Machine Glazed Kraft Paper Market Size Report, Industry Share, Analysis, Growth, Forecasts 2023 - 2030

Machine Glazed Kraft Paper Industry Prospective:

The global machine-glazed kraft paper market size was worth around USD 8.67 billion in 2022 and is predicted to grow to around USD 14.62 billion by 2030 with a compound annual growth rate (CAGR) of roughly 6.75% between 2023 and 2030.

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The report delves deeper into several crucial aspects of the global machine glazed kraft paper market. It includes a detailed discussion of existing growth factors and restraints. Future growth opportunities and challenges that impact the machine glazed kraft paper industry are comprehensively addressed in the report.

Machine Glazed Kraft Paper Market: Overview

Machine glazed kraft paper is also known as MG kraft paper. It is shiny in appearance and uncoated on one side with the other side presenting a rough surface. These papers offer dual advantages as they provide a combination of excellent shine for printability while also showcasing the high tensile strength of normal kraft paper. They are highly preferred for a wide range of applications in the packaging sector since they are considered safe to package food items. Hence, the application of MG kraft paper in the manufacturing sector for securing dry food products such as cereals, sugar, and flour is growing at a rapid rate. Some of the other benefits of machine glazed kraft papers include higher smoothness, gloss, a natural feel or look, and extremely safe for the environment. The machine glazed kraft paper industry dealing with the production and distribution of MG kraft paper is growing at a steady rate.

Key Insights:

• As per the analysis shared by our research analyst, the global machine glazed kraft paper market is estimated to grow annually at a CAGR of around 6.75% over the forecast period (2023-2030)
• In terms of revenue, the global machine glazed kraft paper market size was valued at around USD 8.67 billion in 2022 and is predicted to grow to around USD 14.62 billion, by 2030.
• The machine glazed kraft paper market is projected to grow at a significant rate due to the growing applications in the textile industry as shopping bags
• Based on application segmentation, bags & pouches was predicted to show maximum market share in the year 2022
• Based on end-user segmentation, food & beverage was the leading user in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Machine Glazed Kraft Paper Market: Growth Drivers

Growing applications in the textile industry as shopping bags to drive market growth

The global machine glazed kraft paper market is projected to grow owing to its increasing use in the textile industry in the form of shopping bags. Until a few years ago, many companies operating in the retail or garment distributing sector used some form of plastic packaging. However, since plastic is extremely harmful to the environment, regional governments initiated multiple programs and initiatives to encourage retailers to invest in sustainable and eco-friendly packaging solutions.

MG kraft paper is an ideal choice in the textile industry due to its multiple advantageous attributes including higher strength to hold large weight without tearing, excellent glossy texture thus being visually appealing, and better printability for branding or marketing activities. This trend is especially beneficial in the fast-fashion segment as clothing retail companies such as Zara, H&M, and Mango are witnessing exceptional sales revenue. In August 2021, H&M decided to start using paper-based packaging bags for online sales in the Netherlands area. The company has pledged to reduce its packaging by 25% between 2018 and 2025.

This trend is further led by the growing population of well-aware consumers who prefer to shop from companies that contribute to the environment. A 2020 survey conducted by WARC reported that nearly 61% of the world’s population is less willing to buy products from companies with irresponsible environmental practices. Factors such as increased undertakings by environmental agencies pushing environment-consciousness among commercial companies as well as consumers have resulted in higher consumption of MG kraft paper in the packaging industry since they are eco-friendly while also being highly recyclable.

Machine Glazed Kraft Paper Market: Restraints

Limited strength and barrier resistance to restrict market expansion

Despite machine glazed kraft paper’s high tensile strength compared to normal paper, the product has limited strength. It cannot hold exceptionally heavy weights, unlike several forms of plastic. Moreover, MG variants are not resistant to moisture and tend to tear apart as soon as they come in contact with water which raises questions over product functionality apart from basic applications such as carrying lightweight clothes or groceries. Other factors such as the use of a resource-intensive manufacturing process to produce MG kraft may further add to growth restraints existing in the machine glazed kraft paper market as these processes tend to release harmful chemicals and glasses into the environment.

Machine Glazed Kraft Paper Market: Opportunities

Unexplored potential of emerging markets and growing applications in the coffee industry to provide growth opportunities

The global machine glazed kraft paper industry is expected to witness higher growth opportunities led by the unexplored potential of emerging countries. In nations such as China, India, Malaysia, and others, there is a growing market for companies such as retail, food & beverages, and personal care & cosmetics to name a few. There is steady growth in the disposable income of the regional population. There is a growing domestic market for products such as skincare and cosmetics while at the same time, international players are making their entry into the growing economies. For instance, in June 2023, popular American make-up brand Rare Beauty, launched in India for the first time. On the other hand, the South Korean cosmetic industry has become internationally popular. In August 2022, Foreo and Chicor, South Korean beauty specialty stores, entered a partnership allowing the former to sell its product at Chicor stores.

MG kraft paper has witnessed extensive application in the coffee industry where these papers are used to manufacture takeaway cups and coffee pouches. The growing coffee industry which is expected to grow at a CAGR of 4.75% by 2030 could assist in further revenue scope for machine glazed kraft paper.

Machine Glazed Kraft Paper Market: Challenges

Growing popularity of alternatives to MG kraft paper may challenge further expansion

The global machine glazed kraft paper industry is expected to come across growth challenges due to the growing popularity of alternatives to machine glazed kraft paper that are more environmentally friendly. For instance, there is a growing market for fabric-based packaging solutions. Several brands, including local and international companies, spend on manufacturing textile-based packaging solutions, especially for retail companies. They offer high strength and product-holding capability while being significantly more reusable for other purposes. Such factors are likely to restrict product adoption at least in certain segments.

Machine Glazed Kraft Paper Market: Segmentation

The global machine glazed kraft paper market is segmented based on application, weight, grade, and region.

Based on application, the global market segments are wraps, bags & pouches, envelopes, labels & release liners, sacks, and others. The highest growth was observed in the bags & pouches segment in 2022 driven by extensive product application across textile and personal care sectors. Increasing taxes on plastic and reducing demand for one-time-use packaging solutions could drive segmental growth. Ireland has already witnessed a dip in plastic bag usage by 90.1%.

Based on weight, the machine glazed kraft paper industry is segmented into above 30 GSM and 18 to 30 GSM. The market growth was led by the 30 grams per square meter (GSM) segment due to the product's higher durability offered by greater strength. They are ideal for packaging solutions that aim to provide safety and security from physical harm. Growing innovation in managing cracking problems in MG kraft paper could work in favor of segmental growth.

Based on end-user, the global market segments are electrical & electronics, food & beverage, automotive, healthcare, building & construction, textile, personal care & cosmetics, and household. The industry was dominated by the food & beverages segment in 2022 which is projected to grow at a CAGR of 5.65% during the forecast period. The growing population, increasing product verticals, rise in disposable income, and higher penetration in emerging economies is likely to contribute to segmental growth by 2030.

Machine Glazed Kraft Paper Market: Report Scope

Machine Glazed Kraft Paper Market: Regional Analysis

Asia-Pacific to witness the highest growth during the forecast period

The global machine glazed kraft paper market is expected to be led by Asia-Pacific during the forecast period due to the growth in the regional paper industry, especially in China. The country has witnessed exceptional growth in the paper-making industry and is expected to dominate over 43.15% of the regional market share by 2030. Factors including the growing consumption of machine glazed kraft paper in the packaging sector, fueled by a robust e-commerce industry and an excellent manufacturing line could contribute to China’s growth. Moreover, regions such as India, South Korea, and Japan are likely to encounter higher results driven by the food & beverages industry.

North America may be the second-highest region in terms of revenue with the US controlling 80.1% of the regional revenue. Rising strategic partnerships such as the acquisition of Verso by BillerudKorsnas in December 2021 could be beneficial to the regional market. The US and Canada region have strict environment regulating laws that do not promote the use of single-use packaging solutions leading to more companies investing in seeking eco-friendly packaging options such as machine glazed kraft paper.

Machine Glazed Kraft Paper Market: Competitive Analysis

The global machine glazed kraft paper market is led by players like:

• BillerudKorsnäs
• Mondi Group
• WestRock Company
• Smurfit Kappa Group
• Verso Corporation
• Stora Enso
• SCG Packaging Public Company Limited
• Sappi Limited
• Thai Containers Group Co. Ltd.
• DS Smith Plc
• KAPSTONE Paper and Packaging Corporation
• Nippon Paper Industries Co. Ltd.
• Klabin S.A.
• Oji Holdings Corporation
• Nine Dragons Paper Holdings Limited
• International Paper Company
• Rengo Co. Ltd.
• Metsä Board Corporation
• UPM-Kymmene Corporation
• Holmen AB
• Ilim Group
• Segezha Group
• Emami Paper Mills Ltd.
• Heinzel Group
• Glatfelter Corporation.

The global machine glazed kraft paper market is segmented as follows:

By Application

• Wraps
• Bags & Pouches
• Envelopes
• Labels & Release Liners
• Sacks
• Others

By Weight

• Above 30 GSM
• 18 to 30 GSM

By End-User

• Electrical & Electronics
• Food & Beverage
• Automotive
• Healthcare
• Building & Construction
• Textile
• Personal Care & Cosmetics
• Household

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa