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The global pulp and paper market is worth $351.53 billion in 2021 - up from the previous year. In 2020, the global pulp and paper market is down 0.1%, with the COVID-19 outbreak causing disruption across the industry. The pulp and paper market is expected to grow in the coming years to reach a value of nearly US$373 billion by 2029, recording a CAGR of 0.72% from 2022. Products in the market includes wrapping and packaging paper, newsprint and printing, and writing paper.

The strong seasonal bump for demand in China in the second half of the year, combined with restocking-related purchases, has pushed pulp prices in China higher on a net basis than in Europe or North America. While few participants doubted that upward momentum was building in the Western Hemisphere in the short term, questions arose as to the longevity of the rally in China, as seasonal demand strength will likely wane through the end of the year. Over the past year, pulp producers saw their inventories rise sharply, including a record high for bleached softwood kraft (BSK) producers and then fall during the second and third quarters to arrive back in a balanced state by September. Producers have relied on two market components to achieve this feat in just over six months. On the demand side, shipments to China have surged as domestic consumption has picked up and buyers have moved to restock while pulp is relatively inexpensive. On the supply side, pulp producers have taken over 1.4 million tonnes of market-related downtime throughout the year. The boost in shipments combined with supply discipline has allowed producer inventories to decline relatively quickly and essentially remove the overhang from the market.

The United States is the world's leading producer of wood pulp. Canada is the world's largest exporter of wood pulp. It accounts for 62% of total global exports. Total global pulp production will reach about 189 million tons in 2020. North America is the largest producer in 2020, with an output of 64.7 million tons. The second largest pulp and paper producer is Europe, with an output of 46.6 million tons. In 2020, the total pulp production in Indonesia will be about 8.59 million cubic meters. Plantations for the pulp and paper industry have become important in Indonesia's forestry industry over the past two decades. Acacia and eucalyptus trees dominate Indonesia's pulpwood plantations.