Semi-bleached or bleached kraft or soda wood pulp excluding dissolving grades market in Western Europe

Earlier Report Observations

The market for semi-bleached or bleached kraft pulp in Western Europe experienced notable volatility from 2018 to 2023. After reaching 7.5 million tons in 2018, consumption fell to 6.0 million tons by 2020, then rebounded to 6.9 million tons in 2021. This recovery was short-lived, as the market volume contracted again over the next two years, dropping to 4.8 million tons in 2023.

The significant decline in 2023 was accompanied by record-high producer inventories for bleached softwood kraft pulp, which created a supply-demand imbalance. During this period, the industry also saw cumulative closures of production capacity totaling approximately 1.6 million tons. These shutdowns were driven by constraints in fiber supply, aging mill infrastructure, high interest rates, and a broader cyclical slowdown in key regional markets.

In 2024, the regulatory environment evolved with the European Union approving bleached eucalyptus kraft pulp for food-contact applications, potentially opening new demand segments. Globally, new supply entered the market as Arauco commissioned a mill in Chile adding 500,000 tons of annual eucalyptus pulp capacity. Concurrently, import prices for chemical wood pulp in the United Kingdom rose by 5.3%, reflecting ongoing cost pressures, while continued policy shifts favoring sustainable packaging over plastics supported the long-term demand fundamentals for bleached kraft pulp.

Production bleached kraft or soda pulp in Western Europe

In kind, 2017-2020, K t

Top producers of bleached kraft or soda pulp, 2017-2020

World map of production of bleached kraft or soda pulp, 2017-2020

After two years of growth, production of semi-bleached or bleached kraft or soda wood pulp (excluding dissolving grades) in Western Europe declined. In 2020, output reached 1 857 K t, marking a significant 39.8% decrease compared to the previous year. Looking at the period from 2017 to 2020, production fell by 37%, which translates to an annualized decline of 14.3%. The peak was recorded in 2019 at 3 085 K t, with the largest annual increase of 4.6% also occurring that year.

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

In value, 2017-2020, M $ US

In 2020, the value of semi-bleached or bleached kraft or soda wood pulp (excluding dissolving grades) produced in Western Europe was 993 M $ US, reflecting a sharp 48.9% drop from 2019. Over the 2017-2020 period, production value decreased by 47.1%, equivalent to an annualized rate of 19.1%. The highest value was recorded in 2019 at 1 943 M $ US, which also saw the largest annual increase of 12.2%.

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

Exports bleached kraft or soda pulp from Western Europe

Exports in kind, K t

Exports of semi-bleached or bleached kraft or soda wood pulp (excluding dissolving grades) from Western Europe declined for the second year in a row. In 2020, exports totaled 3 069 K t, down 5.0% year-over-year. From 2017 to 2020, exports overall increased by 12.5%, averaging a 4.0% annual growth rate. The peak export volume was in 2018 at 3 557 K t, which also experienced the largest annual increase of 30.4%. The largest decline occurred in 2019, with a 9.2% drop.

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

Between 2017 and 2020, the export destinations for semi-bleached or bleached kraft or soda wood pulp (excluding dissolving grades) from Western Europe were highly diversified. The top three partners—China (15.4% of exports), Italy (14.2%), and Poland (4.8%)—collectively accounted for only 34.4% of total export flows.

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

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

Exports in value, M $ US

Export revenues for semi-bleached or bleached kraft or soda wood pulp (excluding dissolving grades) from Western Europe fell for the second consecutive year. In 2020, exports amounted to 1 642 M $ US, a 19.3% decrease from the previous year. Over the 2017-2020 period, exports declined by 5.6%, with a compound annual growth rate (CAGR) of -1.9%. The highest value was recorded in 2018 at 2 088 M $ US, which also saw the largest annual increase of 20.1%.

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

From 2017 to 2020, the export market in value terms remained broadly diversified. China (15.4% of export value), Italy (14.4%), and Poland (4.8%) together represented just 34.5% of total flows, while a wide range of smaller markets made up the remaining 65.5%.

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

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

Imports bleached kraft or soda pulp to Western Europe

Imports in kind, K t

Imports of semi-bleached or bleached kraft or soda wood pulp (excluding dissolving grades) into Western Europe declined for the third year in a row. In 2020, imports totaled 7 233 K t, showing a slight 1.0% decrease year-over-year. Between 2017 and 2020, imports fell by 12.7%, averaging an annual decline of 4.4%.

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

During the 2017-2020 period, Brazil (21.5% of import volume), Sweden (16.1%), and Finland (14.9%) were the key suppliers, together accounting for 52.5% of total import flows.

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

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

Imports in value, M $ US

Import spending on semi-bleached or bleached kraft or soda wood pulp (excluding dissolving grades) in Western Europe decreased for the second consecutive year. In 2020, imports amounted to 3 922 M $ US, down 18.5% from the previous year. From 2017 to 2020, imports declined by 23.8%, equivalent to an annualized rate of 8.7%. The peak value was in 2018 at 6 283 M $ US, which also experienced the largest annual increase of 22.1%. The largest decline occurred in 2019, with a 23.4% drop.

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

From 2017 to 2020, Brazil (21.0% of import value), Sweden (16.6%), and Finland (14.6%) remained the primary suppliers of semi-bleached or bleached kraft or soda wood pulp (excluding dissolving grades) to Western Europe, jointly representing 52.1% of total import value.

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

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