Global Sack Kraft Market to Reach $10.5 Billion by End of 2024

According to a recent research report published by Transparency Market Research, Albany, N.Y., USA, titled Sack Kraft Paper Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 – 2024, the global sack kraft paper market is expected to reach a valuation of $10.5 billion by the end of 2024 compared with $8.4 billion in 2015. During the forecast period of 2016 and 2024, the global market is expected to expand at a CAGR of 2.6%.

Out of the several end users, the cement and building materials segment is expected to progress at a CAGR of 2.2% during the forecast period. The rapid growth in construction and the subsequent rise in the demand for building materials is expected to fuel the growth of this segment in the near future. In terms of geography, Asia Pacific is expected to show persistent demand. The region is expected to register a CAGR of 3.4% during the forecast period. The demand for sack kraft paper in Asia Pacific will also be attributable to the soaring construction activities in the near future.

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"The growing environmental concerns pertaining to mounting dumps of plastics has urged governments and several organizations to shift their focus towards development of sustainable materials," states the lead author of this research report. This very sentiment has been driving to the global sack kraft paper market, which is extensively being used in a variety of areas. From construction to packaging of food, sack kraft paper is being adopted as a sustainable option as it exhibits remarkable printability, extensibility, porosity, and durability. 

Sack kraft paper is gaining tremendous popularity as it exhibits the same strength as that of plastic materials. Thus, it is extensively being used for packaging cement to pack smaller quantities.

The tough taxation rules pertaining to the environmental hazards due to over-consumption of plastics is also coaxing several manufacturers to use unconventional packaging solutions. As sack kraft paper is made from natural fibers, it is known to be biodegradable, which has become its unique selling point. Its recyclability has also proven to be an asset to its increasing sales in the past few years. 

The growing ban on plastic in several counties of the world due to overflowing landfills, rising pollution, and difficulty in recycling have also augmented the demand for sack kraft paper. Furthermore, improved printability and appearance of sack kraft papers are also expected to drive their demand in the near future.

The volatility of raw materials is expected to hamper the growth of the global sack kraft paper market in the coming years. The limited availability of softwood, which is the primary raw material used in production of this material, is likely to have a negative impact on the overall market. Furthermore, the rigid perspective toward sack kraft paper being a mere alternative to conventional packing option is projected to restrain the overall market in the near future.

The competitive landscape of the global sack kraft paper market can be described as an extremely fragmented one. The top three players, Mondi, BillerudKorsnas AB, and KapStone Paper and Packaging Corp., held a collective share of 15.7% in the global market as of 2015, stated Transparency Market Research. These companies are expected to focus on developing innovative consumer and industrial solutions to remain relevant in the overall competition in the coming years. 

Widening the product portfolio and expanding the geographical reach are expected to be the two key strategies of the market players in the coming few years.