In 2023, short fiber pulp (BHK) constituted 50% of the global pulp production, totaling approximately 38.5 million tons. The tissue sector emerged as the leading consumer of this volume, accounting for about 41% of the demand. This trend is projected to persist, with the tissue segment expected to grow at a compound annual growth rate (CAGR) of 3.5% from 2023 to 2028.
China continues to be the primary market for short fiber pulp, representing 47% of its consumption. This dominance is largely because most tissue manufacturers in China are not integrated, meaning they do not produce their own pulp, unlike Brazilian companies such as Suzano and Bracell. Additionally, the use of recycled fibers remains limited within the Chinese market.
However, this landscape is beginning to evolve. The average age of tissue paper mills in China is just eight years, indicating a relatively young market. Furthermore, the cost difference between integrated and non-integrated machines is minimal in some cases, with integrated and semi-integrated machines having only slightly lower costs.
As a result, a significant increase in short fiber capacity is anticipated in China over the next few years. A potential wave of integration within the domestic tissue paper market could drive a 78% rise in capacity, equating to an additional 7.1 million tons of short fiber pulp.
