Industrial Paper Sacks Market By Product Type (Sewn Open Mouth, Pinched Bottom Open Mouth, Valve Sacks and Open Mouth Sacks), Grade (Unbleached and Bleached), End Use (Building & Construction, Chemicals, Agriculture & Allied Industries, Food (Sugar, Salt, Cacao, Starch), Thickness & Region - Forecast to 2022 – 2028

Industrial Paper Sacks Market Snapshot

[292 Pages Report] The industrial paper sacks market is estimated at US$ 6.3 Bn in 2022 and is projected to reach US$ 8.5 Bn by 2028, at a CAGR of 5.1% from 2022 to 2028.

The study conducted by Future Market Insights estimates that the sewn open mouth and pinched bottom open mouth product types of industrial paper sacks market are estimated to cumulatively account for around 65% of market share in 2022 and the market valuation of these segments is projected to expand at a CAGR of 4.5% and 5.8% respectively during the forecast period 2022-28.

The APAC region is expected to drive the industrial paper sacks market and is estimated to hold a significant market share of around 27% in 2022.

FMI team further estimates that in 2022, the Indian industrial paper sacks market will grow 7.1% year-over-year. Across the APAC region, the total valuation of the industrial paper sacks market is projected to reach US$ 1.7 Bn in 2022.

The global industrial paper sacks constituted around 9% of the total industrial packaging market worth US$ 64 Bn in 2021.

2013-2021 Industrial Paper Sacks Market Outlook Compared to 2022-2028 Forecast

Majorly driven by the growth building & construction end-use industry across the globe, FMI projects, the global industrial paper sacks market to expand at a prolific 5.1% CAGR between the forecast period of 2022 and 2028, in comparison to the CAGR of 4.3% registered between the period 2013 and 2021. 

The building & construction sector is expected to be one of the leading contributors to the growth of the industrial paper sacks market. The positive impact is expected to be more intense in regions such as the Asia Pacific and the Middle East & Africa.

In the Asia-Pacific region, there has been substantial growth in the number of real estate and infrastructure development projects in the past few decades which is significantly augmenting the demand for heavy-duty kraft paper bags. Furthermore, in the last three decades, the population of MENA countries has almost doubled.

The high rate of urbanization in the region has led to strong demand for construction materials like cement, mortar, concrete, etc. and packaging solutions like multiwall paper bags and valve sacks. In addition, the region has witnessed an increasing number of Public-Private Partnership (PPP) infrastructure projects in recent years, which has boosted investments, both local and foreign, in the construction sector. The strong growth of the building & construction industry across the globe is expected to be one of the major factors driving the industrial paper sacks market growth at a higher CAGR during the forecast period compared to the historical.

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How will the Growing Demand for Sustainable Industrial Packaging Solutions among End-users Drive the Industrial Paper Sacks Market Growth?

Packaging manufacturers are focusing on meeting the needs of the growing cities by offering safe, sustainable and effective packaging solutions. Keeping in mind the future circular systems of cities, packaging manufacturers are incorporating highly sustainable materials in packaging.

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. Additionally, 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.

Furthermore, 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 is another factor driving the growth of the global industrial paper sacks market. 

What Is the Impact of COVID-19 Pandemic on the Global Industrial Paper Sacks Market?

The industrial paper sacks market was severely impacted due to the outbreak of the COVID-19 pandemic. The strong negative impact of the pandemic on the building & construction industry which is one of the major end-use industries of the industrial paper sacks market resulted in disrupting demand for target product during the year 2020. Furthermore, the demand for industrial paper sacks from the industries like the food, chemical and agriculture & allied industries was also dampened as a result of the pandemic. However, industrial paper sack market growth bounced back after the first quarter of 2021 as a result of a decline in the number of restrictions imposed by national governments of several countries.

Country-wise Insights

How will Germany Generate a Significant Demand for Industrial Paper Sacks?

In the Western Europe region, Germany is the largest market for industrial paper sacks, with an estimated market share of around 28% by the end of 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 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 the building & construction end-use.

Why is the India Considered One of the Most Lucrative Markets for Industrial Paper Sacks?

FMI estimates that India is globally the third-largest market for industrial paper sacks after U.S. and China, with an estimated market share of 12% across the globe by the end of 2022. According to Invest India, a National Investment and Facilitation Agency, India is the second-largest global producer of fruits and vegetables and the largest producer of cashew, spices, jute and pulses. The vast agriculture industry coupled with the rapidly growing infrastructure of India is anticipated to bolster the market growth of industrial paper sacks in the country.

Category-wise Insights

Which Product Type Segment is projected to Experience Escalated Demand from the Industrial Paper Sacks Market?

As per FMI analysis by product type, the pinched bottom open mouth segment is projected to experience escalated demand in the global industrial paper sacks market for reasons like ease of packaging on automated equipment and the ability to form an airtight seal on both ends.

In terms of valuation, the pinched bottom open mouth segment is estimated to grow at a compound annual growth rate of 6% during 2022-28 in the global industrial paper sacks market.

Which is the Leading End Use Segment in the Industrial Paper Sacks Market?

Building & construction is a major end use of industrial paper sacks, this segment is estimated to offer an excellent incremental opportunity of over US$ 899 Mn during the forecast period 2022-28. The building & construction segment is estimated to account for ~41% market share of the global industrial paper sacks market in 2022.

Which Region Generates Heavy Demand for the Industrial Paper Sacks during the Forecasted Period?

By region, the Asia Pacific region is projected to generate significant demand for industrial paper sacks during the forecasted period. APAC market for industrial paper sacks is projected to expand 1.6 times its current market valuation by the end of 2028.

This is mainly because of the consistent growth of the building & construction industry of developing countries like China, Japan and ASEAN among others in the APAC region.

Competitive Landscape

Leading industrial paper sacks manufacturers are launching new and innovative industrial paper sacks targeted for specific applications in the food, agriculture, chemical and building & construction end uses. Key players in the industrial paper sacks market are also making investments to increase their geographical footprint and manufacturing capabilities to enhance their global presence and market share.

For instance, in November 2021, Segezha Packaging LLC of Segezha Group in Karelia, Moscow installed two new production lines for paper sacks with an investment of RUB 2 billion.

In February 2020, Smurfit Kappa announced an investment of US$ 36 Mn for the expansion of its paper sack business in the Americas.

Scope of Report

Industrial Paper Sacks Market by Category

By Product Type:

• Sewn Open Mouth
• Pinched Bottom Open Mouth
• Valve Sacks
• Open Mouth Sacks

By Grade:

• Unbleached
• Bleached

By Thickness:

• 1 ply
• 2 ply
• 3 ply
• >3 ply

By End Use:

• Building & Construction
  • Mortar
  • Cement
  • Concrete
• Chemicals
• Agriculture & Allied Industries
  • Crops
  • Flour
  • Coffee/Tea
  • Fruits & Veg
  • Seeds
  • Animal Feed
  • Others
• Food
  • Sugar
  • Salt
  • Cacao
  • Starch
  • Others
• Other Industrial

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific (APAC)
• Middle East and Africa (MEA)
• India