According to the analysis of the latest report of Smithers, the global fluff pulp industry and the sanitary and nonwoven markets are facing a critical year. In the short term, in the first quarter of 2022, the price of fluff pulp reached a new historical high. The market will also face capacity challenges, need to adapt to changes in sanitary product design, and think about how to use 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 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 output.

Smithers pointed out that the fluff pulp industry will usher in a prosperous year in 2022. Record prices and restored demand will drive global consumption to 6.9 million air dried metric tons (ADMT), with a market value of up to US $8.31 billion, higher than US $6.88 billion in 2021.

At the beginning of 2022, the price of fluff pulp will be 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 has 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 customer demand in the short and medium term for the factory to switch from producing dissolved pulp or pulp to producing fluff pulp.

Smithers pointed out that by 2027, the world’s total consumption of fluff pulp will increase to 8.13 million tons of air dried tons, which is 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.