Market Overview

The global Kraft Paper Market was valued at USD 18.6 Billion in 2024 and is projected to reach USD 28.8 Billion by 2033, growing at a CAGR of 5.65% during 2025-2033. This growth is propelled by rising consumer preference for sustainable packaging, the expanding e-commerce sector, increasing urbanization, and advancements in production technology improving quality and cost-effectiveness.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Kraft Paper Market Key Takeaways

• Current Market Size: USD 18.6 Billion in 2024
• CAGR: 5.65% during 2025-2033
• Forecast Period: 2025-2033
• Asia-Pacific dominates with over 40.0% market share in 2024, driven by manufacturing, e-commerce growth, and urbanization.
• The U.S. accounts for over 72.80% of North America's kraft paper market, fueled by sustainable packaging demand and e-commerce growth.
• Food and beverage sector leads the application segment with 27.8% market share in 2024.
• Corrugated box packaging holds the largest share by packaging type at 36.5% in 2024.
• Unbleached kraft paper is the largest product type with approximately 32.0% market share in 2024.

Sample Request Link: https://www.imarcgroup.com/kraft-paper-market/requestsample

Market Growth Factors

The kraft paper market is prominently driven by the rising demand for sustainable and eco-friendly packaging alternatives. As global plastic waste generation reached 242 million tonnes, the push towards biodegradable and recyclable options like kraft paper intensifies, particularly in food, beverage, and retail industries. This shift is bolstered by governments and consumers striving towards reducing plastic waste and achieving sustainability objectives, leading to enhanced adoption of kraft paper products with comparatively minimal environmental impact.

The rapid expansion of the e-commerce sector is a significant driver for the kraft paper market. With the global e-commerce industry growing at an annual rate exceeding 27%, reaching an estimated USD 183.8 Trillion by 2032, the resultant increase in packaging needs for shipping and protection fuels kraft paper demand. Its durability, cushioning capability, lightweight nature, and cost-effectiveness position kraft paper as an ideal packaging material in e-commerce, meeting the requirements for strong yet sustainable packaging solutions.

Increasing urbanization and evolving lifestyles also contribute substantially to kraft paper market growth. With 56% of the world population living in cities and projections to increase substantially by 2050, the demand for packaged products in food, retail, and electronics sectors rises sharply. Consumers' heightened focus on convenience, sustainability, and online shopping preferences further accelerate kraft paper adoption as a packaging material offering durability and recyclability aligned with modern environmental and practical needs.

Market Segmentation

Analysis by Product Type:

• Unbleached: Largest segment with around 32.0% market share in 2024; valued for its strength, tear resistance, and versatility in packaging and shipping applications.
• Bleached
• Wrapping and Packaging
• Sack Kraft Paper
• Others

Analysis by Packaging:

• Corrugated Box: Leads with approximately 36.5% share in 2024; essential for diverse packaging needs, customizable, eco-friendly, and well-recycled.
• Grocery Bags
• Industrial Bags
• Wraps
• Pouches
• Others

Analysis by Application:

• Foods and Beverage: Dominant segment with 27.8% market share in 2024; kraft paper offers grease, moisture, and oil resistance suitable for various food packaging needs.
• Pharmaceuticals
• Building and Construction
• Cosmetic and Personal Care
• Others

Analysis by Distribution Channel:

• Offline: Includes brick-and-mortar stores, specialty shops, wholesalers serving diverse consumers and professionals seeking expert packaging solutions.
• Online: E-commerce and virtual marketplaces provide convenience, accessibility, and variety, enhancing kraft paper distribution and market share.

Regional Insights

Asia-Pacific dominates the kraft paper market with over 40.0% share in 2024. This leadership is attributed to strong manufacturing, industrialization, urbanization, and expanding sectors including e-commerce, retail, and consumer goods. Robust middle-class growth and sustainability initiatives in countries like China, India, and Southeast Asia substantially drive kraft paper demand due to its durability, eco-friendliness, and versatility in packaging solutions.

Recent Developments & News

In October 2024, Lintec launched an unbleached and uncolored kraft paper variant with water-repellent properties, aimed at logistics applications such as carrier bags and envelopes. In February 2024, Fourniture Industrie Service (FIS) introduced a bubble wrap alternative made from recycled kraft paper, aligning with the packaging industry's sustainability shift. FIS highlighted collaborations like Amazon’s partnership with the US Department of Energy’s BOTTLE Consortium to recycle mixed waste materials as demonstration of increased eco-friendly efforts.

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.

👉Get Custom Market Research for Your Business👈

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 provide 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.

Contact Us

IMARC Group,

134 N 4th St. Brooklyn, NY 11249, USA

Email: sales@imarcgroup.com

Tel No: (D) +91 120 433 0800

United States: +1-201971-6302