Kraft Paper Market size was valued at US$ 18.88 Bn. in 2023, and it is expected to grow at CAGR of 3.4 % during the forecast period. It is expected to reach US$ 23.85 Bn. By 2030
Kraft Paper Market Overview:
Kraft paper is paper or corrugated board with high tear-resistance and strength. Used primarily in the packaging industry, it adds chemicals to wood pulp and recycled materials to increase fiber strength, thickness, and durability while maintaining lightweight. Chemicals are typically added to kraft paper to increase thickness, strength, and durability while maintaining lightweight. Color Craft, White or Bleach Craft, Black Craft, White or Bleach Craft, Natural Recycled Craft, and Print Craft are some of the most widely used forms of craft.
Impact of COVID 19:
The COVID 19 epidemic has hampered the production, supply, and demand of kraft paper and had a negative impact on the market. As the COVID 19 pandemic spread around the world, governments in many countries have imposed a strict curfew to prevent people from going out. Lockdown closed manufacturing plants, lacked staff, and affected kraft paper production.
Kraft paper sales declined due to supply chain disruptions and the closure of specialty stores and other retailers. The closure of hotels and restaurants has reduced the demand for kraft paper for the food packaging business. The blockage restrictions have been gradually lifted, but the restaurant is gradually reopening for takeaway only. This can help increase kraft paper growth in the short term.
Kraft Paper Market Dynamics:
The growing popularity of fast-food restaurants for young people in urban areas and government regulations imposing a ban on plastics has increased the production of bag wrapping paper. Wheat flour, sugar, starch, food additives, processed and dried fruits, eggs, milk, and other foods are typically shipped using kraft paper. Bag fuel for food packaging is usually used in the form of an open sack or valve sack and consists of 2-3 layers of paper, often a polyethylene (PE) -free film tube with liner and/or coated paper. These factors are driving the growth of kraft paper in the market.
Regulatory authorities are paying more attention to the introduction of paper recycling practices. And due to the packaging properties of various foods such as sandwiches, pizzas, and burgers, the industry has a significant increase in demand for kraft paper from the food and beverage industry. Also, the shift in consumer focus to improving the appearance of end-user products. These factors are driving the demand for the product in the market.
The surge in the trend towards modern packaging with visual appeal, brand identity, and long shelf life has increased. The main advantage of paper is that it can be blended with a variety of fibers. This improves the characteristics of the paper and expands the range of applications. These kraft papers are environmentally friendly, have improved packaging properties, are easy to stack and recycle. These factors are expected to drive the growth of the kraft paper market through the forecast period.
Kraft paper is available in a variety of attributes, including sackcloth kraft paper and fame kraft paper. Machine-coated paper is used to bundle consumer items that are in high demand from buyers. Machine-coated papers range from consumer products to fat-free papers, cheap grocery stores, margarine-holding papers, and other dairy bundles. Forte kraft paper is made up of two types of paper. Machine-coated kraft paper and machine-finished kraft paper. Interest in customization is increasing due to the rising purchasing power of buyers and the development of specialized properties. These factors are driving the market growth and are expected to drive through the forecast period.
Market trends and challenges are analyzed and compiled in the report. The data of 2023 is considered for a better understanding of the client. Moreover, Analytics of the market is based on real numbers of past years from 2018 to 2023 with market forecast until 2030.
Kraft Paper Market Segment Analysis:
By Grade, the Unbleached segment dominated the market with a 32 % share in 2023. It is a brown unglazed grade and extremely durable. Mostly used in the production of medium and large-size sacks. It is also utilized as a base for a variety of coatings, laminations, and packaging. These factors are driving the segment growth in the kraft paper market.
The bleached segment is expected to grow at a CAGR of 4 % through the forecast period. It undergoes a treatment using bleach and other chemicals to whiten and purify the natural Kraft pulp. Through this process, the paper becomes stronger than traditional brown Kraft paper. Due to this added strength, white-bleached Kraft paper is used heavily in wrapping and packaging. Eco-friendly and 100% recyclable, Tasteless and non-toxic, Pollution-free, etc. are the factors expected to drive the segment growth through the forecast period.
By Packaging Form, Corrugated boxes dominated the market with a 36.4 % share in 2023. They not only protect shipping items from harm but also make them easier to handle. This segment reduces packing waste because they are reusable and recyclable. Food and beverage, building and construction, clothes, freight forwarding, logistics, cosmetics and personal care, and medicines have a huge demand for corrugated boxes. These factors are driving the growth of the segment in the market.
Industrial Bags are expected to grow at a CAGR of 2.9 % through the forecast period. The surge in demand for industrial bags from the construction industry especially in developing countries has increased the demand for an industrial sack. These factors are expected to drive the demand for industrial sacks and drive the market growth through the forecast period.
By Application, the Foods and Beverage segment dominated the market with a 35.6 % share in 2023. The rise in the use of kraft paper for bakery products and ingredients, cheese and dairy products, crisps, snacks and nuts, confectionery, coffee, dehydrated and dried food, fresh and chilled food, fresh fruit, and vegetables, frozen food, and ice cream. These factors are driving the growth of the segment in the market.
The building and Construction segment is expected to grow at a CAGR of 5.4 % through the forecast period. Advantages of kraft packaging include resistance to temperature, water, and chemicals. These packages are lightweight and can be molded in various shapes and rising in the construction industry. These factors are expected to drive the segment growth through the forecast period.
Regional Insights:
Asia Pacific region dominated the market with a 40 % share in 2023. Increasing use in the manufacturing of packages for cost savings, sustainability, and packaged product safety, and used in densely populated countries such as India and China. Increasing use of kraft paper in the consumer goods, food, and beverage, construction, and healthcare industries in this region. Also, favorable government initiatives and increased adoption of clean packaged products. These factors are driving the growth of the kraft paper market in this region.
The objective of the report is to present a comprehensive analysis of the Kraft Paper market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.
PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.
The report also helps in understanding the Kraft Paper market dynamics, structure by analyzing the market segments and project the Kraft Paper market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Kraft Paper market make the report investor’s guide.
News Courtesy: MMR