Eco-Friendly Solutions Drive Growth: Kraft Paper Gains Popularity in Fast-Food Packaging and eCommerce Industries

The global kraft paper market value is expected to rise from US$ 16.8 billion in 2024 to US$ 21.2 billion by 2034. This estimated growth is expected to be driven by a steady CAGR of 2.4% in the kraft paper market over the next decade.

Inflating disposable incomes and changing customer attitudes toward eco-friendly paper solutions are spurring the adoption of kraft paper-based packaging among multiple industries like personal care, food and beverages, and retail. Kraft papers are also instrumental in carving brand identity and loyalty among customers, thus fueling its adoption among different businesses. Due to their aesthetic appeal, kraft papers find varied use in various end-use industries.

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Kraft papers are extensively used in the packaging of foods and drinks owing to their versatility, safety, and sustainability. Since consumers are increasingly opting for safe and sustainable food and beverage paper, kraft papers are expected to witness lucrative opportunities in the future. Consequently, the food and beverage sector accounts for a leading share of the global kraft paper market.

Businesses are now seeking new ways to lower their environmental footprint, thus providing growth prospects to kraft paper businesses. This is going to assist customers in fulfilling their current needs while supporting a greener future. Additionally, key players are zeroing in on research and development to introduce new applications for kraft papers.

Business Growth Drivers: 

  1. Rising Eco-conscious Consumer Behavior: The increasing awareness and preference for eco-friendly products among consumers drive the demand for kraft paper, as it is a recyclable and biodegradable material, aligning with sustainable lifestyles.
  2. Booming E-commerce Industry: The growth of the e-commerce sector, coupled with the surge in online shopping, significantly boosts the demand for kraft paper packaging due to its durability and suitability for shipping and handling various products.
  3. Government Regulations Promoting Sustainable Practices: Stringent regulations and policies promoting sustainable packaging materials encourage businesses to adopt kraft paper, which is known for its minimal environmental impact compared to non-biodegradable alternatives.
  4. Versatility in Applications: The versatility of kraft paper extends its use beyond packaging to various industries such as retail, food and beverage, and manufacturing, contributing to sustained demand and market growth.
  5. Shift towards Plastic-Free Packaging: The global movement towards reducing plastic usage and seeking plastic-free alternatives amplifies the demand for kraft paper, which serves as an excellent substitute for traditional plastic-based packaging materials.

Key Takeaways from the Kraft Paper Market Report:

  • In the North America kraft paper market, the United States is predicted to expand at a CAGR of 2.2%, whereas Canada is anticipated to record a CAGR of 3.3% through 2034.
  • In Europe, the United Kingdom kraft paper market is anticipated to register a significant CAGR of 3.6% through 2034.
  • Within Asia Pacific, India, China, and Thailand, are expected to record CAGRs of 5.9%, 5.4%, and 4.8%, respectively, through 2034.
  • Based on end use, the food and beverages sector is projected to account for a market share of 26.7% in 2024.
  • Based on product type, the specialty kraft paper segment is estimated to acquire a value share of 82.5%.

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Industry Trends: 

  1. Increasing Embrace of Sustainable Packaging: The kraft paper market is witnessing a significant trend towards sustainable packaging solutions, with businesses and consumers alike opting for eco-friendly alternatives, driving the demand for kraft paper.
  2. Innovation in Packaging Design: Ongoing trends in kraft paper packaging include innovative and aesthetically pleasing designs, as businesses seek to create visually appealing and brand-differentiated packaging solutions using this versatile material.
  3. Rise of E-commerce-Focused Solutions: With the continued growth of the e-commerce sector, there’s a noticeable trend in the kraft paper market towards solutions tailored for the specific requirements of online retail, emphasizing durability, protection, and ease of recycling.
  4. Customization for Branding: Companies are increasingly leveraging the customization capabilities of kraft paper to create branded packaging that not only protects the product but also serves as a marketing tool, enhancing brand visibility and consumer engagement.
  5. Integration of Technological Advancements: The kraft paper market is incorporating technological advancements, such as coatings for water resistance and smart packaging features, to enhance the performance and functionality of kraft paper in various applications.

The report covers exhaust analysis on:

  • Market Segments
  • Market Dynamics
  • Market Size
  • Supply & Demand
  • Current Trends/Issues/Challenges
  • Competition & Companies involved
  • Technology
  • Value Chain

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Market Segmentation: 

Based on product type,

  • Specialty kraft paper
  • Sack kraft paper

Based on grades,

  • Bleached
  • Unbleached
  • Coated
  • Uncoated

Based on application, 

  • Corrugated boxes
  • Grocery & shopping bags
  • Multiwall sacks
  • Carryout bags
  • Others

Based on end use industry,

  • Food & beverages
  • Electronics
  • Construction
  • Cosmetics and personal care
  • Textile
  • Others


Ismail Sutaria (Lead Consultant, Packaging and Materials) has over 8 years of experience in market research and consulting in the packaging & materials industry. Ismail’s strength lies in identifying key challenges faced by the client and offering logical and actionable insights to equip the clients with strategic decision-making power.

Ismail has been an instrumental part of several transformational consulting assignments. His key skills include competitive benchmarking, opportunity assessment, macroeconomic analysis, and business transformation advisory. Ismail is an MBA holder in Marketing and has a Bachelor’s Degree in Mathematics.

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 5000 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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