The global kraft paper bag market was valued at USD 4.50 billion in 2024 and is projected to reach USD 5.89 billion by 2030, growing at a CAGR of 4.6% from 2025 to 2030. The market's growth is driven by rising consumer awareness around sustainability and a growing preference for eco-friendly packaging solutions.
Kraft paper bags, known for their natural, unbleached look and minimalist design, are increasingly favored over synthetic alternatives. Their environmental appeal helps brands enhance sustainability credentials, attract eco-conscious consumers, and gain a competitive edge. The food and beverage sector is a major driver, using kraft paper bags for dry food, takeaway, and bakery packaging. Their strength, moisture resistance, and excellent printability make them ideal for both function and branding.
The shift toward sustainable packaging in the food industry continues to fuel demand, supported by consumer trends favoring health, convenience, and environmental responsibility.
Key Market Insights:
- Regional Outlook: Asia Pacific led the global market with a 45.07% revenue share in 2024, driven by the boom in e-commerce and sustainable packaging demand in countries like China and India.
- By Paper Type: Brown kraft paper dominated with over 66.4% revenue share in 2024, valued for its strength, versatility, and reduced environmental impact compared to plastic.
- By Product: Pasted valve bags accounted for the largest share at 24.5% in 2024, designed with a top valve for easy sealing after filling.
- By Thickness: The 1 Ply segment led with over 47.5% share in 2024, offering a cost-effective, sustainable solution for businesses focused on reducing packaging expenses.
- By End Use: Food service was the largest end-use segment, holding 26.5% market share in 2024, as restaurants and takeout providers increasingly opt for kraft paper bags to meet demand for sustainable packaging.
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Market Size & Forecast
- 2024 Market Size: USD 4.50 Billion
- 2030 Projected Market Size: USD 5.89 Billion
- CAGR (2025-2030): 4.6%
- Asia Pacific: Largest market in 2024
Key Companies & Market Share Insights
The global kraft paper bag market is characterized by strong competition among key players such as Mondi Group, International Paper Company, and WestRock Company. These industry leaders leverage extensive product portfolios and advanced technologies, competing on innovation, sustainability, and cost efficiency. A key focus is the development of eco-friendly packaging to meet growing consumer demand for sustainable solutions.
To strengthen their market position, major players are also expanding production capacities and undertaking strategic growth initiatives. For instance, in February 2024, Mondi Group announced an expansion of its EcoWicketBag production—made from durable kraft paper—to meet rising demand in the home and personal care (HPC) sector. These bags are particularly suited for products like diapers and feminine hygiene items that require strong and sustainable packaging.
Key Players
- Mondi Group
- Smurfit Kappa Group
- WestRock Company
- Georgia-Pacific LLC
- International Paper Company
- Seaman Paper Company
- BillerudKorsnäs
- SHAMROCK
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Conclusion
Based on the analysis of the kraft paper bag market, the industry is experiencing significant growth driven by increasing consumer preference for sustainable and environmentally friendly packaging. Key factors contributing to this trend include the expansion of online retail and a growing focus on reducing the environmental impact of the food and beverage sector. The market is led by the Asia Pacific region, with brown kraft paper and specific product segments showing strong performance. Major companies are prioritizing innovation and sustainability to meet the rising demand for eco-conscious packaging solutions.
