Abaca Pulp market COVID-19 Impact, Trends & Business Statistics By 2030

Author : Mrudula Karmarkar | Published On : 03 Jan 2024

San Francisco, 03 January 2024: The Report Abaca Pulp Market Size, Share & Trends Analysis Report By Product (Medical Filter Papers, Food Preparation Papers), By Region (North America, Europe, Asia Pacific, Central & South America), And Segment Forecasts, 2024 - 2030

The global abaca pulp market size is expected to reach USD 1.0 billion by 2030, registering a CAGR of 13.9% from 2024 to 2030, according to a new report by Grand View Research, Inc. Abaca fibers are known for their exceptional strength and durability. This characteristic makes them suitable for use in industries where toughness and longevity are critical, such as in ropes, specialty papers, and construction materials. This demand for reliable and long-lasting products has led to a steady demand for abaca pulp. Abaca pulp is biodegradable, making it an attractive alternative for industries seeking alternatives to synthetic and non-biodegradable materials. As governments and consumers push for environmentally friendly products, the biodegradability of this pulp sets it apart from many other alternative materials available in the market.

It is a preferred choice for specialty papers like tea bags, currency paper, and security documents. The growth of the beverage industry, particularly with the rising demand for premium teas and herbal infusions, has driven a need for high-quality and environmentally friendly tea bag materials, further boosting product demand. The Food & Agriculture Organization (FAO) of the United Nations has classified abaca as one of the future fibers and substitute for synthetic fibers, to encourage the growth of sustainable agriculture and promote the adoption of eco-friendly production and processing technologies. As consumers and industries prioritize eco-friendly materials, the demand for abaca pulp has increased.

Moreover, companies are moving toward the usage of sustainable and environment-friendly materials in their products owing to growing consumer awareness regarding the advantages offered by these products. These factors are projected to drive market growth. Prices of abaca pulp are governed by many factors, such as labor, raw material cost, transportation charges, and logistic charges. In addition, utilization of special machinery and tools required to produce pulp further adds to the overall product cost. The raw materials required to produce this pulp are expensive and require a skillful workforce, which increases the final cost of the products. For instance, as per the Philippine Fiber Industry Development Authority (PhilFIDA), in 2020, abaca supply exhibited a deficit of 125,000 metric tons (MT), and in 2023, abaca production declined by 25% owing to limitations in transportation.

This prevented farmers from harvesting the abaca plants. Growing awareness in market regarding the benefits of biodegradable packaging products also supports market growth. This is on account of changing consumer preferences regarding more environmentally friendly products. The global e-commerce industry is rapidly growing on account of increasing trends in online shopping. The strength and moisture resistance offered by abaca fiber make it suitable for use in packaging applications, especially in tropical and humid environments. This is expected to propel demand for packaging materials and boost the overall industry growth in the coming years.

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Abaca pulp is used to manufacture a range of papers, including food preparation papers, such as tea bags and filter papers. This is on account of the high-tensile strength and biodegradable nature of the abaca plant. Global consumption of tea and coffee is growing on account of rapid urbanization, rising e-commerce retail sales, and the growing inclination of consumers toward ready-to-drink (RTD) coffee & tea, especially green coffee and green tea. Hence, as global consumption of such products increases, demand for abaca pulp is expected to grow over the coming years.

Abaca Pulp Market Report Highlights

• The market is expected to grow owing to rising product applications in the paper industry including tea & coffee bags, sausage casing papers, currency & security papers, cigarette filter papers, medical or food preparation or disposal papers, high-quality writing paper, and vacuum bags
• Based on product, the market has been segmented into food preparation papers, medical filter papers, and others. Food preparation papers accounted for the largest revenue share of 72.8% while the medical filter paper segment held a share of 16.3% in 2023
• The larger share of the food preparation paper segment is attributed to high consumer awareness regarding the use of biodegradable and compostable raw materials for manufacturing single-serve tea bags, coffee capsules, pods and bags otherwise made of aluminum or plastic
• Europe dominated the global industry in 2023, followed by North America and Asia Pacific. Majority of European economies, including the UK, Germany, Italy, Spain, and France, are contributing considerably to the expansion of the tea bag market, which supports product market growth
• Growing awareness regarding eco-friendly products and the importance of environmental sustainability has led companies to opt for advanced production technologies, which is a challenge for product manufacturers

Several natural fibers, including abaca, coir, cotton lint, flax fiber, jute, kenaf, kapok, ramie, sisal, silk, and wool, have been widely used over the past few years in several application industries, such as food & beverages and medical. Abaca pulp is highly valued for its long and strong fibers, making it an excellent choice for specialty papers. It is often used in the production of tea bags, currency paper, and security documents due to its ability to withstand wear and tear. Increasing disposable income of younger population groups in developing economies, including China, India, and South Korea, is further promoting the consumption of tea and coffee. In addition, growing awareness among consumers regarding health risks associated with consumption of carbonated beverages is resulting in a shift toward RTD tea and coffee. These factors are expected to propel the demand for tea bags and coffee filters, which will boost demand for abaca pulp over the coming years.

Abaca pulp is used to manufacture a range of papers, including food preparation papers, such as tea bags and filter papers. This is on account of the high-tensile strength and biodegradable nature of this plant. Many companies involved in the production of RTD tea and tea bags are opting for sustainable materials as raw materials to reduce their carbon footprint and achieve sustainability goals. A few of these manufacturers include Clipper Teas and Pukka Herbs. Furthermore, there is a high burden of various chronic health diseases, such as cancer, heart disease, and diabetes, due to rapid socioeconomic development. Health benefits associated with the consumption of RTD tea are capturing the attention of consumers, particularly the geriatric population, which is increasing demand for these products. This is expected to further promote market growth.

Abaca Pulp Market Report Scope

Demand for abaca pulp in the U.S. is attributed to a growing demand for renewable and biodegradable products along with rising adoption of sustainable products in the country. Abaca pulp can be used as a substitute for wood pulp in various paper and textile applications. Hence, its growing adoption in the paper industry, and specialty applications including tea bags & coffee filters, owing to their high durability, will drive industry growth. The U.S. reported a substantial rise in product imports from the Philippines in 2020. This was attributed to a significant rise in adoption of these fibers in several application industries, leading to market growth. In addition, a rise in the adoption of sustainable fibers in the paper & specialty paper industry, to align with global sustainable development goals (SDGs), is expected to create new growth opportunities for the U.S. market.

List of Key Players in Abaca Pulp Market

• Specialty Pulp Manufacturing, Inc.
• ALINDECO (Albay Agro-Industrial Development Corporation)
• Ahlstrom
• Terranova Papers
• University Products, Inc.
• Preservation Equipment Ltd
• Pulp Specialties Philippines, Inc.
• Wigglesworth & Co. Limited
• Glatfelter Corporation