Environmental Concerns Prompting the Increased Use of Kraft Papers

Introduction

There is an increase in the sale of fast-food products such as burgers and pizzas that have led to a surge in demand for kraft paper used in wrapping. The increasing environmental concerns throughout the world have encouraged governments in various countries to invest in the development of such products that are biodegradable and cause less harm to the environment. The regulations imposed on the packaging industry, food and beverages, industrial packaging, pharmaceuticals, and other consumer durable goods are directly raised on the kraft paper market.

Impact of Covid-19

COVID-19 has impacted the business world adversely, be it any industry. There is a visible shift in consumer behavior toward safe and reliable products. Manufacturers are developing products that have less risk of contamination to wildlife. Increasing prices of raw materials with trade restrictions imposed by governments across the world are some of the factors that are expected to cause congestions in the supply chain.

Key Highlights

• An increase in awareness of eco-friendly products has led to an increase in demand for kraft paper, working as a substitute for plastic and used for various purposes.
• Corrugated boxes are dominating the kraft paper market; they not only offer protection to shipped goods from damages but also offer easy handling features.
• The Asia-Pacific Kraft Paper market is growing at a higher rate due to densely populated countries such as China and India.
• There are a variety of applications of kraft paper in various sectors such as healthcare, food and beverages, consumer durables, building, and construction industries.
• Kraft pulping process of kraft making reduces lignin content that accounts for its high strength, whiteness, and resistance to yellowing.
• Due to the ban of plastic in developed countries, there is increased adoption of kraft paper in various industries.

Competitive Players

1. Mondi (U.K.)
2. Segezha group (Russia)
3. Billerudkorsnas (Sweden)
4. Stora Enso (Finland)
5. Daio Paper Construction (Japan)
6. Nordic Paper (Sweden)
7. Glatfelter (U.S.)
8. Gascogne Papier (Austria)
9. Tokushu Tokai Paper Co., Ltd. (Japan)
10. Goodwin Robbins Packaging Company Inc. (U.S.)
11. Oji Holdings Corporation (Japan)
12. CTI Paper USA (U.S.)
13. Genus Paper & Boards Limited (India)
14. Fujian Qingshan Paper Co., Ltd. (China)
15. Smurfit Kappa (U.S.)
16. WestRock Company (Ireland)
17. International Paper (U.S.)

Recent Developments

• February 2024 - Fourniture Industrie Service (FIS) has developed a type of bubble wrap using recycled kraft paper in order to fulfill the need for environmentally-friendly packaging while also ensuring the safety of the products being packaged.
• April 2024 - Essentia Organic Mattress Introduced Kraft Paper Wrap for Roll Pack. The company will now employ biodegradable, compostable, and recyclable kraft paper for both internal and external packaging.

Segmentation

1. By Product
   1. Specialty Kraft Paper 
   2. Sack Kraft Paper
2. By Grade Type
   1. Bleached
   2. Unbleached
3. By Type
   1. Virgin Natural Kraft Paper
   2. Natural Recycled Kraft Paper
   3. Black Kraft Paper
   4. Coloured Kraft Paper
   5. White or Bleached Kraft Paper
   6. Printed Kraft Paper.
4. By Packaging Form
   1. Bags and Pouches
   2. Sacks
   3. Envelopes
   4. Corrugated Sheets
   5. Composite Cans
   6. Cartons
5. By End-User
   1. Food and Beverages
   2. Pharmaceutical
   3. Building and Construction
   4. Cosmetic and Personal Care
   5. Electronics and Electricals
   6. Others