The global paper wrap market is poised for substantial growth, with an estimated valuation of USD 8.4 billion in 2024 and a projected value of USD 11.4 billion by 2034. This growth is expected to be driven by a compound annual growth rate (CAGR) of 3.1% during the forecast period. The market generated USD 8.1 billion in revenue in 2023, reflecting a steady increase in demand for sustainable packaging solutions.
Due to the global pandemic, a drastic change within the packaging industry was experienced which resulted in higher demand for paper wraps, hence, boosting the market growth over the projection period. The paper wraps market is predicted to expand 1.6 times the current market value throughout the forecast period. The paper wraps market is expected to experience a positive growth outlook over the forecast period due to its benefits such as durability, lightweight, barrier resistance, cost-effectiveness, and others.
Paper wraps are known as the best-suited alternative to plastic wraps, which have been drastically avoided by the end-use industries as well as by consumers due to their harmful effects on the environment. Several consumer products are wrapped in the paper during their transportation in order to protect the product from getting damaged by other external factors.
Paper wraps help in reducing the plastic waste from the packaging by over 33%. Several end-use industries utilize paper wraps such as food & beverage, electrical & electronics, cosmetics & personal care, home care, and others. The ever-expanding e-commerce sector is a prominent factor in augmenting the sales of paper wraps.
Key Takeaways
- Wrapping material made with plastic is difficult to decompose and causes environmental pollution. Therefore, wholesalers, retailers, and suppliers are more attracted to paper packaging solutions such as paper wraps made from compostable raw materials and eco-friendly products.
- According to the reports by American Forest & Paper Association (AF&PA), the paper recycling rate was around 68%, and recovered more than 50 million tons of paper in 2021. The paper-based packaging is recycled more as compared to another packaging.
- Paper packaging emerged as an economical and eco-friendly form of packaging in comparison with other materials such as plastics and aluminum. The surging restrictions on the usage of plastic products and the ban on single-use plastics are increasing the demand for sustainable paper packaging solutions such as paper wraps. The growing demand for sustainable packaging is a significant factor responsible for driving the paper wraps market growth.
- The expansion of the e-commerce sector has augmented the sales of paper wraps as brands and companies are focusing on sustainable packaging solutions fueling the demand for paper wraps. Overall, the paper wraps market is projected to bolster at a faster pace during the forecast period.
Competitive Landscape
The key market players are focusing on mergers and acquisition strategies in order to expand their resources. Such prominent companies are also focusing on developing new products to meet customer needs and the key players are focusing on upgrading their facilities to cater to the demand.
Market Highlights:
- Dominance of Kraft Paper:
- Kraft papers hold the majority share in the paper wrap industry, accounting for more than 67.3% of the market. With a projected CAGR of 2.4% through 2034, Kraft paper’s versatility for gift and food packaging continues to boost its dominance in the market.
- Rising Demand for Eco-Friendly Packaging:
- The paper wrap market is expanding rapidly due to its eco-friendly nature and growing demand across various sectors. The shift away from single-use plastics and increasing environmental concerns are fueling the industry’s growth. The market is anticipated to create an incremental opportunity of USD 11.4 billion, reflecting a 1.6x increase from its current value.
- Growth in E-commerce Sector:
- The booming e-commerce sector has significantly increased the demand for paper wraps. As online shopping continues to rise, the need for secure and sustainable packaging solutions has become paramount. Paper wraps offer a cost-effective and environmentally friendly option for protecting delicate items during transit.
- Innovative Packaging Solutions:
- Manufacturers are introducing innovative paper wrap designs, such as bubble wraps and flow wraps, to enhance protection during logistics and transit. The ability to incorporate multicolor printing and branding further supports the growing demand for paper wraps in the e-commerce sector.
- Sustainability Trends in FMCG Packaging:
- The fast-moving consumer goods (FMCG) sector is increasingly adopting paper wraps for packaging to reduce plastic waste. FMCG producers are exploring paper-based solutions for returnable packaging and collaborating with recyclers to address waste management challenges.
Paper Wraps Market by Category
By Coating Type, Paper Wraps Market is Segmented as:
- Coated Paper Wraps
- Uncoated Paper Wraps
By Thickness, Paper Wraps Market is Segmented as:
- Up to 25 Microns
- 26-40 Microns
- 41-60 Microns
- Above 60 Microns
By End Use, Paper Wraps Market is Segmented as:
- Food & Beverage
- Electrical & Electronics
- Cosmetics & Personal Care
- Homecare
- Pharmaceuticals
- Others (Automotive, etc.)
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