The global sack kraft paper market is characterized by a high level of competition along with a presence of a large number of players operating in it, states a research report by Transparency Market Research. With the expected participation of new players, the market is anticipated to witness a stiff competition in the next few years. In 2015, the prominent players in the global sack kraft paper market, namely BillerudKorsnas AB, Mondi, and KapStone Paper and Packaging Corporation collectively held a share of 15.7% in the overall market. These players are emphasizing on research and development activities in order to introduce new solutions and sustain in the competitive scenario of the market. In addition, the expansion of the product portfolio is anticipated to supplement the growth of the market in the next few years.
As per the research study by Transparency Market Research (TMR), in 2015, the global market for sack kraft paper market was worth US$8.4 bn. The market is estimated to reach a value of US$10.5 bn by the end of 2024, registering a 2.60% CAGR between 2016 and 2024.
Booming Construction Industry to Augment Middle East and Africa Market
From a geographical viewpoint, the Middle East and Africa is anticipated to hold a massive share of the global sack kraft paper market and maintain a dominant place in the global market throughout the forecast period. Asia Pacific is projected to follow the Middle East and Africa in the near future. These two regions are collectively projected to exhibit a healthy 3.40% CAGR between 2016 and 2024. The significant growth of these two regions can be attributed to the rising demand for cement and the robust growth of the construction industry. On the flip side, Europe and North America are considered as matured markets, owing to which they are predicted to witness sluggish growth in the forecast period.
On the basis of end use, the cement and buildings materials segment is anticipated to grow at a significant pace in the next few years. As per the research report, this segment is predicted to exhibit a 2.20% CAGR between 2016 and 2024. The high growth of this segment can be attributed to the rising demand for buildings materials, thanks to the booming construction industry across the globe. Furthermore, the growing focus on urbanization in several emerging economies is expected to encourage the growth of this segment throughout the forecast period.
Rising Inclination of Builders towards Sack Kraft Paper to Encourage Growth
The high level of development of the cement industry, especially in several developing nations is considered as one of the key factors that is anticipated to encourage the growth of the global sack kraft paper market in the next few years. In addition, the robust growth of the construction industry is estimated to accelerate the growth of the market in the near future. Builders, across the globe, are projected to use sack kraft paper in order to build multiwall paper sacks for packaging. This is anticipated to fuel the growth of the overall market in the next few years.
Furthermore, technological advancements and the development of new products are some of the other factors that are likely to supplement the growth of the global sack kraft paper market in the coming few years. The rising concerns over the high use of plastic is another factor boosting the demand for sack kraft paper in the next few years.
Fluctuating Raw Material Prices to Hamper Market Growth
The global sack kraft paper market, on the flip side, is estimated to face several challenges owing to which the market is anticipated to witness a downward trend in the next few years. The fluctuating prices of raw materials are expected to restrict the growth of the overall market in the near future. Nonetheless, the rising ban on plastic in several nations, owing to rising pollution, overflowing landfills, and barriers in recycling are expected to generate promising opportunities for key players in the global sack kraft paper market in the coming years.
This information is based on the findings of a research report published by Transparency Market Research (TMR), titled “Sack Kraft Paper Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
The global sack kraft paper market has been segmented as below:
Global Sack Kraft Paper Market, by Grade
Global Sack Kraft Paper Market, by Packaging Type
Global Sack Kraft Paper Market, by End-use Industry
Global Sack Kraft Paper Market, by Geography
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