The global sack paper market in 2021 was valued at US$32.27 billion. The market value is expected to reach US$41.76 billion by 2027. Sack paper is a packaging type that can be constructed of one or several layers of high quality kraft paper, usually produced from virgin fiber. It is a special grade built to suit a very specific demand for the industry. Sack paper is made from renewable resources such as paper and paperboard that provide distinct environmental sustainability credentials. Thus, it is environmental-friendly, sturdy and keeps the product in a well condition.
The market is expected to grow at a CAGR of 4.39% during the forecast period of 2022-2027. Due to incline in global biodegradable packaging market, growth in grocery retail sales and rapid urbanization, the market would propel in the forthcoming years. The global sack paper market demand reached 4.19 million tons in 2021.
Market Segmentation Analysis:
- By Grade: The report provides the bifurcation of the market into two segments based on the grade: Brown sack paper and white sack paper. In 2021, brown sack paper segment held a major share of more than 56% in the market. On the other hand, the white sack paper segment is expected to grow at a significant CAGR in the forthcoming years owing to the growing public awareness about the hazards of single-use plastic bags, escalating penetration of ecommerce and growing grocery retail sales.
- By Region: The report provides insight into the sack paper market based on the geographical operations, namely North America, Europe, Asia Pacific, Middle East & Africa and Latin America. Asia Pacific held the major share of above 34% in the market, owing to the rise in the evolution of the packaging industry in this region.
Within Europe, Germany is leading the market, due to increasing demand of packaging of consumer goods. Whereas, in the North America region, the U.S. is dominating the region due to the growing demand for sack paper in food and beverages industry.
Market Dynamics:
- Growth Drivers: One of the most important factors impacting the global sack paper market is growing demand for biodegradable packaging. Kraft paper is one of the emerging segments of the biodegradable packaging industry, because it is highly durable and strongest that can be used on occasions where maximum strength is required. Therefore, growth in the biodegradable packaging industry is likely to propel the growth of the global sack paper market in coming years. Furthermore, the market has been growing over the past few years, due to factors such as rapid urbanization, surging courier services, accelerating grocery retail sales, accelerating demand for agricultural fertilizers, growing public awareness about the hazards of single-use plastic bags, and many other factors.
- Challenges: However, the market has been confronted with some challenges specifically, rising focus on bio-plastics, stringent government regulations regarding deforestation, etc.
- Trends: The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as escalating penetration of e-commerce, rising demand for market pulp, etc. Paper is the most commonly used material for e-commerce packaging. An array of paper-based packaging options, that serve an aesthetic purpose also, offer protective advantages, adding operational efficiency to the fulfilment process. As ecommerce continues to penetrate rapidly in the retail sector, the demand for various paper based packaging would increase, which is likely to contribute to the growth of the global sack paper market.
Impact Analysis of COVID-19 and Way Forward:
The outbreak of the COVID-19 pandemic caused disruption in various sectors, using sack paper for packaging. The lockdown restrictions across most of the countries have forced several non-essential and sack paper using businesses to shutdown temporarily for a particular period of time, which negatively impacted sack paper demand on a global scale. Further, closure of supermarkets and retail stores, along with the shutdown of fast food restaurants, have also negatively impacted the demand for sack paper, due to the weakening of their respective product sales, which resulted in the decline in the sack paper market globally in the year 2020.
Competitive Landscape:
The global sack paper market is concentrated, as almost half of the production capacity is coming from top 5 players.
The key players in the global sack paper market are:
- WestRock Company
- Mondi plc
- Canfor Corporation
- BillerudKorsnäs
- GK Segezha PAO
- Nordic Paper
- Gascogne
- Kastamonu Entegre (Natron-Hayat d.o.o. Maglaj)
- Canadian Kraft Paper Industries Ltd.
- Smurfit Kappa Group plc
- International Paper Company
- Georgia-Pacific LLC
- Fujian Qingshan Paper
Some of the strategies among key players in the market for Sack paper market are mergers, acquisitions, and collaborations. For instance, in 2022, Mondi plc announced that the company has agreed to acquire the Duino mill near Trieste (Italy) from the Burgo Group for a total consideration of US$40 million. Whereas, Nordic Paper announced cooperation with Centre Technique Du Papier. Nordic Paper’s natural greaseproof papers is used in different food applications, for example as baking papers, for baking cups or for food containers.
Table of Contents
1. Executive Summary
Companies Mentioned
- WestRock Company
- Mondi plc
- Canfor Corporation
- BillerudKorsnäs
- GK Segezha PAO
- Nordic Paper
- Gascogne
- Kastamonu Entegre (Natron-Hayat d.o.o. Maglaj)
- Canadian Kraft Paper Industries Ltd.
- Smurfit Kappa Group plc
- International Paper Company
- Georgia-Pacific LLC
- Fujian Qingshan Paper
Methodology
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