Kraft Paper Market Report 2026

The kraft paper market size has grown steadily in recent years. It will grow from $18.44 billion in 2025 to $19.34 billion in 2026 at a compound annual growth rate (CAGR) of 4.9%. The growth in the historic period can be attributed to expansion of paper-based packaging usage, growth in food and beverage packaging demand, availability of virgin pulp resources, increasing replacement of plastic packaging, expansion of industrial bag applications.

The kraft paper market size is expected to see steady growth in the next few years. It will grow to $22.99 billion in 2030 at a compound annual growth rate (CAGR) of 4.4%. The growth in the forecast period can be attributed to increasing demand for recyclable packaging solutions, rising adoption of circular economy practices, expansion of online retail packaging needs, growing focus on lightweight packaging materials, increasing innovation in kraft paper processing. Major trends in the forecast period include increasing demand for sustainable packaging materials, rising use of recycled kraft paper grades, growing adoption of printed and customized packaging, expansion of e-commerce packaging applications, enhanced focus on high-strength paper grades.

The rapid expansion of the packaging industry is expected to drive the growth of the kraft paper market in the coming years. The packaging industry involves the production and supply of materials and containers used to protect, store, and present products until they reach end consumers, and it is expanding as the growth of online shopping increases the need for reliable, efficient, and durable materials to safeguard goods during transportation and delivery. Kraft paper is widely used in industrial and commercial packaging applications such as packing, wrapping individual products, bundling, and void filling due to its high strength and durability. For instance, in November 2025, according to the Australian Packaging Covenant Organisation (APCO), an Australia-based joint industry-government body, the total volume of packaging placed on the market (POM) in Australia during 2023-24 was estimated at 6.84 million tonnes. Therefore, the continued expansion of the packaging industry is propelling the growth of the kraft paper market.

Key players operating in the kraft paper market are increasingly focusing on the development of innovative product solutions, such as advanced paper-based wrapping materials, to support sustainable packaging initiatives and reduce dependence on plastic materials. Advanced paper-based wrapping materials are specially engineered kraft papers that offer enhanced strength, durability, and barrier properties, enabling manufacturers to replace plastic packaging with recyclable and biodegradable paper solutions while maintaining product quality and supporting environmental sustainability. For instance, in May 2023, Billerud, a Sweden-based pulp and paper manufacturer, launched a renewable, recyclable, and biodegradable wrapping solution for toilet and kitchen rolls. The company introduced machine-glazed kraft paper specifically designed and approved for wrapping toilet paper and kitchen towel rolls, allowing brand owners to transition from plastic to paper packaging without compromising performance or quality.

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 are Mondi Group, Stora Enso, WestRock, Smurfit Kappa, Klabin SA, Nine Dragons Paper Holdings, Billerud AB, Heinzel Group, Segezha Group, International Paper, Ilim Group, KapStone Paper and Packaging Corporation, Georgia Pacific LLC, Packaging Corporation of America, Domtar Corporation, Hood Packaging Corporation, Norampac Inc, Klingele Paper and Packaging Group, Paper Excellence, CMPC Biopackaging, Arabian Kraft Paper Manufacturing LLC.

North America was the largest region in the kraft paper market in 2025. 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, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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