Press Release

Dissolving Wood Pulp Market is Expected to grow at a robust CAGR of 3.85% through 2030F

Dissolving Wood Pulp Market is increasing due to the growing global demand for sustainable, biodegradable alternatives in textiles, packaging, and personal care applications during the forecast period 2026-2030F.           


According to TechSci Research report, “Dissolving Wood Pulp Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2020-2030F”, The Global Dissolving Wood Pulp Market was valued at USD 5.87 billion in 2024 and is expected to reach USD 7.43 billion by 2030 with a CAGR of 3.85% during the forecast period.

The increasing focus on sustainable packaging solutions is a key driver for the Dissolving Wood Pulp Market, as the material is used to produce biodegradable films like cellophane and molded fiber products for packaging applications. The global push to reduce single-use plastics, driven by stringent regulations like the European Union’s ban on certain plastic products, has accelerated demand for eco-friendly alternatives. Dissolving pulp-derived cellophane offers excellent barrier properties, transparency, and biodegradability, making it ideal for food packaging, cosmetics, and pharmaceutical applications. The e-commerce boom, particularly in Asia-Pacific, has increased demand for sustainable packaging to reduce environmental impact. Additionally, dissolving pulp is used in specialty papers and molded fiber products for trays and containers, further expanding its role in packaging. Consumer demand for eco-friendly products, coupled with corporate sustainability goals, is driving companies to adopt pulp-based solutions. The material’s renewable nature and compatibility with circular economy principles enhance its appeal. As governments worldwide implement policies to curb plastic waste, the Dissolving Wood Pulp Market is poised for significant growth in the packaging sector, supported by its versatility and environmental benefits.

The United Nations Environment Programme (UNEP) estimates that global investments in sustainable packaging materials reached USD250 billion in 2023, with a projected CAGR of 6.5% through 2030, driving demand for approximately 0.9 million metric tons of dissolving wood pulp annually.

Another critical challenge impacting the Dissolving Wood Pulp Market is the growing competition from alternative cellulose sources and synthetic substitutes. While dissolving wood pulp holds a prominent position in the bio-based raw materials space, it faces rising threats from both agricultural residue-derived cellulose and advanced synthetic fibers. These alternatives are gradually eroding the competitive edge of dissolving wood pulp, especially in cost-sensitive and innovation-driven segments such as textiles, packaging, and pharmaceuticals.

Agricultural by-products such as bamboo, hemp, sugarcane bagasse, wheat straw, and cotton linters are increasingly being explored as raw materials for cellulose extraction. These feedstocks are typically more abundant, have faster regeneration cycles, and often present lower environmental concerns compared to traditional timber-based sources. Additionally, they align well with the circular economy narrative, making them appealing to environmentally conscious brands and regulators. As technology advances, the efficiency and scalability of extracting high-purity cellulose from non-wood sources are improving, creating credible competition for traditional dissolving wood pulp.


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Based on By End-Use Industry, In 2024, the Textile segment dominated the Dissolving Wood Pulp Market and is expected to maintain its dominance during the forecast period. The primary reason for this continued leadership is the increasing global demand for sustainable and biodegradable textile fibers such as viscose rayon, lyocell, and modal, all of which are derived from dissolving wood pulp. These fibers have gained widespread acceptance across fashion, home textiles, and technical apparel industries due to their softness, breathability, and environmental friendliness compared to synthetic fibers like polyester or nylon.

Growing consumer awareness regarding the environmental impact of fast fashion and the rise in eco-conscious purchasing behaviors have accelerated the adoption of regenerated cellulose fibers, particularly in developed regions such as Europe and North America. In parallel, leading fashion brands are shifting their procurement policies to favor sustainable materials, thereby creating robust downstream demand for high-purity cellulose inputs. The Asia-Pacific region, especially China, India, and Indonesia, has emerged as a major manufacturing hub for textile products, which further supports the high-volume demand for dissolving wood pulp in this sector. Moreover, government regulations and international sustainability certifications are reinforcing the use of bio-based fibers, offering additional momentum to the textile segment’s dominance.

Technological advancements in fiber processing, such as closed-loop lyocell production systems, have also improved the environmental profile of textile-grade cellulose, encouraging broader industry adoption. In addition to apparel, applications such as hygiene products, medical textiles, and industrial fabrics are increasingly utilizing cellulose-based materials, adding to the sector’s growth trajectory. Given these compelling drivers—ranging from regulatory support and brand commitments to consumer preferences and technological innovation—the textile segment is expected to remain the largest and most influential end-use industry within the dissolving wood pulp market throughout the forecast period..

North America is the fastest growing region in the Dissolving Wood Pulp Market, primarily driven by increasing demand for sustainable, bio-based materials across various end-use industries such as textiles, pharmaceuticals, food additives, and personal care. The region’s robust industrial infrastructure, combined with strong environmental regulations and advanced manufacturing capabilities, provides a fertile ground for the expansion of dissolving wood pulp production and consumption. The United States and Canada, in particular, are leveraging their vast forest resources and well-established pulp and paper industries to produce high-purity cellulose products that meet global standards.

Investments in technological innovation and sustainable forestry practices are enabling North American producers to enhance pulp quality, reduce environmental impact, and remain competitive on a global scale.

The region’s textile and fashion sectors are undergoing a significant shift toward biodegradable and environmentally friendly materials, spurred by increasing consumer awareness and stringent regulatory frameworks on synthetic fiber use. This has elevated demand for cellulose-based fibers like viscose and lyocell, which rely heavily on dissolving wood pulp. Additionally, the pharmaceutical and personal care industries in North America are increasingly adopting microcrystalline cellulose and other cellulose derivatives sourced from dissolving pulp, further accelerating market growth.

Several key players in North America are actively investing in modernizing their pulp production facilities, adopting closed-loop processing systems, and expanding their capacity to meet rising domestic and export demand. Furthermore, the North American Free Trade Agreement and favorable trade conditions with Europe and Asia-Pacific enhance the region’s export potential for high-grade dissolving wood pulp. Government incentives for sustainable manufacturing and forest stewardship certification programs also contribute to the region’s momentum in this market. Overall, with strong policy support, consumer-driven sustainability trends, and technological advancements, North America is positioned as the fastest growing region in the global dissolving wood pulp market during the forecast period.


Key market players in the Global Dissolving Wood Pulp market are: - 

  • Lenzing AG
  • Sappi Limited
  • Rayonier Advanced Materials Inc.
  • Bracell Limited
  • Fortress Global Enterprises Inc.
  • Domtar Corporation
  • Asia Pulp & Paper (APP)
  • Phoenix Pulp & Paper Public Company Limited
  • Zhejiang Fulida Group Holding Co., Ltd.
  • Aditya Birla Group (Grasim Industries Limited)

 

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“The Dissolving Wood Pulp Market is expected to witness robust growth in the future, driven by rising global demand for sustainable and biodegradable materials across the textile, pharmaceutical, and personal care industries. Increasing environmental regulations and consumer preference for eco-friendly alternatives will accelerate the adoption of cellulose-based products like viscose, lyocell, and cellulose derivatives. Technological advancements in pulp processing and expanded production capacities, particularly in Asia-Pacific and Latin America, will support this growth. Additionally, strategic investments in bio-refineries and circular economy models will further enhance the market’s value proposition, ensuring long-term sustainability and innovation-driven expansion.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global management consulting firm.

Dissolving Wood Pulp Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (High Purity Grade, Regular Grade), By Raw Material (Hardwood, Softwood), By End-Use Industry (Textile, Pharmaceuticals, Food and Beverages, Personal Care and Cosmetics, Packaging, Others), By Region & Competition, 2020-2030F,” has evaluated the future growth potential of Global Dissolving Wood Pulp Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Dissolving Wood Pulp Market.

 

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