Press release
Global Kraft Paper Market Edition 2025: Industry Size to Reach USD 28.8 Billion by 2033, CAGR of 5.65%.
Market OverviewThe global kraft paper market was valued at USD 18.6 Billion in 2024 and is forecasted to reach USD 28.8 Billion by 2033, growing at a CAGR of 5.65% during 2025-2033. The market is driven by increasing demand for eco-friendly and sustainable packaging, the expansion of e-commerce, urbanization, and advancements in production technologies. Asia-Pacific holds a dominant share exceeding 40%.
Study Assumption Years
• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Years: 2025-2033
Kraft Paper Market Key Takeaways
• The global kraft paper market size was valued at USD 18.6 Billion in 2024.
• The market is expected to grow at a CAGR of 5.65% between 2025 and 2033.
• Asia-Pacific dominates with a market share exceeding 40.0% as of 2024.
• The shift toward sustainable and compostable packaging materials is a major growth driver.
• The expanding e-commerce sector increases demand for kraft paper packaging and protective materials.
• Rising urbanization fuels demand for efficient and eco-friendly packaging solutions.
• The United States is a significant regional market driven by e-commerce growth and sustainability regulations.
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Market Growth Factors
The kraft paper market is largely driven by increasing demand for sustainable packaging solutions. Environmental concerns have pushed consumers and businesses to prioritize eco-friendly materials, favoring kraft paper due to its biodegradability and recyclability. According to reports, global plastic waste generation is significant, boosting demand for alternatives like kraft paper that can be recycled and destroyed. The growth of food, beverage, and retail sectors embracing kraft paper packaging further supports market expansion.
The expanding e-commerce sector also fuels kraft paper demand. The global e-commerce market is projected to grow reaching USD 183.8 Trillion by 2032 at a 27.16% annual rate. The necessity for durable, lightweight, and sustainable packaging for shipping and protection positions kraft paper as a preferred material. Its strength and cost-effectiveness meet the requirements of e-commerce businesses and consumers increasingly seeking green packaging options.
Increasing urbanization and changing consumer lifestyles are additional growth factors. Currently, 56% of the global population lives in urban areas, a figure expected to rise considerably by 2050. Urban consumers demand convenience foods, online shopping, and environmentally responsible products, pushing sustainable packaging's popularity. Kraft paper's durability and recyclability meet practical and environmental needs, positioning it as a key packaging material in growing urban markets.
Market Segmentation
By Product Type
• Unbleached: Largest segment in 2024 with around 32.0% market share. It offers versatility, robustness, exceptional strength, and tear resistance, suitable for various packaging and shipping applications.
• Bleached
• Wrapping and Packaging
• Sack Kraft Paper
• Others
By Packaging
• Corrugated Box: Holds approximately 36.5% market share in 2024. Used extensively for packaging and protecting diverse products, adaptable to various sizes and customizable, with strong eco-friendly appeal.
• Grocery Bags
• Industrial Bags
• Wraps
• Pouches
• Others
By Application
• Foods and Beverage: Leading application segment with 27.8% market share in 2024. Kraft paper resists grease, moisture, and oil, ideal for baked goods, snacks, confectioneries, and dry foods packaging, aligning with consumers' eco-conscious preferences.
• Pharmaceuticals
• Building and Construction
• Cosmetic and Personal Care
• Others
By Distribution Channel
• Offline: Traditional sales through brick-and-mortar stores, specialty shops, wholesalers, and distributors, serving businesses and consumers needing hands-on purchasing and expert advice.
• Online: E-commerce platforms offer wide variety, convenience, reviews, and easy ordering that have grown this segment's market share.
Regional Insights
Asia-Pacific held the largest market share of over 40.0% in 2024. The region's economic dynamism, robust manufacturing, industrialization, urbanization, and expanding sectors like e-commerce, retail, and consumer goods drive kraft paper demand. Increasing middle-class populations and commitment to sustainability further stimulate growth, making Asia-Pacific the dominant market for kraft paper globally.
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Recent Developments & News
• October 2024: Lintec launched an unbleached, uncolored kraft paper with water-repellent properties for applications like carrier bags and envelopes, targeting logistics.
• February 2024: Fourniture Industrie Service (FIS) developed a bubble wrap alternative made from recycled kraft paper, catering to the shift toward sustainable packaging while maintaining product protection.
Key Players
• Ahlstrom-Munksjö Oyj
• BillerudKorsnäs AB
• Canadian Kraft Paper Ltd.
• Canfor Corporation
• CMPC
• Gascogne Papier
• International Paper Company
• Mondi PLC
• SCG International Corporation Co. Ltd.
• Segezha-Group
• Smurfit Kappa Group plc
• Stora Enso Oyj
• Tokushu Tokai Paper Co. Ltd.
• WestRock Company
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
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About Us
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
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