Dissolving pulps refer to specialty cellulose pulps produced from wood sources. It has advantages over normal pulp as it can be dissolved in water and provides eco-friendly solutions to various textile manufacturing processes such as viscose fiber, lyocell or modal fiber, and cellulose esters. Dissolving pulp is derived from wood sources through chemical processes to provide a highly purified cellulose that can readily undergo dissolution. Manufacturing processes such as production of rayon and acetate require cellulose as raw material and traditionally used dangerous chemicals like carbon disulfide and acetic anhydride. However, dissolving pulp facilitates production of regenerated cellulose fibers like viscose, lyocell and modal fibers through relatively eco-friendly processes.

The global Dissolving Pulp Market is estimated to be valued at US$ 1.67 Mn in 2024 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity for replacement of traditional textile manufacturing processes with eco-friendly dissolving pulp based processes is driving demand. Currently, production of regenerated cellulose fibers like viscose, lyocell and modal fibers involves use of chemicals like carbon disulfide and acetic anhydride which are dangerous to human health and environment. However, dissolving pulp facilitates production of these fibers through relatively eco-friendly processes. Stringent environmental regulations regarding emissions and wastewater discharge from manufacturing facilities are encouraging textile players to replace conventional routes with dissolving pulp based sustainable options. This growing preference for eco-friendly processes among textile manufacturers is expected to significantly boost demand for dissolving pulp over the forecast period.

Porter’s Analysis
Threat of new entrants: The dissolving pulp industry has high initial capital requirement for setting up plants which acts as a deterrent for new players. However, regional players have opportunity to enter with small domestic plants.
Bargaining power of buyers: Buyers have moderate bargaining power as there are multiple suppliers in the market that manufacture dissolving pulp. However, large buyers can negotiate on price.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to presence of substitutes and suppliers operating at global level. However, reliance on wood as raw material gives them an advantage.
Threat of new substitutes: Threat of substitution is low as dissolving pulp has certain unique properties and finds application in specialty fabrics where alternatives are limited.
Competitive rivalry: The industry has presence of few large players globally operating dissolving pulp mills. Intense competition exists based on pricing and ability to cater to demand.

SWOT Analysis

Strength: Dissolving pulp finds application in viscose fibers, pharmaceutical products and specialty papers. Rising demand for these end use industries drives growth.
Weakness: Fluctuation in raw material prices impacts operating costs. Supply chain disruptions affect production.
Opportunity: Growing focus on sustainability and biodegradable products increase adoption. Opening of newer application areas such as lyocell fibers present scope.
Threats: Stringent forestry regulations can impact raw material sourcing. Environmental compliances lead to higher capital expenditure.

Key Takeaways

The global dissolving pulp market size is expected to witness high growth on account of rising viscose fiber demand especially in Asia Pacific region. The global Dissolving Pulp Market is estimated to be valued at US$ 1.67 Mn in 2024 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030.

Regional analysis shows China dominating global production as well as consumption. Asia Pacific dissolving pulp market with over 30% share, driven by sizable viscose staple fiber capacity additions. China is followed by India and Southeast Asian countries as major consumers in the region. The China market is expected to continue leading growth on back of expanding viscose fiber and specialty product applications.

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