Escalating demand for paper, ensuing rise in paper production will spur pulp and paper chemicals market in Brazil, finds Frost & Sullivan analysis; expects pulp and paper chemicals market revenues to hit US$2.03B in 2017

Mathew Kearney

SAO PAULO , April 8, 2013 (press release) – The escalating demand for paper and the ensuing rise in paper production have spurred the pulp and paper chemicals market in Brazil. The need for high-quality paper will lead to technological advancements, and will continue to aid the market's development.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Analysis of the Pulp and Paper Chemicals Market in Brazil, finds that the market earned revenues of more than $1.78 billion in 2012 and estimates this to reach $2.03 billion in 2017. The research covers pulping chemicals sodium hydroxide and sodium sulfate, bleaching chemicals chlorine dioxide and hydrogen peroxide, and starch, a finishing and coating chemical. The finishing and coating chemicals segment is likely to witness the highest growth, fueled by greater awareness on paper quality.

"The increasing use of recycled paper in Brazil, which ranks twelfth in the world in terms of recycling paper recovery rates, accelerates the adoption of pulp and paper chemicals," said Frost & Sullivan Chemicals, Materials and Food Industry Analyst Lisse de Oliveira . "Consumption of paper for packaging, coated and uncoated media, newsprint, and tissue, adds to market revenues."

The production costs of these varieties of paper, however, are high. Along with the rising operational costs of energy consumption, logistics, transportation and delivery, these costs stall market growth to an extent. The limited access to pulp and paper raw materials requires companies to input additional resources for developing effective purchasing solutions and attaining higher quality materials.

Stringent environmental legislations pertaining to the pulp and paper production process, which establish the standards for water and soil contamination control as well as forestry and biodiversity protection, also limit the market's potential.

Nevertheless, pulp and paper manufacturers are looking to incorporate necessary changes to ensure compliance, in spite of the additional time, effort, money and training required. For instance, the bleaching process, which included various chlorine-produced pollutants, has been modified to exclude chlorine and use hydrogen peroxide instead.

"Consumers themselves prefer new, innovative and environmentally-friendly chemicals, and the challenge lies in offering these products at affordable prices," noted Oliveira. "Hence, technological advancements as well as investments in research and development are crucial, as superior pulp and paper chemicals eventually enhance the quality of the final product and enable paper companies to develop their brand image, in turn ensuring their loyalty."

Expanding product lines will help pulp and paper suppliers to achieve economies of scale, offer tailored solutions, and boost profits.

If you are interested in more information on this research, please send an email to Francesca Valente , Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Analysis of the Pulp and Paper Chemicals Market in Brazil is part of the Chemicals & Materials Growth Partnership Service program. Frost & Sullivan's related research services include: The Mexican Industrial Water and Wastewater Treatment Chemical Market, Engineering Polymers Market in Colombia, Brazilian Municipal Water and Wastewater Treatment Chemicals Market, Protective Gloves Market in Mexico, and Argentinean Automotive Paints and Coatings Market, among others. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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