Kraft Paper Market Trend, Competitive Growth, Overview and Forecast to 2026

The global kraft paper market features an increasingly dynamic landscape. Several players are focused on constantly unveiling new packaging solutions made from the kraft process, finds Transparency Market Research (TMR). These solutions are aimed at meeting the current diversity of functional needs of end-use industries. A few corrugated packaging companies, such as WestRock Company, have galvanized employee resource groups (ERG) to come up with cutting-edge solutions in the global kraft paper market, observes TMR.

Numerous players are also investing in research and development activities to gain a competitive edge over their rivals in the kraft paper market. Analysts also see some well-entrenched players focusing on sustainable packaging solutions made from kraft paper. Names of such companies include Mondi Group, Georgia Pacific LLC, Billerudkorsnas AB, International Paper, Stora Enso, Kapstone Paper & Packaging, and Smurfit Kappa Group Plc.

The global kraft paper market stood at approximately US$14.819 bn in 2017. The global kraft paper market is projected to rise at a CAGR of 3.9% during 2018–2026.

Among the broad grade types, bleached kraft paper will clock a CAGR of 4.2% from 2018 to 2026, and will serve a substantial share of consumer demand. On the other hand, unbleached kraft paper is projected to contribute promising revenues to the global kraft paper market till 2026. The type is extensively used in industrial applications that need the packaging of bulky and heavy goods.

Regionally, Asia Pacific is expected to rise at an attractive growth rate in the global kraft paper market during 2018–2026. The growth is riding high on the back of rapid growth in several end-use industries, notably burgeoning use of packaging made from kraft paper in food and beverages applications.
global kraft paper market

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Changing Functional Criteria in Packaging Applications set Pace for Innovations

Expansion in the global kraft paper market rides on the back of constant developments in the packaging industry. Emerging variety of applications are served by the packaging products made from paper board and sack paper. Manufacturers in the global kraft paper market develop products that can meet the varying needs of flexibility, strength, and barrier protection.

The kraft process of producing paper packaging has generated volley of interests from consumer goods companies, world over. This is propelling the growth of the kraft paper market. End-use industries have found a promising option in kraft paper to meet the criterion of an environmental-friendly packaging. This is attributed in great part to the recyclability and reusability of kraft paper owing to the fact that the pulping process allows easy waste recovery. Thus, there is an extensive demand for sack kraft paper in wrapping, and as pouches, sacks, and open mouth valves.

The rising demand for cost-effective and highly functional packaging for industrial applications is bolstering the growth of the global kraft paper market. They are thus extensively used in heavy duty bags and sacks, especially for storing powdered chemicals.

Increasing Trend of Customizations paves way for Customer-Friendly Solutions

The global kraft paper market received a considerable impetus from the rising demand for specialty packaging made from corrugated paper. The focus of manufacturers on developing customer-friendly solutions also reinforces the trend of customization in the global kraft paper market. In recent years, the demand for kraft paper-based packaging has picked up marked momentum from the stringent regulations on the usage of plastics in packaging. In several developing and developing countries across the globe, polymer-based packaging have attracted criticism.

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Fluctuating availability of raw materials for kraft pulping process in some regions may pose as significant bottlenecks in the global kraft paper market. On the other hand, the continual pursuit of innovations by manufacturers of kraft paper has led them to focus on improving the appearance and the printability of kraft paper, among various key functional attributes. To this end, they are focusing on improving the mechanical and chemical purity of kraft paper. Such developments will open new avenues in the global kraft paper market.

The study presented here is based on a report by Transparency Market Research (TMR) titled “Kraft Paper Market (Product Type – Specialty Kraft Paper and Sack Kraft Paper; Grade Type – Bleached and Unbleached; Finish Type – Glazed and Finished; Basis Weight – <30 gsm, 30-90 gsm, 90-120 gsm, 120-200 gsm, >200 gsm; Application Type – Bags & Pouches, Sacks, Envelopes, Corrugated Sheets, Composite Cans, and Cartons; End Use – Food & Beverages, Pharmaceuticals, Building & Construction, Cosmetics & Personal Care, Electronics & Electricals, and Other Consumer Goods) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2018–2026.”

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