Sack Kraft Paper Market: Global Analysis, Trends, Forecast 2024 | Growing Awareness against Plastic Driving Demand

The global sack kraft paper market reflects a fragmented competitive landscape, with top three players holding only 15.7% of the market in 2015. These three players are Mondi, BillerudKorsnas AB, and KapStone Paper and Packaging Corporation. Other prominent players identified by this Transparency Market Research (TMR) report in global sack kraft paper market include Segezha Group, Nordic Paper Holding AB, Gascogne SA, Tolko Industries Ltd., Natron-Hayat d.o.o., and Horizon Pulp & Paper Ltd.

The TMR report observes that these companies actively focus on innovative consumer and industrial solutions to maintain their position, besides extending their product portfolio and collaborating with domestic players to expand their geographical presence. The TMR report estimates the global sack kraft market had an opportunity of US$8.4 bn in 2015, which is expected to rise to US$10.5 bn by the end of 2024, expanding at a CAGR of 2.6% during the forecast period of 2016 to 2024.

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Construction Industry Fueling Cement and Building Materials Segment

By grade, the report segments that market into white and brown, while by packaging type, the market has been divided into valve sack and open mouth sack. In terms of end-use industry, the report categorizes the market into cement and building materials, chemicals, animal feed, pet food, and other foods. Owing to exponential growth of the construction industry, which has led to increasing demand for building materials, will consequently fuel the demand for the cement and building materials segment. This segment is projected to rise at a CAGR of 2.2% during the forecast period of 2016–2024.

Geographically, the report studies the regional sack kraft markets of North America, Asia Pacific, Europe, and rest of the world. Asia Pacific is expected for a consistent growth rate of 3.4% during the forecast period, which is attributed to the soaring construction activities in the emerging economies such as India, China, and Malaysia. Governments in these countries are actively favoring the investments in the construction sector to meet the demand of vast populations. Several multi-national companies are also investing in these regions due to the availability of skilled labor at affordable cost, and thereby propelling the construction industry.

Governmental Regulations Encouraging Adoptability

Sack kraft paper is now readily used for packaging of various products as they exhibit properties such as printability, porosity, extensibility, and durability. With similar strength possessed by sack kraft paper as plastic materials, the former is gaining quick popularity and now extensively used for packaging of smaller quantities of cement. Moreover, the awareness pertaining to the harmful effects of plastic is on the rise, and tough taxation rules are now implemented across the global against the over-consumption of it. This factor is encouraging several manufacturers to shift to unconventional packaging solutions, such as sack kraft paper, which is made of biodegradable natural fibers. The ban on plastic in several countries and recyclability of sack kraft paper is rated as one of the primary factor driving the demand for it. Improved printability and appearance of sack kraft paper is also favoring the adoptability. Conversely, the report expects the volatility of raw materials to negatively impact the growth rate of the global sack kraft paper market during the forecast period. Softwood, which is an essential raw material for the production of this material, is in limited availability.

According to the author of the report, “The growing environmental concerns pertaining to mounting dumps of plastics will further urge the governments in other developing economies to focus on the development of sustainable materials, which will thereby drive the research and development of advanced sack kraft paper.”

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This release was published on openPR.