The meagre market share of 15.7% held by the leading three players in 2015 account for the striking fragmentation of the global sack kraft paper market, finds Transparency Market Research (TMR). The top three players are BillerudKorsnas AB, KapStone Paper and Packaging, and Mondi plc who are focusing on developing high-quality products for consumer and industrial markets to gain a stronghold in the market. The leading companies are likely to consolidate their product portfolio with a vast array of eco-friendly products, in order to meet the variety of needs of major end-use industries, observes TMR.
Prominent players are expanding their geographic reach, in a move to consolidate their shares. Driven by robust drive for innovations, a number of manufacturers of sack kraft papers in developing and developed regions are launching high-performance solutions to meet advanced functional requirements, in order to gain a competitive edge over others. They are relentlessly investing in research activities related to production processes.
The various end-use industries for the uptake of sack kraft paper are chemicals, cement and building materials, pet food, food, and animal feed. Of these, the cement and building materials segment is expected to witness widespread use of sack kraft paper for packaging cement and other building materials. The growth of the segment is fueled by the extensively rising demand for eco-friendly building materials in a number of developing and developed nations.
The global sack kraft paper market is driven primarily by the rising need for environment-friendly, bio-degradable, and cost-effective packaging materials in a number of end-use industries, including cement and building industry, chemicals, animal feed, and food. Several factors account for the attractiveness of this type of packaging materials. The use of kraft paper sacks lends porosity, striking extensibility, excellent stiffness, and remarkable runability. In addition, the packaging materials when used for food products enables retaining the originality and appearance.
The looming worldwide environmental concerns of plastic packaging has robustly stimulated the demand for sack kraft paper as eco-friendly packaging. Sack kraft paper is characterized by striking recyclability and help end user meet specific packaging needs.
The markedly rising demand for packaging made of sack craft paper for packing pet food is boosting the market. The sustained demand for packaged pet food in various parts of the world is contributing to the demand.