The global kraft paper bag market is undergoing a decisive transformation as sustainability shifts from a value-added feature to a regulatory and commercial necessity. Valued at USD 4.81 billion in 2025, the market is projected to reach USD 7.25 billion by 2034, expanding at a compound annual growth rate (CAGR) of 4.65% over the forecast period.
This growth is fundamentally driven by the accelerating replacement of single-use plastic packaging with eco-friendly, biodegradable, and recyclable alternatives. Kraft paper bags have emerged as one of the most viable substitutes due to their strength, cost-effectiveness, printability, and compatibility with circular economy principles.
Industries such as food service, retail, e-commerce, pharmaceuticals, construction, and agriculture are increasingly adopting kraft paper bags to align with environmental regulations and consumer expectations. The growing emphasis on sustainable branding and responsible sourcing further reinforces demand.
From a regional standpoint, Asia Pacific dominated the global market in 2024, supported by booming e-commerce activity, rapid urbanization, and favorable government policies. Meanwhile, North America is expected to witness the fastest growth during the forecast period, driven by strict plastic bans and sustainability mandates.
Technological innovation is also shaping the competitive landscape. Manufacturers are integrating artificial intelligence, automation, and advanced barrier coatings to improve production efficiency, reduce waste, and enhance product performance. These developments position kraft paper bags not merely as packaging products but as strategic enablers of sustainable supply chains.
Market Segments
By Paper Type
Brown Kraft Paper Segment Dominated in 2024
Brown kraft paper accounted for the largest market share in 2024 due to its high tensile strength, tear resistance, and cost-effectiveness. Manufactured from unbleached wood pulp, it requires fewer chemicals and aligns well with sustainability goals.
White Kraft Paper Segment to Grow Rapidly
White kraft paper is expected to witness the fastest growth between 2025 and 2034. Its clean, premium appearance and superior print quality make it ideal for luxury retail, fashion, and high-end food packaging.
By Product Type
Pasted Valve Segment Led the Market
The pasted valve segment dominated the market in 2024. These bags are widely used in construction, agriculture, chemicals, and food industries due to their strength, self-sealing capability, and compatibility with automated filling systems.
By Thickness
1 Ply Segment Held the Largest Share
The 1 ply segment led the market due to its cost efficiency, flexibility, and suitability for lightweight applications such as grocery bags, bakery packaging, and retail carry bags.
By End Use
Food Service Segment Maintained Leadership
The food service segment dominated the market in 2024, supported by rising demand for sustainable takeaway packaging, branding opportunities, and regulatory pressure against plastic usage.
Kraft Paper Bag Market Size Forecast Table
| Year | Market Size USD Billion |
|---|---|
| 2025 | 4.81 |
| 2027 | 5.39 |
| 2030 | 6.29 |
| 2034 | 7.25 |
Top Companies Operating in the Kraft Paper Bag Market
Mondi Group
About: Mondi Group is a global leader in sustainable packaging and paper solutions with operations across Europe, North America, and Asia.
Products: Kraft paper bags, EcoWicketBags, industrial paper packaging, flexible paper solutions.
Market Capitalization: Publicly listed; market capitalization not specified in provided data.
Smurfit Kappa Group
About: Smurfit Kappa is one of the world’s largest paper-based packaging manufacturers, known for its integrated supply chain.
Products: Kraft paper bags, corrugated packaging, paperboard solutions.
Market Capitalization: Publicly listed; market capitalization not specified in provided data.
WestRock Company
About: WestRock focuses on fiber-based packaging solutions with strong presence in North America.
Products: Kraft paper bags, paperboard, containerboard packaging.
Market Capitalization: Publicly listed; market capitalization not specified in provided data.
Frequently Asked Questions
What is driving the growth of the kraft paper bag market
The market is driven by rising demand for sustainable packaging, growth of e-commerce, and government regulations restricting plastic usage.
Which region dominates the kraft paper bag market
Asia Pacific dominated the market in 2024 due to rapid e-commerce expansion and supportive sustainability policies.
Why is brown kraft paper more widely used than white kraft paper
Brown kraft paper is cost-effective, stronger, and requires less chemical processing, making it suitable for bulk and heavy-duty applications.
How is AI influencing the kraft paper bag industry
AI improves production efficiency, reduces waste, enhances quality control, and supports sustainable manufacturing practices.
Which end-use sector generates the highest demand for kraft paper bags
The food service sector leads demand due to takeaway growth, sustainability regulations, and branding requirements.
Source : https://www.towardspackaging.com/insights/kraft-paper-bag-market-sizing
