Kraft Paper Market to Reach USD 22.40 Billion by 2032, Driven by Demand for Eco-Friendly Packaging like Red Kraft Paper Roll, Bouquet Wrapping Paper

According to the latest report by Straits Research, the global kraft paper market was valued at USD 17.11 billion in 2023 and is anticipated to reach USD 22.40 billion by 2032, growing at a CAGR of 3.04% over the forecast period (2024–2032). The market’s upward trajectory is primarily fueled by rising demand across industries for sustainable and biodegradable packaging solutions, including red kraft paper roll, bouquet wrapping paper, brown kraft paper, and kraft paper bags.

As environmental concerns gain momentum worldwide, consumers and industries are shifting towards paper bags, kraft bags, and brown paper packaging options—products that are not only eco-conscious but also visually appealing and cost-effective. This surge in demand for kraft-based products has solidified the market’s potential across diverse applications.

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Regional Insights: Asia-Pacific Leads Kraft Paper Revolution

Asia-Pacific is currently the dominant regional player in the global kraft paper market. The region’s massive population, surging e-commerce demand, and proactive government efforts to ban plastics have driven significant growth. The popularity of kraft paper bags, brown kraft paper, and red kraft paper rolls continues to rise in countries like India, China, Indonesia, and Vietnam, especially within retail, food delivery, and gifting segments.

Meanwhile, Europe is making major strides through regulatory action and sustainability-driven innovation. From bouquet wrapping paper to kraft bags, European nations are investing in eco-friendly packaging that complies with stringent EU regulations. Countries like Germany and France are pioneering compostable and recyclable kraft packaging across food, personal care, and household goods.

Segmental Insights:

By Product: Specialty kraft paper dominates the segment due to its usage in niche packaging such as red kraft paper roll and bouquet wrapping paper, which are widely used in premium gifting and flower wrapping.
By Grade: Unbleached kraft paper remains the most popular choice for manufacturing brown paper, brown kraft paper, and kraft paper bags due to its cost-efficiency and eco-friendly nature.
By Type: Virgin natural kraft paper leads in applications requiring high strength and clean aesthetics, such as gift wrapping, branded kraft bags, and custom paper bags.
By Packaging Form: Corrugated sheets dominate, but bags and pouches—especially kraft bags and paper bags—are witnessing rapid growth in the retail and food sectors.
By End-User: The food and beverage industry is the largest consumer of kraft paper bags and brown kraft paper, using them to package flour, cereals, snacks, and more. The aesthetic appeal of kraft packaging also aligns with the marketing needs of organic and artisanal food brands.

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Key Companies Driving the Kraft Paper Ecosystem

Mondi (U.K.)
Segezha Group (Russia)
BillerudKorsnäs (Sweden)
Stora Enso (Finland)
Daio Paper (Japan)
Glatfelter (U.S.)
Smurfit Kappa (U.S.)
International Paper (U.S.)

Frequently Asked Questions (FAQs)

What is kraft paper used for?

Kraft paper is commonly used for packaging, wrapping, and bags—including red kraft paper rolls, bouquet wrapping paper, brown paper, and kraft paper bags.

Why is there growing demand for kraft paper bags and kraft bags?

Due to their biodegradable, recyclable, and aesthetic qualities, kraft bags are preferred by eco-conscious brands and consumers.

Which industries are driving the demand for brown kraft paper?

Retail, food & beverage, flower shops, and e-commerce sectors are major contributors, especially with products like brown paper and bouquet wrapping paper.

How are kraft paper products aligned with sustainability goals?

They are produced using renewable resources, contain no harmful chemicals, and are easily recyclable, making them suitable for reducing plastic waste.

What regions offer growth opportunities for kraft paper manufacturers?

Asia-Pacific and Europe present the most promising prospects, with significant adoption of kraft paper bags, red kraft paper roll, and paper bags.

Conclusion

As industries and consumers alike push toward eco-conscious choices, the demand for kraft paper solutions like red kraft paper rolls, bouquet wrapping paper, brown kraft paper, and kraft paper bags is expected to soar. These versatile and sustainable products not only meet functional packaging needs but also elevate branding and presentation. With strong market dynamics, regional opportunities, and innovation from top players, the global kraft paper market is well-positioned for robust and responsible growth.