Global sack kraft paper market is projected to reach a valuation of US$10.5 bn by the end of 2024 as compared to US$8.4 bn in 2015; the global market is expected to expand at a CAGR of 2.6%
Albany, NY -- (SBWIRE) -- 12/08/2017 -- The sack kraft paper market features an extremely fragmented landscape as the top three players accounted for a combined share of 15.7% of the market in 2015, finds Transparency Market Research (TMR). The leading companies—KapStone Paper and Packaging, BillerudKorsnas AB, and Mondi plc—are focusing on developing high-end consumer and industrial solutions in order to consolidate their market shares, observes TMR. The top players are anticipated to widen their product portfolio and expand their geographical presence in order to gain a competitive edge over others.
For instance, Mondi is instrumental in offering innovative solutions, such as sack kraft paper with significant runability and printability, to package a variety of products. The development of high-end packaging solutions by the top manufacturers is attributed to their sustained customer focus and constant research and development activities related to production processes.
The global sack kraft paper market was valued at US$8.4 bn in 2015 and is expected to be reach a valuation of US$10.5 bn by the end of 2024. The global market is projected to clock a CAGR of 2.6% from 2016 to 2024.
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Soaring Building and Construction Activities in Developing Regions to Bolster Demand
Based on geography, the sack kraft market is segmented into North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Of these, the market is dominated by Asia Pacific and the Middle East and Africa. These regional markets are anticipated to rise at a CAGR of 3.4% from 2016 to 2024. The growth is fueled by the spectacular rise in construction activities in these regions.
On the basis of end-use industry, the market is segmented into cement and building materials, chemicals, animal feed, pet food, and food. Of these, the cement and building materials segment is projected to expand at a CAGR of 2.2% over the forecast period. The extensive demand for sack kraft paper for the segment is propelled by the demand for sustainable building materials in various developing regions.
Several Benefits Compared to Conventional Packaging Materials to Boost Demand
The growing demand for sustainable and bio-degradable packaging materials in various end-use applications, particularly for packing cement and building materials, is a key factor driving the sack kraft paper market. The adoption of sack kraft papers is propelled by several benefits they have over conventional packaging materials. These packing solution provide high porosity, marked extensibility, excellent printability, and high stiffness with good tensile energy absorption (TEA). The growing prominence of sack kraft papers over plastics in a variety of industrial packaging solutions is triggered by mounting environmental concerns of plastics worldwide. An indiscriminate use of plastics in packaging is associated with substantial environmental hazards they pose such as overflowing landfills in several developing and developed economies. The feature of excellent recyclability of sack kraft paper has boosted their uptake.
A rapidly burgeoning cement industry in several emerging economies of Africa, the Middle East, and East Asia is expected to catalyze the sack kraft paper market. Sack kraft papers are extensively used to pack cement in small quantities. In addition, the soaring building and construction industry is expected to bolster the demand for sack kraft paper as sustainable packaging solutions.
However, the volatility of the availability of key raw materials, such as softwood, is a key factory likely to impede the market to an extent. On the other hand, constant technological advancement in production processes and recent advances in materials sciences have led to the development of various advanced sack kraft papers such as moisture-resistant materials. This is expected to open up exciting opportunities for market players over the forecast period. In addition, a sustained demand for pet food and animal feed is expected to accentuate the sack kraft paper market in the coming years.
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