Market Overview
The global Kraft Paper Market size was valued at USD 18.6 Billion in 2024 and is projected to reach USD 28.8 Billion by 2033, growing at a CAGR of 5.65% during the forecast period 2025-2033. Growth is propelled by heightened demand for eco-friendly packaging, the expanding e-commerce sector, rising urbanization and lifestyle changes, and advances in production technologies improving product quality and cost-effectiveness.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Kraft Paper Market Key Takeaways
- Current Market Size: USD 18.6 Billion in 2024
- CAGR: 5.65% (2025-2033)
- Forecast Period: 2025-2033
- Asia-Pacific dominates with over 40.0% market share in 2024 due to strong manufacturing, industrialization, urbanization, and e-commerce growth.
- The US kraft paper market accounts for over 72.80% of North America’s market share, driven by e-commerce expansion and sustainable packaging demand.
- Demand is supported by sectors such as food and beverages, retail, and logistics focusing on eco-conscious packaging.
- Technological advancements have enhanced kraft paper quality and cost competitiveness.
- Growing preference for sustainable, lightweight, and aesthetic packaging is boosting global demand.
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Market Growth Factors
The growing demand for sustainable packaging solutions is a key factor driving the kraft paper market. With global waste generation projected to hit a staggering 3.4 billion tonnes over the next 30 years, and 242 million tonnes of plastic waste produced, the urgency for biodegradable and recyclable options like kraft paper has never been greater. Its ability to break down naturally and be reused makes kraft paper a favorite among food, beverage, and retail industries that are keen on minimizing their environmental footprint.
The booming e-commerce sector is also a significant contributor to this growth. The global e-commerce market is expanding at an impressive annual rate of 27.16%, with projections suggesting it could reach USD 183.8 trillion by 2032. Kraft paper’s durability and strength make it an ideal choice for wrapping and cushioning materials in shipping, perfectly balancing the need for protection with sustainability. This makes kraft paper a smart option for e-commerce businesses that are responding to consumer demands for eco-friendly materials.
Additionally, increased urbanization and shifting lifestyles are fueling market expansion. With 56% of the world’s population currently living in cities and that number expected to more than double by 2050, the demand for packaged goods in food, retail, and electronics is on the rise. Consumers are increasingly leaning towards convenience foods, online shopping, and making environmentally conscious purchasing choices, which further drives demand. Kraft paper’s strength, recyclability, and sustainability effectively meet these practical and eco-friendly packaging needs.
Market Segmentation
By Product Type:
- Unbleached: Largest segment in 2024 with around 32.0% market share. Known for exceptional strength and tear resistance, it is widely used for packaging and shipping.
- Bleached
- Wrapping and Packaging
- Sack Kraft Paper
- Others
By Packaging:
- Corrugated Box: Leading segment with about 36.5% market share in 2024. Favored for protecting a diverse product range and customizable for branding.
- Grocery Bags
- Industrial Bags
- Wraps
- Pouches
- Others
By Application:
- Foods and Beverage: Largest application segment with approximately 27.8% share in 2024. Valued for grease, moisture, and oil resistance, suitable for baked goods, snacks, and dry foods.
- Pharmaceuticals
- Building and Construction
- Cosmetic and Personal Care
- Others
By Distribution Channel:
- Offline: Includes brick-and-mortar stores, specialty shops, wholesalers, and distributors offering tailored solutions.
- Online: E-commerce platforms and marketplaces that provide convenience, variety, and accessibility.
Regional Insights
Asia-Pacific dominates the kraft paper market with over 40.0% share in 2024, driven by robust manufacturing, urbanization, and expanding sectors such as e-commerce and retail. The region’s growth is supported by a rising middle class, increasing demand for efficient packaging solutions, and strong sustainability efforts aimed at reducing plastic waste.
Recent Developments & News
In October 2024, Lintec launched an unbleached and uncolored kraft paper with water-repellent properties targeted at logistics applications like carrier bags and envelopes. Sales began on October 25th. In February 2024, Fourniture Industrie Service (FIS) developed a recycled kraft paper bubble wrap alternative to address demand for sustainable packaging without compromising product protection, aligning with industry sustainability initiatives.
Key Players
- Ahlstrom-Munksjö Oyj
- BillerudKorsnäs AB
- Canadian Kraft Paper Ltd.
- Canfor Corporation
- CMPC
- Gascogne Papier
- International Paper Company
- Mondi PLC
- SCG International Corporation Co. Ltd.
- Segezha-Group
- Smurfit Kappa Group plc
- Stora Enso Oyj
- Tokushu Tokai Paper Co. Ltd.
- WestRock Company
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