Kraft Paper Market - Forecasts from 2024 to 2029

Kraft Paper Market - Forecasts from 2024 to 2029

The global kraft paper market is expected to grow at a CAGR of 3.85% over the period to reach a market size of US$3.044 billion by 2029 from US$2.337 billion in 2022.

Kraft paper is cardboard or paper produced from pulp. Kraft paper is suitable for packaging products that demand strength and durability. Kraft paper is highly elastic and tear-resistant. The growing environmental concerns coupled with increasing preference for biodegradable packaging are expected to drive the market for Kraft paper. Kraft papers are recyclable and can be used again which is further expected to provide growth opportunities in the market.

Furthermore, Kraft paper is used in the production of corrugated and cardboard boxes which are used in the packaging industry, this is further anticipated to boost the Kraft paper market during the forecast period.

MARKET TRENDS:

Numerous factors are driving the demand for kraft paper. Kraft paper use has been fueled by growing environmental consciousness and governmental obligations favoring sustainable packaging options. Kraft paper and other robust, environmentally friendly packing materials are essential given the exponential expansion of e-commerce. Its adaptability finds uses in printing, labeling, and industrial sectors in addition to packaging. Continuous advances in manufacturing techniques push market expansion by improving product quality and cost-effectiveness.

Furthermore, the need for kraft paper as a renewable choice is increased by the industry-wide preference for bio-based products. Its strength, resilience, and capacity for recycling add to its allure in several industries, including personal care, food and beverage, and pharmaceuticals. When taken as a whole, these factors are propelling the kraft paper market's notable expansion and establishing it as a sustainable answer to a range of packaging requirements.

MARKET DRIVERS:

Growing preference for eco-friendly packaging is expected to influence the kraft paper market growth.

The market's trajectory for kraft paper is anticipated to be significantly impacted by consumers' increasing desire for environmentally friendly packaging. Packaging solutions that are recyclable, biodegradable, and made of renewable materials are becoming more and more popular as customers grow more environmentally concerned. Kraft paper is a popular option in this changing environment because of its strength, resilience, and environmental friendliness.

Owing to increased awareness of the negative effects of plastic pollution and the significance of lowering carbon footprints, companies in a variety of sectors are using kraft paper packaging as a sustainable substitute. In industries like food and beverage, cosmetics, and e-commerce, where businesses are trying to match their packaging methods with environmentally conscious customer preferences, this trend is most noticeable.
Rising demand for cardboard and corrugated boxes is predicted to positively impact the kraft paper market growth.

The rise of e-commerce is expected to drive up demand for cardboard and corrugated boxes, which in turn will promote the growth of the kraft paper market. Kraft paper is a great material to use in the production of various packaging solutions because of its strength, durability, and environmental benefits. The recyclability and biodegradability of kraft paper are gaining popularity as businesses place a higher priority on sustainability. Strong packaging is even more important now that online shopping is so popular to guarantee the safe transit of products. Kraft paper is a popular option in a variety of industries, such as retail, food & beverage, and logistics, due to its adaptability and versatility.

To efficiently satisfy the increased demand, manufacturers are expected to spend on increasing their production capabilities and applying technical developments. The use of packaging solutions based on kraft paper is further encouraged by regulatory actions aimed at decreasing plastic usage. All things considered, the market for kraft paper is anticipated to rise steadily over the next several years due to the anticipated increase in demand for cardboard and corrugated boxes.

MARKET RESTRAINTS:

Government rules and regulations regarding deforestation might restrain the kraft paper market growth.

The kraft paper market might be significantly hampered by government laws and regulations about deforestation. Since wood pulp is the main source of kraft paper, strict environmental regulations designed to protect forests and reduce deforestation may affect the supply and price of raw materials needed to produce kraft paper. Laws about forest protection, sustainable forestry methods, and prohibitions on logging in ecologically sensitive areas are a few examples of regulatory initiatives. Kraft paper firms may face increased operational challenges and expenses as a result of complying with these laws, which may need significant expenditures in sustainable forest management methods and certifications.

Furthermore, the business may be further impacted by increased scrutiny and requests for stronger restrictions brought about by public pressure and environmental activism. To address these issues and stay in line with changing customer demands and regulatory requirements, kraft paper producers may need to look into alternate sources of fiber, make investments in recycling infrastructure, and implement more environmentally friendly manufacturing techniques.

The Asia Pacific region is anticipated to hold a significant share of the market.

The kraft paper market in Asia Pacific is expanding rapidly due to several important factors. The need for packaging materials like kraft paper is being driven by the fast urbanization and population increase occurring in nations like China, India, and Southeast Asia. These factors are also pushing up consumer goods demand. Also, the growing e-commerce industry in the region especially in China and India is driving up demand for durable and environmentally friendly packaging options, which in turn is fueling the use of kraft paper. Furthermore, the transition to environmentally friendly packaging materials like kraft paper is happening faster because of strict rules encouraging sustainable practices and growing environmental awareness.

In addition, the region's continuous industrialization and infrastructure development initiatives are increasing demand for kraft paper among other businesses, including the automotive and construction sectors. The quality and efficiency of kraft paper production are also being improved by investments in technology and manufacturing techniques, which are propelling market expansion in the Asia Pacific area.

Key Developments:

In December 2023, a leading supplier of environmentally friendly packaging and paper worldwide, Mondi raised its capacity and broadened its selection of saturating kraft paper to better serve producers of technical films, furniture, worktops, and interior and exterior construction panels.

Segmentation:

By Type
Natural Kraft Paper
Bleached Kraft Paper
Printed Kraft Paper
Recycled Kraft Paper
Others
By Application
Corrugated Boxes
Shopping Bags
Cartons
Envelopes
Others
By End-User
Food & Beverage
Electronics
Pharmaceuticals
Cosmetics
Construction
Others
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Taiwan
Thailand
Indonesia
Others