Market Drivers

Escalating global demand for sustainable and eco-friendly packaging solutions

It is the increased global customer demand of environmentally sustainable eco-friendly packaging solutions, which is the most prominent factor. The transformation of the old consumable, discarded plastic, disposable plastic bags to the recycled, disintegrate and renewable resource materials has seen the consumers and businesses jump off the old environmentally unfriendly environment related bags onto the new recyclable, disintegrable and renewable substances. Because Kraft paper encompasses all the natural and ecologically sustainable features, they are correlated with such values and, therefore, it is among the main alternatives to various packaging requirements. There is a general push to eliminate the use of single-use plastics and other non-biodegradable resources since the population has increasingly realised the toll they are taking on the environment, such as pollution by plastic and climatic warming. Among the leaders in this transition includes kraft paper that is fully recyclable, biodegradable and renewable source (a wood pulp). The trend ever towards an environmentally convenient packaging is driving every industry to re-evaluate its materials hence providing the extra comfort to using kraft paper as material of choice. Moreover, the rustic nature look behind the unbleached kraft paper is the growing trend as a mode of branding, particularly with certain firms, which may have a stake in the business regarding cosmetics, personal care, and luxury goods companies interested in developing a clean and authentic brand story. The combination of these elements is, therefore, resulting in a strong and long-term sustained growth path of the global kraft paper industry because of the consumer pressure, the regulatory support and the aesthetics.

Market Restraints

The performance limitations of kraft paper compared to some of its plastic counterparts

The execution shortcomings of kraft paper as compared to its plastic posterior. The biggest problem is that Kraft paper is inherently susceptible to moisture and other effects of the surrounding atmosphere. Uncoated Kraft paper can easily absorb the liquids, become weak, and tear apart unlike plastic which is naturally waterproof and will not break after exposure to grease and oils. It is therefore inappropriate in packaging wet, frozen and greasy products and also under applications where the product has to be sheltered off a wet or rainy weather during transportation or storage. As an example, a Kraft paper bag with carton of milk may break in case there is a leakage that is highly unlikely with a plastic bag. The strengths of the perceptions that the Kraft papers are weak and this is even worse in unfortunate circumstances would mean that the businesses may remain committed to the use of plastic packaging in business as long as they value product integrity and the safety of their products as their first priorities. Thus, the intrinsic material weaknesses of kraft paper pose a real barrier to a broad usage of the product in any packaging industry limiting the market growth of the product.

By Grade

In 2024, Unbleached Grade captured 43.00% of market inherent strength, cost-effectiveness, and environmentally friendly attributes.

What is prevailing presently is the unbleached grade section. This segment has the biggest market share as it possesses strength, economical value and environmental friendliness as its weakness. The unbleached Kraft papers do not bleach the wood pulp fibres hence very strong and can be used in a certain way such as producing multi-wall sacks and heavy duty packing since the fibres are not bleached enough and can resist a tear. The substrate that would allow unbleached Kraft paper to be used in various coatings, laminations and a host of packaging requirements thus enhances the potential market. It is also becoming popular in its natural appearance in particular applications of transparent branding and packaging. Its market is also boosted by the fact that many organizations are demanding sustainable and biodegradable packaging solutions in the marketplace around various industries which increases its use and hence the market.

By Packaging Form

In 2024, Growing Investment in Corrugated boxes driven by several key business factors that underscore its value proposition and widespread application across various industries

Its superb qualities of dominance are mainly through its superior qualities of strength, durability, and versatility. The corrugated boxes are made of kraft paper which makes them better in providing protection to goods in the shipping handling process. It is also needed in the successful e-commerce business that relies heavily on the existence of a usable packaging system to ensure that customers will receive the product in intact packaging. The hierarchical nature of the corrugated cardboard is a great cushion and as a result promotes the use of corrugated cardboard in all their products including electronics and consumer products to even Food and Beverages. The angled boxes can be retrieved together with the fact that they are recyclable and since they are a raw material (wood pulp), they are renewable too, which suits the move towards conserving the environment as currently being done by the corporate, and the consumer desire to be environmentally responsible. This makes them qualify to be an alternative that is popular compared with single use plastics. They can be recycled in a short span of time and can be used repeatedly helping businesses to make sure that they had less effect on the environment and can even attract socially conscious customers.

By Geography

Asia Pacific dominates the Kraft Paper Market with estimated market value of USD 6,749.22 Million in 2024, and is expected to reach USD 8,861.01 Million in 2032.

The world kraft paper market has the largest market in the Asia-Pacific. It has the largest market share and will also be the fastest growing region within the following years. This dominance is boosted by an optimal form of a soaring rate of economical growth, a sharp increase in urbanization and a third positive influence namely a soaring rate of e-commerce. Asia-Pacific comprises one of the most populated regions of the world and with huge changes occurring in the countries like China and India with regard to industrialization and urbanization. This presents an enormous market demand of packaging materials especially in consumer goods, food and beverages, and building materials. The packaging industry particularly the use of kraft paper is growing with the spread of these industries. The kraft paper market has experienced an explosive growth in the countries of Asia which have been major potential catalysts of the market. Online shopping requires a tremendous amount of packaging to be used in shipping and delivery and kraft paper with its ability to be strong, light weight, and customized makes it perfect material.  In addition, increasing awareness of environmental issues and campaigns started by governments to deter the usage of plastics are contributing to an increase in business and consumer goods biodegradable packaging, which continues to stimulate demand of kraft paper.

List Of Top Players

• Mondi
• Segezha Group
• Klabin
• Billerudkorsnas
• Stora Enso
• Daio Paper Construction
• Nordic Paper
• Glatfelter 
• Gascogne Papier
• Smurfit Kappa Group Plc
• Others

Key Industry Developments

• In October 2024, Lintec has added another water repellent papers (unbleached and uncoloured variant of kraft paper) to the line up of water repellent papers that are repellent to the permeation of rain water. The most suitable is to transform it into carrier bags and envelopes and Lintec brought up the idea of utilizing it primarily in the logistics industry. Lintec commenced the Unbleached Kraft Paper : Natural Pulp Color and High water repellent.
• In December 2023, Mondi, one of the world leaders in sustainable packaging and paper, extended its line of saturating kraft paper increasing its capacity and ability to advise and supply manufacturers of internal and external building, picture, and furniture and technical films in addition and onto the further enhancement of its service to the clients.
• Golden Paper, a leading innovator in high quality sustainable packaging products, is proud of its launch of the latest in eco-friendly eco-friendly kraft paper products. The new product line is manufactured using 100 percent recycled material that is manufactured using types of responsible manufacture; the need to have more options in terms of recycled packaging products and sustainability grows and by offering a better performer product with more sustainability credentials to business, the new product line surpasses current efforts. 

Table Of Contents

1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
   1. MARKET INTRODUCTION
   2. MARKET DRIVERS
   3. MARKET RESTRAINTS
   4. FUTURE OPPORTUNITIES
   5. MARKET TRENDS
   6. PORTER’S FIVE FORCES ANALYSIS
      1. Threat of New Entrants
      2. Threat of Substitutes
      3. Bargaining Power of Suppliers
      4. Bargaining Power of Buyers
      5. Intensity of Competitive Rivalry
   7. VALUE CHAIN & PROFIT MARGIN ANALYSIS
   8. PRICING ANALYSIS
   9. REGULATORY FRAMEWORK
   10. COVID-19 IMPACT ANALYSIS
   11. PRODUCT LIFE CYCLE ANALYSIS
   12. PESTLE ANALYSIS
   13. MICRO ECONOMIC ANALYSIS
   14. Market Premium Insights (Enterprise license)
       • Consumer Analysis (List of Potential Consumers)
       • Top 10 Country-Wise Import & Export Data (If Applicable)
       • Regulatory Bodies & Authorization Across the Globe
       • Key Conferences & Events: Next Two Years
       • Top Patents for The Market
5. GLOBAL KRAFT PAPER MARKET REVENUE & SHARE ANALYSIS (2023-2032)
   1. By Grade
      1. Unbleached
      2. Bleached
      3. Wrapping & Packaging
      4. Sack Kraft Paper
      5. Others (Vegetable parchment, greaseproof, and glassine)
   2. By Packaging Form 
      1. Corrugated boxes
      2. Grocery bags
      3. Industrial bags
      4. Wraps
      5. Pouches
      6. Envelopes
   3. By Application 
      1. Foods & Beverage
      2. Pharmaceuticals
      3. Building and Construction
      4. Cosmetics & Personal Care
6. GLOBAL KRAFT PAPER MARKET REVENUE & SHARE ANALYSIS (2023-2032), BY REGION
   1. NORTH AMERICA 
      1. U.S.
      2. Canada
      3. Mexico
   2. EUROPE
      1. Germany
      2. UK
      3. France
      4. Italy
      5. Spain
      6. Rest of Europe
   3. ASIA PACIFIC 
      1. China
      2. Japan
      3. India
      4. South Korea
      5. Rest of APAC
   4. MIDDLE EAST & AFRICA
      1. GCC
      2. South Africa
      3. Rest of MEA
   5. LATIN AMERICA
      1. Brazil
      2. Argentina
      3. Rest of LATAM

For all the segments and sub-segments, Qualitative as well as Quantitative data will be provided. In Quantitative we provide the historic (2023), base (2024), estimated (2025) and forecasted (2025-2032) market value in USD Million, Share in % with a CAGR (2025-2032). This data would be provided on a regional as well as country level.

1. COMPETITIVE LANDSCAPE
   1. OVERVIEW
   2. KEY PLAYERS MARKET SHARE ANALYSIS
   3. LIST OF KEY STRATEGIC DEVELOPMENTS 
2. COMPANY PROFILES
   1. Mondi
      1. Company Overview
      2. Company Financial Insights (Total Revenue, Revenue By Business Segments, and By Region)
      3. Product Benchmarking
      4. Key Strategic Developments (Merges & Acquisitions, Partnership /Agreements/Joint Venture, Expansion, New Product Launches, and other developments)
      5. Business Strategic Overview
      6. SWOT Analysis
   2. Segezha Group
   3. Klabin
   4. Billerudkorsnas
   5. Stora Enso
   6. Daio Paper Construction
   7. Nordic Paper
   8. Glatfelter 
   9. Gascogne Papier
   10. Smurfit Kappa Group Plc
3. LIST OF SOURCES

DISCLAIMER