The competitive landscape of the global sack kraft paper market can be described as extremely fragmented one. The top three players, Mondi, BillerudKorsnas AB, and KapStone Paper and Packaging Corporation, held a collective share of 15.7% in the global market as of 2015, states Transparency Market Research. These companies are expected to focus on developing innovative consumer and industrial solutions to remain relevant in the overall competition in the coming years. Widening the product portfolio and expanding the geographical reach are expected to the two key strategies of the market players in the coming few years. According to the research report, the global sack kraft paper market is expected to reach a valuation of US$10.5 bn by the end of 2024 as compared to US$8.4 bn in 2015. During the forecast period of 2016 and 2024, the global market is expected to expand at a CAGR of 2.6%.
Strengthening Construction Sector Boosts Asia Pacific Market
Out of the several end users, the cement and building materials segment is expected to progress at a CAGR of 2.2% during the forecast period. The rapid growth in construction and the subsequent rise in the demand for building materials is expected to fuel the growth of this segment in the near future. In terms of geography, Asia Pacific is expected to show persistent demand. The region is expected to register a CAGR of 3.4% during the forecast period. The demand for sack kraft paper in Asia Pacific will also be attributable to the soaring construction activities in the near future.
Ban on Plastics Poised to Benefit Global Sack Kraft Paper Market
“The growing environmental concerns pertaining to mounting dumps of plastics has urged governments and several organizations to shift their focus towards development of sustainable materials,” states the lead author of this research report. This very sentiment has been driving to the global sack kraft paper market, which is extensively being used in a variety of areas. From construction to packaging of food, sack kraft paper is being adopted as a sustainable option as it exhibits remarkable printability, extensibility, porosity, and durability. Sack kraft paper is gaining stupendous popularity as it exhibits the same strength as that of plastic materials. Thus, it is extensively being used for packaging cement to pack smaller quantities.
The tough taxation rules pertaining to the environmental hazards due to over-consumption of plastics is also coaxing several manufacturers to use unconventional packaging solutions. As sack kraft paper is made from natural fibers it known to be biodegradable, which has become its unique selling point. Its recyclability has also proven to be an asset to its increasing sales in the past few years. Ban on plastic in several counties of the world due to overflowing landfills, rising pollution, and difficulty in recycling have also augmented the demand for sack kraft paper. Furthermore, improved printability and appearance of sack kraft paper are also expected to drive their demand in the near future.
Volatility of Raw Materials Likely to Restrain Growth
The volatility of raw materials is expected to hamper the growth of the global sack kraft paper market in the coming years. The limited availability of softwood, which is the primary raw material used in production of this material, is likely to have a negative impact on the overall market. Furthermore, the rigid perspective toward sack kraft paper being a mere alternative to conventional packing option is projected to restrain the overall market in the near future.
The review is based on Transparency Market Research’s report, titled “Sack Kraft Paper Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
The global sack kraft paper market is segmented as below:
By Packaging Type
- Valve Sack
- Open Mouth Sack
By End-use Industry
- Cement and Building Materials
- Animal Feed
- Pet Food
- North America
- Latin America
- Asia Pacific
- Middle East & Africa