Kraft Paper Market by Grade (Bleached, Natural, Sack), Coating Type (Plain Kraft, Polyethylene-coated Kraft, Waxed Kraft), End-use - Global Forecast 2024-2030

Kraft Paper Market by Grade (Bleached, Natural, Sack), Coating Type (Plain Kraft, Polyethylene-coated Kraft, Waxed Kraft), End-use - Global Forecast 2024-2030

The Kraft Paper Market size was estimated at USD 18.11 billion in 2023 and expected to reach USD 18.95 billion in 2024, at a CAGR 4.76% to reach USD 25.09 billion by 2030.

Kraft paper, a highly resilient and sturdy material, is a form of paper produced from chemical pulp processed in the kraft process. This process involves the conversion of wood into wood pulp comprising almost pure cellulose fibers. The kraft process strengthens the paper by eliminating lignin and hemicellulose, the components of wood that contribute to its rigidity but are not necessary for the paper-making process. Ongoing increasing demand for sustainable packaging solutions from various industries supported by stringent government regulations regarding the use of non-eco-friendly packaging materials owing to the market growth. Additionally, the expansion of e-commerce continues to be a driving force behind the increasing need for effective and strong packaging materials. However, fluxes in the costs of raw materials and competition from plastic packaging materials limit the adoption of kraft paper solutions. Furthermore, the advancements in technology that increase the efficiency of paper production and recycling, along with product innovations that enhance the material's properties, such as barrier coatings that improve water and grease resistance, pose significant opportunities for market growth.

Regional Insights

In the Americas, the United States and Canada constitute significant markets for kraft paper. The United States kraft paper market is mature, with a stable demand aligned with the country's substantial commerce growth, while Canada's focus is on sustainable packaging driven by governmental environmental policies. Consumer needs in the region lean towards high-strength, biodegradable, and lightweight packaging. The EMEA region presents a diverse market for kraft paper due to varied economic, cultural, and environmental conditions. EU countries show a robust demand for premium-quality kraft paper, driven by strong regulatory frameworks emphasizing sustainable packaging. Innovation and eco-design are at the forefront of European consumer needs, with numerous initiatives aimed at promoting recycling and reducing plastic waste. In the Middle East, the expansion of the logistics and construction sector has spurred demand for durable and resistant kraft paper. The APAC region has seen substantial growth in the kraft paper market, driven primarily by countries including China, Japan, and India. Population explosion and rapid urbanization have led to immense growth in retail and e-commerce sectors, both of which heavily rely on kraft paper for packaging. High consumer awareness regarding sustainable packaging solutions has increased the demand for eco-friendly kraft paper.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Kraft Paper Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Rising demand for sustainable packaging solutions from various industries
High applications in food and manufacturing industries and commercial sector
Emerging utilization as sterile packaging solution in medical sector

Market Restraints

Fluctuations in prices of raw material used in kraft paper manufacturing

Market Opportunities

Proliferation of E-commerce sector and online shopping
Government support for sustainable and environmentally friendly packaging options

Market Challenges

Water absorbent nature coupled with available alternatives

Market Segmentation Analysis

Grade: Increasing preference of natural kraft paper due to its eco-friendly nature
End-use: Expansion of food & beverages sector drives the adoption of kraft paper

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Kraft Paper Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Kraft Paper Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Heinzel Completes Acquisition of Steyrermühl Mill from UPM

The Heinzel Group has successfully acquired UPM's Steyrermühl paper and sawmill in Austria. This strategic move solidifies Heinzel's dedication to sustainability and expanding its presence in kraft paper manufacturing. In March 2023, Heinzel initiated the transformation of the mill to produce up to 150,000 tons per year of their starkraft brand's brown and white low-grammage kraft papers, with the project due for completion in the second quarter of 2024.

Nordic Paper to Invest USD 84 Million for Sustainable Kraft Paper Production

Nordic Paper has announced a investment of approximately USD 84 million in its high-quality kraft paper manufacturing Bäckhammar mill to enhance its sustainability performance and competitiveness. Nordic has tapped AFRY for its expertise to bring forth comprehensive project management and multi-disciplinary engineering services to the endeavor, capitalizing on a fruitful pre-study phase partnership.

JMC PAPERS’ New Kraft Paper Mill in Mexico

JMC Paper Tech Private Limited, a manufacturer and supplier within the pulp and paper industry, has announced the commencement of construction for their ambitious kraft paper mill at the Mexico border. This strategic expansion is anticipated to reinforce JMC's international presence and also to invigorate the local economy through job creation and regional development.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Kraft Paper Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Kraft Paper Market, highlighting leading vendors and their innovative profiles. These include Billerud AB, Canadian Kraft Paper Ltd., Canfor Corporation, Empresas CMPC S.A., Gascogne Papier, S.A.S., Heinzel Holding GmbH, Holland Manufacturing Company, International Paper Company, JMC Paper Tech Pvt. Ltd., Klabin S.A., LINTEC Corporation, Mondi PLC, ND Paper LLC, Nippon Paper Industries Co., Ltd., Nordic Paper, Packman Packaging Private Limited, Sappi Papier Holding GmbH, Saras Paper International, Shree Ajit Pulp and Paper Limited, Shree Krishna Paper Mills & Industries Limited, Silverton Pulp & Papers Pvt Ltd., Smurfit Kappa Group PLC, Star Paper Mills Limited by Duncan Goenka Group, Tokushu Tokai Paper Co., Ltd., Vijay Anand Kraft Papers Pvt Ltd, and Westrock Company.

Market Segmentation & Coverage

This research report categorizes the Kraft Paper Market to forecast the revenues and analyze trends in each of the following sub-markets:

Grade
Bleached
Natural
Sack
Wrapping
Coating Type
Plain Kraft
Polyethylene-coated Kraft
Waxed Kraft
End-use
Construction
Cosmetics & Personal Care
Electronics
Food & Beverages
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

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