Dissolving wood pulp market in Canada

Earlier Report Observations

The Canadian dissolving wood pulp market expanded steadily from 2018 to 2022, with domestic volume rising from 98.1 thousand tons to 251.4 thousand tons and market value increasing from 89.9 million USD to 251.1 million USD. This upward trend reversed in 2023, as volume contracted to 201.1 thousand tons and value fell to 175.1 million USD.

Market developments were influenced by a growing demand for sustainable materials, which boosted the use of dissolving pulp in textiles and industrial applications. This expansion was tempered by high production costs, volatility in raw material and energy prices, and stricter environmental regulations that increased operational burdens. Structural shifts also played a role, highlighted by the 2024 merger of Smurfit Kappa and WestRock, which consolidated major paper mill assets, and a broader industry movement of paper-grade pulp producers shifting capacity toward dissolving pulp.

Production dissolving wood pulp in Canada

In kind, 2017-2020, K t

From 2017 to 2020, Canada ranked fifth globally in the production of dissolving wood pulp.

Top producers of dissolving wood pulp, 2017-2020

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

In 2020, Canada produced 620.0 K t of dissolving wood pulp, showing little change from the previous year. Over the period from 2017 to 2020, production grew by 14.8%, with an average annual growth rate of 4.7%. The highest production level was recorded in 2018 at 620.0 K t, which also marked the largest annual increase of 14.8%. In contrast, 2019 saw the smallest change, with production remaining nearly flat.

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

In value, 2017-2020, M $ US

Canada's dissolving wood pulp production value declined for the second year in a row in 2020, reaching 435.8 M $ US, down 16.9% from 2019. From 2017 to 2020, the overall production value fell by 11%, equivalent to an annualized decrease of 3.8%. The peak value occurred in 2018 at 568.5 M $ US, which also saw the largest annual increase of 16.1%.

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

Exports dissolving wood pulp from Canada

Exports in kind, K t

Canada's dissolving wood pulp exports decreased for the second consecutive year in 2020, with a volume of 380.3 K t, down 19.0% from the previous year. Between 2017 and 2020, exports dropped by 13.5%, averaging an annual decline of 4.7%. The highest export volume was recorded in 2018 at 522.1 K t, which also experienced the largest annual increase of 18.8%.

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

From 2017 to 2020, China, India, and Indonesia were consistently the top destinations for Canada's dissolving wood pulp exports by volume. China accounted for 29.0% of exports, India for 25.0%, and Indonesia for 15.4%, together making up 69.4% of total export 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

Canada's dissolving wood pulp export value fell for the second year in a row in 2020, totaling 267.3 M $ US, a decrease of 32.7% compared to 2019. Over the period from 2017 to 2020, export value declined by 32.9%, with an average annual drop of 12.5%. The peak value was in 2018 at 478.7 M $ US, which also saw the largest annual increase of 20.1%.

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

From 2017 to 2020, China, India, and Indonesia led as the main destinations for Canada's dissolving wood pulp exports by value. China represented 26.5% of export value, India 24.2%, and Indonesia 14.8%, collectively accounting for 65.5% of total export flows.

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

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

Imports dissolving wood pulp to Canada

Imports in kind, K t

Import volumes of dissolving wood pulp in Canada showed significant volatility from 2017 to 2020. The lowest point was in 2020 at 0.1 K t, down 66.6% from 2019, while the highest was in 2017, with a 5.2-fold difference between these years. The largest annual decline occurred in 2018 at 72.8%, and the largest increase was in 2019 at 112.7%.

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

From 2017 to 2020, the United States dominated Canada's dissolving wood pulp imports by volume, consistently representing 98.8% of total import flows.

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

Canada's dissolving wood pulp import value experienced high volatility from 2017 to 2020. The lowest value was in 2020 at 0.1 M $ US, a sharp decline of 67.1% from 2019, while the peak was in 2017, with a 5.6-fold gap between these years. The largest annual decrease was in 2018 at 74.0%, and the largest increase was in 2019 at 108.1%.

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

From 2017 to 2020, the United States was the dominant partner for Canada's dissolving wood pulp imports by value, consistently accounting for 99.4% of total import flows.

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

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