Global Kraft Liner Market – Industry Trends and Forecast to 2029

Market Analysis and Size

Increasing demand for plastic-free packaging solutions from the food and retail industries is expected to drive the global Kraft liner market over the next decade. Furthermore, due to the environmental hazards posed by plastic, paper and paperboard are expected to be the packaging industry's future. The use of kraft liner and test liner solutions is expected to grow over the forecast period.

Data Bridge Market Research analyses that the kraft liner market was valued at USD 704.51 million in 2021 and is expected to reach the value of USD 1174.75 million by 2029, at a CAGR of 6.6% during the forecast period of 2022 to 2029.

Market Definition

The kraft liner is known for its high strength and durability. It is primarily made from bleached sulphate pulp or unbleached sulphate pulp. The raw materials used to make kraft liners are old corrugated containers (OCC) and virgin fibres in a ratio of 80 percent OCC and 20 percent virgin fibres. The raw material mixture may also include some recycled paper and wood fibres.

Report Scope and Market Segmentation

Kraft Liner Market Dynamics

Drivers

• Increasing demand from developing economies as well as from various end use industries

Consumer packaged goods growth and potential are very significant in countries such as China and India due to strong demand from the food and pharmaceutical industries. This is increasing the demand for convenient and portable packaging solutions. Lightweight packaging paper is suitable for a wide range of end use applications in food and non-food packaging, including food sachets, banderols for yoghurt pots, and tea envelopes, as well as cigarette inner liners and soft packs. As a result, the widely used lightweight packaging solution with kraft liner will drive the market over the forecast period.

• The inherent nature of seaweed as a nutrient-rich source of food further supports the use of seaweed in packaging

The global market for online retailing is expanding rapidly, fuelled by internet and smart phone penetration. The e-commerce market is expected to reach $200 billion by 2026, driven by rising incomes and an increase in internet users. This will increase demand for printing and packaging solutions, particularly corrugated fibre board formats capable of safely transporting goods through more complex distribution channels. This is simulating an interest in customised or lightweight packaging, as well as packaging solutions that can make an impression on them. As a result, the kraft liner market is expected to expand during the forecast period.

Opportunity

The growing use of kraft paper to replace traditional packaging materials can be attributed to the market's expansion globally. The presence of a number of international and domestic manufacturers in the economy, as well as the increasing penetration of product-based secondary packaging, is expected to benefit growth.

Restraints

Kraft liner is made up of 80% virgin fibres obtained through chemical sulphate or soda processes. The kraft process, also known as kraft pulping or the sulphate process is a method of converting wood into pulp. The prices of wood products typically fluctuate more than the prices of most other goods. Because of the short-run dynamics of demand and supply, lumber and plywood prices are so high right now. During the pandemic's summer, there was a surge in demand for wood. Demand for virgin pulp, as opposed to recycled cardboard and paper, has increased, limiting scrap imports that it once purchased by the boatload to feed its factories. To take advantage of the rising prices, pulp producers have diverted shipments from local spot markets. These factors limit the growth of kraft liner market.

This kraft liner market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the kraft liner market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Kraft Liner Market

Due to the COVID-19 pandemic, most manufacturing plants were shut down, reducing raw material production and, as a result, kraft liner production during the pandemic. Furthermore, as a result of supply chain disruptions such as raw material delays or non-arrival, disrupted financial flows, and rising absenteeism among production line staff, OEMs have been forced to operate at zero or partial capacity, resulting in lower demand and consumption of kraft liners. During the pandemic, consumer habits changed dramatically, affecting the packaging industry. Home delivery of food and consumer goods increased demand for packaging containers and cartons sold or shipped in. Consumer product e-commerce has exploded.

Recent Development

• WestRock Company introduced new coated paper in March 2019 in response to the premiumization trend adopted by manufacturers of consumer and luxury goods.
• Morrisons' Best Bacon Sizzles received a Retail Ready Packaging (RRP) solution from DS Smith Plc in October 2019.
• International Paper Company invested $300 million in September 2017 to convert its paper machine at the Riverdale Mill in Selma, Alabama, from uncoated free sheet to high quality white-top linerboard and containerboard.

Global Kraft Liner Market Scope

The kraft liner market is segmented on the basis of product, basic weight, end-use, and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product

• Bleached
• Unbleached

Basic weight

• Below 200 GSM
• 200-400 GSM
• Above 400 GSM

Application

• Corrugated Sheets
• Corrugated Boxes
• Container Boards or Solid Boards

End user

• Food
• Beverages
• Electrical & Electronics
• Healthcare
• Tobacco
• Automotive & Allied Industries
• E-Commerce
• Chemicals & Fertilizers
• Building & Construction
• Others

Kraft Liner Market Regional Analysis/Insights

The kraft liner market is analysed and market size insights and trends are provided by country, product, basic weight, end-use, and application as referenced above.

The countries covered in the kraft liner market report are U.S., Canada, Mexico, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, UAE, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa.

Asia-Pacific dominates the kraft liner market due to the prevalence of manufacturing companies, as well as the growth of the consumer electronics, personal care, and food and beverage industries. The North America region is expected to have the highest growth rate due to rising demand for corrugated packaging and the prevalence of various market players.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Kraft Liner Market Share Analysis

The kraft liner market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to kraft liner market.

Some of the major players operating in the kraft liner market are:

• DS Smith (UK)
• Smurfit Kappa (Ireland)
• YOJ pack-kraft. (India)
• DNA Packaging Systems. (India)
• Eltete Malaysia Sdn Bhd. (Malaysia)
• Green Label Packaging (US)
• Sonoco Products Company (US)
• Honey Shield Emballeurs (India)
• AXIS VERSATILE SDN.BHD. (Malaysia)
• Kaily Packaging Co. Ltd. (Singapore)
• Tri Wall Pte Ltd (India)
• FORLIT, A.S. (Czechia)

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