UK Kraft Paper Market to Reach at 3.6% by 2035 as Demand for Sustainable Packaging Solutions Accelerates

The global kraft paper market is on a steady upward trajectory, fueled by the worldwide shift toward sustainable packaging and the surging demand from e-commerce, food, and retail industries. Industry forecasts indicate the market will rise from USD 17.2 billion in 2025 to USD 21.8 billion by 2035, achieving a CAGR of 2.4% during the period.

Kraft paper, long valued for its strength, durability, and eco-friendliness, has become a cornerstone of modern packaging. With rising bans on single-use plastics and increasing consumer preference for recyclable solutions, both established corporations and emerging players are doubling down on innovations that align with circular economy goals.

Why Kraft Paper Is Winning the Packaging Race

Kraft paper has proven itself as more than just a packaging material—it represents the balance between durability and sustainability. Its high tensile strength makes it suitable for heavy-duty industrial applications, while its recyclability resonates with eco-conscious consumers. From cement sacks and grain bags to e-commerce cartons and takeaway food packaging, kraft paper is at the center of industries that require both performance and responsibility.

The versatility of kraft paper also means it adapts easily to evolving packaging requirements. With corrugated boxes, sacks, and specialty papers serving different end markets, demand has remained resilient even amid pulp price fluctuations and supply chain pressures.

Request Your Sample Now: https://www.futuremarketinsights.com/reports/sample/rep-gb-5892

Segment Insights: Sack Products at the Forefront

The sack segment, which commands 52.4% of the market in 2025, continues to be the leading product type. Known for its durability and load-bearing capacity, sack kraft paper is essential in industries like cement, agriculture, and chemicals, where packaging integrity directly impacts safety and efficiency.

Manufacturers are innovating with multiwall sack production to enhance strength while reducing material use, cutting transportation costs and improving environmental outcomes. As global trade in commodities expands, the sack segment is expected to retain its dominance in the decade ahead.

Corrugated Boxes: E-Commerce’s Packaging Backbone

On the application front, corrugated boxes account for 36.7% of market share in 2025, bolstered by the explosive growth of online shopping and logistics. Kraft paper’s superior strength, printability, and stackability make it the preferred choice for brands aiming to combine protection with promotional value.

To keep up with demand, manufacturers are investing in automated corrugation facilities and eco-friendly adhesives, ensuring supply reliability while adhering to sustainability mandates. With e-commerce penetration deepening across developed and emerging markets, corrugated kraft paper is expected to see robust, long-term demand.

Unbleached Grades: Cost-Efficient and Eco-Friendly

The unbleached kraft paper segment, representing 48.6% of the market by grade, continues to dominate owing to its strength and reduced environmental footprint. Its natural brown appearance has become synonymous with eco-friendly packaging, appealing to both businesses and consumers.

Producers are choosing unbleached variants for their lower chemical requirements, cost advantages, and compliance with stringent environmental regulations. As industrial packaging standards evolve, unbleached kraft paper remains the go-to solution for companies looking to balance performance with sustainability.

Regional Outlook: North America, Europe, and Asia-Pacific Lead Growth

• North America is set to maintain leadership with a 32% share, thanks to strong shipping and logistics demand in the United States and Canada.
• Europe, holding 26%, benefits from consumer preference for eco-friendly packaging and government regulations promoting sustainability.
• Asia-Pacific—with fast-growing markets like China (5.4% CAGR) and India (5.9% CAGR)—is expected to emerge as the most dynamic region. Rising e-commerce activity, government support for recycling, and growing middle-class consumption are shaping Asia-Pacific as a lucrative growth hub.
• Countries such as Canada, the UK, and Thailand are also witnessing heightened demand, driven by local industry expansion and increasing awareness of sustainable practices.

Established Leaders Driving Innovation

Industry leaders such as WestRock Company, Mondi Group Plc., Canfor Corporation, Natron-Hayat d.o.o., International Paper Company, and DS Smith Plc. are actively expanding capacity, streamlining production, and rolling out new technologies.

• Mondi Group recently inaugurated a new kraft paper plant in the Czech Republic, producing 100% recyclable paper with both fresh and recycled fibers.
• ProAmpac, through its acquisition of APC Paper in July 2024, strengthened its portfolio of sustainable kraft paper solutions with 100% recycled products.
• Irplast is innovating with UV-resistant, solvent-free print-on-tape kraft paper to meet customer demands for customization and eco-performance.

These companies are blending decades of expertise with forward-looking strategies to maintain leadership in a competitive, sustainability-driven market.

Get the Report Brochure Now: https://www.futuremarketinsights.com/reports/brochure/rep-gb-5892

Startups Making Bold Moves

While giants set the pace, new entrants and startups are pushing boundaries with specialized kraft paper innovations. Emerging firms are focusing on:

• Barrier-coated kraft papers for food and beverage packaging.
• Lightweight yet durable designs that reduce shipping costs.
• Recyclable specialty papers for luxury packaging and branding.

Startups in Asia and Europe are particularly active in developing niche kraft papers that balance functionality with aesthetics, giving brands an edge in increasingly competitive retail markets.

Food & Beverage Packaging: A Fast-Growing Segment

The food and beverages sector, projected to capture 26.7% of market share in 2025, is one of the fastest-growing end uses of kraft paper. From bakery bags to branded coffee cups, kraft paper’s durability, printability, and customization options are driving adoption.

As consumers demand sustainable packaging for everyday items, kraft paper is quickly replacing plastics in quick-service restaurants, cafes, and supermarkets. The rise of branded kraft paper labels further supports its growth in this sector.

Looking Ahead: A Market Rooted in Sustainability

The kraft paper market’s trajectory reflects a broader shift in how businesses and consumers view packaging. What was once a functional necessity is now a symbol of brand values, environmental responsibility, and consumer trust.

With governments supporting recycling initiatives, companies investing in green technologies, and startups injecting fresh innovations, kraft paper is positioned as the backbone of the sustainable packaging revolution.

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries. 

Contact Us:      

Future Market Insights Inc.

Christiana Corporate, 200 Continental Drive,

Suite 401, Newark, Delaware - 19713, USA

T: +1-845-579-5705

For Sales Enquiries: sales@futuremarketinsights.com

Website: https://www.futuremarketinsights.com

LinkedIn| Twitter| Blogs | YouTube