The global paper wrap market is estimated to clock a valuation of USD 8.4 billion in 2024 and is anticipated to reach a value of USD 11.4 billion by 2034. Sales are projected to register a CAGR of 3.1% over the forecast period between 2024 and 2034. The revenue generated by paper wraps in 2023 was USD 8.1 billion.
Kraft papers encompass the majority of shares in the paper wrap industry in terms of products. It is poised to dominate the market with more than 67.3% of the market share, expanding at 2.4% CAGR through the forecast period. Integration of Kraft paper for gift packaging as well as food packaging boosts the demand for paper wraps in different industries.
The wrap packaging market is predicted to expand rapidly due to extensive use across sectors and a growing desire for eco-friendly packaging solutions. Single-use plastics rules and environmental concerns are anticipated to fuel industry expansion.
Global Paper Wrap Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 8.1 billion |
| Estimated Size, 2024 | USD 8.4 billion |
| Projected Size, 2034 | USD 11.4 billion |
| Value-based CAGR (2024 to 2034) | 3.1% |
Through 2034, the availability of packaging alternatives, such as flexible packaging and bubble wraps, may limit the market penetration. The expansion of paper wrap packaging is anticipated to be fueled by its widespread service and ecological qualities.
Manufacturers utilize paper wrap, a substance that resembles kraft paper, to shield breakable or delicate goods during shipment and transit. The demand for paper bubble wrap as an environmentally friendly replacement for conventional plastic wrap and has bubbles or honeycomb designs. Paper wraps have a strong-to-weight ratio, are lightweight, and work with various materials.
The paper wrap industry is set to experience upward growth during the forecast period. It is projected to create an incremental opportunity of USD 11.4 billion and is predicted to rise 1.6 times the current market value through 2034.
In 2018, the paper wraps market had a revenue of USD 7.1 billion due to increased demand from various sectors. The need for sustainable alternatives is being driven by growing awareness of the negative environmental effects of plastic packaging, which is contributing to the present favorable outlook for the paper wrap industry. With a projected CAGR of 3.1% during the projected period, the market is anticipated to have considerable expansion in the next years.
The industry is extending due to factors including strict laws banning single-use plastics, consumers' increased demand for eco-friendly items, and manufacturers' growing usage of paper wrap. Emerging paper-based packaging solutions, such as water-resistant paper wraps and biodegradable coatings, are among the most cutting-edge developments in the paper wrap industry.
The trend towards sustainable packaging solutions, in which players in the packaging industry are playing a critical role, is predicted to propel the paper wrap market's significant growth in the immediate future.
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The subsequent table shows the expected CAGR for the global paper wrap market over several semi-annual periods from 2024 to 2034. The business is predicted to register a CAGR of 2.7% in the first half (H1) of the decade from 2023 to 2033, observed by a scarcely elevated growth rate of 3.3% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 2.7% (2023 to 2033) |
| H2 | 3.3% (2023 to 2033) |
| H1 | 3.5% (2024 to 2034) |
| H2 | 2.9% (2024 to 2034) |
Proceeding into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 3.5% in the first half and drop at a moderate rate of 2.9% in the second half. In the first half (H1), the market witnessed a rise of 60 BPS, while in the second half (H2), the market witnessed a proliferation of 80 BPS.
Mounting Demand for Paper Wrap Upsurge in E-commerce Sector
Since the adoption of the internet has increased and customers' preferences for online buying have grown over the past several years, the e-commerce sector has experienced significant development.
Proper wrapping is essential for the secure delivery of goods to e-commerce operations. Paper-based products, such as paper wraps and others, are recommended since they are affordable and environmentally friendly. The rising volume of deliveries and the requirement for the safe packing of tiny and delicate objects have led to an increase in demand for bespoke paper wrap solutions.
Innovative paper wrap designs, such as bubble wraps, flow wraps, and brown wraps, are being developed by manufacturers to safeguard against the effects of logistics and travel. Packaging materials that can be efficiently branded to enable multicolor printing of corporate logos and information and improve the unpacking experience are necessary for e-commerce vendors.
For the forthcoming decade, the paper wrap market is anticipated to be helmed by the demand for economical yet sustainable packaging as e-commerce is growing at a rapid rate.
Escalating Trend of Paper Wraps for FMCS Packaging
In recent times, retailers and FMCG firms have placed a higher priority on quick wins, such as lowering weight and material usage, in order to save money on packaging. However, manufacturers and retailers of packaged goods have made public promises to boost their sustainability efforts, and nearly all of the top 100 companies have committed to reducing packaging waste in recent years.
Cost pressures, e-commerce, digitization, and shifting consumer preferences are some of the industry developments that are impacting the paper wrap sector. Such trends are coupled with sustainability-focused programs that emphasize innovation and the need to alter how packaging is used.
FMCG producers and vendors are investigating a radical new approach to packaging and distribution. One such option is the use of paper wraps for returnable packaging, which helps to decrease plastic waste. Additionally, by collaborating more closely with upstream stakeholders, paper packaging corporations, and recyclers, they are attempting to address the emerging challenges in waste management and recyclables. The demand for paper wraps is anticipated to outgrow FMCG packaging with a robust growth rate.
Consumer Skepticism Related to Raw Material May Plummet Paper Wrap Market Growth
Paper wraps are replacing plastic wraps due to their environmental benefits and cost-effectiveness. These biodegradable materials offer a sustainable alternative to single-use plastics. However, the paper packaging market faces challenges such as volatile raw material costs, concerns about sustainability, and potential increased production costs due to stricter environmental regulations.
Consumers are increasingly seeking eco-friendly packaging, leading manufacturers to develop renewable and recyclable materials. Businesses are responding to consumers' growing ecological consciousness by offering sustainable packaging alternatives.
Principal Consultant
The global paper wrap industry recorded a CAGR of 2.6% during the historical period between 2019 and 2023. The development of the paper wrap industry was positive as it reached a value of USD 8.1 billion in 2023 from USD 7.1 billion in 2019.
During the period of the epidemic, provoked a brief pause in the industry growth in 2020. The epidemic not only caused the closure of several end-user companies but also hampered global trade and the flow of goods, which additionally plunged the development of the market.
Post-pandemic, cost-effectiveness became a priority for several businesses, which further drove the demand for lower-priced paper wraps. Moreover, international trade went through a rapid recovery in 2021 and 2022 post-pandemic.
For the food service sector, the need for paper wraps is anticipated to upsurge as the consumers are favouring the sustainable food packaging. The fast food items such as burgers, rolls, tacos, and others are driving the need for paper wraps. The fast food service players are developing innovative designs for wrapping different food items.
Paper wraps are a sustainable substitute for plastic wraps through 2034 because they are safe for the environment and are utilized by consumers and end-user businesses to shield goods from harm during transit. Additionally, they contribute to a 33% decrease in packaging-related plastic waste.
The burgeoning e-commerce industry and the rising need for eco-friendly packaging options across a range of sectors, such as food and beverage, electronics, cosmetics, personal hygiene, and home care, are projected to propel the paper wraps market's growth. The industry is expanding due to the rising demand for paper wraps in the forthcoming decade.
During the projected years, there is predicted to be a considerable increase in the market due to the growing demand for wrapping paper that is ecologically friendly and created from recycled resources.
The increasing consciousness of customers of environmental concerns has resulted in a desire for environmentally friendly products that decrease waste in landfills and lessen the need for virgin pulp, a major contributor to deforestation.
Tier 1 firms account for almost a quarter of the global market share, with revenue exceeding USD 100 million. They have a solid customer base and a broad range of services and are renowned for their proficiency in manufacturing and reconditioning in a variety of package styles. They offer the best items, adhere to legal requirements, and employ the newest technology. Prominent companies within Tier 1 include Amcor plc, Berry Global Inc., and Mondi Group.
Tier 2 firms are mid-sized participants with a significant presence in certain regions and influence in the regional market. Their revenue ranges from USD 50 to USD 100 million. The Tier 2 firms are technologically advanced, comply with regulations, and may require global reach and cutting-edge technology. Prominent companies in tier 2 include DS Smith plc, Sealed Air Corporation, and Constantia Flexibles Group.
Emerging businesses in specialist industries with less than USD 50 million in revenue, mostly catering to local customers, are classified as Tier 3. These businesses need a wider geographic reach since they are focused on meeting the needs of the local market.
In comparison to the structured competition, Tier 3 is an unorganized market that needs more structure and formalization and necessitates a wider geographic reach. Emerging companies in tier 3 include Armor Protective Packaging, The Mend Packaging LLP, CARVAN PAPER PRODUCTS, WINPAK LTD., Adapa Group, ProAmpac, Scientex Berhad, BPM Inc., and Palmer Packaging, Inc.
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The section below covers the industry analysis for the paper wrap market for different countries. The United States is anticipated to remain at the forefront in North America, with a CAGR of 1.8% through 2034. In Asia Pacific, India is projected to witness a CAGR of 5.4% by 2034, followed by China with a CAGR of 4.7%.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| United States | 1.8% |
| Canada | 1.2% |
| Germany | 1.5% |
| United Kingdom | 1.6% |
| India | 5.4% |
| China | 4.7% |
The paper wrap industry in the United States is poised to exhibit a CAGR of 1.8% between 2024 and 2034. Currently, it holds the peak share in the North American ecosystem, and the trend is expected to continue during the forecast period.
The paper wrap industry is set to grow in the United States owing to people who are concerned about the environment. The rapidly boosting demand for eco-friendly packaging options reflects this change. Even the food service business, which uses a lot of plastic, develops novel designs for food items.
For instance, companies such as Kraft Heinz are using paperboard substitutes for plastic Kraft Mac and Cheese boxes. Beyond mere functioning, the sustainability trend exists.
Producers are printing eye-catching paper wrapping to draw in customers. Consider alternatives to brown paper wraps: patterned, colorful wraps with pictures or even QR codes with dietary or recipe information are getting more and more popular. The combination of beauty and sustainability is compelling the paper wrap industry.
Chinese paper wrap sector is anticipated to report a CAGR of 4.7% throughout the forecast period. As e-commerce operations are developing a novel consumer base in China, the demand for sustainable paper packaging augments.
China's e-commerce boom is driving a green revolution in packaging, helmed by environmentally conscious consumers and government regulations. Paper wrap packaging offers a biodegradable alternative to traditional plastic, benefiting from the growing online customer base.
To fulfill the demand, e-commerce behemoths like Alibaba and Amazon have already partnered up with regional paper producers. Additionally, businesses are thriving in terms of innovation, creating novel paper-based products ranging from food containers to protective padding.
Such a trend extends beyond functionality - manufacturers are creating stylish, printed-paper wraps to enhance the brand experience. The convergence of sustainability and consumer appeal is propelling China's paper packaging industry to new heights.
Through 2034, the paper wraps industry in India is anticipated to boost significantly, conducted by a predicted CAGR of 5.4%. In India, a number of elements contribute to market growth. The paper is an attractive option for producers in a variety of sectors due to its inherent features, which include its lightweight construction, flexibility, durability, and cost.
From food and beverages to pharmaceuticals, household goods to electronics, paper wraps are increasingly seen as an eco-friendly alternative to traditional packaging materials. India's robust paper production acts as a major advantage. Such a steady supply of raw materials ensures manufacturers have the resources to meet the growing demand for sustainable packaging solutions.
The confluence of consumer preference for eco-friendly options, the versatility of paper wraps, and strong domestic paper production position India's paper wraps market for a promising future.
The section contains information about the leading segments in the industry. By product, the kraft paper segment is estimated to acquire a market share of 67.3% in 2024. Additionally, manufacturing and warehousing are projected to attain a market share of 61.4% in the same year.
| Product | Kraft paper |
|---|---|
| Value Share (2024) | 67.3% |
The kraft paper segment dominates the market in terms of revenue, accounting for almost 67.3% of the market share in 2024. The dominance in revenue share is owing to the significantly higher quality of kraft papers over specialty papers.
Kraft paper is perfect for wrapping expensive food since it is worthy of such an occasion. Demand is rising as businesses switch from plain packaging to these exquisite, premium materials.
Major players are developing specialty kraft paper for delicate gourmet treats, offering super strength and a moisture-resistant coating, making it ideal for handling chocolates and other fragile items.
The demand for Kraft paper for various applications beyond luxury food packaging, including wine shops and candle stores. Such an innovative material allows consumers to enjoy eco-friendly products in stylish packaging, proving that it can also be used for other purposes.
| End Use | Manufacturing and Warehousing |
|---|---|
| Value Share (2024) | 61.4% |
In demand for the manufacturing and warehousing segment, paper wraps accounted for almost 61.4% of the market share in 2024. Manufacturers are urged to adopt eco-friendly practices in their supply chain, with paper wraps being a sustainable alternative to traditional plastic packaging, thereby reducing environmental impact and enhancing brand image.
The need for paper wraps is widespread as it offers cost-effective alternatives to bulkier protective packaging materials, particularly for lighter-weight items with optional heavy-duty protection.
Customizable paper wraps can be tailored to meet specific needs in manufacturing and warehousing spaces, including bundling parts, protecting surfaces during storage, and serving as dunnage for added security in packages. Consumers prefer paper wraps, which are lightweight and efficient, saving warehouse space by occupying less space compared to bulkier packaging options.
The demand for paper wraps in manufacturing and warehousing is anticipated to increase due to environmental concerns, cost advantages, and the material's inherent versatility.
Industry leaders in the paper wrap market are implementing a two-pronged strategy to augment their presence in the reconditioned paper market. Significant investments are being made in advanced reconditioning facilities, allowing for the effective refurbishment and reuse of used paper wraps.
Key players are forging strategic partnerships and pursuing targeted acquisitions of smaller companies. This collaborative approach facilitates a wider geographic reach and deeper penetration into the reconditioned paper market across multiple regions. Such endeavors demonstrate the industry's commitment to both environmental sustainability and market growth.
Recent Industry Developments in Paper Wrap Market:
In terms of product, the industry is bifurcated into kraft papers and specialty papers.
In terms of thickness, the industry is segregated into up to 30 GSM, 30 to 50 GSM, and above 50 GSM.
End use industries such as manufacturing and warehousing, e-commerce and logistics and transportation classify the industry. The manufacturing and warehousing sector is further classified into pharmaceuticals, electronics and electrical, automotive and allied industries, food and beverages, cosmetics and personal care, and other industries.
As per region, the industry is divided into North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa.
The industry is projected to witness a CAGR of 3.1% between 2024 and 2034.
The paper wrap industry stood at USD 8.1 billion in 2023.
The paper wrap industry is anticipated to reach USD 11.4 billion by 2034 end.
India is set to record the highest CAGR of 5.4% in the assessment period.
Amcor plc, Berry Global Inc., Mondi Group, and Constantia Flexibles Group.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Coating Type
6.2. Thickness
6.3. End Use
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Coating Type
7.1. Coated Paper Wrap
7.2. Uncoated Paper Wrap
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Thickness
8.1. Up to 25 Microns
8.2. 26-40 Microns
8.3. 41-60 Microns
8.4. Above 60 Microns
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use
9.1. Food & Beverage
9.2. Electrical & Electronics
9.3. Cosmetics & Personal Care
9.4. Homecare
9.5. Pharmaceuticals
9.6. Others
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
10.1. North America
10.2. Latin America
10.3. Western Europe
10.4. South Asia
10.5. East Asia
10.6. Eastern Europe
10.7. Middle East & Africa
11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Sales Forecast 2024 to 2034 by Coating Type, Thickness, and End Use for 30 Countries
19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
20. Company Profile
20.1. Armor Protective Packaging
20.2. The Mend Packaging LLP
20.3. CARVAN PAPER PRODUCTS
20.4. Amcor plc
20.5. Berry Global Inc.
20.6. DS Smith plc
20.7. Sealed Air Corporation
20.8. Mondi Group
20.9. WINPAK LTD.
20.10. adapa Group
20.11. ProAmpac
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Paper Wrap Market
