Raleigh, NC /PRNewswire/ - The world's demand for tissue paper, the largest end-use segment for market pulp, is expected to hit 39 million tons in 2019, according to Beroe Inc., a procurement intelligence firm. These specifically include the premium and ultra-premium grade of tissue paper, the ones that use 100 percent market pulp. The reasons for a strong demand for tissue are global population growth, a relatively better economic outlook, and a continued movement towards western consumption habits in the emerging markets.
The demand for bathroom tissue is rapidly increasing in China, including the demand for other products like paper towels, wipes, facial tissues, and diapers. In emerging markets like Indonesia, Vietnam, Turkey, and Mexico, the demand is strong for virgin pulp, which is more than compensating for the reduced demand for pulp for printing and writing paper. Developed economies of North America, Europe, and Japan are moving away from printed paper, giving a boost to the paper recycling industry.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report - on its recently launched market intelligence platform Beroe LiVE: https://live.beroeinc.com/
By 2020, tissue demand in emerging countries is expected to grow by 6 percent and in the same period, the demand in developed countries is estimated to grow at 1.4 percent. Timber/wood chips are the most significant internal cost driver for manufacturing pulp. Based on grade and region, the price of the fiber differs. Owing to the fact that the production process is energy-intensive, the prices of crude oil, natural gas, and electricity also have an impact on the cost of pulp production. Planned and unplanned maintenance downtimes and other operational issues tighten the supply, thus constraining the market.
As Europe recovers from the economic crisis, the demand for pulp and paper has been improving. Pulp prices have shown a month-on-month upward trend for the last 2 years due to tight supply levels and are expected to witness more hikes as the capacity expansion is slowing down, giving way to tight demand levels. While the manufacturers are looking at non-wood fibers for substitutes, pulp will continue to be used because of its easy availability.
The research methodology adopted for the report included:
The most important components of the cost of pulp production include the raw material of fiber and the chemicals. These account for almost 60-65 percent of the cost. The labor market in developed countries is currently tight due to increasing wages. This also impacts the cost of production for pulp. The construction industry is the largest end-user segment of timber and hence any demand pull from the segment will lead to an increase in cost for the pulp industry.
The report includes:
Global Pulp Market
Pulp market- by region
Supplier's analysis and Innovation
About Beroe Inc.:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com
SOURCE: Beroe Inc.Copyright 2019 PR Newswire. All Rights Reserved