Kraft Paper Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Global Sack Kraft Paper Market Size & Share. The Market is Segmented by Packing Type (Valve Sacks, Open Mouth Sacks), Grade (Kraft, Semi-extensible, Extensible), End-user Vertical (Food, Chemical, Building Material, and Cement), and Geography. The market size and forecasts are provided in terms of value (USD million) for all the above segments.

Sack Kraft Paper Market Size

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Sack Kraft Paper Market Summary
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Study Period 2019 - 2029
Market Size (2024) USD 12.07 Billion
Market Size (2029) USD 14.57 Billion
CAGR (2024 - 2029) 3.82 %
Fastest Growing Market Asia Pacific
Largest Market Europe

Major Players

Sack Kraft Paper Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Sack Kraft Paper Market Analysis

The Sack Kraft Paper Market size is estimated at USD 12.07 billion in 2024, and is expected to reach USD 14.57 billion by 2029, growing at a CAGR of 3.82% during the forecast period (2024-2029).

  • The main factor driving the market's expansion is the building and construction industry's significant growth. Other major drivers of the sack kraft paper market growth are strict regulations and bans on plastic use in numerous regions of the packaging industry and improvements in packaging and wrapping applications.
  • The growing awareness among environmentalists and governments about the hazards of using plastic is forcing them to focus on greener alternatives, favoring the adoption of sack kraft paper. Due to infrastructure projects, a steady rise in demand in the construction industry has increased the use of sack kraft paper. Also, increasing demand for eco-friendly and bio-degradable packaging material will promote growth. Additionally, according to the Bureau of International Recycling (BIR), around 420 million tonnes of paper and cardboard are produced yearly, with well over half of the raw material coming from recovered sources.
  • Further, accepting the demand for biodegradable packaging as an alternative to plastic will increase market growth. For instance, in Canada, Plastic is polluting rivers, lakes, and oceans, harming wildlife, and generating microplastics in the water. Every year, Canadians throw away 3 million tons of plastic waste, only 9% of which is recycled, meaning the vast majority of plastic ends up in landfills, and about 29,000 tons find their way into the natural environment, according to Borden Ladner Gervais.
  • Sacks filled with powdered materials, such as gypsum, cement, fine-grained sugar, clays, etc., which are necessary for high-quality papers, also exponentially aid market growth. The sack is also exposed to less strain during filling, leading to a lower sack breakage and increasing its adoption in the construction (cement) industry.
  • The increasing popularity of e-commerce and related developments have led to the premiumization of kraft packaging. It includes the demand for kraft material that can take high-quality graphics on short print runs. Companies like Mondi have kept up with such developments and developed new products targeting premium creative print and packaging applications, including shopping bags. Moreover, players initiated many innovations that have improved and accelerated the production of sack kraft paper and paper sacks and enhanced product protection along with real-time calculations and selection of paper grade.
  • However, the emergence of alternatives, such as plastic materials and flexible intermediate bulk containers and bulk bags, and the rise in the prices of sack kraft paper may hinder the market's growth.
  • After the onset of COVID-19, global demand declined sharply in the wake of closures of non-essential businesses and lockdowns in many parts of North America, Europe, and Asia which pushed the companies to take a series of measures to mitigate the financial impacts. It includes extensive production curtailment, reduced capital spending, and disciplined cost management initiatives. However, by mid-year, a return to more normalized operation, lean inventories, and increased demand helped the major player operating in the market mitigate the impact of the pandemic. The overall packaging ecosystem across the globe has been impacted owing to the Russia-Ukraine war.

Sack Kraft Paper Market Trends

This section covers the major market trends shaping the Sack Kraft Paper Market according to our research experts:

Food is Estimated to Have Significant Share in the Market

  • The food sector is a large user of sack kraft paper among the many end-user verticals and is motivated by the additional need of the food industry. It is seen from the packaged food industry's transition to environmentally friendly packaging, which subsequently increased demand for sack kraft paper. For instance, according to the Bureau of Labor Statistics, a US household's average food at-home expenditure amounted to USD 5,259 in 2021.
  • Transporting food items like flour, sugar, starch, food additives, processed or dried fruit, eggs, or milk typically involves using sack kraft paper. All of these factors are increasing the demand for open-mouth bags. Youth's preference for quick-service eateries is also meeting sack kraft paper demand. The US Census Bureau reports that from USD 328.4 billion in 2020, the country's yearly quick-service restaurant sales increased to USD 389.5 billion in 2021. Sales growth will support the expansion of sack kraft paper.
  • Furthermore, department stores and supermarket stores frequently use kraft paper bags. According to the US Census Bureau, supermarkets and other departmental and grocery stores achieved total sales of USD 765.98 billion in 2021, up from USD 741.57 billion in 2020. Chain supermarkets dominate the US food retail sector. Walmart and Kroger Company, which own and run several smaller supermarkets around the country, are two top American grocery companies.
  • Moreover, the consumer's preference, along with the green regulations from the FDA across the regions, also promotes sack kraft packaging in the food industry. The European paper sack and sack kraft paper industry have contributed many developments that make paper sacks the perfect packaging for food. According to Paper Shipping Sack Manufacturers' Association (PSSMA), paper shipping sacks and consumer bags used in the food industry have emerged into a billion-dollar industry with shipments of over three billion sacks annually.
Sack Kraft Paper Market: Monthly Sales of Quick Service Restaurant in United States, (In USD Billion), 2020 - 2021

Europe has Significant Share in the Market

  • The demand for sack kraft paper drives the region as a primary packaging format for transporting various products in bulk to lower the total packaging expenditure. Sack kraft paper is used mainly for large quantities of pet food packaging in the region and supports the growing demand for pet food.
  • Additionally, the UK region is marked by various major global key players offering sack kraft paper with production units. Companies like Mondi Group, operating throughout Europe with a significant presence and headquartered in the UK, offer brown, white, and PE-coated paper grades for sack kraft papers used in valve and open-mouth industrial bags. The market players in the region are also focusing on expanding their footprint in other areas. For instance, in April 2022, Mondi Paper Bags acquired the paper bag converting lines from National Bag and Egypt Sack, two subsidiaries of Lafarge Cement Egypt, a major cement producer in the country. The acquired production lines will increase Mondi's capacity by around 150-180 million bags annually and strengthen Mondi's position in the Egyptian paper bag market.
  • Also, according to the Confederation of Paper Industries (CPI), the UK region has 47 mills operating throughout England, Scotland, Wales, and Northern Ireland, which produce 4 million tons of paper, with exports of 1 million tons. Furthermore, the country has a consumption nearing 10 million tons, which results in heavy exports of the material.
  • Additionally, the European paper sack business will demonstrate its dedication to client demands in the food sector in the forecast timeframe. The regional merchants are driven to this platform by problems in the dairy and cocoa industries. Major global corporations are extensively investing in sack paper kraft R&D operations and setting up new warehouses to meet the rising demand for customized packaging solutions.
  • Moreover, regional companies are involved in capacity expansion to improve their business opportunity strategically. Mariinsky Pulp and Paper Mill, a prominent Russian supplier of sack paper, including other paper products, is investing in modernizing the existing refining process (two-stage, low-consistency). Segezha Group similarly invests in modernization and has increased sack kraft paper production to 450,000 tons annually by 2021.
Sack Kraft Paper Market - Growth Rate by Region

Sack Kraft Paper Industry Overview

The sack kraft paper market is relatively fragmented, with a large volume of players, including Mondi, Nordic Paper, and Segezha, among others, which can cut out co-packers in the market. Further, the players' distribution channels and raw materials impact the regional market competition. Vertical integration, which means raw material suppliers acquired by converters/packaging companies, has been a trend for the past couple of years.

August 2022: French paper and sacks manufacturer Gascogne signed a syndicated loan contract worth EUR 126.8 million (USD 126.4 million) with a banking pool and an agreement worth EUR 50 million (USD 49.8 million) with the European Investment Bank (EIB) to finance its Capital Expenditure program for the 2022-2026 period.

The investment program mainly includes the installation of a new paper machine at the company's Mimizan mill in Southern France. Gascogne said that it entered into exclusive negotiations with a paper machine manufacturer to finalize the purchase agreement before the end of the year. The company intends to invest a total of EUR 300 million (USD 299.1 million) in 2022-2026. To finance the investment program, it has set up a financing plan which includes the investment loans mentioned above and a future increase in capital of at least EUR 10 million (USD 9.9 million), amongst others.

According to Gascogne, the installation of the paper machine, including the building and the technical environment, will cost EUR 220 million (USD 219.4 million). In addition, the reinforcement of the existing industrial assets will be pursued for EUR 80 million (USD 79.7 million).

Sack Kraft Paper Market Leaders

  1. Mondi PLC

  2. International Paper Company

  3. KapStone Paper and Packaging Corporation

  4. Canfor Corporation

  5. Gascogne Group

*Disclaimer: Major Players sorted in no particular order

Sack Kraft Paper Market Concentration
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Sack Kraft Paper Market News

  • October 2022: Mondi announced the approval of a EUR 400 million (~USD 390 million) investment in a new paper machine at its flagship Štětímill in the Czech Republic. The investment will help Mondi fulfill the rising demand for paper-based flexible packaging, driven by an increase in e-commerce and environmentally friendly packaging. It will also help expand Mondi's selection of cutting-edge, environmentally friendly packaging and paper solutions. Due to the advantages of a vertically integrated value chain, the new machine will manufacture about 210,000 tonnes of sack kraft paper annually to serve Mondi's Paper Bags business.
  • July 2022: BillerudKorsnäs launched sack paper with no plastic film. The company's performance white barrier is a new sack paper from BillerudKorsnäs, where a coating replaces the plastic film barrier commonly found in paper sacks. The sack paper is on par with traditional alternatives regarding shelf-life expectancy and other performance factors.

Sack Kraft Paper Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increasing Demand for Eco-Friendly and Bio-degradable Packaging Material

      2. 5.1.2 Rapid Growth of Construction Industry

    2. 5.2 Market Challenges

      1. 5.2.1 Emergence of Alternatives such as Plastic Materials and Flexible Intermediate Bulk Containers and Bulk Bags

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Packaging Type

      1. 6.1.1 Valve Sacks

      2. 6.1.2 Open Mouth Sacks

      3. 6.1.3 Other Packaging Types

    2. 6.2 By Grade

      1. 6.2.1 Kraft

      2. 6.2.2 Semi-extensible

      3. 6.2.3 Extensible

      4. 6.2.4 Other Grades

    3. 6.3 By End-user Vertical

      1. 6.3.1 Building Material and Cement

      2. 6.3.2 Food

      3. 6.3.3 Chemical

      4. 6.3.4 Other End-user Verticals

    4. 6.4 Geography

      1. 6.4.1 North America

        1. 6.4.1.1 United States

        2. 6.4.1.2 Canada

      2. 6.4.2 Europe

        1. 6.4.2.1 United Kingdom

        2. 6.4.2.2 France

        3. 6.4.2.3 Germany

        4. 6.4.2.4 Italy

        5. 6.4.2.5 Spain

        6. 6.4.2.6 Rest of Europe

      3. 6.4.3 Asia-Pacific

        1. 6.4.3.1 China

        2. 6.4.3.2 Japan

        3. 6.4.3.3 India

        4. 6.4.3.4 Rest of Asia-Pacific

      4. 6.4.4 Latin America

        1. 6.4.4.1 Brazil

        2. 6.4.4.2 Mexico

      5. 6.4.5 Middle East & Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles*

      1. 7.1.1 BillerudKorsnas AB

      2. 7.1.2 Mondi PLC

      3. 7.1.3 Segezha Group

      4. 7.1.4 Natron-Hayat d.o.o

      5. 7.1.5 Nordic Paper AS

      6. 7.1.6 Gascogne Group

      7. 7.1.7 KapStone Paper and Packaging Corporation (Westrock)

      8. 7.1.8 Horizon Pulp & Paper Ltd.

      9. 7.1.9 International Paper Company

      10. 7.1.10 Canfor Corporation

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability
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Sack Kraft Paper Industry Segmentation

The Sack Kraft Paper Market is tracked for the consumption of these papers for use in packaging for the market segmented by Packing Type (Valve Sacks, Open Mouth Sacks), Grade (Kraft, Semi-extensible, Extensible), End-user Vertical (Food, Chemical, Building Material, Cement), and Geography. The market is also analyzed through major importer-exporter countries to provide in-depth research using primary and secondary sources. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Packaging Type
Valve Sacks
Open Mouth Sacks
Other Packaging Types
By Grade
Kraft
Semi-extensible
Extensible
Other Grades
By End-user Vertical
Building Material and Cement
Food
Chemical
Other End-user Verticals
Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Latin America
Brazil
Mexico
Middle East & Africa
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Sack Kraft Paper Market Research FAQs

The Sack Kraft Paper Market size is expected to reach USD 12.07 billion in 2024 and grow at a CAGR of 3.82% to reach USD 14.57 billion by 2029.

In 2024, the Sack Kraft Paper Market size is expected to reach USD 12.07 billion.

Mondi PLC, International Paper Company, KapStone Paper and Packaging Corporation, Canfor Corporation and Gascogne Group are the major companies operating in the Sack Kraft Paper Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Europe accounts for the largest market share in Sack Kraft Paper Market.

In 2023, the Sack Kraft Paper Market size was estimated at USD 11.63 billion. The report covers the Sack Kraft Paper Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Sack Kraft Paper Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Kraft Industry Report

Statistics for the 2024 Kraft market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Kraft analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Kraft Paper Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)