Wood Pulp Market Size

Global Wood Pulp Market size was valued at USD 147.5 billion in 2023 and is poised to grow from USD 153.84 billion in 2024 to USD 215.45 billion by 2032, growing at a CAGR of 4.3% during the forecast period (2025-2032).

Growing demand for sustainable packaging, rise in sales of hygiene products, advancements in pulp production technologies, boom in e-commerce activity, and high popularity of recycled pulp are key factors driving market development.

The global shift towards environmental sustainability has led to increased consumer preference for eco-friendly packaging solutions. Wood pulp, being biodegradable and renewable, serves as a primary raw material for producing sustainable packaging products. Environmental awareness has led to an increased emphasis on recycling paper products. Recycled pulp serves as an alternative to virgin wood pulp. Growing adoption of advanced pulp production technologies is also slated to favor the global wood pulp market growth through 2032.

On the contrary, fluctuating raw material prices, high compliance costs, competition from alternative materials, and high energy consumption in production process are slated to impede the sales of wood pulp across the study period and beyond.

Can AI Be Used for Optimization of Wood Pulp Industry?

Integration of Artificial Intelligence (AI) in the wood pulp industry is primarily focused on enhancing operational efficiency, product quality, and sustainability. Use of AI-driven predictive maintenance systems in pulp mills helps reduce downtime and optimize equipment usage. AI is also being used for forest management, using satellite imagery and data analytics to monitor timber resources and plan sustainable harvesting. AI can also aid in quality control by detecting anomalies in pulp consistency and fiber content in real time. Hence, AI integration can be a worthy addition to any wood pulp business in the long run.

What is Allowing Startups to Stand Out from the Competition?

Even though the scope of innovation is quite limited in the wood pulp business, some companies are taking unique approaches to stand out. Focusing on sustainability is the prime strategy of almost all new companies.

• Pulpex: The startup based in the United Kingdom is focusing on sustainability to create eco-friendly products using wood pulp and its derivatives. The 2020-founded company is focusing on developing different sustainable packaging solutions as emphasis on plastic waste reduction rises. Pulpex has developed the world’s first 100% PET-free paper bottle made from sustainably sourced wood pulp. In February 2025, the company announced that it had raised USD 78 million in a Series D funding round to scale production of its recyclable paper-based bottles.

• Woamy: Based in Finland, the new company focuses on produciing biodegradable and recyclable cellulose-based foam derived from wood pulp. The company is focused on replacing synthetic foam with its eco-friendly alternative to promote sustainability. The company had raised €1 million in a seed round back in January 2023 as it was scaling its operations and technology.