Wrapping Paper Market Size

The global Wrapping Paper Market size was valued at USD 4,350.0 million in 2023 and is projected to grow from USD 4,492.2 million in 2024 to USD 5,811.2 million by 2031, exhibiting a CAGR of 3.75% during the forecast period. Rising consumer preferences for visually appealing and decorative packaging significantly drive the growth of the market.

This trend is particularly pronounced during festive seasons and special occasions, where the aesthetic value of wrapping paper is crucial in gift-giving practices. Consumers seek unique and attractive designs that complement the occasion and elevate the overall experience, fueling demand for diverse and high-quality wrapping paper options.

In the scope of work, the report includes products offered by companies such as Mondi, Oji Holdings Corporation, NIPPON PAPER INDUSTRIES CO. LTD., DS Smith, International Paper, Japan Pulp & Paper Co. Ltd., Armor Protective Packaging, HighPoint Packaging, Twin Rivers Paper Company, Madico Inc., and others.

The trend favoring personalized and customized products extends to wrapping papers as well. Consumers increasingly seek wrapping paper that reflects their personal style or the recipient’s interests, which is driving the demand for personalized solutions. Additionally, companies are using marketing and branding strategies to differentiate their wrapping paper products. Creative and eye-catching designs are being used to attract consumers and boost sales.

Wrapping paper is a decorative material used to cover gifts and packages, enhancing their visual appeal and presentation. Typically made from paper or other lightweight materials, wrapping papers are available in a variety of colors, patterns, and textures, catering to different occasions such as birthdays, holidays, and special events.

They are often sold in rolls or sheets and feature themes, festive designs, or personalized options and serve both functional and aesthetic purposes, protecting the gift while also creating anticipation for the recipient. With growing sustainability trends, eco-friendly options like recyclable and biodegradable wrapping paper are becoming increasingly popular.

Analyst’s Review

The increasing focus on eco-friendly packaging solutions signifies a broader shift of both consumers and businesses towards sustainability. The rising demand for recyclable, biodegradable, and sustainably sourced wrapping paper is prompting companies to innovate and integrate these eco-friendly practices into their product offerings.

For instance, in January 2024, Releaf Paper launched threeproducts crafted from fallen leaves and recycled fibers, including a self-assembled box and wrapping paper. These products are designed to blend functionality, sustainability, and visual appeal. Featuring a kraft colorway, they provide an organic and elegant aesthetic while aiming to enhance the recyclability and biodegradability of items for small and medium businesses.

Manufacturers are investing in research and development to produce advanced, eco-friendly wrapping materials, such as recycled fibers and biodegradable components. To strengthen their market position, companies are also pursuing certifications and eco-labels to reflect their commitment to sustainability. This focus on environmental stewardship aligns with evolving consumer preferences and fuels market expansion, creating a competitive landscape where innovation and sustainability are key factors for success.

Wrapping Paper Market Growth Factors

The rapid expansion of e-commerce is a major factor propelling the growth of the wrapping paper market. Online shopping has integrated attractive and functional packaging solutions. E-commerce platforms use wrapping papers to enhances the unboxing experience for customers.

The demand for visually appealing and personalized packaging solutions is gaining traction as businesses aim to make a positive impression on their customers. This shift fuels the market for innovative and decorative wrapping paper to meet the evolving needs of the online retail sector.

According to the International Trade Administration, global B2C e-commerce revenue is projected to increase from USD 3.6 trillion in 2023 to USD 5.5 trillion by 2027, reflecting a steady CAGR of 14.4%.

Additionally, the expansion of retail outlets, including specialty stores and supermarkets, contributes significantly to the growth of the market. Retailers are focusing on providing a variety of wrapping paper designs to cater to different tastes and occasions. This boosts consumer interest and purchasing decisions, supporting the overall market growth. Retail expansion helps meet the growing demand for decorative and functional wrapping solutions.

However, increased competition from alternative packaging solutions, such as reusable wraps and digital gift cards, is significantly restraining the growth of the wrapping paper market. These practical and eco-friendly alternatives can reduce the demand for traditional wrapping paper.

To address this challenge, companies are investing in the development of innovative and versatile wrapping paper designs that offer unique features or added value to compete with alternatives. Additionally, companies are enhancing their sustainability efforts by using recycled and biodegradable materials to align with environmental trends and appeal to eco-conscious consumers.

Wrapping Paper Market Trends

Technological advancements in printing and packaging impacts growth in the market by enabling the production of a wide range of eco-friendly products and offers customizations. Innovations such as digital printing and advanced design techniques allow manufacturers to create high-quality, intricate patterns and personalized products.

These technological improvements enhance the aesthetic appeal and functionality of wrapping papers, making it more versatile and attractive. Additionally, economic growth and rising disposable incomes in emerging economies fuel the expansion of the wrapping paper market. Increased financial stability encourages individuals to spend on non-essential items, including premium wrapping papers.

In December 2023, Mondi launched its Advantage StretchWrap, a paper-based wrapping solution designed to replace plastic stretch film. This innovation, adopted by European paper bag manufacturer Sentrex, enhances logistics efficiency while offering significant environmental benefits. Advantage StretchWrap produces 62% lower greenhouse gas (GHG) emissions compared to virgin plastic stretch film and 49% lower emissions compared to plastic film containing 50% recycled content.

Furthermore, cultural and regional celebrations play a crucial role in seasonal demand spikes in the market. Different regions and cultures have unique traditions and holidays that necessitate the use of wrapping paper for gift-giving purposes.

These celebrations create periodic surges in demand as consumers seek wrapping paper that reflects the spirit of an occasion. The diversity of cultural practices and emphasis on gift giving during these events contribute to increased market activity.

Segmentation Analysis

The global market has been segmented based on type, application, distribution channel, and geography.

By Type

Based on type, the market has been segmented into Kraft paper and specialty paper. The Kraft paper segment led the wrapping paper market in 2023, accounting for USD 2,471.2 million due to its strong demand driven by sustainability trends and versatile applications.

Kraft paper is highly sought after for its eco-friendly properties, being recyclable and biodegradable, which aligns with the growing consumer and business preference for sustainable packaging solutions. Its strength and durability make it ideal for wrapping various types of products, including fragile items, where it provides both protection and aesthetic value.

Additionally, the affordability of Kraft paper, compared to more decorative options, makes it a popular choice for manufacturers and retailers looking to balance cost with environmental responsibility.

By Application

Based on application, the wrapping paper market has been classified into gift wrapping, packaging, industrial uses, and others. The gift wrapping segment secured the largest revenue share of 44.32% in 2023. This is attributed to the increasing cultural significance of gift-giving in various occasions, including birthdays, weddings, and festivals.

Consumers highly value the presentation of gifts, often associating well-wrapped presents with thoughtfulness and care, which boosts demand for aesthetically appealing wrapping paper. Retailers and e-commerce platforms also emphasize attractive packaging to enhance customer experience, further boosting the market share of gift-wrapping applications within the market.

By Distribution Channel

Based on distribution channel, the market has been divided into wholesalers/distributors, departmental stores, specialty stores, and online retailers. The online retailers segment is poised for significant growth at a robust CAGR of 5.10% over the forecast period. Online platforms offer a vast selection of wrapping paper styles, colors, and designs, enabling customers to easily browse and purchase without geographical limitations.

Additionally, online retailers frequently provide customization options, such as personalized wrapping paper, which attracts a broader customer base. Fast delivery services and competitive pricing further enhance their appeal, making online retailers a dominant force in the market.

Wrapping Paper Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

Wrapping Paper Market Size & Share, By Region, 2024-2031

North America wrapping paper market share stood at around 36.62% in 2023 in the global market, with a valuation of USD 1,593.0 million. The region's strong consumer culture, characterized by frequent gift-giving during holidays like Christmas, Thanksgiving, and Valentine’s Day, creates consistent demand for wrapping paper. Additionally, increasing disposable incomes across the region allow consumers to purchase premium and customized wrapping solutions.

Moreover, with growing environmental awareness, many companies in North America are adopting green packaging solutions, aligning with consumer preferences for eco-friendly products. This shift is increasing the demand for biodegradable, recyclable, and sustainably sourced wrapping paper. These efforts also align with regulations and policies that encourage sustainable packaging solutions.

The Sustainable Packaging Coalition (SPC) Impact 2024 conference addressed a comprehensive range of sustainable packaging topics, including carbon management in packaging, reuse initiatives, recyclability, and the incorporation of recycled content. As of April 2024, four U.S. states have enacted Extended Producer Responsibility (EPR) laws for packaging and have made significant progress toward implementation, with several additional states actively working toward passing similar legislation.

Asia Pacific is also expected to witness growth at a CAGR of 4.24% over the forecast period. The proliferation of supermarkets, department stores, and specialty shops across Asia Pacific is making wrapping papers more accessible to consumers. The expansion of organized retail networks ensures that wrapping paper is available for both everyday use and special occasions, fueling its consumption.

Additionally, rising disposable incomes across Asia Pacific, particularly in rapidly growing economies such as China, India, and Southeast Asia, are significantly driving the demand for premium and decorative wrapping paper. This trend is especially prominent during festive seasons and cultural celebrations, where gifting plays a central role in social and traditional customs.

Thereby, the demand for aesthetically appealing and customized wrapping paper is on the rise, creating growth opportunities for manufacturers and retailers in the region.

According to the U.S. Energy Information Administration report released in October 2023, disposable income per capita in Asia Pacific was USD 8,187 in 2022 and is expected to grow steadily. It is projected to reach USD 9,311 by 2025 and USD 13,625 by 2035, with an annual growth rate of 3.3%.

Competitive Landscape

The global Wrapping Paper market report provides valuable insights with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers and acquisitions, product innovations, and joint ventures, to expand their product portfolio and increase their market shares across different regions.

Strategic initiatives, including investments in R&D activities, establishment of new manufacturing facilities, and supply chain optimization, could create new opportunities for the market growth.

List of Key Companies in Wrapping Paper Market

Mondi
Oji Holdings Corporation
NIPPON PAPER INDUSTRIES CO.
DS Smith
International Paper
Japan Pulp and Paper Co.
Armor Protective Packaging
HighPoint Packaging
Twin Rivers Paper Company
Madico Inc.

Key Industry Developments

May 2024 (Product Launch): Mondi introduced a new secondary paper packaging solution, TrayWrap, designed to wrap bundles of food and beverages, replacing the plastic shrink film traditionally used in the industry. TrayWrap, made from Mondi's Advantage StretchWrap, is utilized by a coffee brand to secure 12 coffee packages for transportation, offering an eco-friendly alternative to plastic..
June 2024 (Investment): Oji Holdings Corporation announced a new investment via a third-party allotment of new shares to Deluxe Technology Group Co., Ltd, a leading manufacturer of high-end molded pulp packaging equipment and products, based in Taiwan. Oji Group plans to utilize Deluxe’s advanced manufacturing technology to create premium quality, sustainable packaging solutions for various applications, serving as an eco-friendly alternative to plastic molded products.

The global Wrapping Paper market has been segmented:

By Type

Kraft Paper
Specialty Paper

By Application

Gift Wrapping
Packaging
Industrial Uses
Others

By Distribution Channel

Wholesalers/Distributors
Departmental Stores
Specialty Stores
Online Retailers

By Region

North America
- U.S.
- Canada
- Mexico
Europe
- France
- U.K.
- Spain
- Germany
- Italy
- Russia
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
Middle East & Africa
- GCC
- North Africa
- South Africa
- Rest of Middle East & Africa
Latin America
- Brazil
- Argentina
- Rest of Latin America