The Kraft block bottom pouch market is valued at USD 566.6 million in 2024. In 2023, the industry generated an estimated revenue of USD 542.2 million. The market is slated to exhibit a CAGR of 3.7% during the forecast period, with projections to surpass USD 814.8 million by 2034.
Advancements in material science and the general populace’s emphasis on environmentally sustainable packaging solutions have contributed positively to the market growth. The expansion of the e-commerce sector in the developing and underdeveloped parts of the world, especially in Asian and Middle Eastern countries, has also made a significant impact on the sales of Kraft block bottom bags and pouches.
These pouches are used in e-commerce for packaging a wide range of products due to their durability, versatility, and eco-friendly nature. Also, the growing reliance of people on online shopping platforms has helped the market expand globally.
Kraft Block Bottom Pouch Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 542.2 million |
| Estimated Size, 2024 | USD 566.6 million |
| Projected Size, 2034 | USD 814.8 million |
| Value-based CAGR (2024 to 2034) | 4.3% |
The demand for Kraft flexible packaging has also been touching the skies in the past few years due to the proliferation of online food delivery services. These pouches help businesses in the hospitality sector ensure food items are delivered safely, maintain freshness, and uphold sustainability commitments.
In countries like India, China, the United States, etc., where the food industry is humongous, these bags automatically are gaining significant impetus.
Kraft block bottom pouches also find their applications in the cosmetic and personal care industry. In countries like South Korea, China, the United Kingdom, etc., the demand for these pouches in the cosmetic sector is observed. Companies in these industries prefer these pouches as they enhance the brand value by giving a premium look to the packaging.
This way companies can also lower their carbon footprint as Kraft pouches are considered less harmful than packaging solutions made from non-biodegradable materials.
The adoption of Kraft flexible packaging is on the rise due to its use in various other industries other than food and beverages. These pouches are also used in agricultural products, pharma, pet food, etc.
Pet food manufacturers use block bottom pouches for packaging dry food products for dogs, cats, and other pets while seeds, fertilizers, and other agricultural products are packaged in Kraft block bottom bags to protect against moisture.
The table below illustrates the predicted CAGR for the global Kraft block bottom pouch market across various semi-annual periods from 2024 to 2034. The market is expected to experience a surge, with a CAGR of 3.4%, during the first half (H1) of the decade from 2024 to 2029. However, it is anticipated to plunge and grow at a marginal rate of 4.2% in the second half (H2) of the decade from 2029 to 2034.
| Particular | Value CAGR |
|---|---|
| H1 | 4% (2023 to 2033) |
| H2 | 3.5% (2023 to 2033) |
| H1 | 3.4% (2024 to 2034) |
| H2 | 4.2% (2024 to 2034) |
From H1 2023 to H2 2033, the CAGR for the market is expected to slightly decrease to 4% in the first half and then remain relatively stable at 3.5% in the second half. The market is very likely to remain constant with a retention of 50 basis points (BPS).
Environmental Concerns to Bring Kraft Block Bottom Pouches into Limelight
There is an observed shift towards sustainable and environmentally viable packaging solutions in the packaging world. Businesses as well as consumers are increasingly preferring Kraft Block Bottom bags as they are eco-friendly alternatives to traditional plastic packaging.
The food and beverage industry as well as the e-commerce sector in developed economies are the largest consumers of these pouches due to this trend.
Applications beyond Traditional Industries to Influence Revenue
Kraft block bottom containers are utilized in a broad spectrum of industries across sectors due to their versatility, durability, and eco-friendly attributes.
In tobacco industries, these pouches are used for packaging loose tobacco, providing a natural look that appeals to many consumers. Do-it-yourself kits, including components for various hobbies and projects, also use these pouches for their versatility and convenience.
Higher Costs of Kraft Block Bottom Pouches to Limit Adoption
The manufacturing process of Kraft block bottom bag is very complex. For small-scale factory units and companies, this cost is the biggest challenge. As compared to traditional packaging solutions, these pouches cost a bit extra, primarily due to the use of renewable and biodegradable materials, coupled with advanced manufacturing processes.
Besides this, the limited availability of raw materials in resource-scarce economies like Japan, South Korea, the United Kingdom, etc., also impacts the market negatively.
The demand for Kraft block bottom pouches has always been constant since the start of the century. This is primarily due to their cost-effectiveness and environmental viability. With the world emphasizing eco-friendly packaging solutions, this demand has foreseen a tremendous surge, especially in consumer goods and products industries. In the last few years though, the industry has seen a series of ups and downs.
During the pandemic, as the world faced sudden shutdowns, the demand for these pouches declined. Manufacturing companies had to temporarily limit their production capabilities because of the closing of economies.
In the initial phases, the hospitality sector, which is one of the largest consumers of these bags, also faced a serious blow. The plunge in the e-commerce sector also meant that the demand for these pouches declined. The market reported a CAGR of 2.8% from 2019 to 2023.
The industry soon began to pick some pace in the later stages of the pandemic. The pharmaceutical boom and the revival of e-commerce created a conducive environment for the manufacturers of Kraft block bottom pouches.
With the opening of economies, international trade flourished, and with that, the demand for these pouches skyrocketed. Food delivery platforms also gained momentum and thus the demand for these pouches again reached a sustained level.
Tier one companies like Amcor, Mondi Group, Sealed Air Corporation, and Smurfit Kappa Group are driving the Kraft block bottom pouch market through extensive research and development, innovative packaging solutions, and strategic sustainability initiatives.
These industry leaders are heavily investing in advanced technologies to enhance the functionality and aesthetics of their packaging products.
Some of them are also known for their cutting-edge barrier coatings that extend product shelf life while maintaining environmental responsibility. These companies are also focusing on creating packaging solutions that reduce food waste and improve supply chain efficiency.
Tier two companies such as ProAmpac, Glenroy, Inc., Coveris, and Constantia Flexibles are making significant strides in the market by offering customizable and flexible packaging solutions tailored to specific industry needs. These companies excel in providing innovative packaging designs that enhance brand visibility and consumer appeal.
Companies in this tier are also leveraging their extensive experience in flexible packaging to introduce sustainable and high-performance pouches that meet the diverse demands of the food, cosmetics, and pharmaceutical sectors.
Tier three companies, including PBFY Flexible Packaging, Pacific Bag, Inc., C-P Flexible Packaging, and ePac Flexible Packaging, contribute to market growth by offering accessible and innovative packaging solutions to small and medium-sized enterprises (SMEs).
These companies are known for their agility and ability to quickly adapt to market trends, providing high-quality, cost-effective packaging options that support smaller brands in their sustainability efforts. These companies also specialize in digital printing technologies that allow for short runs and rapid turnaround times, helping emerging brands enter the market swiftly with eye-catching and sustainable packaging.
The section discusses the region-wise analysis of the Kraft block bottom pouch market. Drawing from these numbers, it can be concluded that developing economies like Thailand, India, South Korea, etc., are performing extremely well in comparison to developed countries like the United States and Germany.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| Canada | 2.1% |
| The United States | 2.4% |
| Germany | 2% |
| India | 6.4% |
| Thailand | 5.1% |
| South Korea | 3% |
| China | 5.6% |
| The United Kingdom | 2.8% |
The Kraft block bottom pouch industry in India is slated to show a 6.4% CAGR for the forecast period. In India, the growth of the market is fuelled by rapid urbanization and the rising middle class, which has increased demand for packaged food and consumer goods.
The Indian government's push towards sustainable practices and reducing plastic waste has encouraged the adoption of eco-friendly packaging.
The burgeoning e-commerce sector, especially in urban and semi-urban areas, is also driving demand for durable and sustainable packaging solutions that ensure product safety and freshness during transit, making Kraft block bottom bags or pouches an attractive choice for businesses aiming to meet consumer expectations and regulatory standards.
China also is a promising country in the Kraft block bottom pouch industry, rising at a 5.6% CAGR through 2034. The market expansion in China is driven by the country's massive manufacturing base and technological advancements in packaging.
The Chinese government's stringent regulations on plastic waste and environmental pollution have compelled companies to adopt sustainable packaging alternatives. The country's significant e-commerce growth, led by giants like Alibaba and JD.com, also necessitates reliable and sustainable packaging solutions for a wide range of products.
As Chinese consumers become more environmentally conscious, there is a growing preference for products packaged in eco-friendly materials, prompting manufacturers to adopt Kraft block bottom pouches to enhance brand reputation and meet market demands.
The United States Kraft block bottom pouch industry is anticipated to exhibit a CAGR of 2.4% through 2034. In the United States, the growth of the market is attributed to heightened environmental awareness and consumer demand for sustainable packaging.
American consumers are increasingly prioritizing eco-friendly products, pushing companies to shift from traditional plastic to biodegradable and recyclable options like Kraft block bottom boxes or pouches. The robust food and beverage industry in the United States requires versatile and durable packaging solutions that maintain product quality and extend shelf life.
The rise of health-conscious and organic food trends has also contributed to the market growth, as these products often favor natural and sustainable packaging to align with their brand values.
The global Kraft block bottom pouch market is segmented by material, capacity, and end-user. The top two categories are discussed below.
By material, the market is trifurcated into white, brown, and black Kraft paper. As of 2024, the brown Kraft paper segment holds a market share of 73.3%.
| Material | Brown Kraft |
|---|---|
| Value Share (2024) | 73.3% |
The demand for brown Kraft paper pouches is soaring due to their eco-friendly appeal, natural aesthetic, and cost-effectiveness. Brown Kraft paper is unbleached, making it more environmentally friendly than bleached white Kraft paper. It is also sought-after, due to its natural look resonating with consumers who prefer sustainable and rustic packaging. This helps businesses enhance brand perception for eco-conscious products.
Brown Kraft paper is often stronger and more durable than white or black variants, making it ideal for a wide range of packaging needs. Its cost-efficiency and minimal environmental impact drive its adoption, positioning it as the preferred choice in sustainable packaging solutions.
Kraft block bottom pouches, based on end users, are classified into retail, pharmaceuticals, agriculture and allied industries, building and construction, beverages, food service, chemicals, and fertilizers. The retail segment holds a share of 39.6%, as of 2024.
| End Use | Retail |
|---|---|
| Value Share (2024) | 39.6% |
The global retail industry has become the largest consumer of Kraft block bottom pouches due to their durability, versatility, and eco-friendliness. Their demand has also touched the skies as these pouches offer excellent barrier properties against moisture and contaminants.
This ensures product freshness and integrity. Retailers also appreciate their ability to stand upright, making them ideal for shelf display and maximizing retail space.
These block bottom pouches align with increasing consumer demand for sustainable packaging options. Their customizable design options also enhance branding opportunities, making them a versatile choice across various retail sectors from food and beverages to cosmetics and household products.
The Kraft block bottom pouch market is very competitive due to the presence of numerous well-established players on an international level. These companies already have a strong foothold in the market due to their prolonged presence. Some of these companies also have market reach across the world.
Domestic companies also play a very important part in this industry. There is very little to no room for new entrants as the market is almost on the verge of saturation.
Some of the most prominent companies in the market are Amcor, Mondi Group, Sealed Air Corporation, Smurfit Kappa Group, ProAmpac, and Glenroy, Inc.
Recent Developments
The market for Kraft Block Bottom pouches is segmented by material type into black, white, and brown Kraft paper.
Container sizes range from up to 2oz to above 10 oz, catering to diverse storage needs.
Kraft block bottom pouches, based on end users, are classified into retail, pharmaceuticals, agriculture and allied industries, building and construction, beverages, food service, chemicals, and fertilizers.
Key countries of North America, Latin America, Europe, East Asia, South Asia, Middle East and Africa (MEA), and Oceania have been covered in the report.
The global valuation is USD 566.6 million as of 2024.
The market is expected to reach USD 814.8 million by 2034.
The market is growing at a CAGR of 3.7% from 2024 to 2034.
Amcor, Mondi Group, Sealed Air Corporation, Smurfit Kappa Group, ProAmpac, and Glenroy, Inc.
In 2023, the global market was valued at USD 542.2 million.
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Kraft Block Bottom Pouch Market
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