Chemi-Thermomechanical Pulping (CTMP) Market Size, Share, Growth, and Industry Analysis, By Types (Hardwood CTMP,Softwood CTMP,Others) , Applications (Paperboard,Coated and Uncoated Papers,Tissue and Towel,Others ) and Regional Insights and Forecast to 2033

Chemi-Thermomechanical Pulping (CTMP) Market Size

 Global Chemi-Thermomechanical Pulping (CTMP) Market size was USD 132.13 Billion in 2024 and is projected to touch USD 141.61 Billion in 2025 to USD 237.72 Billion by 2033, exhibiting a CAGR of 6.69% during the forecast period [2025–2033]. This growth reflects a strong emphasis on sustainable pulp technologies and the increasing adoption of high-yield CTMP in packaging and hygiene sectors. The market is expanding due to the dual benefits of lower chemical usage and higher fiber recovery compared to traditional pulping methods. The packaging industry alone consumes over 50% of total CTMP output globally, further supported by the growth of e-commerce and food delivery services.

The Chemi-Thermomechanical Pulping (CTMP) Market stands out in the global pulp and paper industry due to its unique ability to maximize fiber yield while minimizing chemical usage. CTMP processes achieve nearly 85% fiber recovery compared to lower rates from conventional chemical pulping, resulting in more efficient use of raw materials. Approximately 20% of new mills are integrating recycled fiber into their CTMP production to improve environmental performance and lower cost. The technology is rapidly evolving, with about 30% of investment now targeting energy-saving refining systems that reduce electricity usage by 10% to 18%. This efficient balance between strength, brightness, and cost positions CTMP as a key material in the future of eco-conscious packaging and hygiene product manufacturing.

Key Findings

• Market Size: The Chemi-Thermomechanical Pulping (CTMP) Market was valued at USD 132.13 Billion in 2024, and it is projected to reach USD 141.61 Billion in 2025, expanding further to USD 237.72 Billion by 2033, registering a compound annual growth rate (CAGR) of 6.69% during the forecast period.
• Growth Drivers: More than 45% of the total CTMP demand is driven by increasing adoption of sustainable packaging solutions and improvements in printability performance across coated and uncoated paper grades.
• Trends: Asia-Pacific dominates current growth trends, holding over 35% market share due to soaring tissue and packaging requirements fueled by urbanization and industrial expansion.
• Key Players: Leading companies in the CTMP market include West Fraser, UPM, Valmet, Paper Excellence Canada, Millar Western, and others actively engaged in technological innovation and capacity expansion.
• Regional Insights: The global CTMP market share is distributed as follows—Asia-Pacific contributes 35% to 40%, North America commands approximately 30%, Europe holds close to 25%, and the Middle East & Africa represent around 5%.
• Challenges: Roughly 25% of CTMP production is impacted by fluctuations in wood chip availability and rising energy prices, presenting a key operational challenge.
• Industry Impact: Around 20% of new CTMP installations are now utilizing recycled fiber sources, boosting environmental sustainability and reducing dependency on virgin wood inputs.
• Recent Developments: Close to 25% of all ongoing product development in the CTMP space is focused on implementing bio-chemical refining processes and lowering energy consumption through advanced system upgrades.

In the United States, the Chemi-Thermomechanical Pulping (CTMP) Market is showing consistent momentum, with domestic demand rising significantly. The U.S. represents approximately 18% to 20% of global CTMP consumption. Paperboard applications make up about 55% of U.S. CTMP usage, while tissue and coated/uncoated papers account for a combined 40%. With major producers investing in energy-efficient CTMP refining units, the U.S. market is increasingly focused on reducing production costs while meeting environmental compliance, thus driving broader adoption of CTMP-based fiber solutions.

Chemi-Thermomechanical Pulping (CTMP) Market Trends

The global Chemi-Thermomechanical Pulping (CTMP) market is witnessing a robust transformation driven by the surge in demand for eco-friendly, high-yield pulping technologies. The usage of CTMP pulp in the production of paperboard has expanded to nearly 50%, owing to its bulk, stiffness, and strength properties that are ideal for packaging applications. Coated and uncoated papers account for around 35% of global CTMP usage, as the pulp provides excellent optical qualities and printability. Tissue and towel production, benefiting from CTMP’s absorbency and softness, hold approximately 10% share, with the remaining 5% covering niche applications such as specialty papers and fiber cement.

Softwood CTMP leads the type segment with close to 50% share due to its superior strength, while hardwood CTMP maintains roughly 40% share due to its bright, uniform fiber qualities suited for printing and writing papers. Specialty CTMP grades and blends contribute about 10% to the market. Regionally, Asia-Pacific dominates the global CTMP landscape with a 35% to 40% share, fueled by rapid growth in packaging and tissue sectors in China and India. North America contributes close to 30%, largely through paperboard production. Europe remains strong with about 25% market share, benefiting from its longstanding coated paper industry. Meanwhile, CTMP applications integrating recycled fibers have grown to represent approximately 20% of new installations, reflecting a shift toward circular manufacturing models and sustainability-led procurement practices in the pulp and paper industry.

Chemi-Thermomechanical Pulping (CTMP) Market Dynamics

OPPORTUNITY

Expansion in emerging markets

Asia-Pacific continues to present strong opportunities for the CTMP market, with emerging economies accounting for nearly 40% of global demand. China and India collectively represent approximately 30% of that regional consumption. Urbanization, growing disposable income, and increased demand for hygiene products are accelerating CTMP usage in these countries. Paperboard applications in the region are expanding rapidly, accounting for over 55% of CTMP usage in packaging. Furthermore, investments in local pulp production facilities have increased by over 20%, indicating government and private sector interest in building sustainable supply chains. This expansion reflects an untapped opportunity for global producers to enter and scale in these high-growth areas

DRIVERS

Rising demand for sustainable CTMP pulp

The global push toward sustainability has positioned CTMP as a favorable alternative to traditional pulping due to its high fiber yield and reduced chemical load. The adoption of CTMP in packaging materials has surged by nearly 45%, particularly in paperboard segments. Brands shifting to recyclable packaging are driving this growth, with around 30% of new packaging lines specifying CTMP-based materials. Additionally, the global hygiene sector, including tissue and towel products, has seen CTMP usage grow by more than 25% due to its softness, making it suitable for personal care applications. With these factors, CTMP is increasingly becoming the preferred pulp choice for manufacturers prioritizing environmental performance and cost-effective production 

RESTRAINTS

"Fluctuations in raw material and energy costs"

CTMP manufacturing is energy-intensive and reliant on consistent wood fiber supply. Volatility in the cost of wood chips and energy inputs can impact nearly 25% of the overall operational expenditure, making profit margins susceptible to commodity price shifts. In regions like Europe, energy prices have increased by over 15%, directly affecting pulp production costs. Moreover, transportation and supply chain inefficiencies contribute to cost pressures, especially in regions lacking localized sourcing. These fluctuations have led to a cautious investment approach among some producers, slowing the pace of capacity expansions despite rising demand.

CHALLENGE

"Rising costs and competitive pressure from alternative pulping methods"

CTMP faces stiff competition from other pulping methods like kraft and thermomechanical pulping (TMP). Kraft pulp still dominates many end-use applications due to its superior fiber strength, and TMP offers lower costs in some markets. Together, these competing technologies occupy more than 60% of pulp consumption in certain geographies, reducing the available share for CTMP. Additionally, with ongoing R&D in alternative pulps, CTMP must continuously innovate to stay cost-effective and environmentally aligned. Maintaining competitiveness amidst rising input costs and evolving technology standards remains a key challenge for CTMP producers globally.

Segmentation Analysis

The CTMP market is segmented primarily by type and application. In terms of type, the market is led by softwood CTMP, which provides high strength and is used mainly in packaging. Hardwood CTMP is chosen for its printability and brightness, ideal for coated and uncoated paper production. Other types, including blends and specialty pulps, serve niche applications. By application, paperboard production accounts for half of the CTMP demand globally. Coated and uncoated paper represents approximately 35%, and tissue and towel applications constitute around 10%. The remaining 5% is distributed across technical paper, specialty packaging, and other minor uses.

By Type

• Hardwood CTMP: Hardwood CTMP accounts for roughly 40% of the global CTMP market. It is favored for its high brightness, excellent printability, and bulk, making it ideal for coated and uncoated printing papers. It offers uniform fiber quality and is commonly used by commercial printers and publishers, especially in Europe and North America.
• Softwood CTMP: With a dominant 50% share, softwood CTMP is widely used in paperboard and packaging applications where strength, stiffness, and fiber bonding are critical. Its long fibers provide structural integrity, making it the top choice for food packaging, consumer goods cartons, and industrial wrap-around applications.
• Others: Specialty CTMP variants account for the remaining 10% of the market. These include blended pulps, custom fiber configurations, and high-opacity grades for use in lightweight tissues and printing substrates. These are used when specific combinations of softness, strength, or opacity are needed.

By Application

• Paperboard: Paperboard accounts for approximately 50% of CTMP consumption worldwide. This includes corrugated liners, folding cartons, and high-bulk boards. The lightweight strength and cost-efficiency of CTMP make it highly suitable for packaging various products, from electronics to food and beverages.
• Coated and Uncoated Papers: Around 35% of CTMP pulp is used in these segments, offering surface smoothness and print clarity. These papers are used in advertising, commercial printing, books, catalogs, and periodicals. Brightness and bulk make CTMP a valuable substitute for chemical pulps in these applications.
• Tissue and Towel: Representing about 10% of the market, CTMP’s fiber properties make it suitable for soft, absorbent hygiene products. With growing urban populations and awareness of hygiene, this segment is expanding, especially in emerging markets where affordability and performance are key.
• Others: Approximately 5% of CTMP applications fall into niche uses like industrial paper, fiber-reinforced products, and high-opacity technical paper grades used in specialty segments.

Regional Outlook

The Chemi-Thermomechanical Pulping (CTMP) market displays a diverse regional distribution, with Asia-Pacific emerging as the largest contributor, accounting for approximately 35% to 40% of the global market share. This growth is driven by strong demand from China and India, where the expansion of the packaging and hygiene industries continues to accelerate CTMP consumption. North America follows closely, holding about 30% of the market, supported by a well-established paperboard production infrastructure and widespread use of softwood CTMP in high-strength applications. Europe maintains a solid position with around 25% share, where countries like Finland, Sweden, and Germany dominate due to advanced coated and uncoated paper manufacturing. The Middle East and Africa region, though smaller with a 5% to 7% market share, is showing rising interest in CTMP-based tissue and towel products, driven by increasing hygiene awareness and gradual investment in local paper production facilities. Overall, the regional outlook reflects strong adoption in mature economies and high potential growth in emerging markets, particularly where sustainable fiber solutions are gaining traction.

North America

North America holds around 30% share of the global CTMP market. The U.S. and Canada continue to be leading producers and consumers, especially in the paperboard and coated paper segments. Softwood pulp derived from sustainably managed forests is widely used, accounting for more than 60% of CTMP production in this region. Paper mills here benefit from technological advancements and a well-developed supply chain infrastructure, making them globally competitive.

Europe

Europe accounts for approximately 25% of the global CTMP market share. Countries like Finland, Sweden, and Germany lead production and consumption. CTMP is used heavily in magazine and catalog printing, with coated and uncoated paper accounting for nearly 60% of demand in the region. Paperboard production is also on the rise due to increased regulations around sustainable packaging.

Asia-Pacific

Asia-Pacific dominates the CTMP market with a 35% to 40% share. China and India are the largest consumers, with fast-growing demand in tissue and packaging sectors. Paperboard accounts for about 55% of CTMP use in this region. Rapid industrialization and urban expansion are key factors driving demand. In recent years, local production capacity has also expanded to meet domestic needs and reduce dependency on imports.

Middle East & Africa

Middle East & Africa currently hold a 5% to 7% share in the CTMP market. Although smaller compared to other regions, the demand is growing, especially in tissue and towel segments driven by hygiene awareness. Imports dominate this region, but investments in local paper manufacturing plants are increasing. Paperboard applications represent nearly 30% of CTMP usage here, showing potential for further growth.

List of Key Chemi-Thermomechanical Pulping (CTMP) Market Companies Profiled

Investment Analysis and Opportunities

Investment trends in the CTMP market indicate a strong pivot toward sustainability and technological innovation. Close to 40% of recent investments have focused on upgrading refining equipment to reduce energy consumption and increase pulp yield. Nearly 30% of producers are integrating recycled fibers into their pulp recipes, reducing reliance on virgin wood. Expansion in emerging markets, particularly in Asia-Pacific, is attracting over 25% of global CTMP-related capital inflow. Government incentives for sustainable production in countries like China and India are further supporting this growth. Around 20% of investment in North America is directed toward automation and digital monitoring systems to boost production efficiency. Additionally, joint ventures and strategic acquisitions are increasing, accounting for nearly 18% of total market transactions in the past two years.

New Products Development

Innovation in CTMP is centered around eco-efficiency and fiber optimization. Approximately 25% of new product development is focused on creating CTMP blends using agricultural residues and alternative biomass. These innovations help lower carbon footprints while reducing dependence on forest-based resources. About 15% of newly launched CTMP products target the hygiene segment, delivering higher softness and better absorption for tissue and towel applications. Another 20% focus on high-bulk paperboard grades that meet the packaging sector’s growing need for lightweight yet durable materials. Moreover, the development of energy-efficient pulping systems contributes to around 30% of product improvement efforts, showcasing the industry’s shift toward sustainability and operational efficiency.

Recent Developments

• In 2023, a major pulp company introduced a new softwood CTMP grade that now represents approximately 20% of its product portfolio. This grade delivers enhanced strength and offers nearly 15% reduction in energy consumption compared to prior versions, reflecting a strong sustainability push.
• Also in 2023, another leading manufacturer launched a high-opacity hardwood CTMP variant that captured around 10% share in coated paper segments. This product improved brightness and print performance, addressing increasing demand from high-end print applications.
• In early 2024, a pulp producer began pilot trials using recycled fiber blends in CTMP production. This new process now represents roughly 12% of its total pulp output, enhancing environmental credentials and lowering reliance on virgin wood sources.
• Through 2024, one large-scale CTMP mill deployed next-generation refining technology that reduced energy usage by approximately 18% across the entire plant. This upgrade supports both cost-efficiency and regulatory compliance in regions with rising power costs.
• Also in 2024, a consortium of firms entered into a joint development agreement to innovate bio-based CTMP treatments. About 25% of the new product pipeline is now dedicated to bio-chemical refining methods that reduce chemical load and improve fiber yield.

Report Coverage

The report provides comprehensive coverage of the global CTMP market across all major aspects. It includes segmentation by product type—hardwood CTMP (~40% share), softwood CTMP (~50%), and specialty grades (~10%)—and by application—paperboard (~50%), coated and uncoated paper (~35%), tissue and towel (~10%), and other niche uses (~5%).

Regional insights span North America (~30% of global deployment), Europe (~25%), Asia‑Pacific (~35–40%), and the Middle East & Africa (~5–7%). Key companies profiled in the report collectively account for nearly 40% of CTMP market production capacity. Investment trends discussed in the report cover expanding capacity, recycled fiber integration (~20% of planned projects), and emphasis on energy-efficient refining technologies (comprising more than 60% of R&D efforts). Recent strategic developments explored—including product innovation, pilot projects, and joint ventures—account for around 20–25% of total market activity.