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Saturating Kraft Paper Market Growth Hinges on Demand from Furniture and Retail Sectors

05-12-2020 04:29 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Transparency

The saturating kraft paper market is expected to witness a steady growth in the upcoming years, owing to the consistent demand from household and industrial sectors. While the sales of ready to assemble furniture continue to grow worldwide, the construction sector, particularly in developed regions, including the Asia Pacific, are projected to grow at an impressive pace in the forthcoming years, as governments continue to invest resources in infrastructural development programs and projects. In addition, the retail and e-Commerce sectors over the past decade have flourished over the past decade, which, in turn, is likely to augment the saturating kraft paper market during the forecast period.

The consumer demand for improved product quality in the furniture sector is a major factor that is expected to propel the growth of the saturating kraft paper market. In addition, the soaring demand for the asphalt-saturated kraft papers for siding applications, and application in the construction sector is another factor that is likely to propel the saturating kraft paper market. While asphalt-grade saturating kraft papers are used in the construction sector, resin-saturated kraft papers are increasingly being used in the furniture sector. At the back of these factors and widening applications of saturated kraft paper in various industries, the global saturating kraft paper market is expected to attain a market value of ~US$ 2 Bn by the end of 2027.

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The demand for saturating kraft paper is on the rise, particularly from the ready-to-assemble furniture and the construction sector. Moreover, as the demand continues to ascend, players in the saturating kraft paper market are primarily focusing on improving the quality and functional properties of their products. In recent years, water-repellent saturating kraft papers have gained a great amount of popularity due to the anti-moisture properties. Water-repellent saturating kraft papers have emerged as an ideal solution for lining maritime creates made from wood and wrapping different export-grade components, including automobile parts, engines, and industrial machined parts.

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Market players are primarily focusing on improving the humidity barrier of their products to enhance export packaging. While the demand for resistant saturating kraft paper from the packaging industry is increasing, the growing consumer affinity toward ready-to-assemble furniture is expected to propel the demand for saturated kraft paper during the assessment period.

Companies in the saturating kraft paper market players are expected to focus on improving the tear-resistance capabilities of their products and introduce innovative products to gain a competitive edge. The growth of the retail sector, particularly in the developing nations, including India, China, Mexico, and Indonesia offers promising prospects to the growth of the global saturating kraft papers market. The rise in the middle-class population, focus on urbanization, and the booming e-Commerce sector are expected to provide an impetus for growth of the saturating kraft paper market.

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Market players are likely to focus on improving the operating efficiency and increasing manufacturing capacity to gain an advantage in the current market landscape.

Demand Likely to Decline amidst COVID-19 Pandemic, Product Diversification Holds Key
The spread of the novel COVID-19 pandemic is expected to impact the growth of the saturating kraft paper market, particularly in 2020 and the first half of 2021. While the market is likely to recover by the end of 2021, the effects of the COVID-19 pandemic are anticipated to be felt during the first half of the assessment period. Soaring prices of raw materials coupled with trade restrictions imposed by governments across the world are some of the factors that are expected to cause bottlenecks in the supply chain. Manufacturers in the current market landscape should focus on tapping into potential opportunities amidst the COVID-19 pandemic and possibly tie-up with personal protective equipment companies to ensure safe packaging and logistics.

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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.

TMR's data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.

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