Kraft Paper Market Research Report By Grade (Unbleached Kraft Paper, Semi-Bleached Kraft Paper, Bleached Kraft Paper), By Grammage (Below 39 gsm, 40-50 gsm, 51-60 gsm, 61-70 gsm, Above 70 gsm), By End-Use Industry (Packaging, Construction, Paper Bags, Others), By Application (Food Packaging, Non-Food Packaging, Building Materials, Others), By Sustainability (Recyclable Kraft Paper, Biodegradable Kraft Paper, Compostable Kraft Paper) and By Regional (North America, Europe, South America, Asia-Pacific, Middle East and Africa) - Forecast to 20

Global Kraft Paper Market Overview

The Kraft Paper Market Size was estimated at 22.69 (USD Billion) in 2022. The Kraft Paper Industry is expected to grow from 23.41(USD Billion) in 2023 to 30.99 (USD Billion) by 2032. The Kraft Paper Market CAGR (growth rate) is expected to be around 3.16% during the forecast period (2024 - 2032).

Key Kraft Paper Market Trends Highlighted

The most prominent trends in the  Kraft Paper Market include growing environmental concerns that are driving demand for eco-friendly packaging solutions, leading to a surge in kraft paper adoption. The advent of the practice of shopping online has increased the demand for more durable and also biodegradable packing which is also enhancing the consumption of kraft paper.

Developments in papermaking processes are improving the strength, durability, and printability of the end product, kraft paper, thus increasing its versatility across several industries.

The increasing healthcare and food industries necessitate the need for clean packaging, increasing the requirements for medical-grade and food-gradeጀkጀraft paper. Emergence of Specialty Kraft Paper Applications: Apart from the packaging use of kraft paper, it is also being used in other unique and novel areas, such as filtration and insulation.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Kraft Paper Market Drivers

E-commerce boom

The e-commerce growth ensures the rising need for packaging materials, including the type of Kraft paper. It is a Sheet material, which is distinguished by specific rigidity and strength. It is used to wrap goods intended for long-distance delivery. There is a presupposition that the growing tendency will remain, and the demand for the materials under consideration will also increase in the future. The  Kraft Paper Market Industry is anticipated to increase from USD 23.41 Billion in 2023 to USD 30.99 Billion by 2032, at a CAGR rate of 3.16% during the period.The growing demand for this material in the e-commerce industry can be regarded as one of the leading factors contributing to the phenomenon.

Growing demand from developing countries

Kraft paper is a relatively inexpensive and versatile material, which makes it popular in developing countries. The growing middle class in these countries is leading to an increased demand for consumer goods, which is, in turn, driving demand for packaging materials. The  Kraft Paper Market Industry is expected to grow significantly in developing countries in the coming years.

Sustainability

Kraft paper is a biodegradable and recyclable material, so it is environmentally friendly. An increasing awareness of environmental problems and their effects has also led to the demand for eco-friendly packaging. Additionally, this type of packaging does not contain any harmful chemicals, making it safe for use in food and beverages.

Kraft Paper Market Segment Insights

Kraft Paper Market Grade Insights  

The  Kraft Paper Market is segmented based on grade into unbleached kraft paper, semi-bleached kraft paper, and bleached kraft paper. Among these, the unbleached kraft paper segment held the largest market share in 2023, and it is expected to continue its dominance throughout the forecast period. The high demand for unbleached kraft paper can be attributed to its cost-effectiveness and wide range of applications in packaging, construction, and other industries. The semi-bleached kraft paper segment is projected to witness significant growth over the forecast period.This growth can be attributed to the increasing demand for semi-bleached kraft paper in the production of corrugated boxes, paper bags, and other packaging materials. The semi-bleached kraft paper offers a balance between strength and brightness, making it suitable for various packaging applications. The bleached kraft paper segment is expected to grow steadily over the forecast period. Bleached kraft paper is primarily used in the production of high-quality printing and writing paper, food packaging, and other specialty applications. The growing demand for bleached kraft paper in the food and beverage industry is expected to drive the growth of this segment.Overall, the Kraft Paper Market is expected to grow at a steady pace over the forecast period. The growth of the market can be attributed to the increasing demand for kraft paper in various industries, such as packaging, construction, and printing. The rising e-commerce industry is also expected to contribute to the growth of the kraft paper market, as kraft paper is widely used in the packaging of products for online delivery.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Kraft Paper Market Grammage Insights  

The Grammage segment of the  Kraft Paper Market is categorized into Below 39 gsm, 40-50 gsm, 51-60 gsm, 61-70 gsm, and Above 70 gsm. Among these, the Below 39 gsm segment held the largest market share of around 36.5% in 2023, owing to its extensive usage in packaging applications such as corrugated boxes and paper bags. The 40-50 gsm segment is projected to witness significant growth over the forecast period, driven by rising demand from the e-commerce and retail sectors. The 51-60 gsm segment is also expected to exhibit steady growth, primarily due to its application in industrial packaging and construction materials.The 61-70 gsm and Above 70 gsm segments are anticipated to experience moderate growth, catering to specialized applications in high-strength packaging and insulation materials. Overall, the Grammage segment offers diverse options for manufacturers, enabling them to cater to specific end-use requirements and market demands.

Kraft Paper Market End-Use Industry Insights  

The end-use industry segment plays a pivotal role in shaping the dynamics of the  Kraft Paper Market. The market segmentation based on end-use industry provides valuable insights into the diverse applications of kraft paper and the growth opportunities within each segment. Packaging accounts for a substantial share of the  Kraft Paper Market revenue and is projected to maintain its dominance in the coming years. The increasing demand for sustainable and eco-friendly packaging solutions has fueled the growth of this segment. Construction is another significant end-use industry for kraft paper.Its exceptional strength and durability make it ideal for various construction applications, including roofing, flooring, and wall coverings. The growing construction industry, particularly in emerging economies, is expected to drive demand for kraft paper in this segment. Paper Bags represent a rapidly expanding segment of the  Kraft Paper Market. The rising environmental consciousness among consumers and the increasing demand for paper-based alternatives to plastic bags have contributed to the growth of this segment. Lastly, Other end-use industries include a diverse range of applications, such as specialty papers, filtration, and abrasive materials.These segments are comparatively smaller but offer significant growth potential due to the unique properties and versatility of kraft paper. By understanding the end-use industry segmentation, market players can tailor their strategies to target specific applications, optimize product development, and capitalize on emerging growth opportunities in the  Kraft Paper Market.

Kraft Paper Market Application Insights  

The  Kraft Paper Market segmentation by Application is divided into Food Packaging, Non-Food Packaging, Building Materials, and Others. The Food Packaging segment held the largest market share in 2023, accounting for over 45% of the  Kraft Paper Market revenue. The growth of this segment can be attributed to the increasing demand for sustainable packaging solutions in the food and beverage industry. The Non-Food Packaging segment is also expected to witness significant growth in the coming years, driven by the rising demand for kraft paper in e-commerce packaging and industrial applications.The Building Materials segment is another important application of kraft paper, with its use in roofing, wall coverings, and insulation. The Others segment includes applications such as printing and writing paper, and specialty papers.

Kraft Paper Market Sustainability Insights  

The sustainability segment of the  Kraft Paper Market is projected to witness significant growth in the coming years, driven by rising environmental concerns and increasing demand for eco-friendly packaging solutions. The  Kraft Paper Market revenue for the sustainability segment is estimated to reach USD 12.5 billion by 2024, growing at a CAGR of 4.5%. The market growth is attributed to the increasing adoption of recyclable, biodegradable, and compostable kraft paper in various industries, including food and beverage, e-commerce, and retail.The recyclable kraft paper segment holds a major share of the sustainability segment, owing to its wide range of applications in packaging and wrapping. The biodegradable kraft paper segment is expected to grow at a faster pace due to its eco-friendly nature and increasing consumer preference for sustainable packaging options. The compostable kraft paper segment is also gaining traction as it offers a more environmentally friendly alternative to traditional packaging materials. Overall, the sustainability segment of the  Kraft Paper Market is poised for robust growth, driven by the growing demand for sustainable packaging solutions and the increasing adoption of eco-friendly practices across various industries.

Kraft Paper Market Regional Insights  

The regional segmentation of the  Kraft Paper Market offers valuable insights into the market's geographical distribution and growth dynamics. North America is anticipated to dominate the market with a significant revenue share in 2023, driven by the region's strong packaging and paper industry. Europe is expected to follow closely, supported by rising demand from the construction and automotive sectors. The APAC region is projected to exhibit substantial growth over the forecast period, owing to increasing industrialization and urbanization.South America and MEA are also expected to contribute to the market's expansion, albeit with smaller revenue shares. These regional insights help businesses tailor their strategies to target specific markets and capitalize on growth opportunities.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Kraft Paper Market Key Players And Competitive Insights

Major players in the Kraft Paper Market industry are continuously striving to develop innovative products that meet the evolving needs of customers. Leading Kraft Paper Market players are focusing on expanding their  footprint by establishing new production facilities and strategic partnerships. The Kraft Paper Market development is driven by the increasing demand for sustainable packaging solutions and the growing e-commerce industry. The Kraft Paper Market Competitive Landscape is characterized by the presence of both  and regional players.One of the leading Kraft Paper Market players, headquartered in the United States, has a strong presence in the North American and European markets. The company is known for its high-quality Kraft paper products and its commitment to sustainability. It operates several manufacturing facilities ly and has a wide distribution network. The company is also actively involved in research and development to improve its product offerings and meet the changing needs of customers.A major competitor in the Kraft Paper Market, based in Europe, is known for its innovative Kraft paper solutions. The company has a strong focus on research and development and has introduced several new products in recent years. It has a wide customer base in Europe and Asia and is expanding its presence in other regions. The company is committed to providing sustainable packaging solutions and has invested in renewable energy sources for its manufacturing operations.

Key Companies in the Kraft Paper Market Include

• Yongfeng Paper


• WestRock


• APP Sinar Mas


• Smurfit Kappa


• Sun Paper


• Lee Man Paper Manufacturing


• Asia Pulp Paper


• Hengan International Group


• Nine Dragons Paper


• Nippon Paper Industries


• Mondi


• Oji Holdings


• Shandong Chenming Paper


• Golden East Paper


• International Paper

Kraft Paper Market Industry Developments

The  Kraft Paper Market is projected to reach USD 30.99 billion by 2032, exhibiting a CAGR of 3.16% during the forecast period. The increasing demand for sustainable packaging solutions is primarily driving the market growth. Kraft paper is gaining popularity as an eco-friendly alternative to plastic packaging due to its biodegradability and recyclability. The growing e-commerce industry and the rising demand for food and beverage packaging are further contributing to the market expansion. Key players in the industry are focusing on expanding their production capacities and investing in research and development to develop innovative products that meet the evolving needs of customers. Recent developments include the launch of new Kraft paper grades with enhanced strength and printability, as well as the development of sustainable Kraft paper-based packaging solutions.

Kraft Paper Market Segmentation Insights

Kraft Paper Market Grade Outlook

• Unbleached Kraft Paper


• Semi-Bleached Kraft Paper


• Bleached Kraft Paper

Kraft Paper Market Grammage Outlook

• Below 39 gsm


• 40-50 gsm


• 51-60 gsm


• 61-70 gsm


• Above 70 gsm

Kraft Paper Market End-Use Industry Outlook

• Packaging


• Construction


• Paper Bags


• Others

Kraft Paper Market Application Outlook

• Food Packaging


• Non-Food Packaging


• Building Materials


• Others

Kraft Paper Market Sustainability Outlook

• Recyclable Kraft Paper


• Biodegradable Kraft Paper


• Compostable Kraft Paper

Kraft Paper Market Regional Outlook

• North America


• Europe


• South America


• Asia-Pacific


• Middle East and Africa