The revenue generated by machine glazed kraft paper across the globe is projected to value at USD 10.5 billion in 2024. The market will experience moderate growth in the forecast period. It is expected that the market will reach a valuation of USD 13.6 billion in 2034. The forecast CAGR is expected to be 2.6%.The machine glazed kraft paper has achieved a revenue of USD 10.3 billion in 2023 and is expected to gain a Y-o-Y growth of 2.8% in 2024.
Consumers of the machine glazed kraft paper market prefer mostly unbleached kraft papers. This is because these kraft papers have superior strength and resilience. These kraft papers go through minimal chemical and manufacturing processes and hence can retain their maximum strength and lignin count.
This leads to the adoption of unbleached kraft papers by diverse end-user industries. Industries such as food packaging have started adopting these kraft papers for wrapping and packaging purposes. The lower production cost of these kraft papers further improves the adoption.
Global Machine Glazed Kraft Paper Industry Forecast
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 10.3 billion |
| Estimated Size, 2024 | USD 10.5 billion |
| Projected Size, 2034 | USD 13.6 billion |
| Value-based CAGR (2024 to 2034) | 2.6% |
Machine glazed kraft papers are mostly consumed for manufacturing bags, pouches and sacks. It is expected that these products together contribute to 57.7% of the market in 2024. These kraft papers are encompassed with high tensile strength. This property of machine glazed kraft papers is suitable for carrying heavy loads. Bags, pouches and sacks are usually used to carry weight that require considerable strength and durability.
Moreover, their good tear resistance further amplifies the burgeoning adoption of these products. These kraft papers can easily be adapted to diverse packaging needs as these papers can be folded, glued and can be transformed into various shapes which is an essential need for the manufacturing of packages. Machine glazed kraft papers have good moisture resistance. So, the manufacturers of bags, sacks and pouches adopt these kraft papers for enhancing quality and stability.
Food, beverage and healthcare sectors adopt a major portion of the machine glazed kraft papers during the forecasted period and are expected to acquire 46.1% of the market in 2024. Food and beverage sectors often need packages that adhere to stricter regulatory frameworks. Furthermore, this industry encompassed multiple constrains.
An effective packaging solution mainly tear-resistant, inert and moisture-resistant is mandatory to keep the product safer during storage, transport and use. Machine glazed kraft papers are known for their good chemical resistance, eco-friendly nature, and tear-resistance and moisture resistance. These properties make them a prominent choice in the industry and increase the adoption.
The machine glazed kraft paper market experiencing attractive growth during the forecast period. The market is expected to generate an incremental opportunity of USD 3.3 billion by the end of 2034. The industry is projected to expand 1.3 times in the same period.
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The table provided below presents the poised CAGR for global machine glazed kraft paper market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the year from 2023 to 2033, the business is predicted to surge at a CAGR of 2.7%, followed by a slightly higher growth rate of 3.7% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1 | 2.2% (2023 to 2033) |
| H2 | 3.2% (2023 to 2033) |
| H1 | 2.4% (2024 to 2034) |
| H2 | 3.1% (2024 to 2034) |
Moving in the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 2.2% and increases at 3.2% in the second half. In the first half (H1), the market witness an inclination of 20 BPS while in the second half (H2) the market expected to witness a decline of 10 BPS.
High Preference for Environment-friendly Packaging to Bolster Market Growth
Rising demand for eco-friendly packaging improved need for packaging formats that can be recycled. Paper packaging manufacturers such as machine glazed kraft paper players have started to adopt sustainable packaging solutions to promote environment-friendly solutions. Manufacturers are adopting paper based solutions as a sustainable packaging substitute to traditional plastic packaging solutions adopted in food, personal care and cosmetics, healthcare, building and construction and household uses.
Bags, pouches, wraps, and other packaging are manufactured from feasible packaging solutions like machine glazed kraft paper solutions. They are getting traction for the effective eco-friendly packaging pathway across the globe.
Advancement by market leaders managing in the global machine glazed kraft paper industry will additionally push the consumers to use eco-friendly packaging products. Rising adoption of such eco-friendly solutions and stringent regulations by the government in respect of green packaging solutions across various locations are finally boost the machine glazed kraft paper industry growth, significantly.
Flourishing Food & Beverage Industry to Augment Sale of Machine Glazed Kraft Paper
The global machine glazed kraft paper market is adopting rapidly due to increased demand from the food and beverage industry. Machine glazed kraft paper is predominantly used in the food and beverage industry to manufacture a diverse range of packaging applications such as wraps, bags, cups, and bowls. These kraft papers offer high level of sanitation and safety.
It also helps in brand promotion as many companies go for advertisement via printing over the machine glazed kraft paper. Consistently increased production growth from the food and beverage industry creates a substantial need for machine glazed kraft paper for safe and secure packaging of a diverse range of food items.
The world food and beverage market has witnessed considerable increase over the historic period, and this is poised to observe in the forecasted years. Also, the growing middle-class group along with increasing spending on food products is anticipated to enhance the economic impulse of the food and beverage industry.
Also, the takeaway food culture is bolstering the growth of the global packaged food market. This is likely to generate an upward impact on the need for machine glazed kraft paper across the world.
Difficulty to Remove Plastic Packaging Formats from Consumers’ Mind to Hamper Market Growth
As plastic has high importance for the customers, due to its versatile characteristics such as robustness, resistance, moisture and leakage resistance, and others., it is hard to change consumer interest towards the use of paper packaging solutions.
The critical advantage of plastic over paper solution is effective, which in reality absent in paper packaging. Also, plastic bags can be reused multiple times in contrast to paper solutions. The largest drawback with paper bags is that they are not water resistant and hence it is difficult to avoid plastic packaging solutions from the market.
Conversely, global warming has become the largest environmental trouble, so it’s worth considering from an emission perspective. So, the production process of the paper solutions affects the global environment.
Despite paper packaging solutions are made from nature, they are considered to be a renewable resource, it takes considerably large quantity energy to create pulp and produce a machine glazed kraft paper solutions than to produce plastic bag from oil. Hence, these elements are challenging the machine glazed kraft paper industry growth.
Principal Consultant
The global market of machine glazed kraft paper has recorded a CAGR of 2.4% during the historical period i.e., 2019 to 2023. The market recorded a value of USD 9.3 billion in 2019 and has positively reached USD 10.3 billion in 2023.
The machine glazed kraft paper is one of the most effective and efficient sustainable packaging solutions. These papers are treated with machines to offer a smooth and glossy finish. These papers are prominently used in the manufacturing of bags and pouches, sacks, wraps and many other flexible packaging solutions. Machine glazed kraft papers are commonly available in two type’s namely unbleached and bleached kraft papers.
These papers are used in various end-user industries such as food, beverage, healthcare, electrical and electronics, automotive, personal care and cosmetics, and other flexible packaging solutions. These industries are opting for machine glazed kraft papers due to their good resistance to various environmental and physical hazards.
The unbleached kraft papers will dominate the machine glazed kraft paper market during the forecasted period and are expected to grow with a CAGR of 3.4% during the forecasted period. This is because these kraft papers are good for packaging various products due to their good tear resistance, tensile strength and moisture resistance. The lower manufacturing cost of these kraft papers further fuels the heightened adoption.
Considering the growth rate, these kraft papers are expected to lead the market. Bleached kraft paper due to its heightened manufacturing cost expected to lower the adoption. The requirement complex manufacturing process for these Kraft needs energy and chemicals. Manufacturers that emphasize sustainability are reluctant to adopt these products and are expected to hamper the market.
The food and beverage sectors are expected to consume a major section of the machine glazed kraft papers during the forecasted period. It is expected that the sector is projected to dominate the market in terms of CAGR as well and is expected to grow with a CAGR of 4.5% during the forecasted period. Food and beverage industries need more effective and efficient solutions for the storage and transportation of products.
The flexible packaging industry is becoming a prominent choice in the industry and hence the sale of machine glazed kraft paper is expected to dominate the same market in the future. Their good tensile strength, tear-resistance and moisture resistance help the food items protect longer time.
The healthcare industry is experiencing considerable growth during the forecasted period driven by the rise in the need for eco-friendly flexible packaging solutions for the storage of medicines.
Tier 1 companies encompasses the market leaders with market revenue exceeding USD 100 million acquiring a cumulative market share of 10-15% of the global market. These market players are characterized by their high production capacity and strict focus on the development of innovative durable and high quality machine glazed kraft papers.
Furthermore, these market leaders are known by their substantial competence in manufacturing across multiple type machine glazed kraft papers, wider distribution network across multiple regions and countries with a strong consumer presence.
These manufacturers continuously involved in the investment in development of improvement in the material properties and continuously updating existing machine glazed kraft papers with latest industrial standards. Prominent companies within Tier 1 include Stora Enso Oyj., Mondi Plc, Smurfit Kappa Group Plc, Nippon Paper Group, Sappi Limited and others.
Tier 2 companies include mid-sized players with revenue of USD 50 to 100 million having a strong foothold in specific region and also have selected international presence. These manufacturers offer machine glazed kraft papers for multiple end use but may not be used in specialized application. These players lack diversity in product portfolio.
Considering Tier 1 companies, Tier 2 companies will have lower global reach and lesser investment in the research and development for the development of novel products. Prominent players in Tier 2 includes BillerudKorsnäs AB, Asia Pulp & Paper (APP), HEINZEL Group, Gascogne Papier, and Ahlstrom-Munksjö and others.
Tier 3 includes the small-scale companies or startups operating at the local presence and serving niche markets having revenue below USD 50 million. These manufacturers mainly focused on fulfilling local market demands and hence are characterized by Tier 3 companies.
They are small scale players and have limited geographical reach. Tier 3, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The contents below cover the industry analysis for the machine glazed kraft paper market for multiple countries. Market demand analysis on key countries in multiple regions of the globe including North America, Latin America, East Asia, Western Europe and others are provided.
The United States is anticipated to be the leader in the North American machine glazed kraft paper industry and expected to grow with a CAGR of 1.8% during the forecast period. In Europe, Germany anticipated to lead the market in terms of market share expected to grow with a CAGR of 1.2% during the forecast period.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 1.8% |
| Germany | 1.2% |
| China | 4.5% |
| UK | 1.6% |
| India | 4.8% |
| Japan | 2.1% |
| GCC Countries | 4.0% |
| Brazil | 2.5% |
The machine glazed kraft paper market in India expected to generate USD 477.6 million growth opportunity during the forecast period. The country is expected to capture 34.1% of the South Asian market in 2024.
Indian Ministry of Food Processing Industries reported that the food sector in India experienced considerable during the forecasted period driven by growing consumer presence, and political and economic advancement. It stated that the market is forecasted to grow with a CAGR of 7.3%.
Prominent manufacturers of packaging and paper have started establishing a business presence in this region to acquire a prominent market in the region. It is expected that a similar trend can be observed in the future as well. Manufacturers of machine glazed kraft paper can adopt versatility and quality in their product offerings.
The UK market for machine glazed kraft papers expected to grow with a CAGR of 1.6% during the forecasted period and expected to generate an incremental opportunity of USD 274.6 million in the forecasted period.
Confederation of Paper Industries stated that the UK paper manufacturing sector currently holds more than USD 12 billion and is expected to experience considerable growth during the forecasted period. It is expected that the market of machine glazed paper experience considerable growth in the industry. The rise in demand for eco-friendly and sustainable solutions in industries such as food, beverage and healthcare in the UK boosted the sales of machine glazed kraft paper in the market.
The chemical inertness, moisture resistance and tear resistance of machine glazed kraft paper raise the adoption of various machine glazed kraft papers in the country. Manufacturers can adopt more effective and efficient kraft papers catering to various demands of consumers and adopt diversity in the product offering.
The machine glazed paper market sales in the USA is expected to grow with a CAGR of 1.8% during the forecasted period. The market is expected to lead the North American market during the forecasted period. The country will generate an incremental opportunity of USD 1.0 billion by 2034.
Flexible Packaging Association reported that the USA market for flexible packaging in 2022 was USD 42.9 billion and expected to experience considerable growth during the forecasted period. The rise in adoption by the food and beverage industry drives the demand for flexible packaging solutions. Also, the easiness of recycling the packaging format further propels the demand. It is expected that the market will experience burgeoning growth during the forecasted period.
Machine glazed kraft paper will experience substantial growth in the USA market. This is because these papers have higher applications in the flexible packaging industry. These kraft papers due to their exceptional tear resistance and moisture resistance fuel the adoption in the flexible packaging market. The rise in sustainability factors further expands the market adoption.
The section contains information about the leading segment in the machine glazed kraft paper market. Unbleached kraft papers expected to grow 3.4% during the forecast period. Adoption of machine glazed kraft papers by food and beverage industries expected to grow with a CAGR of 4.5% during the forecasted period.
| Grade | Unbleached |
|---|---|
| Value Share (2034) | 71.9% |
Unbleached machine glazed kraft papers expected to lead the market of machine glazed kraft papers during the forecasted period. The market is expected to grow with a CAGR of 3.4% during the forecasted period. The same will generate an incremental opportunity of USD 7.8 billion by 2034.
The unbleached kraft paper due to its versatility, strength and smooth finish expected to be the prominent cause for the rise in its adoption across the globe. These papers have good lignin count and lower manufacturing costs. Consumers require kraft papers that effectively protect the products inside the packaging.
Unbleached kraft paper effectively does the job at a lower cost. The food and beverage industry being a prominent end user of the market requires kraft papers that require for the adoption of effective packaging solutions for the storage and transfer of food items. Most of the products in this category get contaminated by exposure to external agents. Unbleached kraft paper due to, its chemical resistance and moisture resistance expected to increase its market.
Bleached kraft paper is expected to generate an incremental opportunity of USD 2.6 billion by the end of the forecasted period. These papers are widely used in premium packaging solutions as they offer a good aesthetic experience for consumers. The complex manufacturing process and heightened cost of these products are expected to make moderate growth in the forecasted period.
| End Use | Food and Beverages |
|---|---|
| Value Share (2034) | 29.2% |
The food & beverage industry is expected to capture a prominent portion of the global kraft paper market driven by its tear resistance, chemical resistance, moisture resistance and good aesthetic appeal. These kraft papers are expected to capture substantial growth during the forecasted period due to a rise in demand from the food & beverage industries. Prominent regions Asia Pacific, North America and Europe are expected to capture burgeoning growth during the forecasted period.
The healthcare sector is expected to be the second most adopted industry for the machine glazed kraft paper market during the forecasted period. It is expected to capture 18.9% of the market in 2024. The healthcare sector needs a good packaging solution during the forecast period to protect the medicine from loss or contamination. Machine glazed kraft papers due to their quality and strength expected to positively impact the market. Manufacturers can adopt quality and specific requirements that meet the regulatory framework of the healthcare industry.
Key players of the machine glazed kraft paper market are manufacturing and launching novel products in the market. They are collaborating with multiple end user firms to expand their geographical reach.
Key Developments in Machine Glazed Kraft Paper Industry
In terms of basis weight, the industry is divided into 18 to 30 GSM and Above 30 GSM.
In terms of grade, the industry is divided into unbleached and bleached.
In terms of application, the industry is divided into bags & pouches, sacks, wraps, labels & release liners, envelopes, coating & lamination, trays, cups & bowls and others
In terms of End Use, the industry is divided into food & beverages, healthcare, electrical & electronics, automotive, personal care & cosmetics, textile, building & construction and household.
In terms of region, the industry is divided into North America, Latin America, East Asia, South Asia & Pacific, Eastern Europe, Western Europe and Middle East & Africa
The machine glazed kraft paper industry is projected to witness CAGR of 2.6% between 2024 and 2034.
The global machine glazed kraft paper industry stood at USD 10.3 billion in 2023.
Global machine glazed kraft paper industry is anticipated to reach USD 13.6 billion by 2034 end.
South Asia and Pacific is set to record a CAGR of 5.1% in assessment period.
The key players operating in the machine glazed kraft paper industry are Stora Enso Oyj., Mondi Plc, Smurfit Kappa Group Plc, Nippon Paper Group, Sappi Limited and others.
1. Executive Summary
2. Industry Introduction
2.1. Market Taxonomy
2.2. Market Definition
3. Market Trends and Success Factors
4. Market Background
4.1. Macro-economic and Industry Outlook
4.2. Market Dynamics
4.3. Value Chain Analysis
4.4. List of Key Market Participants (Manufacturers/Channel Partners)
4.5. Analysis of Key Industry Matrices
4.6. Industry Development Roadmap
5. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034
5.1. Historical Market Volume Analysis
5.2. Future Market Volume Projections
6. Pricing Analysis
7. Global Market Value (USD) Analysis 2019 to 2023 and Forecast 2024 to 2034
7.1. Historical Sales Analysis
7.2. Future Market Size and Growth Projections
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, Basis Weight
8.1. 18 to 30 GSM
8.2. Above 30 GSM
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Grade
9.1. Unbleached
9.2. Bleached
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Application
10.1. Bags & Pouches
10.2. Sacks
10.3. Wraps
10.4. Labels & Release Liners
10.5. Envelopes
10.6. Coating & Lamination
10.7. Trays, Cups & Bowls
10.8. Others (Gift Wrap etc.)
11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End Use
11.1. Food & Beverages
11.2. Healthcare
11.3. Electrical & Electronics
11.4. Automotive
11.5. Personal Care & Cosmetics
11.6. Textile
11.7. Building & Construction
11.8. Household
12. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region
12.1. North America
12.2. Latin America
12.3. Europe
12.4. East Asia
12.5. South Asia
12.6. Oceania
12.7. Middle East & Africa (MEA)
13. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
14. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
15. Segments
16. Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
17. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
18. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
19. Oceania Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
20. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
21. Sales Analysis 2024 & 2034 by Key Market Segments for Key Countries
22. Competition Outlook including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
23. Company Profile
23.1. Mondi Plc.
23.2. Smurfit Kappa Group Plc
23.3. Nippon Paper Industries Co, Ltd.
23.4. Stora Enso Oyj.
23.5. BillerudKorsnäs AB
23.6. Gascogne Papier SAS
23.7. Sappi Limited
23.8. Asia Pulp & Paper (APP) Sinar Mas
23.9. Heinzel Group
23.10. Ahlstrom-munksjö Oyj
23.11. SCG Packaging
23.12. WestRock
23.13. Segezha Group
23.14. Nordic Paper
23.15. Oji Holding
23.16. Verso Corporation
23.17. Klabin S.A.
23.18. Nine Dragons Paper Holdings Limited
23.19. Rengo Co. Ltd.
23.20. PG Paper Company.
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Machine Glazed Kraft Paper Market
