(MENAFN- GetNews) The Kraft Paper industry is witnessing steady growth driven by the rising demand for sustainable and eco-friendly packaging solutions across food, e-commerce, and industrial sectors. With increasing global focus on recyclability and biodegradable materials, key players such as Mondi Group, Smurfit Kappa, International Paper, and WestRock are expanding capacity and innovating to meet evolving market needs.

The global kraft paper market is projected to reach USD 14.24 billion by 2030 from USD 12.50 billion in 2025, at a CAGR of 2.6% during the forecast period. The report provides key insights into current kraft paper market trends, growth drivers, challenges, and opportunities shaping the market landscape. It also includes a thorough competitor analysis, regional market evaluation, and recent technological or strategic developments influencing the market trajectory.

The kraft paper market is poised for steady growth due to the increasing emphasis on eco-friendly packaging and the rising restrictions on single-use plastics. Its low cost, durability, and cost-effectiveness make it an ideal choice for industries such as food, e-commerce, retail, and construction. Additionally, the rapid expansion of online shopping and advancements in paper manufacturing and printing technologies are further driving the demand for kraft paper products.

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By grade, the unbleached kraft segment is projected to register the fastest growth during the forecast period

The unbleached kraft segment is projected to register the fastest growth in the kraft paper market during the forecast period. This growth can be attributed to its high strength, durability, and sustainability. The low level of chemical processing and the preservation of its natural brown appearance make unbleached kraft both more sustainable and economically viable compared to bleached kraft products. It has many applications, including industrial bags, grocery bags, and protective wrappings, making it highly useful in the construction, food, and retail industries.

By packaging form, the grocery bags segment accounted for the second-largest market share in 2024

In 2024, the grocery bags segment accounted for the second-largest share of the kraft paper market. This is driven by increasing policies against plastic bags and growing consumer preference for biodegradable options. Kraft paper grocery bags are not only biodegradable but also durable, making them a sustainable choice for both retailers and consumers. The rising competition from supermarkets, hypermarkets, and convenience stores, along with greater awareness of plastic waste reduction programs, has further amplified the demand for kraft paper grocery bags.

By end-use industry, the building & construction segment accounted for the third-largest market share in 2024

In 2024, the building and construction segment accounted for the third-largest share of the kraft paper market. This was due to the extensive use of kraft paper in packaging heavy-duty materials, such as cement, adhesives, and chemicals, as well as in wrapping and sacks. The tensile strength and durability of kraft paper make it ideal for carrying and protecting bulk construction materials, ensuring safe construction and transportation.

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Europe accounted for the second-largest share of the kraft paper market in 2024

In 2024, the kraft paper market in Europe held the second-largest share, driven by a strong demand for sustainable packaging solutions and regulations aimed at reducing plastic waste. The region's well-established food & beverage, personal care, and retail sectors are increasingly choosing kraft paper for products such as bags, pouches, and wrappings due to its environmental benefits. Additionally, the rapid growth of online shopping in Europe has further contributed to this market expansion.

Kraft Paper Companies

The kraft paper market comprises major players such as Mondi (UK), International Paper (US), Stora Enso (Finland), Billerud (Sweden), and APP Group (Indonesia). These key players have adopted acquisitions, partnerships, expansions, and product launches as strategies to enhance their positions in the kraft paper market.

Mondi plc (UK) is a global packaging and paper company specializing in providing innovative packaging and paper solutions for various industries. It is a leading producer of paper and plastic solutions. The company operates through three segments: Corrugated Packaging, Flexible Packaging, and Uncoated Fine Paper. It serves various end-use industries, including FMCG and consumer products, e-commerce, retail, automotive, heavy-duty, food service, construction, and agriculture. It has 100 production sites across more than 30 countries worldwide, with key operations in Europe, North America, and Africa. Mondi operates 5 paper mills and 65 converting plants for its flexible packaging business. The company produces kraft paper, which is either converted into paper bags or utilized in specialized consumer and industrial applications. Kraft paper, including both sack kraft and specialty kraft varieties, is produced at its mills located in Štetí (Czech Republic), Frantschach (Austria), Dynäs (Sweden), and Ruomberok (Slovakia).

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International Paper (US) is a global leader in sustainable, fiber-based packaging and pulp solutions. The company manufactures renewable packaging and pulp products through its operations across North America, Latin America, Europe, and North Africa. The company operates a packaging product distribution business in Asia, with its operations primarily conducted through six branch offices. International Paper operates through the following segments: Industrial Packaging, Global Cellulose Fibers, and Corporate and Intersegment. Industrial Packaging is primarily focused on producing fiber-based packaging. This includes linerboard, medium, white top, recycled linerboard, recycled medium, and saturating kraft. Approximately 75% of this production is converted into corrugated packaging and other related packaging products.

Stora Enso (Finland) is a global leader in renewable packaging, biomaterials, and wood-based construction solutions and is one of the world's largest private forest owners. The company operates through five key divisions: Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, and Forest. The Packaging Materials division serves as a global expert in circular packaging, offering high-quality packaging boards made from both virgin and recycled fiber. Stora Enso supports its customers in reducing their reliance on fossil-based materials by providing renewable and recyclable solutions for food, beverage, and transport packaging, utilizing a wide range of base boards and barrier coatings.

Billerud (Sweden) was formed in 2012 through the merger of Billerud and Korsnäs. It is a global leader in high-performance paper and packaging materials, serving customers in over 100 countries with renewable and recyclable products made from cellulose fibers. The company operates through three segments: Region Europe, Region North America, and Other. It is structured into two main geographic regions: Europe and North America. Its product portfolio spans six categories: liquid packaging board, graphic paper, kraft and specialty paper, containerboard, sack paper, and cartonboard.

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