Global Sack Paper Market (by Grade, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

Global Sack Paper Market (by Grade, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

Market Insight:

Sack paper is a form of packaging made of one or more layers of high-quality kraft paper, often made from virgin fiber. It is a particular grade designed to meet a very specific industry requirement. Sack paper is created from renewable materials such as paper and paperboard, which contribute to its environmental sustainability. As a result, it is environmentally friendly, strong, and preserves the goods in good condition.

The industry would develop in coming years due to an increase in the global biodegradable packaging market, expansion in grocery retail sales, and rising urbanization. The global sack paper market is likely to escalate to US$35.17 billion in 2023, witnessing growth at a CAGR of 4.39%, during the forecasted period. Furthermore, the global sack paper market by demand is expected to reach 4.38 million tons in 2023.

Segment Covered:

• By Grade: In terms of grade, the report provides the bifurcation of the global sack paper market into two segments: Brown sack paper and white sack paper. The brown sack paper segment held largest share in the market. On the other hand, the white sack paper segment is expected to grow at a significant CAGR in the forthcoming years owing to the growing public awareness about the hazards of single-use plastic bags, escalating penetration of ecommerce and growing grocery retail sales.

Geographic Coverage:

The report provides insight into the sack paper market based on the geographical operations, namely North America, Europe, Asia Pacific, Middle East & Africa and Latin America. The countries covered in Asia Pacific region are China, India and Rest of Asia Pacific, while North America includes the US, Mexico, and Canada. Moreover, the UK, Germany, France, Italy and Rest of Europe are included in the Europe region.

Asia Pacific held the maximum share in the market, owing to the rise in the evolution of the packaging industry in this region. Within Europe, Germany is leading the market, due to increasing demand of packaging of consumer goods. Whereas, in the North America region, the U.S. is dominating the region due to the growing demand for sack paper in food and beverages industry.

Top Impacting Factors:

Growth Drivers

• Global Biodegradable Packaging Market
• Growth in Grocery Retail Sales
• Upsurge in Courier Services
• Accelerating Demand for Agricultural Fertilizer

Challenges

• Rising Focus on Bio-plastics
• Stringent Regulations Regarding Deforestation

Trends

• Escalating Penetration of E-commerce
• Rising Demand for Market Pulp
• Growing Use of Multiwall Bags in Various End Industries
• Driver: Accelerating Demand for Agricultural Fertilizer

Various government and non-government entities around the world are creating awareness to highlight the use of fertilizers and their positive impact on agriculture output. Further, the reduction in arable lands across countries is compelling farmers to increase their agricultural output by using fertilizers, which is propelling the demand for fertilizers. This in turn is augmenting the demand for sack paper, used as a great packaging solution for fertilizers due to its durability, which is further providing growth opportunity to the sack paper market globally.

• Challenge: Rising Focus on Bio-plastics

Bio-plastics are plastic materials produced from renewable biomass sources, such as vegetable fats and oils, corn starch, straw, woodchips, etc. Many different bio-plastics are considered flexible for packaging solutions. Biodegradability is a feature often sought when it comes to food packaging products for perishables. In addition, confectionary, such as chocolate and biscuits, or dry food, such as tea or muesli, are now increasingly being packaged with bio-plastics. From a niche product in organic trade to premium packaging for branded goods, bio-plastics are conquering all packaging segments. As a result, bio-plastics could replace other packaging options in near future, which poses as a massive challenge for the growth of the sack paper market globally.

• Trend: Rising Demand for Market Pulp

Market pulp, consisting of crushed wood pulp, is the primary ingredient used to make paper and related products. Market pulp is essentially used for the production of newsprint, cheap forms of paper, and hardboard, that is why its demand is rising rapidly. Increased demand is resulting in increased market pulp production, which is eventually leading to the growing manufacturing of unbleached Kraft. This in turn, would expand the scope of producing high quality sack paper for various end-use industries, which is likely to provide the growth opportunity to its market worldwide.

The COVID-19 Analysis:

The outbreak of the COVID-19 pandemic caused disruption in various sectors, using sack paper for packaging. The lockdown restrictions across most of the countries have forced several non-essential and sack paper using businesses to shutdown temporarily for a particular period of time, which negatively impacted sack paper demand on a global scale. Further, closure of supermarkets and retail stores, along with the shutdown of fast food restaurants, have also negatively impacted the demand for sack paper, due to the weakening of their respective product sales, which resulted in the decline in the sack paper market globally in the year 2020.

Analysis of Key Players:

The global sack paper market is concentrated, as almost half of the production capacity is coming from top 5 players. The key players in the global sack paper market are:

• Canfor Corporation
• WestRock Company
• Nordic Paper
• Mondi plc
• BillerudKorsnäs
• GK Segezha PAO
• Gascogne
• Kastamonu Entegre (Natron-Hayat d.o.o. Maglaj)
• Canadian Kraft Paper Industries Ltd.
• Smurfit Kappa Group plc
• Fujian Qingshan Paper
• International Paper Company
• Georgia-Pacific LLC

Some of the strategies among key players in the market for Sack paper market are mergers, acquisitions, and collaborations. For instance, in 2022, Mondi plc announced that the company has agreed to acquire the Duino mill near Trieste (Italy) from the Burgo Group for a total consideration of US$40 million. Whereas, Nordic Paper announced cooperation with Centre Technique Du Papier. Nordic Paper’s natural greaseproof papers is used in different food applications, for example as baking papers, for baking cups or for food containers.