PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1558293
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1558293
According to Stratistics MRC, the Global Kraft Block Bottom Pouch Market is accounted for $566.60 million in 2024 and is expected to reach $790.18 million by 2030 growing at a CAGR of 5.7% during the forecast period. A flexible and environmentally responsible packaging option that blends sustainability and usability is the Kraft Block Bottom Pouch. This sturdy kraft paper pouch is perfect for packaging a variety of goods, including food items like grains, coffee, and tea, as well as non-food items like pet food, bath salts, and more. Its block bottom design allows the pouch to stand upright on store shelves. The block-bottom structure maximizes storage capacity and improves stability of the pouch, making filling simple and product display ideal.
Growing interest in eco-friendly packaging
The packaging decisions made by various industries are being greatly impacted by the global shift towards sustainability. There is a growing demand for eco-friendly alternatives as a result of consumers' growing awareness of the negative environmental effects of packaging waste. Because these pouches support corporate sustainability goals, there is a particular demand from brands that highlight their green credentials. Moreover, these pouches are a preferred option in the ongoing shift to sustainable packaging because of the regulatory pressure to promote recyclable packaging and minimize the use of plastic.
Elevated production expenses
A major impediment to the Kraft Block Bottom Pouch Market is the comparatively elevated production expenses in contrast to customary plastic packaging. Producing kraft paper can be more costly, particularly when barrier coatings and other functional layers are applied. The procurement of superior raw materials, application of sophisticated manufacturing techniques, and attainment of the intended durability and barrier qualities can entail substantial expenses. Furthermore, the production and sealing of these pouches frequently call for specialized equipment, which raises the cost of manufacturing.
Advancements in environmentally friendly barrier coatings
Developing cutting-edge, environmentally friendly barrier coatings is one of the main opportunities in the Kraft Block Bottom Pouch Market. Kraft pouches have historically had limited environmental benefits because non-biodegradable materials have been used to achieve the barrier qualities needed for moisture, oxygen, and light protection. But new sustainable coatings that preserve the biodegradability of the pouch while providing improved protection are being developed owing to developments in green chemistry and material science. Moreover, the food and pharmaceutical industries, where high barrier performance is essential, may find new uses for Kraft block bottom pouches as a result of these advancements.
Fierce rivalry from substitute packing materials
A major challenge to the Kraft Block Bottom Pouch Market is the fierce rivalry from substitute packaging materials, especially glass, metal, and flexible plastics. Particularly flexible plastic packaging is still the industry leader because of its excellent barrier qualities, affordability, and adaptability. Plastic packaging is a strong rival due to its affordability, robustness, and broad consumer acceptance despite rising environmental concerns. Furthermore, rigid packaging solutions, such as glass jars and metal cans, are preferred in sectors like beverages and canned goods because they provide unparalleled protection for specific products.
On the Kraft Block Bottom Pouch Market, the COVID-19 pandemic had a conflicting effect. One way in which the market benefited from lockdowns was when the need for dependable and sustainable packaging solutions increased due to the increased demand for packaged food, beverages, and necessities. Nevertheless, the pandemic also caused disruptions in international supply chains, which made it difficult for manufacturers to produce goods because of shortages of raw materials and higher production costs. Moreover, some companies postponed investing in sustainable packaging in favor of less expensive alternatives due to changes in consumer spending habits and economic stability.
The Brown Kraft Paper segment is expected to be the largest during the forecast period
The Brown Kraft Paper segment has the largest market share. Its extensive use in a variety of industries, such as food, retail, and agriculture, where its organic and eco-friendly appeal is valued for its natural, rustic appearance, is the main cause of its dominance. Additionally, its versatility is further enhanced by its compatibility with a broad range of barrier coatings and printing techniques, making it the go-to option for brands that want to project both environmental responsibility and functionality.
The Up to 2 Oz segment is expected to have the highest CAGR during the forecast period
The Kraft Block Bottom Pouch Market's highest CAGR is anticipated in the Up to 2 Oz segment. The need for more compact, practical packaging options in industries like food and beverage, personal care, and pharmaceuticals is what's fueling this expansion. For single-serve goods, sample sizes, and travel-friendly items where portability and portion control are essential, small-sized pouches are especially popular. Furthermore, the functionality and attractiveness of these tiny pouches are also being improved by advancements in packaging materials and technology, which is propelling their market expansion.
The Kraft Block Bottom Pouch Market is dominated by the North American region. The region's robust consumer demand for eco-friendly packaging solutions, well-established retail and e-commerce sectors, and strong emphasis on sustainability are all credited for this dominance. Kraft block bottom pouches are becoming more widely used by North American businesses, especially those in the food and beverage, personal care, and pharmaceutical sectors, in order to comply with environmental regulations and meet consumer demands for sustainable products. Moreover, North America is a leading market for Kraft block bottom pouches due to the region's cutting-edge packaging infrastructure and creative marketing strategies.
In the Kraft Block Bottom Pouch Market, the Latin American region is growing at the highest CAGR. This growth is driven by growing consumer demand for convenient, environmentally friendly packaging options as well as growing consumer awareness of sustainability. The food, beverage, and personal care industries are among those where innovative packaging solutions and minimizing environmental impact are being prioritized as the region's economies grow and become more urbanized. Additionally, kraft block bottom pouches and other more environmentally friendly alternatives are becoming more popular as a result of regional governments' efforts to limit the use of plastic.
Key players in the market
Some of the key players in Kraft Block Bottom Pouch market include Sonoco Products Company, Amcor, Mohit Paper Packaging Industry, H-PACK Packaging, Coveris, Glenroy, Inc., Uflex Ltd., BagInCo International, International Plastics, Inc., Paper Bag Co., Mondi Group, BillerudKorsnas AB, Smurfit Kappa Group, Winpak Ltd. and TricorBraun Inc.
In August 2024, Coveris has announced the completion of a physical power purchase agreement with CE Rigmuir Limited, with 'sustainable sourcing' set to account for over half of the company's electricity demand in the UK. The company says the contract, advised by investment service AlphaReal, and allows for the transaction of physical green electricity - meaning that 'sustainable sourcing' will account for over half of Coveris' electricity demand in the UK.
In January 2024, Sonoco Products Company, one of the largest global sustainable packaging companies, today announced that certain of its subsidiaries entered into a definitive agreement to sell its Protective Solutions business to Black Diamond Capital Management, LLC for an estimated $80 million in cash.
In March 2023, Amcor, a global leader in developing and producing responsible packaging solutions, today announced a joint research project agreement with Nfinite Nanotechnology Inc. to validate the use of Nfinite's nanocoating technology to enhance both recyclable and compostable packaging.