Sack Kraft Paper Market showing Compound annual growth rate and forecast till 2025

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Sack kraft paper market was valued at US$ 8.9 billion in 2016 and is projected to reach US$ 12.5 billion by 2025, exhibiting a CAGR of 3.55% over the forecast period, according to Sack Kraft Paper Market, by Grade (White and Brown), by Packaging Type (Open Mouth Sack, and Valve Sack), by End-use Industries (Cement and Building Materials, Chemicals, Agrochemicals, Animal feed & Pet Food, Food, and Others) published by Coherent Market Insights. Increasing environmental awareness regarding usage of plastic coupled with growing encouragement by governments for the use of biodegradable packaging materials are the major factors attributing to the market growth of sack kraft paper. According to EPA, in April, 2015, the European government has approved a directive requiring member states to take action to reduce the consumption and use of plastic bags of thickness less than 50 microns. Sack kraft paper is made from softwood by the kraft process and hence is biodegradable and environmental friendly. Stringent regulations regarding the use of plastic is also expected to drive the market growth. For instance, the governments of Denmark, Germany, and Ireland have imposed taxes on plastic bags, as per EPA.

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Browse 350 market data tables* and 70 figures* on “Sack Kraft Paper market” – Global forecast to 2025.

Key Trends and Analysis of the Global Sack Kraft Paper market:

Among packaging types, the open mouth sack segment accounted to for the highest market share in 2016, owing to its wide range of packaging applications such as packaging of agricultural products, chemicals, and foodstuffs that can be easily filled either manually or automatically as per product requirement.

Among end-use industries, cement industry segment is projected to be the largest segment over the forecast period. Due to increasing demand for construction actives such as for commercial construction, housing, and industrial construction, there is a rise in demand for cement. Accordingly to India Brand Equity Foundation (IBEF), demand for cement is expected to reach up to 600 MTPA (Million Tons Per Annum) by 2025, in India, which in turn is expected to positively drive growth of the sack kraft paper market.

Key Takeaways of the Market:

According to Coherent Market Insights study, Asia Pacific accounted for the highest market share in terms of revenue in global sack kraft paper market in 2016. Asia Pacific market growth is driven by rapid growth in construction and growing demand for building materials. As per India Brand Equity Foundation (IBEF), to encourage the private sector cement companies, the Government of India in their 12th five year plans has come up with various initiatives such as increased allocation of funds to rural areas under Pradhan Mantri Awaas Yojana- Gramin scheme, and has also aimed higher investments to provide housing for all by 2022, thereby boosting the cement demand, which in turn will substantially add to the market growth of sack kraft paper.

Europe is the second largest region in the global sack kraft paper market, owing to increasing demand for packaging from the food industry. In food industry, the sack kraft paper is used for food products such as flour, sugar, starch, aromatic herbs, food additives, processed or dried fruits, and vegetables. Natural properties of sack kraft paper aid food products such as starch and flour to interact with moisture and air to prevent from contamination such as mould formation and this is expected to have a positive impact on growth of the market. According to European Union, the Regulation (EC) No. 178/2002, the purpose of this regulation was to protect human health in relation to food applied to the stages of production, processing, and distribution of food products for consumption.

Key players are adopting various strategies such as mergers and acquisitions, joint ventures, partnerships, and product innovations to ensure their long-term sustenance in this market. In 2014, Mondi plc acquired Graphic Packaging International Inc., a leading player in the distribution and production of bags and kraft paper business in the U.S., to expand its footprint in sack kraft paper market.

Major players operating in the sack kraft paper market include BillerudKorsnas AB, Segezha Group, Nordic Paper, Mondi plc, Natron-Hayat d.o.o., Gascogne Group, Tolko Industries Ltd., Canfor Corporation, KapStone Paper and Packaging Corporation, and Horizon Pulp & Paper Ltd.

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