Executive Summary

The global kraft paper market is expected to grow at a CAGR of 3.5% from 2021 to 2028, driven by factors such as the increasing demand for eco-friendly and sustainable packaging materials, the growing e-commerce industry, and the rise in online grocery shopping. However, the market is also facing challenges such as the volatility in raw material prices and the availability of substitutes such as plastic and aluminum foil.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

The global kraft paper market is segmented by type, grade, application, and region. By type, the market is segmented into bleached and unbleached kraft paper. By grade, the market is segmented into sack kraft paper, specialty kraft paper, and others. By application, the market is segmented into packaging and non-packaging.

Packaging is the largest application segment of the kraft paper market, accounting for more than 80% of the market share in 2020. This is attributed to the increasing demand for eco-friendly and sustainable packaging materials, the growth of the e-commerce industry, and the rise in online grocery shopping.

By region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is the largest market for kraft paper, accounting for more than 50% of the market share in 2020. This is attributed to the presence of large manufacturing hubs in countries such as China and India, the growing e-commerce industry, and the increasing demand for eco-friendly packaging materials.

Market Drivers

The global kraft paper market is driven by several factors, including:

1. Increasing demand for eco-friendly and sustainable packaging materials: The growing awareness about the environmental impact of plastic and other non-biodegradable materials has led to an increase in demand for eco-friendly and sustainable packaging materials such as kraft paper.
2. Growing e-commerce industry: The rise of the e-commerce industry has led to an increase in demand for packaging materials such as kraft paper, as more and more products are shipped to consumers.
3. Rise in online grocery shopping: The COVID-19 pandemic has led to a surge in online grocery shopping, which has increased the demand for packaging materials such as kraft paper.
4. Government initiatives to promote eco-friendly packaging materials: Governments around the world are taking steps to promote the use of eco-friendly packaging materials such as kraft paper, which is driving the demand for the product.

Market Restraints

The global kraft paper market is also facing several challenges, including:

1. Volatility in raw material prices: The prices of raw materials used in the production of kraft paper, such as wood pulp, can be volatile, which can affect the profitability of manufacturers.
2. Availability of substitutes: Plastic and aluminum foil are commonly used as substitutes for kraft paper, which can affect the demand for the product.

Market Opportunities

The global kraft paper market presents several opportunities for growth, including:

1. Increasing demand for specialty kraft paper: Specialty kraft paper, which is used for applications such as food packaging and industrial packaging, is expected to witness strong demand in the coming years, driven by factors such as the growth of the food and beverage industry, the increasing focus on product safety and quality, and the rise in industrialization.
2. Growing demand from emerging economies: Emerging economies such as India, China, and Brazil are expected to witness strong demand for kraft paper, driven by factors such as the growing population, increasing urbanization, and rising disposable incomes.
3. Technological advancements in the production of kraft paper: Technological advancements in the production of kraft paper, such as the development of new pulping and bleaching processes, are expected to improve the quality and reduce the cost of production, which is expected to drive the demand for the product.

Market Dynamics

The global kraft paper market is characterized by intense competition, with several large players operating in the market. The market is also characterized by the presence of several small and medium-sized players who compete on the basis of price and quality.

The market is also facing several challenges, including the volatility in raw material prices, the availability of substitutes, and the increasing competition from alternative packaging materials such as bioplastics.

Regional Analysis

Asia Pacific is the largest market for kraft paper, accounting for more than 50% of the market share in 2020. This is attributed to the presence of large manufacturing hubs in countries such as China and India, the growing e-commerce industry, and the increasing demand for eco-friendly packaging materials.

North America and Europe are also significant markets for kraft paper, driven by factors such as the growing demand for eco-friendly and sustainable packaging materials, the increasing focus on product safety and quality, and the rise in industrialization.

Competitive Landscape

Leading Companies in the Kraft Paper Market:

1. Mondi Group
2. WestRock Company
3. International Paper Company
4. Smurfit Kappa Group
5. Stora Enso Oyj
6. Georgia-Pacific LLC
7. Oji Holdings Corporation
8. Nippon Paper Industries Co., Ltd.
9. DS Smith Plc
10. Sappi Limited

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The global kraft paper market is segmented by type, grade, application, and region. By type, the market is segmented into bleached and unbleached kraft paper. By grade, the market is segmented into sack kraft paper, specialty kraft paper, and others. By application, the market is segmented into packaging and non-packaging.

Category-wise Insights

The packaging segment is the largest application segment of the kraft paper market, accounting for more than 80% of the market share in 2020. This is attributed to the increasing demand for eco-friendly and sustainable packaging materials, the growth of the e-commerce industry, and the rise in online grocery shopping.

The sack kraft paper segment is the largest grade segment of the kraft paper market, accounting for more than 50% of the market share in 2020. This is attributed to the increasing demand for industrial packaging materials such as cement bags, animal feed bags, and fertilizer bags.

The bleached kraft paper segment is expected to witness strong growth in the coming years, driven by factors such as the increasing demand for high-quality packaging materials and the growing focus on product safety and quality.

Key Benefits for Industry Participants and Stakeholders

Industry participants and stakeholders can benefit from the global kraft paper market in several ways, including:

1. Strong demand for eco-friendly and sustainable packaging materials: The growing awareness about the environmental impact of plastic and other non-biodegradable materials has led to an increase in demand for eco-friendly and sustainable packaging materials such as kraft paper.
2. Growing e-commerce industry: The rise of the e-commerce industryhas led to an increase in demand for packaging materials such as kraft paper, as more and more products are shipped to consumers.

3. Increasing focus on product safety and quality: The use of kraft paper for food packaging and other sensitive applications is increasing, driven by the need for product safety and quality.
4. Technological advancements in the production of kraft paper: Technological advancements in the production of kraft paper, such as the development of new pulping and bleaching processes, are expected to improve the quality and reduce the cost of production, which is expected to drive the demand for the product.

SWOT Analysis

Strengths:

• High tensile strength and durability
• Eco-friendly and sustainable
• Wide range of applications

Weaknesses:

• Vulnerability to moisture and humidity
• Susceptibility to tear and damage during handling and transportation
• Limited availability of high-quality raw materials

Opportunities:

• Growing demand for specialty kraft paper
• Increasing demand from emerging economies
• Technological advancements in the production of kraft paper

Threats:

• Volatility in raw material prices
• Availability of substitutes such as plastic and aluminum foil
• Increasing competition from alternative packaging materials such as bioplastics

Market Key Trends

1. Increasing demand for eco-friendly and sustainable packaging materials: The growing awareness about the environmental impact of plastic and other non-biodegradable materials has led to an increase in demand for eco-friendly and sustainable packaging materials such as kraft paper.
2. Growing focus on product safety and quality: The use of kraft paper for food packaging and other sensitive applications is increasing, driven by the need for product safety and quality.
3. Rise of the e-commerce industry: The rise of the e-commerce industry has led to an increase in demand for packaging materials such as kraft paper, as more and more products are shipped to consumers.

Covid-19 Impact

The COVID-19 pandemic has had a significant impact on the global kraft paper market, with the market witnessing strong growth in the packaging segment due to the surge in online shopping and the demand for eco-friendly and sustainable packaging materials.

However, the market also faced challenges such as the disruption in supply chains and the volatility in raw material prices. The pandemic has also led to a shift in consumer preferences towards eco-friendly and sustainable packaging materials, which is expected to drive the demand for kraft paper in the coming years.

Key Industry Developments

1. International Paper Company completed the acquisition of the pulp and paperboard mills of Weyerhaeuser Company in 2016, which strengthened its position in the kraft paper market.
2. Mondi plc invested in a new machine at its kraft paper mill in Slovakia in 2020, which is expected to increase the mill’s production capacity.
3. Smurfit Kappa Group announced the acquisition of Cartones del Pacifico, a leading paper-based packaging company in Peru, in 2021, which is expected to strengthen its position in the Latin American market.

Analyst Suggestions

1. Focus on product innovation and development to differentiate from competitors and meet the changing needs of customers.
2. Form strategic partnerships and collaborations to strengthen the distribution network and expand the customer base.
3. Invest in technological advancements in the production of kraft paper to improve quality and reduce costs.

Future Outlook

The global kraft paper market is expected to witness steady growth in the coming years, driven by factors such as the increasing demand for eco-friendly and sustainable packaging materials, the growing e-commerce industry, and the rise in online grocery shopping.

However, the market is also facing challenges such as the volatility in raw material prices and the availability of substitutes such as plastic and aluminum foil. To overcome these challenges, industry participants need to focus on product innovation and development, form strategic partnerships and collaborations, and invest in technological advancements in the production of kraft paper.

The specialty kraft paper segment is expected to witness strong growth in the coming years, driven by the growing demand from the food and beverage industry and the increasing focus on product safety and quality.

Emerging economies such as India, China, and Brazil are expected to witness strong demand for kraft paper, driven by factors such as the growing population, increasing urbanization, and rising disposable incomes.The COVID-19 pandemic has accelerated the shift towards eco-friendly and sustainable packaging materials, which is expected to drive the demand for kraft paper in the coming years.

Overall, the global kraft paper market presents several opportunities for growth, but industry participants need to address the challenges and leverage the key trends to achieve sustainable growth in the long run.

Conclusion

The global kraft paper market is a growing market driven by the increasing demand for eco-friendly and sustainable packaging materials, the growing e-commerce industry, and the rise in online grocery shopping. However, the market is also facing challenges such as the volatility in raw material prices and the availability of substitutes such as plastic and aluminum foil.

To overcome these challenges, industry participants need to focus on product innovation and development, form strategic partnerships and collaborations, and invest in technological advancements in the production of kraft paper. The specialty kraft paper segment is expected to witness strong growth in the coming years, driven by the growing demand from the food and beverage industry and the increasing focus on product safety and quality.

Overall, the global kraft paper market presents several opportunities for growth, but industry participants need to address the challenges and leverage the key trends to achieve sustainable growth in the long run.