Chemical wood pulp market in Canada

Earlier Report Observations

From 2018 to 2020, the Canadian chemical wood pulp market was shaped by global trends and the COVID-19 pandemic. In 2018, rising demand for packaging and tissue paper, coupled with increased global exports, supported market growth, with domestic consumption reaching 2.1 million tonnes. The pandemic in 2020 disrupted supply chains, leading to a drop in production and a temporary market contraction to 1.8 million tonnes, despite higher demand for hygiene paper products.

Between 2021 and 2023, the market recovered, with volumes exceeding 2 million tonnes in 2021 and 2023. This rebound was driven by a sharp rise in pulp prices, increasing by 26–31%, and the adoption of digital technologies and AI to optimize production. Growing demand for biodegradable packaging and personal care items sustained consumption, while investments in cleaner bleaching technologies and renewable energy aimed at reducing environmental impact.

By 2024, production in North America, including Canada, began to grow, ending a five-year decline. Strategic alliances, such as the merger of International Paper and Tembec, created a global leader with over 15 million tonnes of annual capacity, boosting innovation. The launch of new recycled pulp lines and a focus on sustainable fiber certification reinforced the industry's shift toward circular economy principles.

Production chemical wood pulp in Canada

In kind, 2017-2020, K t

Globally, Canada ranked as the 4th largest producer of chemical wood pulp from 2017 to 2020.

Top producers of chemical wood pulp, 2017-2020

World map of production of chemical wood pulp, 2017-2020

In 2020, Canada produced 8 115 K t of chemical wood pulp, marking a measured decline of 10.0% compared to the previous year. Between 2017 and 2020, production decreased by 10.5%, which translates to an annualized rate of 3.6%. The largest increase occurred in 2019, at 0.7%.

Annual dynamics of production in Canada in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Chemical wood pulp production in Canada declined for the second consecutive year. In 2020, the output was valued at 4 538 M $ US, representing a significant contraction of 21.1% year-over-year. Between 2017 and 2020, production decreased by 20.1%, equating to an annualized rate of 7.2%. The maximum value was recorded in 2018 at 6 931 M $ US, with the largest increase that year at 22.0%.

Annual dynamics of production in Canada in value, 2017-2020, M $ US

Exports chemical wood pulp from Canada

Exports in kind, K t

Canada's chemical wood pulp exports declined for the third consecutive year. In 2020, exports totaled 6 883 K t, equivalent to a limited drop of 8.4% over the past year. Between 2017 and 2020, exports decreased by 12.4%, which corresponds to an annualized rate of 4.3%.

Annual dynamics of product's exports from Canada in kind, 2017-2020, K t

From 2017 to 2020, the main destinations for Canada's chemical wood pulp exports in kind were China (40.3% of exports), the United States (38.8% of exports), and Japan (5.2% of exports), together accounting for 84.3% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Canada in kind, 2017-2020

Exports in value, M $ US

Chemical wood pulp shipments from Canada to abroad declined for the second consecutive year. In 2020, Canada exported 3 849 M $ US of chemical wood pulp, down by 19.6% compared to the previous year. Between 2017 and 2020, exports decreased by 21.8%, equating to an annualized rate of 7.9%. The maximum value was recorded in 2018 at 5 956 M $ US. The largest decline occurred in 2019 at 19.6%, while the largest increase was in 2018 at 21.1%.

Annual dynamics of product's exports from Canada in value, 2017-2020, M $ US

From 2017 to 2020, China (40.3% of exports in value terms), the United States (36.8% of exports in value terms), and Japan (5.4% of exports in value terms) together accounted for 82.5% of total exports, remaining the primary destinations for chemical wood pulp from Canada.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Canada in value, 2017-2020

Imports chemical wood pulp to Canada

Imports in kind, K t

The market showed signs of volatility over the observed period. Imports reached their lowest point in 2017 and peaked in 2019, with a 7.3-fold difference between these years. In 2020, Canada imported 541 K t of chemical wood pulp, amounting to a drop of 7.5% compared to 2019. The maximum value was recorded in 2019 at 585 K t, and the largest increase occurred in 2018 at 409.0%.

Annual dynamics of product's imports to Canada in kind, 2017-2020, K t

Throughout 2017 to 2020, the United States and Brazil concentrated 96.5% of total imports in kind, with the remaining share distributed among other destinations that made smaller individual contributions.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Canada in kind, 2017-2020

Imports in value, M $ US

After a two-year uptick, cross-border shipments of chemical wood pulp to Canada declined. In 2020, Canada imported a total of 250 M $ US of chemical wood pulp, showing a decline of 5.8% compared with 2019. Between 2017 and 2020, imports increased by 13.9%, equating to an annualized rate of 4.4%. The maximum value was recorded in 2019 at 250 M $ US, and the largest increase occurred in 2018 at 20.2%.

Annual dynamics of product's imports to Canada in value, 2017-2020, M $ US

From 2017 to 2020, the United States and Brazil formed a dominant pair of markets for imports in value terms, jointly accounting for 96.1% of total flows, while other countries represented the residual share.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Canada in value, 2017-2020