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Escalating Demand For Paper Forms To Propel Pulp And Paper Chemicals Market In Brazil, Finds Frost & Sullivan

SAO PAULO, Brazil, April 8, 2013 /PRNewswire/ -- 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.

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