Kraft Paper Market Forecasts to 2032 - Global Analysis By Product Type, Grade, Packaging Form, Thickness, Coating Type, Application, and By Geography

According to Stratistics MRC, the Global Kraft Paper Market is accounted for $18.87 billion in 2025 and is expected to reach $26.63 billion by 2032 growing at a CAGR of 5.04% during the forecast period. Kraft paper is a strong, durable paper produced through the kraft process, which involves chemical pulping of wood fibres. Known for its high tear resistance and elasticity, it is typically brown but can be bleached for a lighter colour. Widely used in packaging, wrapping, and industrial applications, kraft paper is valued for its eco-friendliness, recyclability, and strength, making it a popular choice in sustainable and heavy-duty packaging solutions.

According to the World Bank, the urban population in developing countries is expected to reach 4 billion by 2030, highlighting the potential for market expansion.

Market Dynamics:

Driver:

Rising demand for eco-friendly packaging

Kraft paper is increasingly replacing plastic packaging due to its eco-friendly nature and durability. Government regulations promoting the reduction of plastic waste further drive the demand for kraft paper across industries. E-commerce platforms are extensively using kraft paper for wrapping and shipping, boosting market growth. Innovations in packaging design, including water-resistant and reinforced kraft paper, are expanding its applications. As a result, the rising demand for sustainable solutions continues to propel the kraft paper market forward.

Restraint:

Fluctuating raw material prices

Supply chain disruptions and changing government policies on forest conservation impact pulp availability, leading to cost variations. Manufacturers struggle with maintaining stable production costs, affecting profit margins and pricing strategies. Global economic instability and trade restrictions further contribute to price fluctuations. Additionally, competition from alternative packaging materials can shift consumer preferences away from kraft paper.

Opportunity:

Increased use in industrial and construction sectors

Kraft paper's durability and strength make it a preferred material in industrial and construction applications. It is widely used for cement bags, insulation backing, and protective wrapping in manufacturing processes. Growth in the construction industry, particularly in emerging markets, is increasing demand for kraft paper-based packaging solutions. Technological advancements are enabling kraft paper customization, making it suitable for specialized industrial applications. This expanding use case presents lucrative opportunities for market players to diversify their offerings.

Threat:

High production costs for bleached and specialty grades

Producing high-quality bleached kraft paper and specialty grades involves additional chemical treatments, increasing production expenses. Energy-intensive manufacturing processes contribute to rising operational costs, affecting affordability for smaller businesses. Strict environmental regulations demand costly filtration and waste management systems for kraft paper producers. The availability of lower-cost alternatives, including recycled paper grades, poses a competitive threat to bleached kraft paper. Fluctuations in electricity and labour costs add another layer of unpredictability in the production process.

Covid-19 Impact

The pandemic disrupted global supply chains, impacting raw material availability and delaying production schedules. Demand initially declined due to reduced industrial activity, but the market rebounded as e-commerce and food packaging needs grew. The crisis accelerated innovation in biodegradable packaging, further strengthening the demand for kraft paper. Post-pandemic recovery efforts led to increased investments in sustainable materials, ensuring long-term market growth.

The virgin kraft paper segment is expected to be the largest during the forecast period

The virgin kraft paper segment is expected to account for the largest market share during the forecast period, due to its superior strength, durability, and versatility. Industries requiring high-performance packaging, such as food, pharmaceuticals, and logistics, prefer virgin kraft paper over recycled alternatives. Its ability to withstand heavy loads makes it ideal for protective shipping applications and industrial packaging solutions. The growth of e-commerce and rising demand for high-quality wrapping materials further support this segment's expansion.

The wraps segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the wraps segment is predicted to witness the highest growth rate, due to increasing applications in food and retail packaging. Restaurants and food delivery services are shifting towards kraft paper wraps as sustainable alternatives to plastic packaging. The demand for customized branding and aesthetically appealing wrapping solutions is fuelling innovations in kraft paper designs. E-commerce retailers are enhancing unboxing experiences with kraft paper wraps, creating a market trend that continues to gain traction.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share due to its thriving packaging industry. Countries like China and India are witnessing strong demand for kraft paper, driven by rising e-commerce and food delivery services. The availability of raw materials, coupled with cost-effective manufacturing processes, boosts local kraft paper production. Government initiatives to reduce plastic consumption in packaging further support the market's expansion in this region.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to growing sustainability-driven packaging trends. Businesses in the U.S. and Canada are rapidly adopting kraft paper as an alternative to plastic-based packaging solutions. Government policies encouraging biodegradable packaging support the growth of the kraft paper industry across the region. The expanding demand for eco-friendly shipping materials in e-commerce is accelerating kraft paper adoption.

Key players in the market

Some of the key players profiled in the Kraft Paper Market include International Paper Company, WestRock Company, Mondi Group, Stora Enso Oyj, Oji Holdings Corporation, Smurfit Kappa Group, UPM-Kymmene Corporation, Nine Dragons Paper Holdings Ltd., Nippon Paper Industries Co., Ltd., Sappi Limited, Segezha Group, Nordic Paper Holding AB, Daio Paper Corporation, Gascogne Papier, and Klabin S.A.

Key Developments:

In April 2025, Mondi, a global leader in the production of sustainable packaging and paper, has completed the acquisition of the Western Europe assets of Schumacher Packaging, expanding the product range, capacity and innovation available to customers demanding high-performance, sustainable packaging at scale.

In January 2025, Nordic Paper has entered into a new financing agreement as change-of-control provisions of the previous financing agreement were triggered when Strategic Value Partners, LLC, through Coniferous Bidco AB, reached a controlling shareholding in Nordic Paper.

Product Types Covered:

• Virgin Kraft Paper
• Recycled Kraft Paper
• Biodegradable Kraft Paper
• Compostable Kraft Paper
• Other Product Types

Grades Covered:

• Bleached Kraft Paper
• Unbleached Kraft Paper
• Sack Kraft Paper
• Wrapping & Packaging
• Specialty Kraft Paper

Packaging Forms Covered:

• Corrugated Boxes
• Grocery Bags
• Industrial Bags/Sacks
• Wraps
• Pouches
• Composite Cans
• Cartons
• Envelopes
• Other Packaging Forms

Thicknesses Covered:

• Below 39 gsm
• 40-50 gsm
• 51-60 gsm
• 61-70 gsm
• Above 70 gsm

Coating Types Covered:

• Plain Kraft
• Polyethylene-coated (PE-coated) Kraft
• Waxed Kraft
• Other Coating Types

Applications Covered:

• Food & Beverages
• Building & Construction
• Pharmaceuticals
• Cosmetics & Personal Care
• E-commerce
• Electronics & Electricals
• Agriculture
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances