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Kraft Paper Market Outlook Improves Slightly; 3.9% CAGR Heading into 2020s

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In terms of value, the global Kraft paper market is expected to expand at a CAGR of 3.9% during the current forecast period between 2018 and 2026 according to GMI Research (India). This estimate is roughly consistent with most expectations by market research firms for packaging papers such as paperboard (generally similar to Kraft sack paper except with considerably higher gsm thickness) where the forecast heading into the mid-2020s generally predicts a figure between 3% and 5% CAGR. 

This study, released in November 2018 is a full percentage point higher than Transparency Market Research prediction of 2.9% growth for Kraft paper in October 2016 owing likely to a continuation of relatively healthy market conditions in the U.S. with still no sign of an imminent market correction while corporate taxes have been lowered, as well as coinciding with the continued expansion of e-commerce as a permanent fixture of the economy (such as with Amazon) and not a "bubble" such as the late 1990s / early 2000s e-commerce fad that faded as pre-mature technology at the time was not fully ready to realize its true potential. 

There has also been an increase in the number of consumers seeking sustainable materials such as pulp / organic fiber for packaging as opposed to fossil / petrol based plastics. In particular, for sack kraft paper, though used in some light shipping arrangements, is likely having its growth boosted due to the sustainability issue on the mind of progressively more consumers who see the use of plastic bags as irresponsible. 


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