In 2026, the global and Chinese markets for papermaking chemicals are exhibiting a trend of moderate growth. Key drivers include the green transition, rising demand for specialty papers, and "paper-for-plastic" substitution policies; however, the contraction of traditional paper grades acts as a constraint on the overall growth rate.
Market Size: The Chinese market for papermaking chemicals - encompassing chemicals for pulping, papermaking, processing, and wastewater treatment - surpassed US$42 billion in 2025. In 2026, this market is projected to maintain an annual growth rate of 3%–5%, driven by increased demand for chemicals used in high-end packaging paper, food-grade white cardboard, and biodegradable materials.
Growth Momentum: **Bio-based and high-efficiency auxiliaries** (such as cationic starch, polyacrylamide-based retention and drainage aids, eco-friendly sizing agents, and bio-enzymatic resin control agents) are rapidly displacing traditional, highly polluting chemicals. **Chemicals for specialty papers** (including those for battery separator paper, medical paper, and nanocellulose functional additives) are emerging as new growth points. Furthermore, "paper-for-plastic" substitution policies are directly stimulating demand for **food-contact-grade coating and wet-strength chemicals.**
Regional Dynamics: In China, capacity concentration is increasing as major enterprises (such as Solenis and SNF) continue to expand production facilities (evidenced by new projects launched in Jiangmen and Beihai in 2026). In Southeast Asia (e.g., Thailand), growth in packaging demand is driving the expansion of the regional chemicals market; however, impacted by digitalization, demand for chemicals used in traditional cultural papers remains stable or shows a slight decline.
Technological Trends: R&D efforts are focusing on **chemicals for neutral-to-alkaline papermaking systems** (including low-aluminum/aluminum-free sizing and high-retention systems), **polymeric flocculants for wastewater treatment,** and **zero-formaldehyde/low-VOC auxiliaries.** Additionally, digitalization and intelligent manufacturing are facilitating precise chemical dosing and cost optimization.
Risks and Constraints: Although global machine-made paper production increased by 8.6% in 2024 (reaching 158 million tons), the **continued contraction of the cultural paper sector** and **structural overcapacity** are suppressing the potential for upward movement in chemical unit prices. Furthermore, increasingly stringent environmental regulations are compelling smaller manufacturers to exit the market, thereby accelerating industry consolidation.
Overall, the market for papermaking chemicals has shifted from being "scale-driven" to being driven by "high performance, eco-friendliness, and scenario-specific customization." From 2026 to 2027, the market is projected to maintain steady, moderate-to-low-speed growth - a pace faster than that of traditional paper products, yet slower than that of the emerging field of biomaterials.
