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Kraft Paper Market to Exhibit a Healthy Growth of US$ 18.7 billion by 2025 – Exclusive Report by MarketsandMarkets™

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Kraft Paper Market to Exhibit a Healthy Growth of US$ 18.7 billion by 2025 – Exclusive Report by MarketsandMarkets™

January 20
18:36 2023
Kraft Paper Market to Exhibit a Healthy Growth of US$ 18.7 billion by 2025 - Exclusive Report by MarketsandMarkets™
Browse 147 market data Tables and 45 Figures spread through 182 Pages and in-depth TOC on “Kraft Paper Market”
Kraft Paper Market by Grade (Bleached, Unbleached, Wrapping & Packaging, Sack kraft paper), Packaging form (Wraps, Pouches, Grocery & Industrial bags, Corrugated box, Envelopes), Applications, Region

The global kraft paper market is projected to grow from USD 15.6 billion in 2019 to USD 18.7 billion by 2025, recording a CAGR of 3.0% during the forecast period. The rise in demand for kraft papers from various end-use industries, such as food & beverages, building and construction, cosmetics & personal care automotive, and consumer durables, is driving the growth of the kraft paper market across the globe. In addition, factors such as rapid urbanization across the globe and the recyclability of kraft papers are also projected to contribute to the growth of the kraft paper market during the forecast period.  

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Kraft paper is also known as brown paper or wrapping paper, which is made from various raw materials, including bagasse, groundwood, straw, waste paper, and waste carton boxes in different combinations to produce sustainable, strong, flexible, and lightweight kraft paper. ‘Kraft’ means strength and kraft papers have high strength, which is why it is referred to as kraft papers. It is typically used for wrapping heavy bundles due to its high strength. After corrugation, it is used in many types of packing and accepted as an important packaging material in many end-use industries. Quality kraft papers are made by the ‘Kraft’ chemical process, also known as sulfate process. They are normally sized with sizing agents & additives and not bleached. Hence, they retain a natural brown color. Kraft papers are primarily used in wrapping paper bags and linter corrugated sheets. 

Kraft paper comes in various grades, such as bleached and unbleached, are considered for the scope of the study. On the basis of packaging form, the market is segmented into wraps, pouches, envelops, grocery bags, industrial bags, and corrugated boxes. Kraft paper is used in various applications, including food packaging, healthcare products, agriculture products, construction material packaging, chemicals, and electronics, consumer goods, and automotive. 

Based on packaging form, the corrugated boxes segment in the kraft paper market is projected to grow at the highest CAGR during the forecast period, in terms of value, followed by the grocery bags and industrial bags segments. The growth of the corrugated boxes segment in the market is attributed to the increasing use of recyclable packaging products. Due to its low cost, versatility, and easy availability, plastic packaging is used in numerous industries such as food & beverages, pharmaceuticals, and building and construction. Durability, safety, hygiene, and lightweight features of plastic packages have further contributed to its popularity among consumers. 

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Based on grade, the unbleached segment is projected to dominate the kraft paper market from 2019 to 2025, in terms of value and volume. Unbleached kraft paper is made from the pulping process using the wood pulp, which gives it a natural brown color. Unlike bleached kraft paper, this kraft paper does not undergo any chemical processes and offers sustainable and recyclable properties. The unbleached kraft paper is available in three grades, including machine glazed, smooth finished, and machine finished. It is widely used by various end-user industries, such as healthcare, laminates & coating, and retail bags & carriers, as it is cost-effective and a sustainable solution for packaging. 

The kraft paper market is studied for five regions, namely, North America, Asia Pacific, Europe, the Middle East & Africa, and South America. In terms of value, the Asia Pacific region is projected to lead the kraft paper market during the forecast period. The market in the Asia Pacific region is projected to grow at the highest CAGR from 2019 to 2025, in terms of value. The increasing demand for sustainable packaging solutions and a strong industrial base in the Asia Pacific region are factors that are projected to drive the growth of the kraft paper market in the region. Key factors such as ongoing industrialization, rising disposable income of the middle-class population, preference for multi-use packaging solutions, and low packaging waste are factors that are projected to drive the growth of the Asia Pacific kraft paper market during the forecast period. 

Mondi  (Austria), Segezha group (Russia), Klabin(Brazil), Billerudkorsnas (Sweden), Stora Enso (Finland), Daio Paper constrution (Japan), Nordic Paper (Sweden), Glatfelter(US), and Gascogne Papier (Austria) are the key players operating in the kraft paper market.

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