Kraft Paper Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Kraft Paper Market is segmented By Grade Type (Wrapping and packaging for the Kraft paper industry, Bleached, Unbleached, Sack Kraft paper), By Application (Pouches, Corrugated boxes, Grocery and industrial bags, Envelopes), By End-user (Cosmetics & Personal Care, Food & Beverages, Building & Construction, Electronics & Electricals, Pharmaceuticals, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Kraft Paper Market Overview

Global Kraft Paper Market to grow at a CAGR of 3.5% during the forecast period 2024- 2031.

Kraft paper is produced by the mechanical pulping process, which is extracted from wood. Thus the paper is produced through an acidic sulfite process to produce high wear resistance and high strength kraft paper used in the packaging industry. The kraft paper is bleached to strengthen its quality, resistance to yellowing, and whiteness. Thus various chemicals are being added while making kraft paper to provide the paper wet strength. Due to environmental concerns, various recyclable and degradable papers are being produced worldwide to fill a variety of applications, including in food packaging, the paper industry, cosmetics, pharmaceuticals, electronics, and the electrical sector. 

Kraft Paper Market Summary

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Kraft Paper Market Dynamics

The market is driven by the rising demand for kraft paper in the packaging and paper industry for food packaging and the education sector due to a surge in the population. According to the Environmental Paper Network Organization in 2014, global paper consumption has been increasing steadily at 400 million tonnes per year. Thus, kraft paper has been increasing demand worldwide for packaging in various industry verticals, including food and beverages, paper, cosmetics, electrical & electronics, and paperboard manufacturing.

There is a rise in the adoption of new innovative technology for the marketing and sale of kraft paper products like pouches, sack bags, and Corrugated boxes may create a huge opportunity for this market during the forecast period. For instance, on 6th Feb 2020, Mondi leading kraft paper manufacturer had launched a mobile application for accessing the sack kraft paper information on the app. Thus the ‘Go2Sack’ app can provide real-time calculations and information for the paper and sack kraft industry.

Kraft Paper Market Segmentation Analysis

The global kraft paper market is segmented based on grade type, application, end-user, and region.

The global kraft paper market is bifurcated into wrapping & packaging, bleached, unbleached, and sack kraft paper in terms of grade type. Among this wrapping & packaging segment has the highest share during the forecast period. This is primarily due to the surge in the global demand for the wrapping and packaging of food, electrical and electronic devices, and many others due to the surge in global spending. As per the Plastic Industry Organization, in around 75 percent of countries, the household net worth was valued at around USD 81.5 trillion worldwide.

Similarly, the bleached, unbleached, and sack kraft segment is also increasing at the fastest pace due to the surge in the adoption of kraft paper by people worldwide for various purposes, including packaging, educational purpose.

Further, the market is also classified based on the application as pouches, corrugated boxes, grocery & industrial bags, and envelopes. Among this grocery & industrial bags segment has the highest market share in 2019 as a surge in the packaging industry's utilization of kraft paper. As per the Brian McCarthy Knowledge Transfer Network Organization, global sales have been approached to around Euro 300 billion.   

Similarly, corrugated boxes and envelopes are also growing faster due to increased global demand for packaging with paper due to a surge in eco-friendly and newly launched packaging. For instance, on 23rd Jan 2020, BillerudKorsnäs Company launched atop kraft liner with a high strength white for the corrugated industry.

Depending on the end-user, the global kraft paper market is classified as paper packaging, cosmetics & personal care, food & beverages, building & construction, electronics & electrical pharmaceutical, etc. Among these, the food & beverages segment has the highest market share in 2019, increasing the packaged food demand with a surge in the global population.

 Similarly, paper packaging, cosmetics & personal care, building & construction, electronics & electrical, and pharmaceutical segments are also growing faster due to a surge in the overall demand for paperboard manufacturing. As per the Farm Energy Extension Organization in the United States, the 250 Companies' paper, pulp, and paperboard manufacturing industry's annual revenue has been registered to around USD 80 billion in 2014.

Kraft Paper Market Geographical Share

By region, the global kraft paper market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, North America dominated the global kraft paper market. It is expected to grow at the highest CAGR during the forecasted period due to the presence of white & kraft paper adoption consumption followed by the European region. According to the Environmental Paper Network Organization in 2018, North America has the highest paper utilization with more than 215 Kg per person.

The Asia Pacific is growing faster, with registering more than half of the world’s consumption of paper has been occurred in China, the USA, and Japan as per the Environmental Paper Network Organization. Furthermore, kraft paper has the highest consumption for the packaging industry. As per the Food and Agriculture Organization (FAO) in 2015, the developing countries in the Asia Pacific and Africa region, the packaging industry was valued at around USD 15.4 billion. Furthermore, as per the Environmental Paper Network Organization, the paper consumption in China, Japan, the USA, and Europe was registered at around 106 million tonnes, 27 million tonnes, 71 million tonnes, and 92 million tonnes.

Kraft Paper Companies and Competitive Analysis

The global Kraft Paper market is highly competitive with the presence of several international and local markets. Grade diversification, revenue generation, and opportunities intensify the market competition. International Paper, Billerudkorsnas AB, Smurfit Kappa Group Plc, Mondi Group, WestRock Company, Stora Enso, Canfor Corporation, Natron Hayat d.o.o Georgia Pacific LLC is the leading market player with a significant market share.

Major players are increasing the production capacity for kraft paper due to a surge in global demand with advanced technology. For instance, on 9th Nov 2018, Canfor completed the acquisition of Elliott Sawmilling Company Inc., which has added over 210 million board feet of production capacity.

Companies are entering into collaborations, acquisitions, mergers, and licensing to increase their market penetration. For instance, on 2nd November 2018, WestRock completed the acquisition of KapStone Paper and Packaging Company for around USD 5 billion.