environment. Bleaching agent is a type of specialty chemical which contains chlorinated compounds. The chlorinated compounds cause water pollution as well as air pollution. Chlorine is carried out with air, and it reacts with other compounds, which have an adverse effect on health causing irritation to the eyes and nose. In addition, excessive inhalation can cause severe problems such as emphysema and damage to pulmonary blood vessels. Due to these factors, the industry is expected to face minor setbacks until the issues are resolved.

However, the rising demand for product in personal hygiene, household, and packaging are boosting the market growth. The increasing popularity of coating as protective material to reduce ink absorption and add smoothness in specialty paper is expected to increase the usage of functional chemicals during the forecast years.

South America Specialty Pulp And Paper Chemicals Market By Product Insights

The functional chemicals segment dominated the market with a revenue share of 57.0% in 2023. High demands for colored, coated and finished paper is expected to fuel the growth of functional chemicals during the forecast period. Furthermore, in the post-pandemic era the demand for graphic, printing and writing paper has increased significantly thus increasing the demand for functional chemicals in South America over the forecast period.

Functional chemicals constitute of latex, starch, dye, binding agents, and other miscellaneous coating agents. These chemicals add special characteristics such as gloss, ink retention, and strength to the end-product. Various new product developments such as eco-friendly dyes, enzymes, and eco-friendly technologies such as sprinkling are also expected to boost the market growth.

South America Specialty Pulp And Paper Chemicals Market By Application Insights

The packaging segment dominated the market with a revenue share of 45.7% in 2023. The chemicals are used in the manufacturing of several packaging papers which are used in industries such as retail food, food service, consumer packaging and more. Wide application of the product in food packaging product portfolio including carryout boxes and corrugated clamshell, paper tubes, plates and cups is another factor augmenting the overall market demand over the next few years.

With increasing awareness toward sustainability, packaging infused with specialty paper is in high demand due to its eco-friendly properties such as compostable and recyclable, fluorochemical-free, and oil & grease resistant. Furthermore, green and light weight packaging are trending thus increasing the consumption of specialty paper to reduce packaging weight.

Country Insights

Brazil Specialty Pulp And Paper Chemicals Market Trends

Brazil dominated the market with a revenue share of USD 293 million in 2023. The country is also expected to witness fastest CAGR of 1.5 % during the forecast period. The country has an abundance of sugarcane and oilseeds along with regulatory support aimed for the production of bio-based specialty paper products. This resulted in increasing the importance of Brazil as an ideal manufacturing location for the market.

The Brazilian printing ink industry is experiencing growth due to consolidation and expansion of digital and flexographic product segments. The most widely used printing ink product in South America is lithographic. It is highly used due to its versatile printing output. These factors are likely to augment the overall printing application in the market over the forecast period.

South America Specialty Pulp And Paper Chemicals Market Recent Developments

• In December 2023, Klabin, one of the leading producers of packaging and sustainable packaging paper, announced the acquisition of Arauco's forestry management in Paraná. This investment includes purchase of more than 85,000 hectares of valuable forest areas which falls majorly in the State of Paraná. With this acquisition, the company expects to become more self-sufficient for raw materials
  
  
• In June 2023, CMPC, a Chile based packaging and tissue paper company, signed an agreement to purchase Powell Valley Millwork in the United States. With this deal the company aims to expand its business in the U.S.
  
  
• In August 2021, Klabin empowered its growth strategy by starting first paper machine (MP27) of the Puma II Project located in Ortigueira, Paraná. The machine has a production capacity of 450,000 tons to produce Eukaliner, the world’s first kraftliner paper made 100% from eucalyptus fiber

Some of the prominent players in the South America specialty pulp and paper chemicals market include:

• Klabin
• Ashland
• BASF SE
• Buckman Laboratories International, Inc.
• Kemira
• Evonik Industries AG
• MWV Rigesa
• CMPC
• MASISA

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the South America specialty pulp and paper chemicals market

Product

• Basic Chemicals
• Functional Chemicals
• Bleaching Chemicals
• Process Chemicals

Application

• Printing
• Packaging
• Labeling
• Others

Country

• Brazil
• Argentina
• Venezuela