(MENAFN- EIN Presswire) EINPresswire/ -- The Global Paper Chemicals Market is estimated to be valued at USD 31.31 Bn in 2025 and is expected to reach USD 37.72 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 2.7% from 2025 to 2032. The paper-chemicals market is increasingly being shaped by a push toward sustainable, eco-friendly solutions, as regulators tighten standards and consumers demand greener products. Manufacturers are innovating with green chemistry - including biodegradable additives like starch-based agents and enzyme-based deinking solutions. Recyclable and compostable coatings are also gaining momentum to lower the environmental burden of paper production.

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Global Paper Chemicals Market Key Takeaways

According to Coherent Market Insights (CMI), the global paper chemicals market size is projected to expand from USD 31.31 Bn in 2025 to USD 37.72 Bn by 2032, recording a moderate CAGR of 2.7% during the forecast period.

Demand is expected to remain high for functional chemicals, accounting for 36.1% of the global paper chemical

The Global Paper Chemicals Market is estimated to be valued at USD 31.31 Bn in 2025 and is expected to reach USD 37.72 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 2.7% from 2025 to 2032. The paper-chemicals market is increasingly being shaped by a push toward sustainable, eco-friendly solutions, as regulators tighten standards and consumers demand greener products. Manufacturers are innovating with green chemistry - including biodegradable additives like starch-based agents and enzyme-based deinking solutions. Recyclable and compostable coatings are also gaining momentum to lower the environmental burden of paper production.

Global Paper Chemicals Market Key Takeaways

According to Coherent Market Insights (CMI), the global paper chemicals market size is projected to expand from USD 31.31 Bn in 2025 to USD 37.72 Bn by 2032, recording a moderate CAGR of 2.7% during the forecast period.

Demand is expected to remain high for functional chemicals, accounting for 36.1% of the global paper chemical market share by 2025.

Printing is anticipated to be the most lucrative application for paper chemicals, capturing a market share of 34.7% in 2025.

Asia Pacific is projected to remain the leading consumer of paper chemicals, accounting for 48.2% of the global market share in 2025.

North America is forecast to offer lucrative growth opportunities to paper chemicals market companies during the forecast period.

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Growing Demand for Sustainable & Eco-Friendly Solutions Fueling Market Growth

Coherent Market Insights' latest paper chemicals market analysis outlines prominent factors spurring the industry's growth. One such major growth driver is the increasing demand for sustainable and eco-friendly solutions.

Consumers in the contemporary world increasingly favour paper-based and biodegradable products over plastic ones. This shifting preference is boosting adoption of specialty paper chemicals that enhance recyclability, biodegradability, and overall sustainability of paper products.

At the same time, governments across the world are implementing stringent regulations to reduce plastic packaging usage as well as encourage the use of recyclable and sustainable materials. This is also supporting the growth of the paper chemicals market.

High Costs and Low Paper Consumption Limiting Growth

Despite a positive paper chemicals market outlook, certain factors are expected to limit industry growth to some extent during the forecast period. These include high production costs and decline in traditional paper consumption.

Specialty paper chemicals usually need advanced formulations and eco-friendly raw materials, which are often expensive. This increases production costs for paper manufacturers and limits use in price-sensitive markets.

Moreover, rising digitization in communication, media, publishing, and record-keeping is reducing demand for printing and writing paper. This will likely slow down growth of the paper chemicals market.

Expanding E-Commerce and Packaging Sector Creating Growth Opportunities

The growing e-commerce industry has significantly increased the use of paper and paperboard packaging, like corrugated boxes and cartons. This is boosting the demand for chemicals that improve the strength, durability, print quality, and water resistance of paper, creating good growth opportunities for businesses in the industry.

Emerging Paper Chemicals Market Trends

Rising demand for specialty papers in food packaging, specialty printing, and pharmaceutical packaging labels is expected to boost sales of paper chemicals during the forthcoming period. This is because these specialty papers require more advanced chemical treatments to achieve desired properties such as enhanced printability, strength, water resistance, and brightness.

Increasing emphasis on paper recycling is providing stimulus for the paper chemicals market growth. Using more recycled fibers requires specialized chemicals like retention aids and dispersants to maintain paper quality.

Leading paper chemical manufacturers are developing new functional additives and specialty chemicals, including eco-friendly paper chemicals. For instance, in May 2025, Axchem Solutions India launched a new paper chemical plant in Visakhapatnam. The new facility will locally produce a variety of additives, including retention and drainage aids, defoamers, coating agents, etc. These innovations and expansions are expected to support market growth.

Competitor Insights

Key companies listed in paper chemicals market report:

Solvay S.A.
AkzoNobel N.V.
BASF SE
Dow Chemical Company
Eastman Chemical Company
Kemira Oyj
Clariant AG
SABIC
Huntsman Corporation
FMC Corporation
Arkema S.A.
Celanese Corporation
Ecolab Inc.
International Paper Company
Air Products and Chemicals, Inc.
Key Developments

In May 2025, Shandong Huatai Paper reached a new milestone with the startup of its new chemical pulp line. The facility is designed to boost the company's production capacity and improve efficiency.

In March 2025, Nouryon launched EKA HP Puroxide, a low‐carbon hydrogen peroxide. It is designed for pulp and paper, mining, and water treatment industries as a greener option to help reduce greenhouse gas emissions.

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Author of this Marketing PR:

Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.

About CMI:

Coherent Market Insights leads into data and analytics, audience measurement, consumer behaviors, and market trend analysis. From shorter dispatch to in-depth insights, CMI has exceled in offering research, analytics, and consumer-focused shifts for nearly a decade. With cutting-edge syndicated tools and custom-made research services, we empower businesses to move in the direction of growth. We are multifunctional in our work scope and have 450+ seasoned consultants, analysts, and researchers across 26+ industries spread out in 32+ countries.

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