The global kraft paper industry is forecasted to generate a revenue of USD 16.8 billion in 2024, with steady growth anticipated through the next decade. The industry is expected to register a compound annual growth rate (CAGR) of 2.4%, reaching a projected valuation of USD 21.2 billion by 2034.
Key Drivers Fueling Kraft Paper Industry Growth
- Rising Popularity of Fast-Food Restaurants:
The increasing number of fast-food outlets, driven by fast-paced consumer lifestyles, is significantly boosting the demand for kraft paper solutions. Kraft paper is considered the ideal packaging alternative due to its chemical-free composition, ability to preserve food quality, and neutral effect on taste. This makes it an attractive choice for the foodservice industry. - Eco-Friendly eCommerce Solutions:
The growing focus on sustainability in eCommerce has led to a surge in the use of kraft paper for packaging. As businesses strive to communicate their commitment to the environment, kraft paper’s eco-friendly properties make it a preferred choice. Its lightweight nature also contributes to reducing overspray, further driving its popularity in online retail. - Broad Industry Application:
The natural and biodegradable properties of kraft paper have positioned it as a versatile packaging solution across multiple industries, including food and beverage, cosmetics, and eCommerce. The material is increasingly seen as an environmentally responsible option for packaging needs. - Government Initiatives and Consumer Awareness:
Governments worldwide are intensifying efforts to reduce single-use plastics and are actively promoting biodegradable and sustainable packaging solutions. This global shift is encouraging food manufacturers, eCommerce businesses, and other industries to adopt kraft paper packaging in line with sustainability goals.
Country-wise Insights
The kraft paper markets in Canada and the United Kingdom are poised for robust growth over the next decade, driven by increasing demand for eco-friendly packaging solutions and supportive government initiatives.
Canada Kraft Paper Market to Register a CAGR of 3.3%
The Canadian kraft paper market is projected to register a compound annual growth rate (CAGR) of 3.3% through 2034.
UK Kraft Paper Market to Grow at a CAGR of 3.6%
The United Kingdom kraft paper market is expected to account for a CAGR of 3.6% through 2034.
Business Growth Drivers:
- Rising Eco-conscious Consumer Behavior: The increasing awareness and preference for eco-friendly products among consumers drive the demand for kraft paper, as it is a recyclable and biodegradable material, aligning with sustainable lifestyles.
- Booming E-commerce Industry: The growth of the e-commerce sector, coupled with the surge in online shopping, significantly boosts the demand for kraft paper packaging due to its durability and suitability for shipping and handling various products.
- Government Regulations Promoting Sustainable Practices: Stringent regulations and policies promoting sustainable packaging materials encourage businesses to adopt kraft paper, which is known for its minimal environmental impact compared to non-biodegradable alternatives.
- Versatility in Applications: The versatility of kraft paper extends its use beyond packaging to various industries such as retail, food and beverage, and manufacturing, contributing to sustained demand and market growth.
- Shift towards Plastic-Free Packaging: The global movement towards reducing plastic usage and seeking plastic-free alternatives amplifies the demand for kraft paper, which serves as an excellent substitute for traditional plastic-based packaging materials.
Key Takeaways from the Kraft Paper Market Report:
- In the North American kraft paper market, the United States is predicted to expand at a CAGR of 2.2%, whereas Canada is anticipated to record a CAGR of 3.3% through 2034.
- In Europe, the United Kingdom’s kraft paper market is anticipated to register a significant CAGR of 3.6% through 2034.
- Within Asia Pacific, India, China, and Thailand, are expected to record CAGRs of 5.9%, 5.4%, and 4.8%, respectively, through 2034.
- Based on end-use, the food and beverages sector is projected to account for a market share of 26.7% in 2024.
- Based on product type, the specialty kraft paper segment is estimated to acquire a value share of 82.5%.
Regional Outlook:
Canada: The Canada kraft paper market is projected to register a CAGR of 3.3% through 2034, driven by the increasing popularity of online retail, growing demand for eco-friendly paper solutions, and expansion of the food and beverage paper industry.
United Kingdom: The United Kingdom kraft paper market is forecasted to account for a CAGR of 3.6% through 2034, supported by a growing focus on ecologically friendly paper solutions, government initiatives to support sustainable practices, and technological breakthroughs in production processes.
As the global demand for sustainable packaging solutions continues to rise, the kraft paper market is poised for significant growth and innovation.
Access Full Report: https://www.futuremarketinsights.com/reports/kraft-papers-market
Market Segmentation:
Based on product type,
- Specialty kraft paper
- Sack kraft paper
Based on grades,
- Bleached
- Unbleached
- Coated
- Uncoated
Based on the application,
- Corrugated boxes
- Grocery & shopping bags
- Multiwall sacks
- Carryout bags
- Others
Based on end-use industry,
- Food & beverages
- Electronics
- Construction
- Cosmetics and personal care
- Textile
- Others
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