U.S. Brown Paper Market, By Paper Type (Printing Paper, Copier Paper, Waxed Paper, Greeting Card Paper, Bond Paper, Tracing Paper, Tissue Paper, Inkjet Paper, and Tobacco Rolling Paper), End-Use (Packaging, Stationery, Home Care and Personal Care, Building and Construction, and Others), Distribution Channel (Direct Sale/B2B, Specialty Stores, E-Commerce, and Others)- Industry Trends and Forecast to 2030.
U.S. Brown Paper Market Analysis and Size
Shifting preference toward sustainable packaging and improvement in the food service industry is an important driver for the U.S. brown paper market. Some of the factors which are driving the market growth are rising demand for e-commerce packaging, expansion in the application scope of cardboard for interior renovation and repair, and growing demand for soft electronic components. However, supply constraints due to the use of paper pulp in other applications and limited access to high-quality raw materials are expected to hamper the market's growth.
Data Bridge Market Research analyses that the U.S. brown paper market is expected to reach a value of USD 7,258.59 million by 2030, at a CAGR of 3.5% during the forecast period. Printing paper accounts for the largest paper type segment in the U.S. brown paper market due to the growing applications of brown paper as printing paper. The U.S. brown paper market report also covers pricing analysis, patent analysis, and technological advancements in depth.
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Report Metric
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Details
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Forecast Period
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2023 to 2030
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Base Year
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2022
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Historic Years
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2021 (Customizable to 2020 - 2015)
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Quantitative Units
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Revenue in Million, Volumes in Kilo Tons, Pricing in USD
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Segments Covered
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Paper Type (Printing Paper, Copier Paper, Waxed Paper, Greeting Card Paper, Bond Paper, Tracing Paper, Tissue Paper, Inkjet Paper, and Tobacco Rolling Paper), End-Use (Packaging, Stationery, Home Care and Personal Care, Building and Construction, and Others), Distribution Channel (Direct Sale/B2B, Specialty Stores, E-Commerce, and Others)
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Country Covered
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U.S.
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Market Players Covered
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Richerpaper.com, Primo Tedesco SA, Georgia-Pacific, Graphic Packaging International, LLC, WestRock Company, Oji Holdings Corporation, Nordic Paper, and Smurfit Kappa, among others
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Market Definition
Brown paper is a paper with high tear resistance and strength. It is primarily used in the packaging industry among many other users. Chemicals are added to the wood pulp and recycled materials to increase fiber strength, thickness, and durability while maintaining the light weight of the paper. Brown paper is the strongest of the common packaging papers and is used when maximum strength is required in applications such as industrial bags, grocery bags, inner plies of multiwall sacks, or plain wrapping paper. Brown paper is also used to produce the liner of corrugated board.
U.S. Brown Paper Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail as below:
Drivers
- Shifting preference toward sustainable packaging
The growing usage of compostable and sustainable packaging materials is increasing among consumers. This is owing to the increasing awareness regarding the detrimental impact of plastic and other non-biodegradable packaging variants and options. Brown paper packaging solutions are biodegradable, durable, and easy to use. Hence, their demand is constantly increasing in various end-use industries such as food & beverages, electronics & electricals, pharmaceuticals, and building & construction among others.
Furthermore, the shift in consumer buying with more consumers willing to pay extra for environmentally friendly products is reinforcing the need for companies to increase their commitments to responsible business practices and use sustainable packaging solutions, which will further drive the demand for brown paper in the packaging industry.
- Rising demand for E-commerce packaging
E-commerce packaging is the process of wrapping goods and products for safe delivery to a designated location. With a rise in e-commerce shopping, services related to the latter have emerged as major markets. Shipping boxes are gaining high traction alongside the fast-growing e-commerce sector.
In addition, the increasing popularity of e-commerce and related developments have led to the premiumization of kraft packaging. It includes the demand for brown paper material that can take high-quality graphics on short print runs. Moreover, key players operating in the market have initiated many innovations that have improved and accelerated the production of sack brown kraft paper and paper sacks and enhanced product protection.
Opportunities
- Rising spending on technological advancements of new brown paper packaging solutions
Organizations within fast moving consumer goods (FMCG) industry are making moves to become more sustainable through the introduction of more sustainable packaging solutions. Key market players, as well as various start-ups in the paper market, are developing new kraft paper or brown paper packaging solutions such as consumer-friendly bags, stand-up pouches, and zipper pouches.
Companies manufacturing brown paper packaging solutions also consider various aspects of smart packaging. Smart packaging includes active packaging, modified atmosphere, moisture control, gas scavengers, smart labels, and time and temperature indicators, especially for packaging that directly contacts food items.
- Supportive government outlook aiming at increasing the use and production of eco-friendly packaging materials
The surge in the trend towards eco-friendly packaging materials, which are modern at the same time with visual appeal, brand identity, and long shelf life, has increased. The main advantage of brown paper is that it can be blended with a variety of fibers. This improves the characteristics of the paper and expands the range of its applications. These brown papers are environmentally friendly, have improved packaging properties, and are easy to stack and recycle.
Regulatory authorities are paying more attention to the introduction of paper recycling practices. Owing to the packaging properties of various foods such as sandwiches, pizzas, and burgers, the industry has had a significant increase in demand for brown paper from the food and beverage industry due to the shift in consumer focus to improving the appearance of end-user products.
Restraints
- Credible threat from external substitutes, such as plastics
Plastic packaging has many forms that can vary based on different applications, from flexible and adaptable to sturdy and resilient types like plastic containers. In addition, there is an availability of bioplastics, which are made from biodegradable sources such as vegetables, rice, and other organic and plant-based compounds.
Moreover, plastic bags are more durable than brown paper bags. They are less prone to tearing, easier to carry, and can also be used in bad weather. Plastic bags are reusable, as trashcan liners and as storage bags. Plastic bags last longer and can be repurposed, unlike paper bags. Low density, strength, user-friendly designs, fabrication capabilities, extended life, low weight, and low cost are all characteristics that have contributed to plastic's rapid rise. This is expected to restrain the markets growth.
- Emergence of other paper counterparts
With the cost of wood pulp rising and deforestation regularly on the environmental agenda, a number of companies are looking at other raw ingredients and methods for creating eco-friendly paper products that may act as a substitute for brown paper. These companies are looking to this and taking a creative approach to the materials used in producing paper to produce different types and grades of paper. Many of these paper types are recyclable and sustainable in nature, making them the preferred choice in various applications.
Challenges
- Limited access of high-quality raw materials
The availability of raw materials is very important for any kind of industry to function effectively. Agricultural residues have become one of the most important substitute resources due to the growth in the request for fibrous raw materials, the shortage of trees in many countries, and the growing sustainability consciousness. There is a scarcity of wood resources despite the fact that the world has enough forest soil to provide wood.
Other factors, such as severe weather storms in the U.S., have led to temporary shortages in certain materials over the course of the pandemic. The entire paper mill industry, including manufacturers, wholesalers, printers, and marketing companies, are experiencing difficulties securing the necessary amount of materials and goods.
- Supply constraints as a result of the use of paper pulp in other applications
The main source of cellulosic fiber used for pulp and paper production comes from wood, while non-wood fibers are used to a lesser extent. The need for pulp and paper is rising significantly due to exponential population growth, industrialization, and urbanization. Most paper manufacturing industries use wood fibers to meet pulp and paper requirements. The shortage of fibrous wood resources and increased deforestation are linked to the excessive dependence on wood for pulp and paper production.
Most of the cellulosic fibers used come from wood species, mainly hardwoods and softwoods. Nevertheless, in recent years there has been an increase in consumer awareness regarding the need to preserve the environment.
Recent Developments
- In February 2023, Smurfit Kappa was recognized as a top ESG performer by leading research and analytics company Morningstar Sustainalytics. The company's 2022 ESG Risk Rating has improved, seeing the FTSE 100 listed company positioned in Sustainalytics' list of Top Rated companies both for the industry and regional categories. The ESG Industry Top Rated badge received by Smurfit Kappa is a global benchmark and reaffirms Smurfit Kappa's ESG Risk Rating as 'low-risk'.
- In February 2021, Graphic Packaging International launched ProducePack, a sustainable paperboard packaging range of solutions for fresh produce. The product launch led to new business relations as well as partnerships. Additionally, gaining a lot of attention from larger customers around the globe.
U.S. Brown Paper Market Scope
The U.S. brown paper market is segmented on the basis of paper type, end-use, and distribution channel. The growth amongst these segments will help you analyze major 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.
Paper Type
- Printing Paper
- Copier Paper
- Waxed Paper
- Greeting Card Paper
- Bond Paper
- Tracing Paper
- Tissue Paper
- Inkjet Paper
- Tobacco Rolling Paper
On the basis of paper type, the U.S. brown paper market is segmented into printing paper, copier paper, waxed paper, greeting card paper, bond paper, tracing paper, tissue paper, inkjet paper, and tobacco rolling paper.
End-Use
- Packaging
- Stationery
- Home Care and Personal Care
- Building and Construction
- Others
On the basis of end-use, the U.S. brown paper market has been segmented into packaging, stationery, home care and personal care, building and construction, and others.
Distribution Channel
- Direct Sale/B2B
- Specialty Stores
- E-Commerce
- Others
On the basis of distribution channel, the U.S. brown paper market has been segmented into direct sale/B2B, specialty stores, E-commerce, and others.
Competitive Landscape and U.S. Brown Paper Market Share Analysis
The U.S. brown paper 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, and application dominance. The above data points provided are only related to the companies focus on the U.S. brown paper market.
Some of the major players operating in the U.S. brown paper market are Richerpaper.com, Primo Tedesco SA, Georgia-Pacific, Graphic Packaging International, LLC, WestRock Company, Oji Holdings Corporation, Nordic Paper, and Smurfit Kappa, among others.
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