Trends affecting the pulp market
The pulp market is affected to an ever-greater extent by global issues such as digitalisation, a growing population, higher living standards and the green transition. These are also issues that affect one another. Rottneros is well-positioned to benefit from long-term positive trends that drive demand in the pulp market and packaging.
Higher living standards
The global economic expansion with a growing population and higher living standards is the most important driving force for the continuously growing use of pulp in the world, mainly in Asia. Tissue paper is the area of use that is showing the fastest growth.
Digitalisation of media
The extensive digitalisation of media continues to drive change in the market’s structure. Demand is gradually shifting from pulp for printing and writing papers to pulp for other applications such as packaging, tissue paper and speciality paper. The steady growth of E-commerce is increasing the need for packaging at the same time.
Sustainability is becoming more important for consumers, who are often aware of the effect that food production, food packaging and food waste have on the environment. The benefits of cardboard as a fossil-free and sustainable packaging material is also confirmed by more and more studies. Rottneros is participating actively in the transition as a supplier and possesses advanced skills when it comes to pulp for cardboard. The Group is also increasing production of fiber-based trays without the addition of any harmful chemicals whatsoever.
Extension and maintenance of electricity grids
The extensive transition to new and renewable energy sources entails an increasing need for new electricity infrastructure, mainly in Europe and the USA, while existing electricity grids are in major need of maintenance. This results in an increased demand for E-pulp that is used to insulate transformers, a niche market in which Rottneros is a world leader. The strong economic and industrial expansion in Asia is also driving up demand for E-pulp.