The kraft packaging market might be worth USD 38.9 billion in 2023. Kraft packaging sales are expected to expand at a 5.4% CAGR, reaching USD 65.2 billion by 2033.
Kraft paper, known for its durability and longevity, is a versatile packaging material capable of being formed into a wide array of shapes and sizes. Manufacturers closely monitor the kraft paper industry trends to capitalize on opportunities. During the forecast period, a rise in the usage of anti-slip packaging and wrapping solutions among premium brands is expected to provide profitable prospects in the global market. Global demand for boxes and cartons is expanding, boosting global market features.
Increased need for lightweight, reusable, environmentally friendly, and cost-effective kraft paper packaging solutions may surge market growth in the coming years. Kraft paper packaging options are biodegradable, long-lasting, and easy to use. Their demand in end-use industries such as food and drinks, electronics and electricals, pharmaceuticals, and building and construction constantly expands. The growing popularity of hassle-free packaging is driving up demand for kraft papers.
The kraft packaging manufacturers’ offer customized solutions to increase revenue. The increased use of e-commerce platforms to acquire a wide range of products boosts market statistics.
| Attribute | Kraft Packaging Market (From 2018 to 2022) |
|---|---|
| Market HCAGR (From 2018 to 2022) | 3.4% |
| Market Size - 2018 | USD 32.3 billion |
| Market Size - 2022 | USD 36.9 billion |
| Attribute | Kraft Packaging Market (From 2023 to 2033) |
|---|---|
| Market CAGR (From 2023 to 2033) | 5.4% |
| Market Size - 2023 | USD 38.9 billion |
| Market Size - 2033 | USD 65.2 billion |
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Demand for kraft packaging is expected to grow at a 5.4% CAGR from 2023 to 2033, compared to a 3.4% CAGR from 2018 to 2022.
Kraft packaging is sweeping the market because of its multiple advantages, including recyclability, cost-effectiveness, ease of customization and printing, ease of shipping, and high compatibility. It is utilized in various industries, including food and beverage, building and construction, cosmetics and personal care, and e-commerce.
The primary function of packaging is to protect the products throughout transportation until they reach the consumers. Kraft packaging is strong, does not break under pressure or tension, and covers the product throughout the vehicle. Kraft packaging excels in function, application, environmental protection, and fashion.
The Surge in Popularity of Brown Paper Packaging: Catalyst for Market Growth
Fast-food restaurants are becoming increasingly popular. Consumers are ordering food from food service outlets due to their hectic lifestyles, and consumption of ready-to-eat food has increased.
Not all packaging is ideal for storing food items since certain materials contain chemicals that degrade the taste and quality of the food. Kraft packaging is considered one of the best food packaging alternatives since it is free of dangerous chemicals, maintains food quality, and does not alter food taste.
E-commerce Retail Boom Boosts Sales of Kraft Packaging Products
E-commerce packaging serves as a way of communication with clients, so environmentally friendly packaging is essential. Kraft packing efficiently minimizes unnecessary overspray, which helps to reduce costs. Kraft packages are substantially lighter than plastic packaging, resulting in lower shipping costs. Kraft packaging is cost-effective, making it a popular choice among e-commerce businesses.
As Kraft packaging is made from paper sourced from trees, rising environmental concerns and legislation concerning deforestation and waste management offer issues for the sector. The growing popularity of alternative packaging materials, such as biodegradable plastics and compostable materials puts kraft packaging options under pressure.
The cost of kraft paper manufacture and the scarcity of raw resources might impact market expansion. Consumers need more understanding and education about the benefits of kraft packaging to ensure its acceptance and demand in certain countries.
The Kraft packaging market offers exciting potential for expansion and innovation. With rising consumer demand for sustainable and eco-friendly packaging, Kraft packaging is feasible. Its natural and biodegradable qualities make it an appealing alternative for various industries, including food & beverage, cosmetics, and e-commerce.
The rise of e-commerce has increased demand for Kraft packaging due to its durability and capacity to protect products during transportation. The customizable flexibility of Kraft packaging enables unique and eye-catching designs, improving brand appeal. As businesses attempt to decrease their environmental footprint, the kraft packaging market is poised to expand, fostering opportunities for manufacturers to fulfill the market's evolving needs while contributing to a greener future.
Increased Demand for Kraft Paper in the Food & Beverage Industry
Kraft paper packaging is lightweight and long-lasting. Food products packaged in kraft papers are easily carried from one location to another without damage. Kraft paper can also be laminated with a PE covering to protect food and beverage goods from harm. Kraft paper packaging conveys food products such as dry powder, confectionery & bakery products, and milk and milk-based products.
Due to their moisture-resistant characteristics, kraft papers wrap packaged food products. Sack kraft paper is the most often utilized packaging solution in end-use industries. This paper has a polyethylene layer that protects food from dampness and moisture.
Kraft papers are preferred for packaging in the food processing industry due to their low cost, printability, strength, heat sealability, and processability. Several governments' increased limits on single-use plastic and increased knowledge about sustainable and biodegradable packaging solutions are encouraging food makers to employ kraft paper packaging.
| Attribute | Details |
|---|---|
| North America Market Share - 2023 | 18.4% |
| United States Market Share - 2023 | 16.2% |
| Australia Market Share - 2023 | 2.8% |
Consumers in the United States are Keen on Using Kraft Paper Boxes for Food
As per statistics published by the United Nations Conference on Trade and Development (UNCTAD), the major portion of e-commerce packaging is held by the United States and the global e-commerce sales increased to USD 26.7 trillion in 2019. These figures show the popularity of online retail in the United States, placing it as an attractive pocket in the North America kraft packaging market.
With increased awareness of sustainability and the need for environmentally friendly packaging solutions, Kraft packaging has grown in appeal across various industries. Factors like e-commerce growth, food and beverage packaging, and customer desire for eco-friendly materials fueled the industry.
| Attribute | Details |
|---|---|
| Japan Market Share -2023 | 6.4% |
| China Market CAGR (From 2023 to 2033) | 4.9% |
| India Market CAGR (From 2023 to 2033) | 6.3% |
The growing e-commerce business and rising customer demand for environmentally friendly packaging solutions drive up demand for Kraft packaging. The increasing emphasis on ecologically friendly packaging materials and government measures supporting sustainable practices escalate market growth.
Rising disposable incomes and shifting customer attitudes towards eco-friendly products boost demand for Kraft packaging in various industries, including food and beverage, personal care, and retail. Technological improvements and breakthroughs in Kraft packaging production processes open new business prospects in the Asia Pacific.
| Attributes | Details |
|---|---|
| Europe Market Share - 2023 | 24.3% |
| Germany Market Share - 2023 | 5.2% |
| United Kingdom Market CAGR (From 2023 to 2033) | 2.4% |
High Demand for Kraft Paper Pouches in Germany May Boost Sales
There is an increasing desire for sustainable and eco-friendly packaging options, and Kraft paper-based packaging fits in nicely with these preferences. The growing e-commerce business has raised the demand for strong and durable packaging materials, and Kraft packaging provides exceptional strength and protection for products during transit.
Due to its natural and rustic appearance, Kraft packaging has seen growing acceptance due to the emphasis on brand identity and aesthetics. Government rules encouraging the use of recyclable materials and decreasing plastic waste have spurred the rise of the Kraft packaging sector in Germany.
| Segment | Packaging Type |
|---|---|
| Segment Name | Boxes |
| Segment Share | 20.6% |
Demand for Kraft Boxes May Gain Momentum
Based on product type, sales of kraft boxes are slated to increase at a 5.6% CAGR over the assessment period. Kraft boxes have a great quality of resistance, are eco-friendly, cost-effective, and can bear adverse climatic conditions while protecting the products within the boxes. Expansion in the e-commerce sector is expected to fuel sales of kraft boxes over the forecast period.
| Segment | End-Use |
|---|---|
| Segment Name | E-Commerce |
| Segment Share | 20.3% |
Application of Kraft Packaging in the E-commerce Sector May Remain High
According to FMI, during the forecast period, demand in the e-commerce segment is expected to increase at a CAGR of 6.5%. Kraft packaging enables e-commerce players to ship products without the fear of damage and decay products, thereby pushing sales in this segment.
The global business is fragmented, with many firms controlling most of the market share. To increase revenue, key firms are working on developing novel products.
Leading kraft packaging companies employ several marketing strategies, such as acquisitions, collaborations, and expansions. They are concentrating on new product introductions to increase their global reach.
Novel Breakthroughs and Advancements
| Company | ProAmpac |
|---|---|
| Strategy | ProAmpac's Sustainable Expansion: |
| Details | ProAmpac may buy APC paper, a provider of sustainable kraft packaging, in July 2021. APC paper is dedicated to producing 100% recycled products, and ProAmpac, which believes in sustainable packaging, has purchased APC paper. |
| Company | Mondi Plc |
|---|---|
| Strategy | Mondi's Kraft Paper Plant Sets New Standards for Eco-Friendly Packaging |
| Details | Mondi Plc began production of its new kraft paper plant, known as the Czech mill, in January 2021. It may create 100% recyclable kraft paper for shopping bags utilising recycled and fresh fibres without sacrificing strength. |
This market is estimated to reach USD 65.2 billion by 2033.
North America dominates the global market.
E-commerce boosts kraft packaging due to durability.
Advancements in manufacturing is the top trend.
Sustainable demand surges kraft packaging market growth.
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Kraft Packaging Market
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