“The global Kraft Paper market size is projected to reach USD YY billion by 2032, from USD YY billion in 2024, at a CAGR of 3.2% during the forecast period.”
Asia-Pacific dominated the market in 2023 and is expected to maintain its position through 2031. The growth is primarily driven by increasing demand from the packaging industry, rising environmental concerns, and the growing popularity of sustainable packaging solutions. The market witnessed a surge in demand for grocery bags and e-commerce packaging during the COVID-19 pandemic.
Growing Demand for Sustainable Packaging Solutions
The growing awareness of environmental issues and the need for sustainable packaging solutions is driving the demand for kraft paper. Kraft paper is biodegradable, recyclable, and compostable, making it a viable environmentally friendly alternative to plastic packaging. Many businesses are using kraft paper packaging to lower their carbon footprint and attract environmentally concerned customers.
According to the Sustainable Packaging Coalition's research, more than 70% of consumers are willing to pay a premium for products created from sustainable materials.
Expanding E-commerce Industry Fueling Packaging Demand
The rapidly growing e-commerce sector is a key driver of the kraft paper market. The popularity of online shopping has increased demand for packing materials such as corrugated cardboard boxes and kraft paper bags. Kraft paper has excellent protective characteristics that ensure the safe delivery of products to customers. Amazon expects a 30% increase in global packaging usage by 2024, with kraft paper accounting for a sizable share of that total.
Fluctuating Raw Material Prices
The fluctuating price of wood pulp, the key raw material in kraft paper, may limit market growth to some extent. Weather, forest restrictions, and global trade dynamics are among the factors impacting wood pulp availability and pricing.
Unbleached Kraft Paper Segment to Dominate the Market
The unbleached kraft paper category is estimated to have the biggest market share over the forecast period. Unbleached kraft paper is commonly used in the packaging sector because it is stronger, more durable, and less expensive than bleached kraft paper. It is widely used to make supermarket bags, sacks, and corrugated boxes. In 2023, unbleached kraft paper accounted for more than 60% of the worldwide kraft paper market.
Asia-Pacific to Lead the Market
Asia-Pacific is predicted to dominate the kraft paper market, owing to the region's quickly developing packaging industry, greater e-commerce penetration, and growing consumer awareness of environmentally friendly packaging options. China and India are Asia-Pacific's largest kraft paper markets, thanks to their vast populations, growing middle classes, and robust food and beverage industries. In 2023, Asia-Pacific accounted for more than 45% of the global kraft paper market.
The kraft paper market is moderately concentrated, with several global and regional competitors vying for market share. The market's top companies include International Paper, WestRock, Mondi Group, Smurfit Kappa, and Stora Enso. To improve their market position, these businesses invest in capacity growth, mergers and acquisitions, and product development. In 2024, International Paper announced intentions to invest USD 500 million in expanding its kraft paper production capacity in the United States to fulfil rising demand.
The kraft paper market is expected to expand gradually in the coming years, driven by rising demand for environmentally friendly packaging solutions and a flourishing e-commerce industry. The market is predicted to expand fast in the Asia-Pacific region, particularly in China and India. However, market growth may be limited by raw material price volatility and increased competition from alternative packaging materials. To remain competitive, businesses must prioritise product innovation, cost savings, and strategic partnerships.
International Paper
WestRock
Mondi Group
Smurfit Kappa
Stora Enso
Sappi
Canfor Corporation
Svenska Cellulosa Aktiebolaget (SCA)
Nippon Paper Industries
Oji Holdings Corporation
In June 2024, International Paper announced intentions to invest USD 500 million to expand its kraft paper production capacity in the United States.
Smurfit Kappa paid USD 250 million in March 2024 to acquire a well-known kraft paper manufacturer in Brazil, expanding its foothold in the Latin American market.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium) *
5. COMPANY PROFILES
5.1. International Paper
5.2. WestRock
5.3. Mondi Group
5.4. Smurfit Kappa
5.5. Stora Enso
5.6. Sappi
5.7. Canfor Corporation
5.8. Svenska Cellulosa Aktiebolaget (SCA)
5.9. Nippon Paper Industries
5.10. Oji Holdings Corporation (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Growing Demand for Sustainable Packaging Solutions
6.1.2. Increasing Adoption of Kraft Paper in the Food & Beverage Industry
6.1.3. Rise of E-commerce and Its Impact on Packaging Demand
6.2. Market Drivers
6.2.1. Expanding E-commerce Industry Fueling Packaging Demand
6.2.2. Increasing Consumer Awareness About Environmental Issues
6.2.3. Favorable Government Regulations and Policies Supporting Sustainable Packaging
6.3. Market Restraints
6.3.1. Fluctuating Raw Material Prices
6.3.2. Competition from Alternative Packaging Materials
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY GRADE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
7.1. Bleached
7.1.1. Low Bleach
7.1.2. High Bleach
7.2. Unbleached
7.2.1. Rough
7.2.2. Smooth
8. BY PACKAGING FORM (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
8.1. Wraps
8.2. Pouches
8.3. Grocery Bags
8.4. Corrugated Boxes
8.5. Industrial Bags
8.6. Sacks
8.6.1. Open Mouth
8.6.2. Valve
9. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
9.1. Food & Beverages
9.1.1. Bakery & Confectionery
9.1.2. Dairy Products
9.1.3. Meat & Seafood
9.1.4. Others
9.2. Pharmaceuticals
9.3. Building & Construction
9.4. Cosmetics & Personal Care
9.5. Others
10. BY WOOD PULP TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
10.1. Softwood
10.1.1. Pine
10.1.2. Spruce
10.1.3. Fir
10.2. Hardwood
10.2.1. Birch
10.2.2. Eucalyptus
10.2.3. Others
11. BY REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
11.1. North America
11.1.1. United States
11.1.2. Canada
11.2. Europe
11.2.1. Germany
11.2.2. United Kingdom
11.2.3. France
11.2.4. Italy
11.2.5. Spain
11.2.6. Russia
11.2.7. Rest of Europe
11.3. Asia-Pacific
11.3.1. China
11.3.2. India
11.3.3. Japan
11.3.4. South Korea
11.3.5. Australia
11.3.6. Rest of Asia-Pacific
11.4. Latin America
11.4.1. Brazil
11.4.2. Mexico
11.4.3. Argentina
11.4.4. Rest of Latin America
11.5. Middle East & Africa
11.5.1. Saudi Arabia
11.5.2. South Africa
11.5.3. UAE
11.5.4. Rest of Middle East & Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
By Grade:
Bleache
Unbleache
By Packaging Form:
Wraps
Pouches
Grocery Bags
Corrugated Boxes
Industrial Bags
Sack
By Application:
Food & Beverage
Pharmaceuticals
Building & Construction
Cosmetics & Personal Care
Others
By Wood Pulp Type:
Softwoo
Hardwoo
By Region:
North Americ
Europ
Asia-Pacifi
Latin Americ
Middle East & Afric
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