Published: Jan, 2018
The meagre market share of 15.7% held by the leading three players in 2015 account for the striking fragmentation of the global sack kraft paper market, finds Transparency Market Research (TMR). The top three players are BillerudKorsnas AB, KapStone Paper and Packaging, and Mondi plc who are focusing on developing high-quality products for consumer and industrial markets to gain a stronghold in the market. The leading companies are likely to consolidate their product portfolio with a vast array of eco-friendly products, in order to meet the variety of needs of major end-use industries, observes TMR.
Prominent players are expanding their geographic reach, in a move to consolidate their shares. Driven by robust drive for innovations, a number of manufacturers of sack kraft papers in developing and developed regions are launching high-performance solutions to meet advanced functional requirements, in order to gain a competitive edge over others. They are relentlessly investing in research activities related to production processes.
The global sack kraft paper market stood at US$8.4 billion in 2015 and is estimated to reach a value of US$10.5 bn by the 2024 end. The market is projected to rise at 2.6% CAGR during 2016–2024.
The various end-use industries for the uptake of sack kraft paper are chemicals, cement and building materials, pet food, food, and animal feed. Of these, the cement and building materials segment is expected to witness widespread use of sack kraft paper for packaging cement and other building materials. The growth of the segment is fueled by the extensively rising demand for eco-friendly building materials in a number of developing and developed nations.
The Middle East and Africa and Asia Pacific are at the forefront, rising at a combined CAGR of 3.4% during 2016–2024. The growth of these regional markets can be attributed to the vastly rising construction activities and the extensive demand for various building materials, including cements. Asia Pacific is led by China which is anticipated to present substantial lucrative avenues for market players.
Substantial Demand for Bio-degradable Packaging for Building and Construction Materials to Bolster Uptake
The global sack kraft paper market is driven primarily by the rising need for environment-friendly, bio-degradable, and cost-effective packaging materials in a number of end-use industries, including cement and building industry, chemicals, animal feed, and food. Several factors account for the attractiveness of this type of packaging materials. The use of kraft paper sacks lends porosity, striking extensibility, excellent stiffness, and remarkable runability. In addition, the packaging materials when used for food products enables retaining the originality and appearance.
The looming worldwide environmental concerns of plastic packaging has robustly stimulated the demand for sack kraft paper as eco-friendly packaging. Sack kraft paper is characterized by striking recyclability and help end user meet specific packaging needs.
The markedly rising demand for packaging made of sack craft paper for packing pet food is boosting the market. The sustained demand for packaged pet food in various parts of the world is contributing to the demand.
The rapid emergence of construction activities in various countries of the Middle East, East Asia, and Africa, has stoked the need for cement and building materials. This in turn is bolstering the demand for sack kraft papers, notably for cement filler, since they provide the required strength and protection against moisture. The need for renewable and bio-degradable materials for packing small amounts of building materials has bolstered the demand for packaging made from extensible or semi-extensible sack kraft papers.
Advent of High-Quality Packaging to meet Range of Needs to open Lucrative Prospects
Undoubtedly, the global sack kraft paper market has greatly benefitted from the ban on the use of plastic packaging in various parts of the world. However, frequent fluctuation in the availability of some raw materials, particularly softwood, is a notable trend crippling the growth of the market to an extent. Nevertheless, the thrust on cost-effective and eco-friendly packaging is a robust factor that will sustain the demand for sack kraft paper. Advancements in production technologies and constant innovations in materials are expected to unlock promising prospects in the market in the coming years. The advent of sack kraft paper packaging to meet customizes needs of various end-use industries augurs well for the market over the forecast period.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Sack Kraft Paper Market (Grade - White and Brown; Packaging Type - Valve Sack and Open Mouth Sack; End Users - Cement and Building Materials, Chemicals, Animal Feed, Pet Food, and Food) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
The global sack kraft paper market is segmented based on:
- Valve Sack
- Open Mouth Sack
- Cement and Building Materials
- Animal Feed
- Pet Food
- North America
- Latin America
- Asia Pacific
- Middle East & Africa
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