Kraft Liner Market Future Growth strategies, Business Opportunities, High Demand, Current Trends And Huge Growth by 2027

Kraft Liner Market
Kraft Liner Market

The global Kraft Liner market is forecast to reach USD 60.49 Billion by 2027, according to a new report by Reports and Data. The rise of packaging in the application industries, such as import and export, food and beverages, construction, electricity and electronics, and manufacturing, should infuse growth.

E-commerce was the most crucial application segment for corrugated boxes, containers, and sheets due to the boom in the online shopping industry. The growing demand for corrugated cardboard packaging made from Kraft liners for electronics, glassware, and food products ordered online is expected to stimulate the market over the forecast period.

Traditionally, Kraft linings were made of virgin fibers; however, the growing preference for cheap and environmentally friendly products has led to the use of recycled materials. Raw materials required for the manufacturing of Kraft liners comprise old corrugated containers (OCC) and virgin fibers in a ratio of 80% OCC and 20% virgin fibers. OCC dominates the composition in the final product, thus impacting its quality levels. OCC is used to minimize the overall cost of production and to strengthen the end product. Thus, the supply of high-quality OCC, primarily through a single channel, plays a crucial role in the product value chain.

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Unstable raw material prices have resulted in price changes for Kraft liners, thereby affecting manufacturers’ profit margins. Kraft coatings require multiple processes to produce a variety of GSM grades, which results in higher production costs. The major players operating in the industry are engaged in mass production, thereby reducing the overall production cost.

The incomplete recycling of old corrugated containers can be attributed to the quality of the materials as well as their availability. The recovery remains unsatisfactory because the OCC sources are distant, and storage conditions are insufficient to sustain the material quality. It should, therefore, hamper the growth of the Kraft liners market during the forecast period.

Key companies operating in the market and profiled in the report include:

  • Smurfit Kappa
  • Groupo Europac
  • Astron Paper & Board Mill
  • Eagle Paper International, Inc.
  • Thai Paper Mill Company Limited
  • International Paper
  • Hazel Mercantile Limited
  • Mondi Group
  • Nippon Paper Industries

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Further key findings from the report suggest

  • Increased import and export operations around the world due to increased industrial productivity and awareness of light and environmentally friendly packaging materials are expected to drive demand for products. The growth of the packaging industry and the development of the electronic commerce sector are contributing to the growing demand for Kraft liners for the manufacture of corrugated containers, cartons, and boxes.
  • The Below 200 GSM category emerged as the largest segment by basis weight in several packaging applications. Kraft liners in this category are lightweight, durable and can support heavy weights to some extent and facilitate transportation.
  • Food and beverage packaging has the highest market share in the Kraft liners market and is expected to grow with a significant CAGR over the next few years.
  • Due to its high strength, bleached Kraft paper is widely used in packaging. The boost in the packaging segment due to the advancement of the e-commerce and packaged food industries has thus lead to massive revenues for the bleached Kraft liner.

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Segments Covered in the report

Product Outlook (Revenue, USD Billion; 2017-2027)

  • Unbleached
  • Bleached

Basis Weight Outlook (Revenue, USD Billion; 2017-2027)

  • Below 200 GSM
  • 200-400 GSM
  • Above 400 GSM

End-Use Industry Outlook (Revenue, USD Billion; 2017-2027)

  • Food and Beverages
  • Agriculture
  • Consumer Goods
  • Electrical and Electronics
  • Printing
  • Others

Regional Outlook (Revenue, USD Billion; 2017-2027)

  • North America
  • Europe
  • Asia Pacific
  • MEA
  • Latin America

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