Kraft Paper Market

Kraft Paper Market Size:

The global kraft paper market size reached USD 18.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 28.8 Billion by 2033, exhibiting a growth rate (CAGR) of 5.65% during 2025-2033. The shifting consumer preferences toward compostable and sustainable packaging materials, expanding e-commerce sector, rising urbanization and the need for convenience, ongoing shift towards lightweight packaging, and the rising consumer preference for aesthetic and natural packaging are some of the major factors propelling the market.

Kraft Paper Market Analysis:

• Major Market Drivers: According to the kraft paper market overview, the key drivers include the increasing focus on sustainable packaging methods, emerging e-commerce sector that require protective packaging, growing urbanization and the need for convenient packaging solutions.
• Key Market Trends: As per the kraft paper market industry analysis, ongoing advancements in kraft paper manufacturing, such as enhanced barrier properties and reduced weight, are driving the market growth.
• Geographical Trends: Based on the kraft paper market research report, Asia Pacific leads the market due to stringent environmental regulations and a high consumer preference for sustainable products. Other regions are also growing owing to increasing urbanization, booming e-commerce, and expanding manufacturing sectors.
• Competitive Landscape: Based on the kraft paper market research, some of the major market players in the kraft paper industry 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, among many others.
• Challenges and Opportunities: As per the kraft paper market report, the industry encounters many problems, including fluctuation in raw material prices and competition from alternative packaging solutions like plastic composites. However, opportunities in potential for growth in emerging markets where governments are beginning to implement more stringent environmental regulations, are favoring the kraft paper market value.

Kraft Paper Market Trends:

Rising Sustainable Packaging Trends

As environmental concerns continue to gain momentum, industries are seeking alternatives to traditional plastic packaging that has significant ecological consequences. As per a report by the World Bank (2016), global annual waste generation is expected to jump to 3.4 billion tonnes over the next 30 years, up from 2.01 billion tonnes. High-income countries generated more than one-third (34%) of the world's waste, while the East Asia and Pacific region was responsible for generating close to a quarter (23%) of all waste. Out of this, the world generated 242 million tonnes of plastic waste, boosting the demand for sustainable packaging solutions. For instance, in Europe, 62% of packaging experts expect their company to increase the budgets for investing in sustainable packaging material over the next five years, with a further 23% expecting to see budgets increase dramatically. Also, the majority (83%) of respondents expect to bolster the use of multi-material across their product portfolios, and close to three-quarters (72%) boosted the use of paper over the next five years. Kraft paper, with its biodegradable and recyclable properties, stands as a key contender in meeting these sustainability demands.

Expanding E-Commerce Sector and Protective Packaging Needs

With more consumers embracing online shopping, the demand for robust and reliable packaging materials has soared. The global e-commerce industry is growing at a rate of 27.16% annually, reaching US$ 183.8 trillion by 2032. Regionally, there were 1.2 million daily Indian e-commerce transactions in 2021, and online shoppers are expected to reach 500 million in 2030 from +150 million in 2020. Also, the Indian e-commerce market is expected to touch US$ 350 billion in gross merchandise value (GMV) by 2030. Moreover, based on the data released by the State Council, China's cross-border e-commerce (CBEC) experienced a surge in import-export volume, reaching RMB 2.38 trillion (US$331 billion). This growth amounted to a total of 15.6% and was driven by a 19.6% rise in exports and a steady 3.9% increase in imports. Kraft paper's innate strength and durability make it an ideal choice for protecting goods during transit. The rise in fragile and valuable items being shipped across the globe has created a substantial need for secure packaging that can withstand the rigors of transportation.

Increased Urbanization and Changing Lifestyles

Increased urbanization and changing consumer lifestyles have led to a rise in demand for convenient and fast consumer goods. According to the World Bank, some 56% of the world's population, accounting for 4.4 billion inhabitants, live in cities. This trend is expected to continue, with the urban population more than doubling its current size by 2050, when 7 of 10 people will live in cities, which in turn boosts the need for effective packaging solutions. Kraft paper is widely used in the fast-moving consumer goods (FMCG) sector due to its robustness and versatility, which is growing at a rate of 4.25% annually. Also, in India, FMCG sales were expected to grow 7-9% by revenues in 2022-23, among which 50% accounted for household and personal care sales. As urban populations grow, the demand for packaged goods increases, subsequently driving the need for reliable packaging materials.

Kraft Paper Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on product type, packaging, application, and distribution channel.

Breakup by Product Type:

• Unbleached
• Bleached
• Wrapping and Packaging
• Sack Kraft Paper
• Others
   

Unbleached accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the product type. This includes unbleached, bleached, wrapping and packaging, sack kraft paper, and others. According to the report, unbleached represented the largest segment.

Based on the kraft paper market industry analysis, the unbleached segment dominated the market share, attributed to its versatility and robustness. Unbleached kraft paper boasts exceptional strength and tear resistance due to the kraft pulping process that retains a substantial portion of the wood's inherent fibers. It is utilized in a wide range of applications, such as packaging and shipping, boosting the kraft paper market industry worth. Moreover, the growing demand for reliable packaging solutions among industries, boosting the adoption of unbleached kraft paper due to its capacity to protect products during transit, is favoring the kraft paper market scope. Moreover, its coarser texture enhances grip and cushioning, making it suitable for wrapping delicate items or serving as a filler in packages.

Breakup by Packaging:

• Corrugated Box
• Grocery Bags
• Industrial Bags
• Wraps
• Pouches
• Others
   

Corrugated box holds the largest share of the industry

A detailed breakup and analysis of the market based on the packaging have also been provided in the report. This includes corrugated box, grocery bags, industrial bags, wraps, pouches, and others. According to the report, corrugated box accounted for the largest market share.

According to the kraft paper market industry outlook, corrugated boxes accounted for the largest segment as they serve as an essential means of packaging and protecting a diverse range of products. Moreover, their adaptability to different shapes, sizes, and weights, coupled with the ability to be customized with various printing options, is boosting the kraft paper market demand. Additionally, the eco-friendliness of corrugated boxes contributes significantly to their market prevalence. Along with this, the growing consumer demand for sustainable and environmentally responsible packaging choices is fostering the kraft paper market value. The recycling infrastructure for corrugated material is well-established, further adding to its appeal and contributing to the circular economy. Additionally, the rising recognition among businesses about the importance of branding and aesthetic presentation, boosting the use of corrugated boxes as they offer opportunities for creative design and customization, is enhancing the kraft paper market growth rate.

Breakup by Application:

• Foods and Beverage
• Pharmaceuticals
• Building and Construction
• Cosmetic and Personal Care
• Others
   

Foods and beverage represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the application. This includes foods and beverage, pharmaceuticals, building and construction, cosmetic and personal care, and others. According to the report, foods and beverage represented the largest segment.

As per the kraft paper market industry outlook, the food and beverage (F&B) sector represented the largest market share. Kraft paper possesses a degree of resistance to grease, moisture, and oil, which helps in maintaining the integrity of food products during storage and transportation. Moreover, it is an ideal choice for packaging items, including baked goods, snacks, confectioneries, and dry foods. Additionally, the aesthetic appeal of the paper complements the organic and wholesome image that several food and beverage brands strive to convey, thereby positively impacting the kraft paper market revenue. The earthy brown color and textured surface resonate with consumers who associate these attributes with natural and eco-friendly choices. This alignment between kraft paper's visual appeal and the values of health-conscious and environmentally aware consumers is bolstering the global kraft paper market price. Furthermore, the growing trend of sustainable packaging solutions has been a key driver for Kraft paper's dominance in the food and beverage (F&B) industry.

Breakup by Distribution Channel:

• Offline
• Online
   

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes offline and online.

Based on the kraft paper market forecast, offline distribution encompasses a wide range of traditional methods, including brick-and-mortar stores, specialty paper shops, wholesalers, and distributors. It is integral in catering to a diverse array of businesses and consumers who prefer a hands-on approach to purchasing kraft paper. Additionally, offline outlets serve as a hub for professional clientele, such as packaging designers, artists, and crafters, who are seeking tailored solutions and expert advice.

On the other hand, the convenience, accessibility, and wide variety offered by online platforms have contributed to the prominence of this distribution segment. E-commerce platforms and online marketplaces provide a virtual marketplace for consumers and businesses to explore a vast range of kraft paper options, compare prices, read reviews, and place orders from the comfort of their homes or offices, thus enhancing the kraft paper market share.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest kraft paper market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for kraft paper.

According to the kraft paper market price analysis and trends, Asia Pacific dominated the market share due to its economic dynamism, characterized by robust manufacturing, industrialization, and urbanization. Moreover, rapidly expanding sectors such as e-commerce, retail, and consumer goods rely heavily on kraft paper for its durability, eco-friendliness, and versatility. Additionally, the escalating middle-class population across countries in the region has further fueled consumption, while increased urbanization has led to greater demand for efficient packaging solutions. Moreover, Asia Pacific's status as a manufacturing hub has impelled the demand for industrial packaging, boosting the use of kraft paper due to its strength and suitability. Furthermore, the region's commitment to sustainability and heightened initiatives to reduce plastic waste that drives businesses and consumers toward environmentally responsible alternatives are stimulating the kraft paper market growth opportunities.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the kraft paper industry 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., WestRock Company, etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Research analyzing how big the kraft paper market is, found out the numerous companies in the market are prioritizing sustainability by adopting eco-friendly practices and using recycled or responsibly sourced materials in their kraft paper production. This involves minimizing energy consumption, reducing water usage, and decreasing emissions. By incorporating these practices, companies aim to appeal to environmentally conscious consumers and comply with regulations promoting sustainable packaging. Also, several manufacturers are investing in research and development (R&D) to create innovative products that cater to specific industry needs. This includes developing kraft paper with enhanced barrier properties, improved printability, and different textures to cater to various applications, such as heavy-duty packaging, and creative arts and crafts. With the rise of online retail and e-commerce, companies are also offering customized and personalized packaging solutions. This involves printing logos, branding messages, and designs on kraft paper packaging to enhance the visual appeal and marketing potential of products, thereby positively influencing the kraft paper market price trend.

Kraft Paper Market News:

• In October 2022, Mondi announced a €400 million investment in a new paper machine at their Steti mill in the Czech Republic. The new machine will produce around 210,000 tonnes per annum of sack kraft paper supporting Mondi’s paper bags. The investment forms part of the Group’s €1 billion expansionary capital investment programme.
• In October 2022, Stora Enso invested approximately EUR 1 billion to convert the remaining idle paper machine at the Group’s Oulu site in Finland into a high-volume consumer board production line. Following the first machine conversion at the Oulu site in 2021 from paper to kraftliner, the remaining idle paper line is expected to be converted into highly flexible consumer board line for folding box board (FBB) and coated unbleached kraft (CUK). The total annual capacity was recorded at 750,000 tonnes of consumer board and will target end-use segments, like food and beverage (F&B) packaging in Europe and North America.

Kraft Paper Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the kraft paper market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global kraft paper market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the kraft paper industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.