Kraft Paper Market Report 2025

The kraft paper market size has grown steadily in recent years. It will grow from $17.77 billion in 2024 to $18.62 billion in 2025 at a compound annual growth rate (CAGR) of 4.8%. The growth in the historic period can be attributed to strong economic growth in emerging markets and, rise in demand for ready-to-eat food products.

The kraft paper market size is expected to see steady growth in the next few years. It will grow to $22.58 billion in 2029 at a compound annual growth rate (CAGR) of 4.9%. The growth in the forecast period can be attributed to the increasing government support, increase in awareness, and rapid urbanization. Major trends in the forecast period include a focus on new paper packaging, a focus on avoiding the need for extra plastic to develop new products, the launch of new, innovative products to attract more customers, technological advancements to provide advanced solutions, increasing investments to expand manufacturing capacities and partnerships and collaborations to strengthen product portfolio and geographic presence.

The rapidly expanding packaging industry is driving growth in the kraft paper market. Kraft paper is widely used in industrial and commercial packaging for applications such as packing, wrapping individual items, bundling, and void fill, thanks to its strength and durability. For instance, in April 2024, the Australian Packaging Covenant Organisation (APCO), a non-profit organization based in Australia, reported that in 2021-2022, Australia introduced approximately 6.98 million tonnes of total packaging to the market. This included 52.3% paper and paperboard, 18.3% plastic packaging, 16.4% glass packaging, 8.8% wood packaging, and 4.3% metal packaging. Therefore, the rapid growth of the packaging industry is set to propel the kraft paper market.

The government support is anticipated to play a pivotal role in driving the future growth of the kraft paper market. Governments worldwide are extending their support to the kraft paper sector, encouraging the development of new solutions to better serve the industry. Notable examples include the Canadian government's announcement of a federal contribution of $10 million to Kruger Packaging L.P. for the transformation of the Kruger Place Turcot Mill in Montreal into North America's first mill to produce 100% recycled saturating kraft. Additionally, in the UK, the Forestry Commission unveiled a £4 million ($5.07 million) funding initiative to support projects aimed at improving tree planting stocks, enhancing woodland resilience, and contributing to the government's goal of achieving net-zero emissions by 2050. This funding is expected to foster innovation, stimulate commerce, and expand the economy by creating new markets for wood products, thereby driving the kraft paper market.

A key trend gaining popularity in the kraft paper market is product innovation. Companies within the market are actively introducing innovative specialty products that offer enhanced durability and versatile applications. For instance, Pregis, a US-based manufacturer of paper-based packaging materials, expanded its EasyPack portfolio with the introduction of GroTerra. GroTerra is a sustainable, expandable paper product designed to provide light cushioning and interleaving protection, showcasing the industry's commitment to innovation.

A noteworthy trend is the continuous focus on product innovation by companies in the kraft paper market. In this regard, Billerud, a Swedish pulp and paper manufacturer, launched a wrapping solution for toilet and kitchen rolls called GroTerra. This renewable, recyclable, and biodegradable solution aims to facilitate the transition from plastic to paper packaging without compromising quality, addressing the growing demand for sustainable alternatives.

In April 2024, American Kraft Paper Industries, a U.S.-based supplier, acquired Pine Bluff Unbleached Kraft Paper Mill from Twin Rivers Paper for an undisclosed amount. This acquisition is intended to enhance American Kraft Paper Industries' production and distribution capabilities in the unbleached kraft paper sector. The strategic move allows the company to better serve both domestic and international customers in the packaging industry by improving speed, quality, reliability, and efficiency. Twin Rivers Paper is a U.S.-based company specializing in the production of specialty paper products.

Major companies operating in the kraft paper market include Mondi Group, Stora Enso, WestRock, Smurfit Kappa, Klabin S.A,Nine Dragons Paper Holdings, Billerud AB, Heinzel Group, Segezha Group, International Paper, JB Craft Paper LLP, BN Papers, Blue Mount Paper and Boards Limited, Shree Krishna Paper Mills and Industries Ltd, Millenium Overseas, Prima Papers LLP, Diyan Papers LLP, Shri Brahma Paper Mill Pvt, Kamishigen Co., Ltd, Arrowfield Co., Ltd, TF Group, Zhengzhou SF Paper Factory, Linqu Hengsen Packaging Materials Co., Ltd, Chengdu Qingya Paper Industries Co., Ltd, Golden Paper Co., Limited, Rise Star Holdings Limited, Hebei Feiyue Industry Co.,Ltd, Qiongdao Sanshi Paper Co., Ltd, Pg Paper Co., Ltd, Comet Packaging, Expack Uk, Somic Textiles Ltd, Varad Papers Pvt Ltd, Sunflower Packaging Co., Ltd, Skybridge Albion Ltd, Richmond Papers Ltd, Ecopacksnab, Chestnyi Chek LLC, Ilim Group, Veiro Pro, Meltic Ltd., Papertec, Inc, Deluxe Packaging, Steelson Packaging, KapStone Paper and Packaging Corporation, Georgia-Pacific LLC, Packaging Corporation of America (PCA), Domtar Corporation, Hood Packaging Corporation, Norampac Inc, Klingele Paper and Packaging Group, Paper Excellence, Santher, gKraft paper, Paperindex, CMPC Biopackaging, Andritz Chile Ltd, Arabian Kraft Paper Manufacturing LLC, R3s Paper Bags Works, Al Wahdania Shipping and Cargo, Aetreum, APL International, Zdpacks Manufacturing Llc, CPpack, RBE Stationery Manufacturers, Corruseal Group.

North America was the largest region in the kraft paper market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the kraft paper market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the kraft paper market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Kraft paper is produced through the sulfate pulping process and comes in various grades, including bleached, unbleached, and others. It is commonly used for packaging materials.

The main types of kraft paper encompass virgin natural kraft paper, natural recycled kraft paper, black kraft paper, colored kraft paper, white or bleached kraft paper, and printed kraft paper. Virgin natural kraft paper is composed of clean and durable fiber content, making it suitable for heavy-duty applications. Kraft paper is utilized in the production of various packaging forms such as corrugated boxes, grocery bags, industrial bags, wraps, pouches, and envelopes. Different grades of kraft paper include unbleached, bleached, wrapping & packaging, sack kraft paper, and others. Kraft paper finds applications in various industries, including food and beverages, building and construction, electronics and electricals, cosmetics and personal care, textile manufacturing, and others.

The kraft paper market research report is one of a series of new reports that provides kraft paper market statistics, including kraft paper industry global market size, regional shares, competitors with a kraft paper market share, detailed kraft paper market segments, market trends and opportunities, and any further data you may need to thrive in the kraft paper industry. This kraft paper market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The kraft paper market consists of sales of printed kraft paper, colored kraft paper, vegetable parchment kraft paper, greaseproof kraft paper, and glassine kraft paper. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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