Market Overview

The global kraft paper market size was valued at USD 18.6 Billion in 2024 and is expected to reach USD 28.8 Billion by 2033. The market is projected to grow at a CAGR of 5.65% during the forecast period from 2025 to 2033. Asia-Pacific leads the market with a share exceeding 40.0%, driven by increasing demand for sustainable and compostable packaging materials, an expanding e-commerce sector, and rising urbanization.

Study Assumption Years

  • Base Year: 2024
  • Historical Year/Period: 2019-2024
  • Forecast Year/Period: 2025-2033

Kraft Paper Market Key Takeaways

  • The global kraft paper market size was USD 18.6 Billion in 2024.
  • The market is expected to grow at a CAGR of 5.65% during 2025-2033.
  • Market forecast is USD 28.8 Billion by 2033.
  • Asia-Pacific dominated with over 40.0% market share in 2024.
  • The United States is a key regional market with over 72.80% share in North America.
  • Growth is propelled by rising e-commerce and consumer preference for sustainable packaging.
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Market Growth Factors

The kraft paper market is primarily driven by the surging demand for eco-friendly and sustainable packaging solutions. Increasing environmental concerns motivate consumers and businesses to seek alternatives to plastic packaging, favoring kraft paper for its recyclability and biodegradability. The rise of the global e-commerce market, valued at USD 26.8 Trillion in 2024 and expected to reach USD 214.5 Trillion by 2033 with a CAGR of 25.83%, further fuels kraft paper demand, especially for packaging, shipping, and protective materials.

Rapid advancements in production technologies have improved kraft paper's quality and cost-effectiveness, enhancing market growth. In addition, growing consciousness among food, beverage, and retail industries toward products with minimal environmental impact boosts the adoption of kraft paper. Efforts by developed and developing nations to reduce plastic waste and achieve sustainability goals also add to increased consumption.

Urbanization and lifestyle changes significantly contribute to market growth. With 56% of the global population living in cities as of now, expected to increase to 7 out of 10 people by 2050, demand for efficient and sustainable packaging materials like kraft paper has risen. This trend, coupled with a consumer shift toward convenience foods, online shopping, and eco-conscious purchasing, propels the kraft paper market, particularly in sectors such as food and beverages, retail, and electronics.

Market Segmentation

By Product Type:

  • Unbleached: Largest segment with approximately 32.0% share in 2024. Known for its strength, tear resistance and versatility in applications like packaging and shipping.

By Packaging:

  • Corrugated Box: Leads with around 36.5% market share in 2024. Preferred for product protection, adaptability, eco-friendliness, recyclability, and customization.

By Application:

  • Foods and Beverage: Dominant application segment with approximately 27.8% share in 2024. Kraft paper's resistance to grease, moisture, and oil protects food during storage and transport.

By Distribution Channel:

  • Offline: Traditional channels including brick-and-mortar stores, wholesalers, and specialty paper shops serving businesses and professional clients.
  • Online: E-commerce platforms offering wide variety, convenience, and accessibility enhancing market share.

Regional Insights

Asia-Pacific accounted for the largest market share of over 40.0% in 2024. Its market dominance stems from strong manufacturing sectors, rapid industrialization and urbanization, and growth in e-commerce and retail. The expanding middle-class population and government sustainability initiatives also contribute significantly. Countries like China, India, and Southeast Asia are key drivers leveraging kraft paper's durability and eco-friendly nature to meet increasing packaging demands.

Recent Developments & News

  • October 2024: Lintec introduced an unbleached, uncolored kraft paper water-repellent material targeting logistics, carrier bags, and envelopes with sales starting October 25th.
  • February 2024: Fourniture Industrie Service (FIS) developed a recycled kraft paper bubble wrap alternative to meet growing sustainable packaging needs, showcasing industry focus on eco-friendly solutions with collaborations such as Amazon & US DOE’s BOTTLE Consortium.

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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