The global sales of paper sleeves are estimated to be worth USD 1.7 billion in 2024 and are anticipated to reach a value of USD 2.6 billion by 2034. Sales are projected to rise at a CAGR of 4.6% over the forecast period between 2024 and 2034. The revenue generated by paper sleeves in 2023 was USD 1.6 billion. The industry is anticipated to exhibit a Y-o-Y growth of 4.3% in 2024.
Kraft paper is mostly used in manufacturing paper sleeves among other materials. Kraft paper has excellent durability and strength which makes it a robust choice for the paper sleeves. Paper sleeves are also used for protection purposes while shipping and handling the kraft paper sleeves ensure the proper protection. The kraft paper sleeves can withstand rigours and stress without breaking or breaking and maintain the product's integrity.
Global Paper Sleeve Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 1.6 billion |
| Estimated Size, 2024 | USD 1.7 billion |
| Projected Size, 2034 | USD 2.6 million |
| Value-based CAGR (2024 to 2034) | 4.6% |
Paper sleeves are mostly used for protection purposes. The paper sleeves are used for protection of the packaged products they are encasing. The paper sleeves are primarily used in hot beverages, glass bottles, delicate food items, etc. for maintaining the protection layer against heat, impact, and contaminations. Protective paper sleeves are widely used across industries like pharmaceuticals, food and beverage, electronics, and cosmetics.
Paper sleeves are mostly used in the food and beverage industry. The paper sleeves are used for various purposes like hot beverages, cold drinks, bottles of water, and other packaged food. The rising consumption of these food and beverage products is driving its application in the end-use industry.
The industry is highly dependent on the safety of consumers and their convenience. The paper sleeves used for coffee cups prevent the burning and when used in bottles water provides grip and insulation. The function of paper sleeves in the food and beverage industry is to increase the consumer experience.
The paper sleeve industry is set to experience moderate growth during the forecast period. It is projected to create an incremental opportunity of USD 30.3 billion and is predicted to rise 1.6 times the current market value through 2034.
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The above table presents the expected CAGR for the global paper sleeve market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 4.1%, followed by a slightly lower growth rate of 4.6% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 4.1% (2023 to 2033) |
| H2 | 4.6% (2023 to 2033) |
| H1 | 4.4% (2024 to 2034) |
| H2 | 4.0% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 4.4% in the first half and remain relatively moderate at 4.0% in the second half. In the first half (H1) the market witnessed an increase of 50 BPS while in the second half (H2), the market witnessed a decrease of 40 BPS.
Rising Tide of Environmental Concerns and Sustainability
The packaging industry is being swept away by the use of sustainable, recyclable, and biodegradable packaging materials to reduce the harmful effects of packaging waste and protect nature. This shift has pushed the use of paper sleeves in the packaging industry. Consumers are becoming well-educated about harmful packaging substances and have evolved in their choices. Paper sleeves have become a sustainable options that align with the changing consumer preferences.
Regulatory Pressure and Government Initiatives
The adoption of paper sleeves is also being spurred by the different initiatives taken by the government to tackle pollution and the implantation of stricter regulations such as a ban on single-use plastic and other related regulations.
Globally, the higher authorities in all aver the countries are taking the initiative and implementing regulations for the use of plastics and promoting the use of paper packaging solutions. The inclusion of incentives and subsidies is further propelling the use of paper-based packaging including paper sleeves in the global market.
Booming Takeout and Delivery Services
One of the significant drivers of the paper sleeve market is the expanding food and beverage industry and booming demand for takeout and delivery services in the global market. Paper sleeves are majorly used in beverage bottles, food containers, and coffee cups. The increasing consumption of food and beverage products from outside is amplifying the demand for paper boxes and paper cup sleeves.
The past few years have increased the use of coffee cup sleeves and food container sleeves. Paper sleeves are a practical and eco-friendly option for the business. The rising go consumption and booming demand for takeout and delivery services are boosting the need for practical, low-cost, sustainable packaging solutions. This trend is further going to expand and push the demand for paper sleeves in the future.
High Production Cost and Limited Strength
Paper sleeves market can be hampered by the high cost of production and limited strength and durability. The production of sleeves especially with high-quality prints, decoration, and graphics can be costlier. The high cost of manufacturing and raw material procurement will limit the market growth. Paper sleeves have limited strength and durability which is a limitation for the market. They are easily damaged from moisture, tear, and crushing. This can affect the usability and limit its application for heavy-duty applications.
Principal Consultant
The global paper sleeve industry recorded a CAGR of 3.8% during the historical period between 2019 and 2023. The growth of the paper sleeve industry was positive as it reached a value of USD 1.6 billion in 2023 from USD 1.3 billion in 2019.
Governments across global countries are taking steps to promote the use of biodegradable and compostable packaging materials. Many governments like the European Union have banned single-use plastic bags and put limitations on plastic usage. This has translated into driving the demand for paper-based packaging. Increasingly environmentally conscious consumers are demanding sustainable and eco-friendly packaging solutions.
Paper sleeves are an excellent alternative to other material-based sleeves. Paper sleeves are made from recycled material, cardboard, and natural fibres which can be easily recycled or composted. They can be printed with graphical, colorful designs, and required information labelling. They are increasingly used in the food and beverage industry, especially on paper cups and food trays. This has significantly pushed the market demand.
Global countries are experiencing remarkable growth in online food delivery services which also is contributing to the market expansion. Paper sleeves are a great choice for packaging online food delivery as they can cut down on the waste created by plastic packaging. Paper packaging can provide excellent protection for products being delivered while being able to withstand the rigours of long transits. Paper packaging can be easily customized to fit the specific needs of different food products, such as different sizes, thicknesses, and shapes.
Consumers are embracing eco-friendly packaging options as sustainability has become an important factor to consumers. This has led to the increased use of paper sleeves in online food delivery services. The implementation of regulations regarding plastic usage by the government across countries is also pushing its application in food packaging.
In the FMCG sector where products are consumed daily, it can lead to generate a significant amount of packaging waste. Using paper-based packaging, the waste can be generated and recycled reducing the pollution. The growth of the FMCG sector across the global market pushing the market forward.
Tier 1 companies in the global paper sleeve industry include Mondi plc, International Paper Company, the Royal NNZ Group bv, WestRock Company, Smurfit Kappa Group. These manufacturers are market leaders in paper sleeve within global industry having extensive production capacity, different product offerings, and extensive manufacturing expertise. These companies are capturing around 10% to 20% of global market share in the paper sleeve industry.
Tier 2 of the global paper sleeve industry incorporates companies like PakFactory, Gilchrist Bag Manufacturing LLC, VERTPAC, Packman Packaging, Viessta Papers, Panmer Ltd. etc. They have limited presence, and well-maintained knowledge but may not have expertise and advanced manufacturing technology. These manufacture have mostly limited regional presence having knowledge and demand of regional market dynamics.
Tier 3 category in the global paper sleeve market includes the small-scale players of the region. These companies fulfil the local market demand and are recognized as an unorganized market. They have a country level presence, limited manufacturing facilities, and expertise in local market needs. They are well established in local market and fulfill the local market demands.
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The section below covers the industry analysis of the paper sleeve market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, South Asia & Pacific, East Asia, Western Europe, Eastern Europe, and others, is provided.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 3.9% |
| Germany | 3.7% |
| UK | 4.0% |
| Canada | 3.8% |
| India | 6.0% |
| China | 5.4% |
| Japan | 5.1% |
| France | 4.2% |
The paper sleeve in New Zealand is expected to hold almost 11% the value share of the South Asia and Pacific region by 2034. New Zealand has an expanding retail industry that is pushing the use of eco-friendly and recyclable packaging solutions. The New Zealand Government has reported that the retail sales recorded were USD 31 billion for the September 2023 quarter.
Also, New Zealand has transformed to become carbon neutral and embracing sustainability which can drive up the demand for paper sleeve in the country. Paper sleeves are highly versatile and can be used for a wide range of products across different sectors. The rising demand from the retail sector is contributing to the growth of paper sleeve market.
The non-alcoholic beverages market in Japan is anticipated to be worth USD 40 billion in 2023 with around USD 1 billion coming from imports as stated by the US. Foreign Agricultural Service. The demand from the ready to drink beverage industry including soft drinks, juices, water, and others is increasing and is anticipated to boost the sales of paper sleeves in Japan.
Giant business and brands of Japan are increasing their production capacity to meet the rising demand for ready to drink beverages which is anticipated to further drive the demand for paper sleeve packaging. Paper sleeves are used in beverage packaging especially in multipacks.
According to the US. FAS in 2022, the production values of soft drinks, juices, and water was around USD 32.8 billion for alcoholic beverages it was USD 26.3 billion and for tea, coffee, & cocoa it was around USD 7.1 billion. Japan is anticipated to at 5.1% CAGR and capture 5.1% of market share in East Asia by 2034 end.
The section contains information about the leading segments in the industry.
| End Use | Food and Beverage |
|---|---|
| Value Share (2034) | 27.8% |
Paper sleeves are highly used in the food and beverage industry for wrapping different products, labelling, decorations, and protection of the products. They are used in bakeries for warping muffins, breads, and cookies. They are also used in ready meals and take-away food packaging over the tray sandboxes for wraps, sandwiches, etc. They offer freshness maintenance and prevention of contamination.
It also serves as an attractive packaging option. They are hygienic and disposable options with reduced plastic packaging. The Paper sleeves provide a practical, biodegradable, and visually appealing packaging solution resulting in its increasing application in food and beverage.
| Material | Recycled Paper |
|---|---|
| Value Share (2034) | 24.2% |
Recycled paper is anticipated to create traction in the market and gain a major market share in the future. The changing consumer awareness and rising environmental issues have increased the usage of recycled paper. Paper can be easily recycled 3 to 5 times and reduces the reliance on virgin paper. Recycled paper is made from post-consumer and post-industrial paper waste which fulfils the sustainability goals.
The regulations by countries on using recycled paper are boosting and many countries are streamlining the process of gathering post-consumer paper waste and increasing the recycling facilities to produce more recycled paper. This has pushed the application of recycled paper in the paper sleeve market.
Several prominent players in the paper sleeve market are highly investing in innovation, research, and development to find out new applications and increase their product offerings. Manufactures looking for safety, quality of the product, and satisfaction of customer to expand their sales.
Key manufacturers of paper sleeve are focusing on developing recycled material packaging and developing packaging solutions to meet sustainability demand. They are adopting a merger & acquisition strategy to expand their resources and are developing new products to meet customer needs.
Recent Industry Developments in Paper Sleeve Market:
Paper sleeve industry is divided into kraft paper, corrugated paper, recycled paper, specialty paper, and others.
Paper sleeve industry is segregated into protective sleeves, decorative sleeves, and informative sleeves.
The industry is classified by direct sales, and indirect sales.
The industry is classified by end use as food and beverage, retail and e-commerce, healthcare and pharmaceuticals, electronics & electrical, personal care and cosmetics, and others (industrial, promotional, etc.).
Key countries of North America, Latin America, Western Europe, Eastern Europe, South Asia & Pacific, East Asia, and Middle East and Africa (MEA), have been covered in the report.
The global paper sleeve industry is projected to witness CAGR of 4.6% between 2024 and 2034.
The global paper sleeve industry stood at USD 1.6 billion in 2023.
The global paper sleeve industry is anticipated to reach USD 2.6 billion by 2034 end.
South Asia and Pacific is set to record the highest CAGR of 5.8% in the assessment period.
The key players operating in the global paper sleeve industry include includes Mondi plc, International Paper Company, the Royal NNZ Group bv, WestRock Company, and Smurfit Kappa Group.
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 2023and Forecast 2024 to 2034, By Material
8.1. Kraft Paper
8.2. Corrugated Paper
8.3. Recycled Paper
8.4. Specialty Paper
8.5. Others
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Functionality
9.1. Protective Sleeves
9.2. Decorative Sleeves
9.3. Informative Sleeves
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel
10.1. Direct Sales
10.2. Indirect Sales
11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End Use
11.1. Food and Beverage
11.2. Retail and E-commerce
11.3. Healthcare and Pharmaceuticals
11.4. Electronics & Electrical
11.5. Personal Care and Cosmetics
11.6. Others (Industrial, Promotional, etc.)
12. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region
12.1. North America
12.2. Latin America
12.3. East Asia
12.4. South Asia & Pacific
12.5. Western Europe
12.6. Eastern Europe
12.7. Middle East & Africa
13. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
14. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
15. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
17. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
18. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
19. Middle East and Africa (MEA) Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
20. Sales Analysis 2024 & 2034 by Key Market Segments for 30 Countries
21. Competition Outlook including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
22. Company Profile
22.1. Mondi plc
22.2. International Paper Company
22.3. the Royal NNZ Group bv
22.4. WestRock Company
22.5. Smurfit Kappa Group
22.6. PakFactory
22.7. Gilchrist Bag Manufacturing LLC
22.8. VERTPAC
22.9. Greenerprinter
22.10. Packman Packaging
22.11. Viessta Papers
22.12. Panmer Ltd.
22.13. A-ROO Company
22.14. Vulcan Information Packaging (NAPCO)
22.15. ALYA PACKAGING
22.16. Suzhou Accum Packaging Co., Ltd.
22.17. McNairn Packaging.
22.18. Blue Lake Paper Products
22.19. Information Packaging
22.20. Maxpack
22.21. ORPA Papír a.s.
22.22. Zhejiang Pando EP Technology Co., Ltd.
22.23. Trident Paper Box Industries
22.24. Branded Paper Cup
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Paper Sleeve Market
