The United States, with a paper and paperboard consumption exceeding 70 million tons, presents significant opportunities for kraft pouch manufacturers. Meanwhile, the North American kraft pouch market is poised for growth driven by the global expansion of the kraft paper industry. In Europe, a moderate CAGR is expected, influenced by stringent anti-plastic regulations, while the Middle East and Africa anticipate higher CAGR, particularly in emerging nations like GCC and Turkey.
The global kraft pouch market is poised for significant growth, with an anticipated share of US$ 1.69 billion by 2032. The drive towards sustainability and the reduction of plastic usage are expected to fuel the demand for kraft pouches. According to FMI, the market was valued at US$ 1.26 billion in 2022, and it is set to exhibit a steady 3% CAGR during the forecast period from 2022 to 2032. The increasing retail consumption of various products has necessitated innovation in the packaging industry, with the use of kraft paper for pouch production gaining prominence.
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Kraft pouches have witnessed growing sales due to their affordability and value for money, and their demand is further bolstered by industry compliance with environmental protection regulations. These pouches can come as single-layered flat pouches or multi-layered stand-up pouches, serving as high-barrier packaging solutions. Their attributes, including puncture resistance, heat-seal capability, moisture and leak resistance, have made them highly sought-after in the packaging sector.
Consumer preferences are shifting towards paper-based flexible packaging solutions, providing an additional boost to kraft pouch sales in the global market over the next decade. The market is expected to thrive as eco-conscious practices and packaging innovation continue to gain momentum.
Key points:
- Sustainable Packaging Trend: With increasing consumer awareness and environmental concerns, there is a growing demand for sustainable packaging options. Kraft pouches, made from renewable resources and biodegradable materials, are gaining popularity as an eco-friendly packaging solution.
- Versatile and Functional: Kraft pouches offer versatility in packaging various products, including food, beverages, cosmetics, and pet food. They can be customized with features like resealable zippers, tear notches, and spouts, enhancing convenience for consumers.
- Branding and Marketing Opportunities: Kraft pouches provide ample space for branding and product information, allowing companies to showcase their products effectively. The natural, rustic appearance of kraft pouches also aligns with the current aesthetic trends, enhancing brand appeal.
- Lightweight and Cost-effective: Kraft pouches are lightweight, reducing transportation costs and carbon footprint. They also require less storage space compared to rigid packaging options, contributing to cost savings.
- Growing E-commerce Industry: With the rapid growth of the e-commerce sector, there is an increasing need for flexible and durable packaging. Kraft pouches offer excellent protection during transit while providing a sustainable packaging solution for online retailers.
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Overall, the Kraft pouch market is driven by the sustainable packaging trend, versatility, branding opportunities, cost-effectiveness, and the growth of the e-commerce industry. As consumers continue to prioritize sustainability, the demand for eco-friendly packaging solutions like kraft pouches is expected to further rise.
Key manufacturers are replacing their plastic-based packaging solutions with the paper-based packaging and adding value to their sustainability actions. Kraft pouch offers high strength and increase material handling capacity throughout the supply chain, and finds application in various end user industries.
The changing consumption scenario of the food & beverage industry is anticipated to expand the foothold of global kraft pouch market. Some of the manufacturers are also providing kraft pouch made up of recyclable kraft paper, which adds a significant value to sustainable packaging solutions.
Kraft Pouch Industry: Dynamics
Kraft pouch market is anticipated to register high growth during the forecast period, owing to elimination of usage of plastic pouches. The kraft pouch market outlook is expected to be positive during the forecast period, owing to preference for more sustainable products.
The kraft pouch are available in slider zipper, window form, and other formats. Machine glazed bleached and unbleached form provides enhanced printability. These bags are also available in gusseted styles and are made in compliance with food contact paper material regulations.
Government regulations regarding food contact materials and ban on plastic-based packaging is expected to create lucrative opportunities for kraft pouch market. Stand-up pouches convenient for consumer goods, medical components, and other products, which is expected to boost the kraft pouch market.
Some of the key manufacturers operating in the kraft pouch market are Detmold Group, Mondi Plc, International Plastics Inc., and TedPack Company Limited. Companies are offering customized paper packaging solutions, for instance, Mondi Plc launched new patented paper and barrier solution for food packaging.
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Market Segmentation:
On the basis of product type
- Flat pouches
- Stand-up pouches
On the basis of grade type
- Bleached
- Unbleached
On the basis of finish type
- Glazed
- Finished
On the basis of basis weight
- <30 gsm
- 30-90 gsm
- 91-120 gsm
- 121-200 gsm
- >200 gsm
On the basis of end-use
- Food & Beverages
- Pharmaceuticals
- Cosmetics & Personal Care
- Electronics & Electricals
- Other Consumer Goods
Author:
Ismail Sutaria (Lead Consultant, Packaging and Materials) has over 8 years of experience in market research and consulting in the packaging & materials industry. Ismail’s strength lies in identifying key challenges faced by the client and offering logical and actionable insights to equip the clients with strategic decision-making power.
Ismail has been an instrumental part of several transformational consulting assignments. His key skills include competitive benchmarking, opportunity assessment, macroeconomic analysis, and business transformation advisory. Ismail is an MBA holder in Marketing and has a Bachelor’s Degree in Mathematics.
Ismail is a regular at industry conferences and expos and has been widely covered in electronic and print media. He is a Speaker at our upcoming Talk show – Rise of the Intelligent Packaging. Ismail has been quoted in leading publications, including the European Pharmaceutical Review and the European Adhesive Tape Association.
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 over 5000 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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