Sack Kraft Paper Market Size, Industry Trends Report | 2030

Report Description

Sack Kraft Paper Market Outlook

The global sack kraft paper market size was valued at USD 32,602.79 Mn in 2019 and is anticipated to reach USD 41,756.6 Mn by 2027, expanding at a CAGR of 4.2% during the forecast period 2020 – 2027. Sack kraft paper is manufactured by softwood obtained from trees such as pines, spruces and conifers. High stiffness and strength offered by softwood trees helps in production of porous, durable, extensible, and printable sack kraft paper.

They have high tensile energy absorption (TEA) and mechanical strength coupled with strength equal to plastic or synthetic materials. Developments for recycling sack kraft paper and research for other bio-degradable raw materials such as coconut jute is expected to fuel the market during the forecast period.

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Key players in the market are engaged in increasing acquisitions of regional players to expand their sales portfolio across multiple countries in the world. Mergers and partnerships help companies boost production hubs and increase distribution outlets for other industries pertaining sack kraft paper.

Sack Kraft Paper Market Dynamics

Rising Preference for Biodegradable Packaging Material

Governments of various economies are encouraging the use of bio-degradable sources for storage and transportation of goods. Frozen and wet food articles are stored in laminated and three-ply sack kraft paper bags. Rising demand for packaging industrial materials such as gypsum and cement in environmental-friendly packages is driving the sack kraft paper market for packaging.

Sacks used for storage of building material such as cement provide weight lift of approximately 50kgs. Sack kraft papers are customized by printing the brand names or product details on the sacks and bags. Sack kraft paper sacks and bags are bio-degradable, hence they are replacing the use of plastic bags.

Non-compostable solid waste and land pollution caused by polyethene and plastic bags are encouraging the growth of sack kraft paper for packaging and carrying commodities. Dry elements such as cement, sugar, and wheat grains are easily filled and carried in sack kraft paper sacks and bags. Polyethylene (PE) or polypropylene (PP) coating is done in the inner surface of the bags for carrying wet or liquid material such as fruit juice.

Increasing Storage, Transport, and Industrial Packaging

Ongoing construction and rising contracts for designing buildings is fueling the adoption of sack kraft paper for packaging construction materials. The construction sector is expected to boost the adoption of sack kraft paper in packaging and palletizing raw materials, due to their wear and tear resistance properties. The food and beverage industry is considered to reflect a substantial share, owing to the use of natural (brown) sack kraft paper for packaging of food articles.

Lack of Raw Material Sources

Softwood is a prime raw material required for manufacturing sack kraft paper. Governments of various economies passed an amendment to avoid cutting down forests, due to factors such as global warming. Softwood trees such as pines, douglas fir, and juniper have low density, making them easy to carve. Development of forests for production of raw material is considered to persist for several years to achieve an equilibrium. The shortage of raw material is projected to hinder the market growth.

Innovative Designs and Online Sales Driving Market Growth

The designing of aftermarket products from sack craft paper such as shipping sacks and shopping bags are creating opportunities for small scale industries. The players are introducing creative sack paper strings to be punched or glued in the open mouth bags making it easy to carry. Domestic players are focusing on innovative designs and prints over the sacks and bags to attract attention of packaging industries.

Moreover, Internet penetration is anticipated to propel the trend of sack kraft paper in several countries. The pandemic period is encouraging businesses to use internet platform. The website designs of manufacturers might display their processing unit and end-products, along with product specifications such as color, strength and lamination. Rise in use of internet is considered to bridge the gap between large scale and small-scale organizations.

Sack Kraft Paper Market Segment Insights

The global sack kraft paper market is segmented on the basis of pulp sources, packaging types, grades, products, end-users, and regions.

Packaging Types Segment Analysis

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In terms of grade, the sack kraft paper market is segregated into standard, semi-extensible, and fully-extensible. In terms of value, the fully extensible segment is expected to grow at a CAGR of 4.5% during the forecast period, owing to its high tensile strength.

Products Types Segment Analysis

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End-Users Segment Analysis

On the basis of end-users, the sack kraft paper market is classified as cement & building materials, chemicals, agrochemicals, animal feed & pet food, food & beverage, and others. The cement and building materials segment is anticipated to expand at a CAGR of 4.0%, in terms of value, during the forecast period, due to the use of sack kraft papers as shipping sacks for construction materials such as gypsum and cement.

Regional Analysis

Based on regions, the global sack kraft paper market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Europe is expected to hold a significant share of the market, owing to emergence of key players in the region. It constituted 31.0% share of the market in 2019. The market in Asia Pacific is anticipated to grow at a considerable pace during the forecast period. Growing government initiatives for eco-friendly packaging of products is expected to propel the market in this region.

The market in Latin America is projected to expand at a CAGR of 5.2% during the forecast period, owing to the penetration of players in the region. Increase in the number of small businesses in Latin America and growth of the paper industry are encouraging key players to increase their marketing campaigns in the region.

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Sack Kraft Paper Market
• Historical, Current and Projected Market Size in terms of Value and Volume
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global sack kraft paper Market Performance