The global sack kraft paper market 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. 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. 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.
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.
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.
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.
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.
The global sack kraft paper market is segmented on the basis of pulp sources, packaging types, grades, products, end-users, and regions.
On the basis of packaging types, the sack kraft paper market is segmented into valve sacks, open mouth sacks, and other packaging types. In terms of value, the valve sacks segment is expected to expand at a CAGR of 4.5% during the forecast period, as it is easy to fill dry commodities such as cement and the cubical structure, which makes it easy for palletizing.
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.
On the basis of products, the sack kraft paper market is classified as natural (brown) and bleached (white). The natural (brown) segment is anticipated to expand at a CAGR of 3.6%, in terms of value, during the forecast period, due to its high usage in packaging of on-the-go food articles.
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.
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.
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According to this Growth Market Reports report, the sack kraft paper market is likely to register a CAGR of 4.2% during forecast period 2020-2027, with an anticipated valuation of USD 41,756.62 Mn by the end of the 2027.
In addition to market size (in US$ Million), Company Market Share (in % for base year 2019), and quality parameter overview is provided.
Growing preference for bio-degradable and environment-friendly materials for packaging and storage is expected to drive the market growth during forecast period.
The major end-users of sack kraft paper are cement & building materials, chemicals, agrochemicals, animal feed & pet food, food & beverage, others
Factors such as competitive strength and market positioning are key areas considered while selecting top companies to be profiled.
The market is expected to witness a significant decrease in growth between 2019 and 2020 owing to the COVID 19 pandemic on the sack kraft paper market.
The base year considered for the global sack kraft paper market report is 2019. The complete analysis period is 2017 to 2027, wherein, 2017, and 2018 are the historic years, and the forecast is provided from 2020 to 2027.
Factors such as Government Policies, Technological Advancements in Paper Industry, Logistics/Supply Chains and Import/Export are analyzed in the final report.
Major manufacturers include BillerudKorsnas AB, Segezha Group, Nordic Paper, Mondi plc, Natron-Hayat d.o.o., Gascogne Group, Canadian Kraft Paper Ltd., Stora Enso, WestRock Company, and others.
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