Kraft Liner Market (2022 - 2030)

Report Overview

The global kraft liner market size was estimated at USD 38.98 billion in 2021 and is expected to expand at a compounded annual growth rate (CAGR) of 6.9% from 2022 to 2030. The market is expected to grow significantly due to the growth in the packaging industry on account of the growing e-commerce sector across the globe. Kraft liner is a paperboard manufactured from chemical pulp produced in the kraft process, wherein the wood is converted into wood pulp, which consists of cellulose fibers. It has characteristics like great strength and good printability. Owing to these properties along with being environment-friendly, it is used in various industries for packagings like food & beverages, automotive parts, pharmaceuticals, and consumer goods.

Rising environmental concerns regarding the use of plastic in packaging and the globally growing packaging industry backed by the rise of the e-commerce sector across the globe are the major factors driving the market growth over the forecasted period. Moreover, rising industrial operations are expected to drive industrial logistics growth, thereby driving the demand for kraft liners.

The Covid-19 pandemic disrupted the kraft liner market and the end-use industries in 2020. Due to this, the end-users did not prefer to go for any new product amid uncertainties. However, the post-pandemic era has brought in bright prospects due to a boost in the economies, which are expected to accelerate the market growth.

Old Corrugated Containers (OCC) are the basic raw materials used in kraft liners, and they account for 80% of the total makeup of the production of kraft liners. The recovery of this material is a real challenge because of the low-grade OCC and high transportation costs associated with it. This directly affects the supply of the kraft liner which hampers the market growth.

Various R&D activities are executed by manufacturers for reducing the cost of kraft liner and are expected to help strengthen the market share in the packaging industry. In addition, to eliminate waste and promote kraft liners, governments worldwide are starting to focus on using recyclable and reusable packaging material.

Product Insights

GSM 80 to 160 product segment led the market and accounted for 59% of the global revenue share in 2021. It is expected to be the fastest-growing product segment over the forecast period, growing at a CAGR of over 7.0% from 2021 to 2030. The growing scope of the product in the consumer goods packaging sector is expected to drive the segment growth.

Kraft liners with GSM between 80 and 160 are widely utilized by the e-commerce sector. The e-commerce sector is one of the largest end-users of packaging materials and is expected to witness growth over the projected period, in turn, propelling the demand for kraft liners. The growing e-commerce sector across the globe is expected to boost the demand for kraft liners of GSM grade 80 and above.

GSM > 160 kraft liners are extensively used in packaging applications for heavy-duty equipment. This product is thick and multilayered, which provides extra cushioning to the objects during the transportation process. The major applications for this grade of the product include heavy electrical appliances, industrial machinery, construction materials, automotive parts, and glass objects.

Different designs of flutes and multilayered kraft papers are used to make the packaging more durable and provide an enhanced protective layer to the objects being transported. The GSM grade of the kraft liners to be used is determined by the robust and fragile properties of the object. The range can go up to 400 GSM for special applications wherein extra protective layers are required.

Regional Insights

The Asia Pacific regional market held the largest revenue share of around 63% in 2021. The demand for the product in Asia-Pacific was valued at over USD 24.39 billion in 2021 on account of the presence of a large number of producers and the end-use packaging industry.

The growth in the Asia Pacific can be attributed to the growing industrialization and the scale at which production of goods is happening in almost every sector in developing economies like China, Vietnam, India, etc. The growing e-commerce and manufacturing sector in this region is expected to aid the market growth.

The Middle East and Africa region are likely to register the fastest CAGR of about 7.5% over the forecast period, on account of the increasing import and export operations across the region. There is a huge potential for the industry to grow, as the market is highly unsaturated.

North America also held a significant market share in 2021. This is because of the well-established packaging industry. The existence of a high number of industry firms, together with the region's developing e-commerce sector is expected to sustain corrugated packaging demand over the forecast period.

Key Companies & Market Share Insights

To cater to customer demand and meet the challenges of the growing industry the manufacturers are specifically investing in R&D to find the solutions that would have a significant impact on the e-commerce sector. In addition, the manufacturers are inviting ideas from external bodies and candidates to present their solutions through presentations and prototypes to the companies.

The global manufacturers are employing efforts to increase their penetration in different regions, through the acquisitions of localized manufacturers at strategic locations. In addition, the larger groups are setting up experienced teams coupled with well-established processes to ensure the successful integration of acquisitions. Some prominent players in the global kraft liner market include:

• Smurfit Kappa

• Groupo Europac

• Roxcel Handelsges.m.b.H

• Astron Paper & Board Mill

• Eagle Paper International, Inc.

• Thai Paper Mill Company Limited

• International Paper

• Hazel Mercantile Limited

• Mondi Group

• Nine Dragons Paper (Holdings) Limited

Kraft Liner Market