Kraft Paper Market Size, Trends, Industry Share, Key Players and Forecast 2025-2033
- Rahul Pal
- Jan 22
- 3 min read
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, exhibiting a CAGR of 5.65% during 2025-2033. Asia-Pacific dominates the market with over 40% share in 2024, driven by rising demand for sustainable packaging, rapid e-commerce growth, increased urbanization, and shifting consumer preferences. Advancements in production technologies further enhance product 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
The market size was USD 18.6 Billion in 2024.
The market is projected to grow at a CAGR of 5.65% during 2025-2033.
The forecast period spans from 2025 to 2033.
Asia-Pacific holds the largest market share of over 40.0% in 2024.
The United States accounts for over 72.80% of the North American market in 2024, driven by e-commerce and sustainable packaging demand.
The rapid growth of e-commerce substantially fuels market demand globally and regionally.
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Market Growth Factors
Increasing Concern for Eco-friendly Packaging and Sustainability:
The kraft paper market is driven by growing demand for environmentally safe packaging alternatives. Increasing awareness about plastic waste, which accounted for 242 Million Tonnes globally as per World Bank (2016), heightens the need for sustainable materials. Kraft paper, made from wood pulp, is biodegradable and recyclable, therefore gaining acceptance among food, beverage, and retail sectors. Both developed and developing nations focusing on reducing plastic pollution are enhancing demand for kraft paper products.
Expanding E-commerce and Protective Packaging Needs:
The global e-commerce sector significantly boosts kraft paper demand, growing at 27.16% annually and expected to reach USD 183.8 Trillion by 2032. Online shopping drives demand for durable, lightweight, and sustainable packaging materials that ensure product protection during shipping. Kraft paper’s strength and eco-friendliness make it a preferred choice. The e-commerce industry's need for sustainable packaging fortifies kraft paper’s market position.
Urbanization and Changing Lifestyles:
Increasing urban population, currently 56% of the global total and projected to rise by 2050, creates robust demand for packaged products. Rapid urbanization enhances needs in food and beverage, retail, and electronics industries for efficient and sustainable packaging. The consumers' shift towards convenience foods, online shopping, and environmentally conscious choices further propels kraft paper growth, aligning packaging solutions with practical and environmental requirements.
Market Segmentation
Analysis by Product Type:
Unbleached: Dominates with around 32.0% of market share in 2024 due to versatility and robustness. Unbleached kraft paper offers exceptional strength and tear resistance from retaining wood fibers, widely used in packaging and shipping.
Analysis by Packaging:
Corrugated Box: Leading segment with approximately 36.5% market share in 2024. Corrugated boxes protect diverse products, adaptable to multiple shapes/sizes, customizable for branding, and environmentally friendly with established recycling infrastructure.
Analysis by Application:
Foods and Beverage: Largest application segment holding around 27.8% in 2024. Kraft paper provides resistance to grease, moisture, and oil, ideal for packaging baked goods, snacks, and dry foods. Its natural appearance appeals to eco-conscious consumers.
Analysis by Distribution Channel:
Offline: Includes brick-and-mortar stores, specialty shops, wholesalers, and distributors serving diverse customers and professionals seeking tailored kraft paper solutions.
Online: E-commerce and online marketplaces offer convenience, product variety, price comparison, and easy ordering, enhancing market share.
Regional Insights
Asia-Pacific leads with over 40.0% market share in 2024, driven by strong manufacturing, industrialization, and urban growth, particularly in China, India, and Southeast Asia. Expanding e-commerce, retail, and consumer goods sectors rely on kraft paper’s durability and eco-friendliness. The region's sustainability initiatives and plastic waste reduction efforts further stimulate market growth opportunities.
Recent Developments & News
In October 2024, Lintec introduced an unbleached and uncolored water-repellent kraft paper targeting logistics for carrier bags and envelopes. In February 2024, Fourniture Industrie Service (FIS) developed a recycled kraft paper bubble wrap alternative for sustainable product protection, aligning with packaging sector sustainability trends and collaborations such as Amazon’s with the US Department of Energy’s BOTTLE Consortium.
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
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