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Sack Kraft Paper Market - Consumer Expectations Drive Global Trends

07-31-2018 09:48 AM CET | Fashion, Lifestyle, Trends

Press release from: Transparency Market Research

/ PR Agency: Transparency Market Research
Sack Kraft Paper Market - Consumer Expectations Drive Global

A recent business publication by Transparency Market Research (TMR) has notified that the market for sack kraft paper is steadily prospering, projecting the demand to increment at a CAGR of 2.6% during the forecast period of 2016 to 2024. However, the analyst of the report has strongly recommended the stockholders of the market to consider expansion into the emerging economy of India. The country is vastly populated and the awareness regarding soil pollution caused by plastic is expanding. The government in the country has been taking strong initiatives to curtail the usage of plastic bags and hence, the ones made from sack kraft paper are gaining exponential demand. Revenue-wise, the TMR analyst has estimated the global sack kraft paper market to be worth US$10.5 billion by the end of 2025.

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Competitive Landscape Highly Fragmented

Presently, the global shares in the sack kraft paper market are distributed among a large pool of players. Additionally, the entry barriers are fairly low owing to the easy availability of the technology as well as the raw materials. A number of regional and domestic players are throwing their hat into the field and are able to eat out substantial shares. That being said, a few players such as Mondi Group, BillerudKorsnas AB, KapStone Paper and Packaging, Smurfit Kappa, and Nordic Paper are ahead of the curve and are expected to retain their position of prominence in the near future too. This can be attributed to their financial might to innovate. These players are investing significantly on research and development activities in order to produce products that protect consumers as well as the products. Development of moisture resistant products is another niche.

These players also have a strong product portfolio that meets diverse demands. For instance, Mondi Group offers Advantage Kraft, both white and brown, Advantage Speed, monopol market pulp, and FIBROMER Fibers. These products are extensible sack kraft paper that combines high tensile strength, runnability, and high porosity. In addition to enhancing product portfolio, major players are also expected to indulge into mergers and acquisitions, which helps them strengthen their product portfolio.

Moisture Resistant Products Creating a Niche

Going forward, the demand for ecofriendly packaging is expected to restructure a number of industries, particularly the food and beverage industry. But that is not the only source of demand. The vendors of the sack kraft paper market are concentrating on catering to the cement, chemical, agrochemical, and industrial and building material industries for newer demands. These industries have to abide by stringent government regulations to maintain environment norms and opting for materials packaged with sack kraft paper helps them. On the other hand, high cost of raw materials such as soft wood is expected to remain a restraint over a greater profitability of this market.

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Based on grade, the TMR report segments the sack kraft paper market into brown and white. While the brown grade is cheaper, white sack kcraft paper as a result of bleaching, helps in improving the appearance for the packaged products, as well as are printing friendly. Based on packaging-type, the market has been bifurcated into open mouth sack and valve sack. End users studied under this report are animal food, pet food, chemicals, cement and building materials, and food and beverage.

About TMR

Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

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Albany, NY 12207
Tel: +1-518-618-1030
USA - Canada Toll Free: 866-552-3453

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