The global kraft paper market size reached US$ 17.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 27.5 Billion by 2032, exhibiting a growth rate (CAGR) of 5.04% during 2024-2032. The shifting consumer preferences toward compostable and sustainable packaging materials, the growing demand for specialized saturated kraft paper, and the escalating adoption of kraft paper in the printing and publication sectors are some of the major factors propelling the market.
|Market Size in 2023
||US$ 17.7 Billion
|Market Forecast in 2032
||US$ 27.5 Billion
|Market Growth Rate 2024-2032
Kraft paper is a type of paper renowned for its strength, durability, and versatile applications. It is produced using the Kraft process, which involves pulping wood fibers with a chemical solution that breaks down lignin, a natural adhesive in wood. This results in a paper with exceptional tear resistance, making it suitable for various packaging and industrial purposes. The paper's coarse texture and earthy brown color are distinctive features, reflecting its minimally processed nature. It finds extensive use in packaging industries for creating bags, boxes, and wrapping materials. Its robustness ensures that it can withstand the rigors of transporting and protecting items. Moreover, it is environmentally friendly, often chosen over plastic-based packaging due to its biodegradability and recyclability.
The shifting consumer preferences toward compostable and sustainable packaging materials are driving the global market. Additionally, the market is receiving an increase from the expanded utilization of kraft paper in various contexts, such as gift wrapping, events, and weddings. This popularity is owed to the material's vibrant creativity, aesthetic charm, and textured attributes, all of which contribute to stimulating market growth. Moreover, the demand for specialized saturated kraft paper, capable of being tailored to meet specific requirements in applications such as countertops, partitions, and flooring, is fostering a positive market outlook. Furthermore, the proactive efforts of governmental bodies to promote paper recycling practices are playing a pivotal role in supporting market expansion. The escalating adoption of kraft paper in the printing and publication sectors, where it is used in crafting brochures, newspapers, magazines, pamphlets, and more, is poised to further fuel the global kraft paper market in the foreseeable future.
Kraft Paper Market Trends/Drivers:
Rising Sustainable Packaging Trends
As environmental concerns continue to gain momentum, industries are seeking alternatives to traditional plastic packaging that has significant ecological consequences. Kraft paper, with its biodegradable and recyclable properties, stands as a key contender in meeting these sustainability demands. Consumer preferences for eco-friendly packaging options have led manufacturers to adopt kraft paper for various packaging applications such as bags, boxes, and food wrappers. The shift towards greener packaging solutions, augmented by both regulatory pressures and consumer awareness, has prompted businesses to incorporate kraft paper into their supply chains. This demand rise aligns with the increasing number of environmentally conscious consumers who prioritize products packaged in materials that minimize their ecological footprint. Consequently, the Kraft paper market's growth is intrinsically linked to its capacity to address and capitalize on the escalating sustainable packaging trends.
Expanding E-Commerce Sector and Protective Packaging Needs
With more consumers embracing online shopping, the demand for robust and reliable packaging materials has soared. 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. Kraft paper's tear resistance and cushioning properties lend themselves well to safeguarding products from damage while in transit. As e-commerce continues to reshape the retail landscape, the Kraft paper market has found a escalating avenue for growth in providing the essential packaging solutions that cater to the unique demands of online retail.
Artistic and Craft Applications Enhancing Market Scope
The distinctive texture and rustic appearance of Kraft paper have captured the imagination of artists, crafters, and hobbyists alike. This rise in creative applications has diversified the demand for kraft paper, resulting in a steady market expansion. From scrapbooking and journaling to origami and mixed-media projects, Kraft paper's aesthetic appeal and tactile qualities have made it a favored medium for artistic expression. Furthermore, the ongoing trend of sustainable and eco-friendly crafts has further escalated Kraft paper's popularity, as creators seek materials that align with their values. The artistic and creative sector, though relatively niche compared to packaging, adds a meaningful dimension to the Kraft paper market, broadening its reach and sustaining demand.
Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.
Kraft Paper Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the global kraft paper market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on product type, packaging, application and distribution channel.
Breakup by Product Type:
Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.
- Wrapping and Packaging
- Sack Kraft Paper
Unbleached dominates the market
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.
The dominance of the unbleached segment can be 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. This inherent strength lends itself well to a range of applications, particularly in packaging and shipping. Industries seeking reliable packaging solutions often turn to unbleached kraft paper for its capacity to protect products during transit. Moreover, its coarser texture enhances grip and cushioning, making it suitable for wrapping delicate items or serving as a filler in packages. Additionally, the natural aesthetic appeal of unbleached paper has sparked interest in creative and artistic circles. Crafters and artists value its raw and authentic look for various projects, including scrapbooking, journaling, and other paper-based crafts.
Breakup by Packaging:
- Corrugated Box
- Grocery Bags
- Industrial Bags
Corrugated box dominates the market
The report has provided a detailed breakup and analysis of the market based on the packaging. This includes corrugated box, grocery bags, industrial bags, wraps, pouches, and others. According to the report, corrugated box represented the largest segment.
Corrugated box serves as an essential means of packaging and protecting a diverse range of products. Their adaptability to different shapes, sizes, and weights, coupled with the ability to be customized with various printing options, has solidified their status as a go-to packaging solution for businesses aiming to create a positive impression and ensure the safe delivery of their products. Moreover, the eco-friendliness of corrugated boxes contributes significantly to their market prevalence. The main constituent of these boxes is paper, a renewable and recyclable material. This aligns with the growing consumer demand for sustainable and environmentally responsible packaging choices. The recycling infrastructure for corrugated material is well-established, further adding to its appeal and contributing to the circular economy. Additionally, as businesses increasingly recognize the importance of branding and aesthetic presentation, corrugated boxes offer opportunities for creative design and customization.
Breakup by Application:
- Foods and Beverage
- Building and Construction
- Cosmetic and Personal Care
Foods and beverage dominate the market
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.
Kraft paper possesses a degree of resistance to grease, moisture, and oil, which helps to maintain the integrity of food products during storage and transportation. This makes it an ideal choice for packaging items, including baked goods, snacks, confectioneries, and dry foods. Moreover, the aesthetic appeal of the paper complements the organic and wholesome image that several food and beverage brands strive to convey. 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 has further solidified its role in the sector. Furthermore, the growing trend of sustainable packaging solutions has been a key driver for Kraft paper's dominance in the foods and beverage industry.
Breakup by Distribution Channel:
The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes offline and online.
Offline distribution encompasses a wide range of traditional methods, including brick-and-mortar stores, specialty paper shops, wholesalers, and distributors. This distribution channel is integral in catering to a diverse array of businesses and consumers who prefer a hands-on approach to purchasing kraft paper. Additionally, these offline outlets often serve as a hub for professional clientele, such as packaging designers, artists, and crafters, 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.
Breakup by Region:
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- North America
- South Korea
- United Kingdom
- Latin America
- Middle East and Africa
Asia Pacific exhibits a clear dominance, 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), 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. According to the report, Asia Pacific accounted for the largest market share.
Asia Pacific's economic dynamism, characterized by robust manufacturing, industrialization, and urbanization, has propelled the demand for packaging materials, subsequently driving the need for kraft paper. Rapidly expanding sectors such as e-commerce, retail, and consumer goods rely heavily on kraft paper for its durability, eco-friendliness, and versatility. 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, a domain in which Kraft paper excels due to its strength and suitability for safeguarding various products. The region's commitment to sustainability aligns well with the eco-friendly nature of Kraft paper, and initiatives to reduce plastic waste have driven businesses and consumers toward environmentally responsible alternatives.
Numerous companies 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 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, from heavy-duty packaging to 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.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- Ahlstrom-Munksjö Oyj
- BillerudKorsnäs AB
- Canadian Kraft Paper Ltd.
- Canfor Corporation
- Gascogne Papier
- International Paper Company
- Mondi PLC
- SCG International Corporation Co. Ltd.
- Smurfit Kappa Group plc
- Stora Enso Oyj
- Tokushu Tokai Paper Co. Ltd
- WestRock Company
- In October 2022, Mondi PLC partners with Reckitt to launch paper-based packaging for Finish dishwasher tabs with 75% less plastic. The new packaging aims to minimize the impact on the environment.
- In June 2022, Stora Enso Oyj launched premium white top kraftliner “AvantForte WhiteTop” for demanding packaging end-uses. The white top kraftliner targets demanding premium segments, such as fresh food, e-commerce, and shelf-ready packaging.
- In April 2022, WestRock Company partners with Swiss Chalet to launch recyclable paperboard packaging throughout restaurant chain. The new packaging is recyclable. It is produced by WestRock using both recycled fiber and fiber from responsibly managed forests.
Kraft Paper Market Report Scope:
|Base Year of the Analysis
|Scope of the Report
||Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
- Product Type
- Distribution Channel
|Product Types Covered
||Unbleached, Bleached, Wrapping and Packaging, Sack Kraft Paper, Others
||Corrugated Box, Grocery Bags, Industrial Bags, Wraps, Pouches, Others
||Foods and Beverage, Pharmaceuticals, Building and Construction, Cosmetic and Personal Care, Others
|Distribution Channels Covered
||Asia Pacific, Europe, North America, Latin America, Middle East and Africa
||United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
||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.
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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 2018-2032.
- 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.