Paper Chemicals to See Slow Growth

A recent survey by the Freedonia Group finds that U.S. demand for pulp and paper chemicals will increase by 4.6 percent a year to $8 billion by 2003. Further, on a volume basis, demand will grow by 2.4 percent a year to 21.6 million tons through 2003.

The main drivers for the growth will be move by paper companies to contain costs. A second factor will be legislation to drive end users to consumer more expensive chemicals. The third factor will be the greater use of recycled fiber, which will require increased quantities of additives.

The Freedonia Group adds that despite pockets of growth, the advancement of pulp and paper chemicals will be limited for a number of reasons, due in large part to the inexpensive supplies of Asian and Latin American paper.