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Kraft Paper Market Forecast: Assessing Future Growth and Market Opportunities


(IT-NEWSWIRE.COM, July 05, 2023 ) The report "Kraft Paper Market by Grade (Bleached, Unbleached, Wrapping & Packaging, Sack kraft paper), Packaging form (Wraps, Pouches, Grocery & Industrial bags, Corrugated box, Envelopes), Applications, Region - Global Forecast to 2025", is projected to grow from USD 15.6 billion in 2019 to USD 18.7 billion by 2025, recording a CAGR of 3.0% during the forecast period. The rising demand for sustainable packaging solutions in various end-user industries such as food & beverages, pharmaceuticals, cosmetics & personal care, and building & construction, and the increasing urban population are factors that are projected to drive the growth of the kraft paper market across the globe. Moreover, the cost-effectiveness and eco-friendly features of kraft papers packaging solutions, improved product protection, and reduced environmental impact have led to increased adoption across the globe.

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Browse in-depth TOC on "Kraft Paper Market”

147 - Market Data Tables

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182 - Pages

In terms of value & volume, the bleached segment is projected to grow at the highest CAGR from 2019 to 2025.

The bleached segment of the kraft paper market is projected to grow at the highest CAGR during the forecast period, in terms of both value and volume. The growth of this segment is attributed to the increasing demand for bleached kraft papers in various end-use sectors, including food & beverage, healthcare, and cosmetics & personal care. One of the key advantages offered by bleached kraft papers is high strength, durability, and aesthetic appeal. Moreover, bleached kraft papers are recyclable and sustainable packaging materials, which encourages its demand globally.

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In terms of value and volume, the corrugated boxes segment is estimated to lead the kraft paper market in 2019.

Complex supply chains and networks in the food & beverages industry require several processes to be integrated, to enable the inbound and outbound flow of sustainable packaging. Currently, several food & beverage packaging producers are using sustainable packaging solutions to enhance the efficiency of their operations by reducing the lead time required for delivering products to manufacturers/suppliers. Corrugated boxes are sturdy and offer enhanced protection solutions during transit, due to which it witnesses high demand across industries, particularly for transporting different products to suppliers. The demand for kraft paper-based corrugated boxes is witnessing an increase in the food & beverage industry, as it is a cost-effective solution and offers a competitive advantage in the market.

In terms of value and volume, the Asia Pacific region is projected to lead the kraft paper market during the forecast period.

Asia Pacific is projected to dominate the kraft paper market during the forecast period. This is attributed to the increasing demand for sustainable, cost-effective, and recyclable packaging solutions in densely populated countries such as India and China. In addition, the growing population in these countries widens the customer base for FMCG products, food & beverages, which in turn, is projected to drive the growth of the kraft paper market in the region. Moreover, factors such as industrialization, growing middle-class population, rising disposable income, changing lifestyles of customers, and increasing awareness among customers pertaining to low packaging waste are projected to drive the demand for kraft paper market in the region.

Companies such as Mondi (Austria), Segezha group (Russia), Klabin(Brazil), Billerudkorsnas (Sweden), Stora Enso (Finland), Daio Paper Construction (Japan), Nordic Paper (Sweden), Glatfelter(US), and Gascogne Papier (Austria) are the key players operating in the kraft paper market. Expansions, investments, divestments, new product developments, and acquisitions are some of the major strategies adopted by these key players to enhance their position in the kraft paper market.

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MONDI (Austria), is one of the key players in the kraft paper market. It operates throughout the value chain–from wood to pulp production, which includes raw materials, such as wood yard, pulping process, and the chemical cycle of a pulp mill. It offers products and services through business segments, namely Specialty kraft paper and Sack kraft paper. The company has a wide range of grades such as unbleached kraft paper, bleached kraft paper, white paper, and pulp. In September 2018, Mondi launched a specialty kraft paper grade, advantage formable brown, which is used in various food packaging applications, such as packing fish and meat, with symmetrical stretch, which is a unique feature of this product. It is multilayered and thermoformable, due to which it witnesses a high demand in packaging solutions.

Segezha Group is a Russian forest industry holding company, which focuses on offering wood, paper, and pulp products, as well as forestry operations. It offers a wide range of sack paper & paper packaging products to customers. The sack papers offered by the company is made of virgin fiber and can resist up to 250°Ñ heat exposure. Further, it has nine paper sack and packaging mills and two pulp & paper mills. The company is a key producer of unbleached sack papers and paper sacks in the Russian and European markets and has its sales operations in over 100 countries. Its assets are located in around 12 countries across regions. It has its offices and production units in 11 countries across the globe. The company offers a wide range of kraft paper products under its business segments, Paper sack bags and Sack paper.

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