According to the analysis of Smithers’ latest report, the global fluff pulp industry and the sanitary and nonwoven market are facing a critical year. In the short term, in the first quarter of 2022, the price of fluff pulp reached a record high. The market will also face capacity challenges. It needs to adapt to changes in the design of sanitary products and consider how to make use of the most sustainable development potential of nonwovens.

With record prices and growing demand, future supply is the core issue of the industry. By 2022, North America will provide 83.5% of global production capacity. The planting of fluff pulp is mainly limited to eight states in the southeast. Three companies headquartered in the United States – international paper, Georgia Pacific and Domtar / paper excellence – now account for three quarters of the world’s total production.

Smithers pointed out that in 2022, the fluff pulp industry will usher in a prosperous year. The record price and recovered demand will drive the global consumption to reach 6.9 million air dried metric tons (ADMT), and the market value will reach US $8.31 billion, higher than US $6.88 billion in 2021.

At the beginning of 2022, the price of fluff pulp was close to US $2000 / air dried metric ton, almost 2-4 times the historical average. The recovery of the global economy in the post epidemic era stimulated demand.

As the demand continues to increase, the global supply of fluff pulp is still limited. Therefore, it will be the key to meet the needs of customers in the short and medium term for the factory to shift from the production of dissolved pulp or pulp to the production of fluff pulp.

Smithers pointed out that by 2027, the total consumption of fluff pulp in the world will increase to 8.13 million tons of air dried pulp, equivalent to a compound annual growth rate (CAGR) of 3.4% from 2022 to 2027. Although the market will not be able to maintain the record price in the first half of 2022, it will remain active.