Download Sample
Add to CartGlobal Kraft Paper Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Packing Type;
Valve Sacks and Open Mouth SacksBy Grade;
Kraft, Semi-Extensible and ExtensibleBy Product;
Specialty Kraft Paper, and Sack Kraft PaperBy End-User;
Food & Beverages, Pharmaceutical, Building & Construction, Cosmetic & Personal Care, Electronics & Electricals, and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Kraft Paper Market Overview
Kraft Paper Market (USD Million)
Kraft Paper Market was valued at USD 15,095.26 million in the year 2024. The size of this market is expected to increase to USD 18,819.08 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 3.2%.
Global Kraft Paper Market Growth, Share, Size, Trends and Forecast
*Market size in USD million
CAGR 3.2 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 3.2 % |
| Market Size (2024) | USD 15,095.26 Million |
| Market Size (2031) | USD 18,819.08 Million |
| Market Concentration | High |
| Report Pages | 382 |
Major Players
- Mondi PLC
- International Paper Company
- KapStone Paper and Packaging Corporation
- Canfor Corporation
- Gascogne Group
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Global Kraft Paper Market
Fragmented - Highly competitive market without dominant players
The Kraft paper market is undergoing a significant expansion, marked by a 30% growth in the use of sustainable packaging materials. The rising focus on environmentally conscious solutions has spurred demand, with corrugated boxes accounting for 40% of total usage. The increasing emphasis on biodegradable materials has strengthened the market’s trajectory.
Material Characteristics
Recognized for its high strength and durability, Kraft paper has demonstrated a 25% improvement in tear resistance over traditional paper products. The natural and chemical-free manufacturing process has led to a 20% reduction in energy use, supporting both industrial and consumer packaging applications.
Demand Drivers
The rising trend of e-commerce packaging has driven a 35% surge in demand for Kraft paper. The food industry’s transition to paper-based packaging solutions has increased by 28%, propelled by the push to reduce plastic use.
Outlook and Innovations
The Kraft paper sector is advancing with 20% more lightweight solutions and 30% improved moisture resistance through advanced coatings. These innovations are expanding the material’s applications, reinforcing its position as a sustainable leader in the packaging industry.
Kraft Paper Market Recent Developments
-
In October 2022, Mondi announced the approval of a EUR 400 million (~USD 390 million) investment in a new paper machine at its flagship Št?tímill in the Czech Republic. The investment will help Mondi fulfill the rising demand for paper-based flexible packaging, driven by an increase in e-commerce and environmentally friendly packaging. It will also help expand Mondi's selection of cutting-edge, environmentally friendly packaging and paper solutions. Due to the advantages of a vertically integrated value chain, the new machine will manufacture about 210,000 tonnes of sack kraft paper annually to serve Mondi's Paper Bags business.
-
In July 2022, BillerudKorsnäs launched sack paper with no plastic film. The company's performance white barrier is a new sack paper from BillerudKorsnäs, where a coating replaces the plastic film barrier commonly found in paper sacks. The sack paper is on par with traditional alternatives regarding shelf-life expectancy and other performance factors.
Kraft Paper Market Segment Analysis
In this report, the Kraft Paper Market has been segmented by Packing Type, Grade, Product, End-User and Geography.
Kraft Paper Market, Segmentation by Packing Type
The Kraft Paper Market has been segmented by Packing Type into Valve Sacks and Open Mouth Sacks.
Valve Sacks
Valve sacks account for approximately 60% of the kraft paper market share due to their efficient filling mechanism and dust-free sealing. Commonly used in the cement, construction materials, and chemical industries, they offer excellent durability and stacking stability.
Open Mouth Sacks
Open mouth sacks hold around 40% of the market and are preferred for packaging granular and powdered products such as flour, sugar, and animal feed. These sacks enable easy manual or machine filling and are ideal for industries requiring reliable sealing and high-strength packaging.
Kraft Paper Market, Segmentation by Grade
The Kraft Paper Market has been segmented by Grade into Kraft, Semi-extensible and Extensible.
Kraft
Kraft grade dominates the kraft paper market with over 50% share due to its exceptional tear resistance and high tensile strength. It is widely used in applications such as corrugated boxes, envelopes, and packaging sacks, particularly in industries that demand heavy-duty performance.
Semi-extensible
Semi-extensible kraft paper holds roughly 30% of the market, offering a balanced combination of strength and flexibility. It is commonly applied in valve sacks and industrial packaging where moderate extensibility is sufficient for preventing breakage under pressure.
Extensible
Extensible kraft paper accounts for around 20% of the global market, favored for its superior stretchability and puncture resistance. It is ideal for packaging applications that require enhanced elasticity, especially in sectors such as agriculture and chemical packaging.
Kraft Paper Market, Segmentation by Product
The Kraft Paper Market has been segmented by Product into Specialty Kraft Paper, and Sack Kraft Paper.
Specialty Kraft Paper
Specialty kraft paper contributes approximately 35% of the overall market, driven by demand in luxury packaging, branding applications, and decorative wrapping. It offers enhanced features such as coating compatibility, printability, and custom finishes, making it ideal for premium end-use segments.
Sack Kraft Paper
Sack kraft paper leads the segment with nearly 65% share owing to its superior burst strength, tear resistance, and porosity control. It is extensively used in industrial sacks, especially for packaging cement, animal feed, and construction materials that require high durability.
Kraft Paper Market, Segmentation by End-User
The Kraft Paper Market has been segmented by End-User into Food and Beverages, Pharmaceutical, Building and Construction, Cosmetic and Personal Care, Electronics and Electricals, and Others.
Food and Beverages
The food and beverages sector dominates the kraft paper market with a share of approximately 35%. Rising demand for sustainable food packaging, such as wrapper papers, pouches, and paper-based trays, is driving growth. Kraft paper is valued here for its moisture resistance and biodegradability.
Pharmaceutical
The pharmaceutical segment accounts for around 12% of the market. Kraft paper is widely used for tamper-evident packaging, blister packs, and medical wrapping due to its strength and sterilization compatibility. Sustainability mandates further enhance its adoption.
Building and Construction
Contributing about 15% to the market, the building and construction industry utilizes kraft paper for insulation wraps, floor protection sheets, and cement sacks. The segment benefits from kraft paper’s durability and resistance to tearing.
Cosmetic and Personal Care
This segment holds nearly 10% market share, supported by rising interest in eco-friendly packaging for premium beauty products. Kraft paper is used for folding boxes, outer cartons, and branded pouches, enhancing both aesthetics and sustainability.
Electronics and Electricals
Representing about 8% of the market, kraft paper is used in protective packaging, cable wrapping, and electrical insulation. Its mechanical strength and shock-absorption capabilities are key for safeguarding delicate components.
Others
The others category, covering segments like stationery, e-commerce, and agriculture, makes up the remaining 20%. Versatility and cost-effectiveness make kraft paper suitable for diverse packaging and protection applications across these industries.
Kraft Paper Market, Segmentation by Geography
In this report, the Kraft Paper Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Regions and Countries Analyzed in this Report
Kraft Paper Market Share (%), by Geographical Region
North America
North America accounts for nearly 22% of the global kraft paper market, driven by strong demand from the packaging and e-commerce sectors. The region emphasizes sustainable packaging solutions, boosting the adoption of kraft paper in retail and food-grade applications.
Europe
Europe holds about 28% share of the kraft paper market, with growth supported by stringent environmental regulations and high consumer preference for eco-friendly materials. The region shows significant consumption in industrial sacks and luxury packaging.
Asia Pacific
Asia Pacific leads the market with over 35% share, fueled by expanding manufacturing activities and rapid urbanization. Countries like China and India are major consumers due to rising demand for affordable packaging across various end-use sectors.
Middle East and Africa
Middle East and Africa collectively contribute around 8% of the market. The growth is moderate but rising steadily, supported by developments in the construction, agriculture, and retail packaging sectors, particularly in GCC countries and South Africa.
Latin America
Latin America represents close to 7% of the kraft paper market, led by growing demand in food packaging and consumer goods. Brazil and Mexico are key contributors, with increasing focus on sustainable paper-based packaging solutions.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Kraft Paper Market. These factors include; Market Drivers, Restraints and Opportunities.
Drivers, Restraints and Opportunities Analysis
Drivers
- Growing E-commerce Sector
- Preference for Natural and Organic Products
-
Regulatory Support for Sustainable Packaging - Regulatory initiatives promoting sustainable packaging prioritize the reduction of waste generation, the use of recyclable or compostable materials, and the implementation of circular economy principles. For instance, bans on single-use plastics, extended producer responsibility (EPR) schemes, and packaging waste recycling targets incentivize businesses to adopt more sustainable packaging materials like kraft paper. Additionally, eco-labeling programs and certifications, such as Forest Stewardship Council (FSC) certification, provide assurance to consumers and businesses regarding the sustainable sourcing and production practices of kraft paper manufacturers.
Government incentives and subsidies further encourage the adoption of kraft paper packaging solutions. Financial incentives, tax breaks, and grants offered to businesses investing in sustainable packaging technologies and practices incentivize the transition away from conventional packaging materials towards more eco-friendly alternatives like kraft paper. Furthermore, public awareness campaigns and education initiatives raise awareness about the environmental benefits of kraft paper packaging, driving consumer demand and market growth.
The regulatory support for sustainable packaging not only drives demand for kraft paper but also stimulates innovation and investment in the kraft paper industry. Manufacturers are increasingly investing in research and development to enhance the performance, versatility, and recyclability of kraft paper-based packaging solutions, meeting the evolving needs and preferences of customers. Additionally, collaborations between governments, industry stakeholders, and non-governmental organizations (NGOs) facilitate knowledge-sharing, technology transfer, and best practices dissemination, further advancing the adoption of sustainable packaging solutions like kraft paper on a global scale.
Restraints
- Price Volatility of Raw Materials
- Limited Availability of Raw Materials
-
Technological Constraints - One primary technological constraint is related to the production process of kraft paper itself. Traditional kraft paper manufacturing involves pulping wood fibers, primarily sourced from softwood trees such as pine and spruce, followed by a series of mechanical and chemical treatments to achieve the desired strength, porosity, and surface characteristics. While this process has been refined over time, it still poses challenges in terms of energy consumption, waste generation, and environmental impact. Improving the efficiency and sustainability of kraft paper production processes remains a key technological challenge for the industry.
Technological constraints may limit the performance attributes and functionalities of kraft paper in specific applications. For instance, while kraft paper is renowned for its strength and tear resistance, it may lack the barrier properties required for certain packaging applications, such as moisture resistance or gas barrier properties. Addressing these limitations often requires the development of specialized coatings, laminates, or additives, which may introduce additional complexities and costs to the manufacturing process.
Technological constraints may affect the recyclability and biodegradability of kraft paper products. While kraft paper is inherently recyclable and biodegradable, certain treatments or additives used in the manufacturing process may impact its environmental credentials. For instance, coatings or finishes applied to enhance printability or moisture resistance may hinder the paper's recyclability or compostability, posing challenges in the end-of-life management of kraft paper products.
Opportunities
- Focus on Circular Economy
- Product Innovation and Differentiation
-
Expansion in Emerging Markets - One key factor driving the expansion of the kraft paper market in emerging markets is the rising e-commerce sector. With the proliferation of online retail platforms and the growing preference for convenient shopping experiences, there is a surge in demand for packaging materials, including kraft paper, to fulfill packaging and shipping needs. Kraft paper's eco-friendly attributes, such as recyclability, biodegradability, and sustainability, align with the environmental concerns of consumers and regulatory bodies, further driving its adoption in e-commerce packaging.
The expanding consumer goods industry in emerging markets, coupled with increasing disposable incomes and changing lifestyle trends, is fueling demand for packaging solutions, including kraft paper, for products such as food and beverages, personal care items, and household goods. Kraft paper's versatility, strength, and ability to protect and preserve goods make it a preferred choice for manufacturers seeking sustainable packaging options that meet both functional and environmental requirements.
Government initiatives and regulations aimed at promoting environmental sustainability and reducing plastic usage are creating opportunities for kraft paper manufacturers in emerging markets. Policies encouraging the adoption of eco-friendly packaging materials and incentivizing sustainable practices drive market growth and stimulate investment in kraft paper production and infrastructure development.
Competitive Landscape Analysis
Key players in Global Kraft Paper Market include:
- Mondi PLC
- International Paper Company
- KapStone Paper and Packaging Corporation
- Canfor Corporation
- Gascogne Group
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Packing Type
- Market Snapshot, By Grade
- Market Snapshot, By Product
- Market Snapshot, By End-User
- Market Snapshot, By Region
- Kraft Paper Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
-
Growing E-commerce Sector
-
Preference for Natural and Organic Products
-
Regulatory Support for Sustainable Packaging
-
- Restraints
-
Price Volatility of Raw Materials
-
Limited Availability of Raw Materials
-
Technological Constraints
-
- Opportunities
-
Focus on Circular Economy
-
Product Innovation and Differentiation
-
Expansion in Emerging Markets
-
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Kraft Paper Market, By Packing Type, 2021 - 2031 (USD Million)
-
Valve Sacks
-
Open Mouth Sacks
-
- Kraft Paper Market, By Grade, 2021 - 2031 (USD Million)
-
Kraft
-
Semi-Extensible
-
Extensible
-
- Kraft Paper Market, By Product, 2021 - 2031 (USD Million)
- Specialty Kraft Paper
- Sack Kraft Paper
- Kraft Paper Market, By End-User, 2021 - 2031 (USD Million)
- Food and Beverages
- Pharmaceutical
- Building and Construction
- Cosmetic and Personal Care
- Electronics and Electricals
- Others
- Kraft Paper Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Kraft Paper Market, By Packing Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Mondi PLC
- International Paper Company
- KapStone Paper and Packaging Corporation
- Canfor Corporation
- Gascogne Group
- Company Profiles
- Analyst Views
- Future Outlook of the Market