Will it continue to lead the market with the presence of Major Pharmaceutical Companies?
The industrial paper sacks market is anticipated to record a CAGR of 4.2% during the forecast period. The market is expected to hold a share of US$ 3.6 billion in 2023, while it is anticipated to cross a value of US$ 5.4 billion by 2033.
The research report on the industrial paper sacks market reveals that the expanding market’s attributes come from rising environmental concerns, soil-friendly products, plastic bans, and bio-degradable solutions. Governments across the regions are pushing the agenda of paper packaging as a sustainable goal. The increased consciousness of end users around climate and soil health also contributes to market growth.
The advanced greener alternatives to plastic in the form of multiwall paper sacks are helping make packaging solutions more sustainable and eco-friendly. Vendors are introducing new heavy-duty paper and brown paper sacks and are extending their packaging applications. Therefore enterprises using paper sack packaging benefit from creative printing and paper engineering innovations. The market for industrial paper sacks is growing due to industrial development and the global expansion of food and beverage outlets. For instance, companies investing in Asia Pacific and building their stores promote sustainable packaging through paper sack bags.
The industrial paper sacks market outlook states that the increasing social media influence over people around environmental concerns and solutions is pushing them to limit plastic use. There are different alternatives to plastic, and paper is one of the solutions that is widely accepted and produced accordingly. New, strong multiwall paper sack bags can carry heavy products, while insulated paper bags also keep a balanced temperature inside. It caters to different types of industries with different properties. Multiwall paper bag manufacturers try to make the bag as strong as possible.
How is the Industrial Paper Sacks Market Increase as End-User’s Demand for Sustainable Industrial Packaging Solutions Rises?
By providing safe, environmentally friendly, and practical packaging solutions, package producers are concentrating on addressing the needs of the expanding cities. Packaging makers are adding highly sustainable materials in packaging with an eye toward the circular systems of the cities of the future. Switching over to paper-based industrial packaging is increasing the recycling rate in many countries. Most end-users are adopting paper-based sacks over plastic ones as they reduce plastic waste. Industrial paper sacks are environment-friendly and can be 100% recycled. Industrial paper sacks are widely used in the building & construction industry, mainly for cement, as it improves working conditions.
Kraft paper sacks have a comparatively higher porosity of 30% which results in almost three times higher filling speed than plastic sacks which are not porous. This enhanced filling speed helps in increasing the productivity of several end-use industry manufacturers. Adding to this, the stringent government regulations on the usage of plastic sacks are another factor driving the growth of the industrial paper sacks market.
Country-wise Insights
How does China lead the Industrial Paper Sacks Market in terms of CAGR and Market Share?
As per FMI’s analysis, the industrial paper sacks market in China is expected to record a significant CAGR of 6.9% between 2023 and 2033. The market is anticipated to cross a value of US$ 1.4 billion by 2033. The growing awareness among the citizens and government authorities is garnering market growth.
The high amount of paper production coupled with strong paper bag-making techniques are spurring regional growth. Several brands in China, like Jinhai Pulp Mill, lead in the production of paper. There is a slightly high demand for heavy-duty paper sacks for food and pharmaceutical applications. Through these factors, the market in China is likely to hold an absolute dollar growth of US$ 682.6 million between 2023 and 2033.
What makes Europe a Significant Industrial Paper Sacks Market?
In the Western Europe region, Germany is a significant market for industrial paper sacks, as it held a market share of around 28% in 2022. As per the Germany Trade and Invest (GTAI), Germany is the leading market for the construction industry in the European region. The construction industry grew in the country by 5.6% year-over-year in 2021 and reached EUR 485 billion. The significant growth of the construction industry in Germany is expected to augment the demand for industrial paper sacks for building & construction end-use.
Why is India Considered as One of the Most Lucrative Markets for Industrial Paper Sacks?
FMI estimates that India is globally the third-key market for industrial paper sacks after the United States and China, as it held a market share of 12% across the globe in 2022. According to Invest India, a National Investment and Facilitation Agency, India is the second-significant global producer of fruits and vegetables and the prime producer of cashew, spices, jute, and pulses.
The vast agriculture industry, coupled with the rapidly growing infrastructure of India, is anticipated to drive the market growth of industrial paper sacks in the country. Local brands produce multiwall paper sacks, brown paper sacks, and heavy-duty paper sacks.
Competition Scenario
· In November 2021, Segezha Packaging LLC of Segezha Group in Karelia, Moscow, installed two new production lines for paper sacks and invested RUB 2 billion.
· In February 2020, Smurfit Kappa announced an investment of US$ 36 million for the expansion of its paper sack business in the Americas.