Global Kraft Paper Market to Reach US$ 27.5 Billion by 2032, Fueled by Rising Sustainable Packaging Trends

December 14, 2023 | Packaging

According to the latest report by IMARC Group, titled “Kraft Paper Market Report by Product Type (Unbleached, Bleached, Wrapping and Packaging, Sack Kraft Paper, and Others), Packaging (Corrugated Box, Grocery Bags, Industrial Bags, Wraps, Pouches, and Others), Application (Foods and Beverage, Pharmaceuticals, Building and Construction, Cosmetic and Personal Care, and Others), Distribution Channel (Offline, Online), and Region 2024-2032,” the global kraft paper market size reached US$ 17.7 Billion in 2023. Kraft paper is a robust, unbleached paper variety made from wood pulp, known for its exceptional strength and durability. Its distinctive brown hue stems from the natural color of wood fibers, as it undergoes minimal chemical processing during production. Kraft paper finds extensive use in various packaging applications due to its excellent resilience, making it a preferred choice for wrapping, bags, envelopes, and cardboard boxes. Its ability to resist tearing and puncturing also adds to its appeal for safeguarding and enclosing a wide range of products. In recent years, kraft paper has gained immense popularity worldwide owing to its environmentally friendly nature, as it is biodegradable and sourced from renewable materials, aligning with the growing demand for sustainable and eco-conscious packaging solutions across industries.

Global Kraft Paper Market Trends:

The increasing demand for sustainable and eco-friendly packaging materials represents the primary factor driving the market growth as kraft paper is known for its biodegradability and recyclability, aligning with the heightened environmental consciousness among consumers and industries. Apart from this, the rapid expansion of the e-commerce sector, fueled by the recent outbreak of the coronavirus (COVID-19) pandemic, has augmented the demand for kraft paper in packaging applications, such as corrugated boxes and parcel wrapping, to meet the rising need for shipping and logistics. Moreover, the shifting preference of the food and beverage (F&B) industry for kraft paper as a safe and cost-effective option for packaging food products is propelling market growth. Additionally, kraft paper's versatility, strength, and suitability for custom printing make it a favored choice in numerous sectors, including retail, manufacturing, and agriculture, representing another major growth-inducing factor. Furthermore, the implementation of stringent government regulations and initiatives promoting sustainable packaging practices has accelerated the adoption of kraft paper, thereby contributing to market growth. Looking forward, the market value is projected to reach US$ 27.5 Billion by 2032, expanding at a CAGR of 5.04% during 2024-2032.

Market Summary:

  • Based on the product type, the market has been classified into unbleached, bleached, wrapping and packaging, sack kraft paper, and others, wherein unbleached is the leading segment.
  • On the basis of the packaging, the market has been categorized into corrugated box, grocery bags, industrial bags, wraps, pouches, and others. Amongst these, corrugated box accounts for the largest market share.
  • Th market has been divided based on the application into foods and beverage, pharmaceuticals, building and construction, cosmetic and personal care, and others. At present, food and beverage dominates the market.
  • On the basis of the distribution channel, the market has been bifurcated into offline and online.
  • Region-wise, the market has been segregated into North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others), Latin America (Brazil, Mexico and others) and the Middle East and Africa. Currently, Asia Pacific holds the leading position in the market.
  • The competitive landscape of the market has also been studied in the report, along with the detailed profiles of the key players operating in the market. Some of the key players include Ahlstrom-Munksjö Oyj, BillerudKorsnäs AB, Canadian Kraft Paper Ltd., Canfor Corporation, CMPC, Gascogne Papier, International Paper Company, Mondi PLC, SCG International Corporation Co. Ltd., Segezha-Group, Smurfit Kappa Group plc, Stora Enso Oyj, Tokushu Tokai Paper Co. Ltd., and WestRock Company.

Report Scope:

Report Features Details
Base Year of the Analysis 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Billion
Segment Coverage Product Type, Packaging, Application, Distribution Channel, Region
Region Covered  Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered Ahlstrom-Munksjö Oyj, BillerudKorsnäs AB, Canadian Kraft Paper Ltd., Canfor Corporation, CMPC, Gascogne Papier, International Paper Company, Mondi PLC, SCG International Corporation Co. Ltd., Segezha-Group, Smurfit Kappa Group plc, Stora Enso Oyj, Tokushu Tokai Paper Co. Ltd. and WestRock Company.
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Global Kraft Paper Market to Reach US$ 27.5 Billion by 2032, Fueled by Rising Sustainable Packaging Trends
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