In terms of global market performance, the industry has maintained steady growth over the past two years. Industry statistics show that the global market size of wet strength agents continues to expand, supported by strong demand from downstream sectors including packaging, household paper and food-contact paper, with a relatively high average annual growth rate. The Asia-Pacific region stands as the major growth engine, where advancing industrialization, implementation of environmental policies and increased exports of paper products jointly drive the growth of both production capacity and market demand for wet strength agents. European and American markets are phasing out large-scale low-end production capacity and shifting toward high-end, compliant and high-value-added products, with greater emphasis on product safety and environmental benefits.

Regulatory policies across the globe have become increasingly stringent, acting as a key factor shaping the industry, with focus placed on raw material safety, residue limits and ecological protection. The European Union has rolled out strict control rules for key raw materials of mainstream wet strength agents. Epichlorohydrin, a substance with reproductive toxicity and potential carcinogenic risks, has been added to the list of Substances of Very High Concern. Starting from 2026, strict limits will be imposed on its residual content in relevant products. Any products exceeding the limits must be reported and filed mandatorily, while non-compliant goods will be banned from circulation in the EU market and returned directly, which has substantially raised the entry barriers for international trade of wet strength agents.

The United States has also updated its regulatory system for the industry, prioritizing ecological and biological safety. Low-molecular-weight cationic monomers for wet strength agents have been classified as substances of high environmental concern. Relevant products are required to submit internationally recognized ecotoxicological test data covering aquatic toxicity, impacts on soil microorganisms, bioaccumulation and other key indicators. Products without complete compliance declarations and tests are prohibited from entering the local market. In addition, the U.S. has enforced stricter standards for green and safe products, phasing out traditional wet strength agents containing formaldehyde, halogens and non-biodegradable components, and only endorsing new green additives that are degradable and free of harmful residues.

Spurred by rigorous international regulations, technological iteration in the global wet strength agent industry has accelerated remarkably. Green products featuring zero residue, biodegradability and low carbon have become the mainstream direction for R&D and commercial application. Traditional petroleum-based wet strength agents with high residues have been technically optimized. Process improvements have widely reduced organic chlorine residues to meet compliance standards of high-end markets in Europe and America. Breakthroughs have also been achieved in innovative technologies such as formaldehyde-free crosslinking systems, nanocellulose reinforcement and bio-based polymerization. A number of new wet strength agents have been put into mass production. They deliver wet strength comparable to traditional products, and boast advantages of recyclability, easy degradation and food-grade safety, making them ideal for high-standard scenarios such as premium food packaging and medical sanitary paper.

International trade and carbon barriers have also profoundly changed the industrial landscape. Due to the EU’s new environmental compliance regulations, exports of conventional wet strength agents have been hampered in many regions. Products with excessive residues and outdated technologies are frequently returned or left unsold, accelerating the phase-out of low-end production capacity. Furthermore, the implementation of the EU Carbon Border Adjustment Mechanism has incorporated carbon footprint into the assessment criteria for international trade. Traditional high-carbon petroleum-based products have lost competitiveness due to excessive carbon emissions, while low-carbon bio-based wet strength agents have become competitive mainstream export products. Currently, global buyers attach great importance to green certifications. Environmental Product Declarations, carbon labels and other green credentials have become essential qualifications for cross-border trade of wet strength agents.

Overall, the global wet strength agent industry will follow three major development trends in the future. First, globalized and refined regulation is an irreversible trend. Environmental compliance, safety and low-carbon performance will serve as the basic threshold for enterprises to survive and develop, leading to continuous growth of compliance costs. Second, comprehensive green upgrading of product technologies will take place. New chlorine-free, formaldehyde-free, biodegradable and low-carbon wet strength agents will gradually replace traditional highly polluting products with high residues. Third, the market pattern will keep diversifying. The Asia-Pacific region will continue to dominate market growth, while Europe and America will focus on high-end compliant products. The entire industry will advance steadily toward high-quality, eco-friendly and standardized development.