Machine glazed kraft paper market is estimated to witness high growth owing to rising food packaging industry and increasing online food delivery services
The Machine Glazed Kraft Paper Market is estimated to be valued at USD 13.54 billion in 2024, exhibiting a CAGR of 4.7% over the forecast period (2024-2031). Furthermore, the growing usage of machine glazed kraft paper in packaging food products, such as cereals, bakery items, snacks, and ready-to-eat meals, is driving the market growth.
Rising food packaging industry
The food packaging industry has been witnessing significant growth over the past few years owing to the changing consumer preferences and increasing demand for packaged and ready-to-eat food products. Machine glazed kraft paper finds wide usage in packaging various food items due to its moisture resistance and strength properties. This has resulted in augmented demand for machine glazed kraft paper from the food packaging segment.
Increasing online food delivery services
In recent times, online food delivery platforms have gained tremendous popularity among consumers due to availability of convenience and variety of options. This has led food companies and restaurants to focus more on attractive and sturdy packaging of food items for maintaining quality and safety during deliveries. Machine glazed kraft paper is widely used by online food aggregators for packaging pizza boxes, burgers, sandwiches, and other food products due to its excellent
Growing Demand from the Packaging Industry is Driving the Machine Glazed Kraft Paper Market
The packaging industry has seen tremendous growth over the past few years owing to the expanding e-commerce sector. Machine glazed kraft paper finds wide application in the packaging of various products such as food items, electronics, consumer goods, pharmaceuticals, etc. It offers excellent printability and is durable as well as moisture-resistant, making it suitable for primary as well as secondary packaging. The growing demand from the food packaging sector, in particular, is a key factor stimulating the sales of machine glazed kraft paper. Food product manufacturers prefer machine glazed kraft paper for its ability to maintain the freshness and quality of food items.
Increasing Usage in Luxury Packaging is Augmenting Market Growth
Machine glazed kraft paper is increasingly being used in luxury packaging applications such as perfumes, cosmetics, liquor, cigars, and other premium products. Manufacturers of luxury goods use machine glazed kraft paper for its aesthetics and upmarket look to attract customers. It provides an elegant finish and print surface for designer packaging. The surging demand for premium and customized packaging from industries such as fashion, consumer electronics is fueling the demand for customized machine glazed kraft paper. Leading luxury packaging producers are opting for machine glazed kraft paper to offer differentiated designs and textures to their products, thereby propelling the market growth.
Stringent Environmental Regulations are Hindering Market Expansion
Machine glazed kraft paper manufacturing involves various chemical processes that release toxic pollutants harmful to the environment. Strict environmental norms regarding reduction of carbon footprint and emissions of volatile organic compounds (VOCs) pose challenges to machine glazed kraft paper producers. Developing eco-friendly production technologies compliant with regulatory standards increases capital investment requirements. This acts as a deterrent, especially for small and medium producers. Moreover, the growing popularity of bio-based and recyclable alternatives like paper bags and cartons limits the demand growth for machine glazed kraft paper to some extent.
High Dependency on the Paper Industry is Restraining Consumption
The machine glazed kraft paper market is highly dependent on raw material supply from the paper industry. Any fluctuations in the prices and availability of wood pulp and waste paper affect the production and prices of machine glazed kraft paper. In recent years, rising energy and wood costs have driven up paper production prices, subsequently increasing the prices of machine glazed kraft paper. Demand-supply imbalances and shortage of raw materials during certain periods restrain machine glazed kraft paper manufacturers. They face difficulties in fulfilling the market demand at a consistent quality and price point. This, in turn, limits the expansion of the overall market.
Surging E-commerce Sales Present Lucrative Opportunities
The exponential growth of online retail shopping and use of hybrid retail models during the pandemic have opened avenues for machine glazed kraft paper producers. E-commerce companies heavily rely on machine glazed kraft paper for shipping various products through courier and postal services. Innovative attributes like moisture resistance, high durability, and environmental friendliness enable machine glazed kraft paper to safeguard products during transit. Customized papers for aesthetically appealing e-commerce packaging attract more customers online. Manufacturer focuses on developing thinner, lightweight papers with enhanced printability to tap into the rising e-commerce sector.
Emergence of Sustainable Machine Glazed Kraft Paper Variants
Stringency of environmental regulations is prompting manufacturers to develop sustainable alternatives to conventional machine glazed kraft paper. They are investing in R&D to produce bio-based papers using agricultural residues like straw and sugarcane bagasse. Some innovators offer machine glazed kraft paper manufactured using recycled content that can be reused or composted after usage. Such eco-friendly variants appeal to both packaging producers and end-use sectors intent on reducing plastic consumption and achieving sustainability goals. The market sees growing acceptance of sustainable machine glazed kraft paper variants, opening new prospects over the forecast period.
Link - https://www.coherentmarketinsights.com/market-insight/machine-glazed-kraft-paper-market-5011
Key Developments
- In February 2024, Sappi announced its latest advancements in machine-glazed kraft paper, specifically engineered to deliver exceptional print quality for coffee packaging. This innovative paper solution is designed to meet the unique demands of the coffee industry, allowing brands to effectively showcase their products while ensuring durability and functionality.
- In 2023, Suzano announced a major investment in a new production line dedicated to manufacturing fluff pulp from eucalyptus. This strategic initiative aims to enhance the company's capabilities in producing sustainable, high-quality fluff pulp, which is essential for a variety of products, including diapers, feminine hygiene items, and other absorbent materials.
- In 2023, LC Paper unveiled its new machine-glazed K-Zero kraft paper range, produced through a CO2-neutral process. This innovative product is specifically designed for the food and retail industries, providing a sustainable packaging solution that addresses increasing environmental concerns.
Key Players
Loparex, Verso Corporation, Munksj, Mondi Plc, Smurfit Kappa Group Plc, Sappi Limited, Nippon Paper Group, Stora Enso Oyj., Heinzel Group, BillerudKorsnäs AB, Asia Pulp & Paper (APP) Sinar Mas, Gascogne Papier SAS, Papelera de Brandia S.A., Burgo Group Spa, International Paper Company, and SCG Packaging
