Kraft Liner Market

Market Definition

The market encompasses the global industry engaged in the manufacturing, distribution, and commercialization of kraft liner, a high-strength paperboard produced predominantly from virgin wood pulp through the kraft pulping process.

The market is integral to a wide range of end-use sectors, including food & beverage, consumer electronics, e-commerce, and industrial goods. The report delves into the critical drivers fueling the market, while offering a detailed regional analysis and an overview of the competitive landscape shaping future opportunities.

Kraft Liner Market Overview

The global kraft liner market size was valued at USD 21.09 billion in 2023 and is projected to grow from USD 22.09 billion in 2024 to USD 32.17 billion by 2031, exhibiting a CAGR of 5.52% during the forecast period.

This growth is attributed to the rising demand for sustainable and recyclable packaging materials across key end-use industries such as food & beverage, e-commerce, consumer electronics, and industrial goods.

The increasing prevalence of online retail and the associated need for robust, eco-friendly packaging solutions have significantly contributed to the market expansion.

Major companies operating in the kraft liner industry are Golden Paper Company Limited, Thai Paper Mill Co.,Ltd, Smurfit Kappa, Mondi, Astron Paper & Board Mill Limited, Packaging Corporation of America, DS Smith, International Pape, Nine Dragons Paper (Holdings) Limited, Klabin S.A, Eagle Paper International, Billerud AB, GPP Theme v2, Venkraft Paper Mills Pvt. Ltd., and ROXCEL Trading GmbH.

Furthermore, technological advancements in kraft liner production, coupled with global initiatives to reduce plastic consumption, are reinforcing market growth. The market in North America is anticipated to register the highest growth, driven by rapid industrialization, urban development, and the strong presence of manufacturing & export-oriented economies.

• In March 2023, Svenska Cellulosa Aktiebolaget SCA commissioned the world’s largest kraftliner machine at its Obbola facility in Sweden, boosting annual capacity from 450,000 to 725,000 tonnes. The SEK 7.5 billion project was completed ahead of schedule and includes a biofuel-fired lime kiln to cut CO₂ emissions by 20,000 tonnes annually.

Key Highlights

1. The kraft liner industry size was valued at USD 21.09 billion in 2023.
2. The market is projected to grow at a CAGR of 5.52% from 2024 to 2031.
3. North America held a market share of 40.50% in 2023, with a valuation of USD 8.54 billion.
4. The virgin kraft liner segment garnered USD 12.30 billion in revenue in 2023.
5. The 150-200 GSM segment is expected to reach USD 12.72 billion by 2031.
6. The food & beverages segment is anticipated to register the fastest CAGR of 6.56% during the forecast period.
7. The market in Europe is anticipated to grow at a CAGR of 5.84% during the forecast period.

Market Driver

"Growth of the E-commerce Sector"

The kraft liner market is growing rapidly, due to the rising demand for sustainable and environmentally responsible packaging solutions, largely driven by the continued expansion of the e-commerce sector.

The need for high-performance packaging materials that ensure product protection and integrity during transportation grows as online retail experiences sustained growth.

Kraft liner, a fundamental component in the production of corrugated boxes, is favored for its superior strength, printability, and recyclability, making it an ideal choice for e-commerce packaging applications.

Furthermore, heightened consumer awareness regarding environmental sustainability, coupled with the implementation of stringent regulatory frameworks aimed at reducing plastic usage, is accelerating the shift toward kraft-based alternatives.

Market Challenge

"Fluctuations in Raw Material Prices"

Volatility in raw material prices remains a significant challenge for the kraft liner market, as production relies heavily on virgin wood pulp and, to a lesser extent, recycled fibers.

These inputs are subject to price fluctuations driven by global supply-demand dynamics, seasonal availability, environmental regulations, and geopolitical factors. Disruptions such as forest fires, regulatory restrictions on logging, and rising competition from other pulp-dependent industries further strain supply chains.

Additionally, increasing energy and transportation costs intensify the impact of raw material price changes, especially for manufacturers dependent on imported pulp. These fluctuations can lead to higher production costs, reduced profit margins, and pricing instability, particularly in cost-sensitive markets.

Manufacturers of kraft liner are adopting several key strategies. These include diversifying supply sources to reduce dependency on specific regions and securing long-term contracts to stabilize input costs. Vertical integration, such as investing in in-house pulp production, provides better control over supply and pricing.

Additionally, increasing the use of recycled fibers helps lower the reliance on virgin pulp and supports sustainability. Enhancing operational efficiency through process optimization and waste reduction further offsets rising material costs.

Market Trend

"Evolving Manufacturing Technologies"

Technological advancements are significantly enhancing kraft liner production by improving product quality, efficiency, and sustainability. Innovations in pulping and papermaking processes have led to stronger, more moisture-resistant kraft liner with better printability.

The introduction of recyclable protective coatings and barrier technologies is expanding its use in food and pharmaceutical packaging. Additionally, advancements in fiber processing and blending allow for greater incorporation of recycled materials without compromising product quality, supporting both environmental goals and cost-effectiveness.

Kraft Liner Market Report Snapshot

Segmentation	Details
By Grade	Virgin Kraft Liner, Recycled Kraft Liner
By Basis Weight (GSM)	Below 150 GSM, 150-200 GSM, Above 200 GSM
By End-use Industry	Food & Beverages, Consumer Goods, E-commerce & Retail, Industrial Packaging, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Grade (Virgin Kraft Liner, Recycled Kraft Liner): The virgin kraft liner segment earned USD 12.30 billion in 2023, due to its superior strength, durability, and widespread use in high-performance packaging applications.
• By Basis Weight (GSM) (Below 150 GSM, 150-200 GSM, Above 200 GSM): The above 200 GSM segment held 38.79% share of the market in 2023, due to its high load-bearing capacity and preference for heavy-duty and industrial packaging applications.
• By End-use Industry (Food & Beverages, Consumer Goods, E-commerce & Retail, Industrial Packaging, Others): The food & beverages segment is projected to reach USD 10.82 billion by 2031, owing to the rising demand for sustainable and durable packaging solutions to ensure product safety and compliance with food-grade standards.

Kraft Liner Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America kraft liner market share stood around 40.50% in 2023, with a valuation of USD 8.54 billion. This dominance is attributed to the region’s advanced packaging infrastructure, high consumption of corrugated products, and the strong presence of major players in the e-commerce and retail sectors.

Furthermore, ongoing investments in sustainable packaging technologies, coupled with rising demand from industries such as food & beverage, pharmaceuticals, and consumer goods, continue to support the market growth.

Favorable regulatory policies and a growing consumer preference for recyclable and environmentally responsible materials further strengthen North America’s leadership in the global market.

• In August 2023, Billerud announced the introduction of its coated white top kraftliner portfolio to the U.S. market, aiming to enhance sustainability and cost efficiency for packaging converters and brand owners.

The kraft liner industry in Europe is poised for significant growth at a robust CAGR of 5.84% over the forecast period. This growth is propelled by the increasing demand for sustainable and recyclable packaging solutions, driven by stringent environmental regulations and rising consumer awareness.

The region's strong focus on circular economy initiatives and reduction of plastic usage has led to a shift toward fiber-based alternatives like kraft liner. Moreover, the expansion of the e-commerce sector, along with growth in industries such as food & beverage, cosmetics, and pharmaceuticals, is contributing to the higher consumption of corrugated packaging.

Investments in innovative manufacturing technologies and product development are also enhancing the quality and performance of kraft liner products across the European market.

Regulatory Frameworks

• In the European Union (EU), kraft liner is regulated under Regulation (EEC) No 2133/78, which mandates standardized methods for determining moisture content to ensure product consistency and compliance across member states.
• In Saudi Arabia, kraft liner is regulated under the Technical Regulation for Paper and Cardboard Products issued by SASO, which sets quality, safety, and labeling requirements to ensure compliance with national standards for paper-based packaging materials.
• The ISO 14001:2015 standard, developed by the International Organization for Standardization (ISO), provides a globally recognized framework for environmental management systems, guiding kraft liner manufacturers in minimizing environmental impact, complying with regulations, and continuously improving sustainability practices across their operations.

Competitive Landscape

The kraft liner industry is characterized by a moderately consolidated competitive landscape, with a mix of well-established multinational corporations and regional players.

Key market participants are focusing on strategies such as capacity expansion, product innovation, sustainable manufacturing practices, and strategic partnerships to strengthen their market presence.

Companies are also investing in advanced technologies to improve product quality, reduce environmental impact, and cater to the evolving needs of end-use industries. Furthermore, mergers and acquisitions are being pursued to enhance global reach and diversify product portfolios.

List of Key Companies in Kraft Liner Market:

• Golden Paper Company Limited
• Thai Paper Mill Co.,Ltd
• Smurfit Kappa
• Mondi
• Astron Paper & Board Mill Limited
• Packaging Corporation of America
• DS Smith
• International Paper
• Nine Dragons Paper (Holdings) Limited
• Klabin S.A
• Eagle Paper International
• Billerud AB
• GPP Theme v2
• Venkraft Paper Mills Pvt. Ltd.
• ROXCEL Trading GmbH

Recent Developments (M&A/Partnerships/Agreements/Product Launches)

• In July 2024, PG Paper Company announced a strategic partnership with Opal to launch its containerboard range in the UK, featuring a lighter-shade virgin Kraft Liner Board (KLB) with a bright, smooth surface for premium printing, alongside 100% recycled Fluting and Testliner grades.