Kraftliner market size will witness substantial growth during the period 2021 to 2027 driven by the growing application scope in packaging across the food & beverages, construction and electrical & electronics sectors. The expansion of the e-commerce industry and increasing instances of online shopping have amplified the adoption of corrugated boxes, containers, and sheets. Kraftliners are typically papers that are made of bleached or unbleached Kraft pulp, which has a particularly high fraction of long fibers.
Shifting inclination towards eco-friendly as well as low-cost products will also infuse a positive scenario for the market outlook.
Demand for Kraftliners in heavy-duty packaging applications is likely to capture a substantial revenue share owing to increasing penetration in pallet-free transportation of goods for the production of slip sheets. Kraft liners particularly GSM 160 are widely used for heavy-duty packaging applications. There is also growing usage of Kraftliner boxes in the packing and transportation of fruits and vegetables, among various other delicate agricultural produce and frozen foodstuffs. Rising utility in the palletizing and packaging of industrial goods and bulk products, valuable heavy industrial equipment, knock-down kits, furniture, and electronics will add positive impetus to the industry progression.
Based on products, the GSM 80 to 160-grade Kraftliners market will gain traction on account of rising adoption for producing corrugated boxes for packing consumer goods, and medical tools. These Kraftliners find uses in transportation as they can carry heavy weights up to an extent considering their durable and lightweight properties. Increasing acceptance as a packaging material in food and beverages will act as a significant contributor to the market growth.
Kraftliners market size in the Asia Pacific is expected to attain remarkable traction through 2027 owing to the availability of a vast number of manufacturing companies in the region. This has led to significant strides in the consumer electronics, food & beverages, and personal care sectors. The spiraling rate of per capita intake of paper-based products, in China, and India, is another promising growth prospect for the regional market.
On the other hand, the North America kraftliners industry will grow at a robust pace driven by the growing inclination towards corrugated packaging in the region. The significant expansion of paper and pulp sector has paved the path for stringent regulations by various governing bodies. The strong presence of numerous market participants will also favor the regional product demand.
The Kraftliner market is highly competitive and comprises the presence of Georgia-Pacific LLC (Koch Industries), Smurfit Kappa Group (Kappa Packaging), DS Smith Plc, KapStone Paper (WestRock), Mondi Group Plc, Astron Paper & Board Mill, Eagle Paper International Inc, Roxcel Trading GmbH, WestRock Company, Nine Dragons Paper Holdings Ltd. (Best Result Holdings Limited), Universal Pulp & Paper, International Paper, Thai Paper Mill, Hazel Mercantile Limited, and Grupo Europac.
These firms are actively working on capacity expansions, and investments along with inorganic marketing strategies, like acquisitions, partnerships, and mergers to reinforce their geographical presence and sustain the escalating competition.
For instance, in March 2020, Klabin, a leading paper exporter, signed a contract with International Paper for purchasing the kraftliner paper mill located in Nova Campina, São Paolo together with six other production facilities.
In another instance, in June 2020, Smurfit Kappa commenced operations of its new recovery boiler situated at Nettingsdorf Kraftliner mill in Austria as part of its €134m investment plan in the Future Energy Plant project in a bid to improve sustainability.
In response to the COVID-19 outbreak, the kraftliner industry saw crumbling growth on account of a significant surge in the prices of corrugated box prices. Though the demand for the boxes steadily jetted during the pandemic, manufacturers are facing the heat of raw material shortages and disrupted supply chains. The massive decline in the costs of Kraft paper during the second wave of the crisis has also pulled down the production of the kraftliners to a considerable extent.