The global sales of machine glazed paper are estimated to be worth USD 14.3 billion in 2024 and are anticipated to reach a value of USD 22.35 billion by 2034. Sales are projected to rise at a CAGR of 4.6% over the forecast period between 2024 and 2034. The revenue generated by the box in 2023 was USD 13,645.2 million. The industry is anticipated to exhibit a Y-o-Y growth of 4.2% in 2024.
Food & Beverages to utilize most of the machine glazed paper offering an incremental opportunity worth USD 2,370.3 million in the coming next decade and is set to capture approx. 1/4th of the total market share in the 2024. Many brands in the industry prefers MG paper for its ability of balancing durability with aesthetics which ensures their products are presented attractively on shelves.
This is important for the bakery products, confectionaries and other fast food items where packaging plays a crucial role in consumers purchase decision making.
Global Machine Glazed Paper Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 13,645.2 million |
| Estimated Size, 2024 | USD 14.3 billion |
| Projected Size, 2034 | USD 22.35 billion |
| Value-based CAGR (2024 to 2034) | 4.6% |
Sacks by application are expected to reach a valuation of USD 5,127.5 million in 2024 and to further reach up to USD 8,116.6 million by the end of 2034. Sacks are popular in the industries such as agriculture, construction and chemicals for packaging bulk goods like the sugar, grains, cement, and others. The MG papers durability, tear resistance and ability to withstand rough handling make it more preferable than other alternatives.
Unbleached machine glazed paper by grade type are anticipated to grow at a CAGR of 4.7% during the forecasted period and are projected to reach USD 9,813.8 million by 2024. Unbleached machine glazed paper that naturally appears brown is particularly popular in the packaging of cement, grains and chemicals due to the robustness that the paper offers makes it suitable for heavy-duty loads.
East Asia region is poised to offer incremental opportunity worth USD 4,270.4 million and is predicted to grow at a CAGR of 6.0%. This growth of the region can be attributed by the expansion of food and beverage industry across the china, Japan and South Korea mostly used for the packaging of fast food items and fulfill the take away deliveries.
The global machine glazed paper market is anticipated to reach USD 14,300.2 million in 2024 with a growth rate of 4.6% during the assessment period. This growth of the global market is due to the growth in the healthcare, retail and automotive sectors where MG paper plays a crucial role in branding with its excellent printability and the gloss surface it offers.
The below table presents the expected CAGR for the global machine glazed paper market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 4.6%, followed by a slightly higher growth rate of 4.9% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 4.6% (2023 to 2033) |
| H2 | 4.9% (2023 to 2033) |
| H1 | 4.2% (2024 to 2034) |
| H2 | 5.4% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 4.2% in the first half and increase to 5.4% in the second half. In the first half (H1) the market witnessed a decrease of 40 BPS while in the second half (H2), the market witnessed an increase of 50 BPS.
High Preference for Paper-based Packaging Solutions to Drive the Market
Machine glazed kraft paper manufacturers are inclined towards sustainable packaging and promoting environment-friendly packaging. Manufacturers are using paper materials as a sustainable packaging alternative to conventional plastic and metalized packaging solutions used in food, healthcare, personal care & cosmetics, building & construction, and household applications.
Bags & pouches, wraps, labels & release liners, sacks, envelopes, coating & lamination, cups & bowls, trays, and others (gift wrap and others.) are produced from viable packaging materials such as machine glazed paper. They are shaping the way for efficient environment-friendly packaging solutions across the globe including prominent regions such as Europe, North America, and East Asia.
Initiatives by manufacturers operating in the global machine glazed paper market further encourage consumers to use sustainable packaging products. Rising preference for such environment-friendly machine glazed paper solutions across the globe is ultimately fuelling the machine glazed paper market growth, significantly.
Shift from Plastic to Paper Leading to Sustainability for Manufacturers
Packaging manufacturers are focusing on meeting the needs of the urbanized population by offering safe, sustainable, and effective packaging solutions. Keeping in mind the future circular systems of cities, packaging manufacturers are incorporating highly sustainable materials. Switching over to paper-based packaging is increasing the recycling quotient in many countries.
Most consumers are adopting paper-based packaging solutions over plastics as the paper is biodegradable. Packaging bags made up of machine glazed kraft paper are the perfect sustainable replacement for plastic bags.
These paper packaging bags feature high taint and odor neutrality and come with a wet-strength option for high barrier protection against the effects of moisture and oxygen. Furthermore, these packaging bags offer a sustainable, compostable, functional choice that can replace plastic bags easily.
Also, manufacturers of paper and pulp across the globe are optimizing raw materials and enhancing paper bag construction to contribute to improving sustainability credentials.
The ability of machine glazed paper bags to provide exclusive mechanical strength, flexibility, and printability makes them an ideal choice for the packaging of industrial and non-industrial goods. Shifting the inclination of end-users towards such strong yet sustainable packaging bags is ultimately augmenting the machine glazed paper market growth.
Unsustainable Manufacturing Process Contributing to Deforestation
Although kraft paper is known to be much more environment-friendly as compared to plastic, many questions have been raised regarding the justification of using products such as disposable paper bags. People use paper bags at least twice before throwing them away.
To experts, cutting down millions of trees in exchange for a few minutes of paper bags usage is reckless use of available resources. As per the estimates, nearly 14 million trees are cut down in the USA to cater to the demand for nearly 10 billion paper bags. Also, in the USA, nearly 80% of paper bags end up in landfills, where they do not degrade for decades.
The global machine glazed paper industry recorded a CAGR of 1.7% during the historical period between 2019 and 2023. The growth of the machine glazed paper industry was positive as it reached a value of USD 13,645.2 million in 2023 from USD 11,311.9 million in 2019.
The pulp and paper and print value chains are the world's lowest industrial emitters, these overall account for less than 1% of global greenhouse gas emissions. Machine glazed paper offers great mechanical strength and flexibility, and is easy to print, making it applicable to a wide range of industrial and consumer product packaging applications.
Food and drinks, personal care goods, medicines, and other industries are important users of machine glazed paper, and demand for machine glazed paper has expanded with expanding disposable income and population.
Furthermore, several changes, such as government initiatives to encourage the usage of environmentally sustainable packaging, are projected to give profitable prospects for machine glazed paper market players. Nevertheless, raw material price instability is expected to limit the growth of the machine glazed paper market.
Tier 1 companies are market leaders characterized by high production of machine glazed paper and a wide product portfolio. These market leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple processes and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including recycling, and manufacturing utilizing the latest technology meeting regulatory standards providing the highest quality. Prominent companies within Tier 1 include Smurfit Kappa Group, Nippon Paper Industries Co., Ltd, Stora Enso Oyj, Mondi Group Plc, and BillerudKorsnas AB.
Tier 2 companies include mid-size players characterized by a strong presence overseas and strong market knowledge. These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in Tier 2 include Heinzel Group, Gascogne Papier SAS, Twin Rivers Paper Company, Burgo Group Spa, SCG Packaging, BPM Inc, and Mosaico S.p.A.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
The section below covers the industry analysis for the machine glazed paper market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Europe, and others, is provided. The United States is anticipated to remain at the forefront in North America, with a CAGR of 3.5% through 2034. In East Asia, China is projected to witness a CAGR of 5.4% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 3.5% |
| Canada | 4.3% |
| China | 5.4% |
| India | 6.1% |
| GCC Countries | 4.9% |
| Australia | 3.1% |
The India Brand Equity Foundation described the food and beverage industry in India to be USD 33.7 billion in 2023 and will reach up to USD 46.3 billion by the end of 2028, by the India Brand Equity Foundation.
This growth in the food and beverage industry in India where machine glazed paper is preferred on a large scale for wrapping baked food, fast food, and other food items. This preference for the machine glazed paper in the food industry is due to the paper’s resistance to grease and the ability of preserving freshness of the food contributing to its growing preference.
With the sudden rise in the take-away foods and convenience foods after the pandemic crises aimed for the need of effective and secure packaging materials for food. Machine glazed paper which can satisfy both the functional as well as the sustainable need became the most preferred choice for food producers. The continuous growth in the food and beverage and the industries associated to it are expected to drive the demand for the machine glazed paper.
AMA foundation published data describing the overall healthcare spending in the USA in 2022 is USD 4,464.4 billion which rise by 4.1% compared to previous year. The USA is continuously increasing their spending on healthcare sector on Y-o-Y basis with the growing need of better treatments and services.
The healthcare sector with the regulatory push by the government is shifting their focus towards sustainable packaging solutions thus limiting the use of plastics contributing to the circular economy.
This shift with the regulations opened new opportunities for alternatives such as machine glazed paper. Machine glazed paper gained noticeable preference due to its superior strength, smoothness, and printability. The smooth side of the machine glazed paper offers a glossy finish making it ideal for high quality printing of crucial information, branding, and regulatory details.
The other rough side of the MG paper offers proper grip and handling capabilities that is suitable for packaging medical devices, syringes, bandages and others. With the growth in the healthcare spending of USA and the increasing regulatory pressure are driving the demand for alternatives such as MG paper.
The section contains information about the leading segments in the industry. By grade, unbleached papers are estimated to grow at a CAGR of 4.7% throughout 2034. Additionally, the sacks are anticipated to offer an incremental opportunity worth USD 3,219.3 million and is predicted to reach a market valuation of USD 5,127.5 million by 2024.
| Basis Weight | 71 to 100 GSM |
|---|---|
| Value Share (2034) | 42.7% |
The 71 to 100 GSM machine glazed paper are anticipated to offer an incremental opportunity worth USD 3,421.0 million throughout the next ten years and are expected to grow at a CAGR of 4.5% during the assessment period. The shift in the consumer demands and the regulatory pressure created in the regions such as North America, and Europe limiting the use of certain plastics.
This growing regulations for plastics opened new opportunities for alternatives including paper which is popular among other alternatives for its sustainability. The growing demand for paper boosted the demand with various basis weight particularly for 71 to 100 GSM.
The higher the GSM category the higher is the robustness of the paper thus making it ideal for heavy-duty applications such as larger pouches and sacks in the food and chemical industries where durability and puncture resistance are important factors for their packaged products.
| Paper Type | Kraft Paper |
|---|---|
| Value Share (2034) | 79.2% |
Kraft paper machine glazed paper are predicted to reach a market valuation of USD 11,308.2 million in 2024 and are set to capture a market share of 79.2% by 2024. Kraft MG paper are known for their high durability and strength which makes it applicable for wide range of applications across end uses.
For example, Because of its strength that it provides makes it ideal for packaging of products like grains in agriculture, cement in construction. With the consumers shift towards sustainability many players in the FMCG are replacing plastic made products including grocery bags and others for their environmental benefits and its ability to handle heavy loads.
Key players operating in the machine glazed paper market are investing in new technology for improved sustainability and customization in products of machine glazed paper to meet customer demand and the circular economy norms and also entering into partnerships. Key machine glazed paper providers have also been acquiring smaller players to grow their presence to further penetrate the machine glazed paper market across multiple regions.
Recent Industry Developments in the Machine Glazed Paper Market
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2024) | USD 14.3 billion |
| Projected Market Size (2034) | USD 22.35 billion |
| Overall Market CAGR (2024 to 2034) | 4.6% |
| Base Year for Estimation | 2023 |
| Historical Period | 2019 to 2023 |
| Projections Period | 2024 to 2034 |
| Report Parameter | Revenue in USD billion |
| By Basis Weight | Up to 40 GSM, 41 to 70 GSM, 71 to 100 GSM, Above 100 GSM |
| By Paper Type | Tissue Paper, Kraft Paper |
| By Grade | Unbleached, Bleached |
| By Application | Bags & Pouches, Sacks, Wraps, Labels & Release Liners, Envelopes, Coating & Lamination, Trays, Cups & Bowls, Others (Gift Wrap, etc.) |
| By End Use | Food & Beverages, Healthcare, Electrical & Electronics, Automotive, Personal Care & Cosmetics, Textile, Building & Construction, Household |
| Regions Covered | North America, Latin America, Europe, East Asia, South Asia, Middle East & Africa, Oceania |
| Countries Covered | United States, Canada, Germany, United Kingdom, France, China, India, Japan, South Korea, Australia |
| Key Players | Smurfit Kappa Group, Nippon Paper Industries Co., Ltd, Stora Enso Oyj, Mondi Group Plc, BillerudKorsnas AB, Heinzel Group, Gascogne Papier SAS, Twin Rivers Paper Company, Burgo Group Spa, SCG Packaging, BPM Inc, Mosaico S.p.A. |
| Additional Attributes | Unbleached MG paper CAGR: 4.7%, 71-100 GSM segment strong growth, Sacks application projected to hit USD 8,116.6 million, East Asia incremental opportunity: USD 4,270.4 million, Tiered market competition landscape |
| Customization and Pricing | Available upon request |
In terms of basis weight, the industry is divided into Up to 40 GSM, 41 to 70 GSM, 71 to 100 GSM, and Above 100 GSM.
In terms of paper type, the industry is segregated into tissue paper and kraft paper.
By grade, the market is divided into unbleached and bleached.
By grade, the market is divided into bags & pouches, sacks, wraps, labels & release liners, envelopes, coating & lamination, trays, cups & bowls, and others (gift wrap etc.).
The market is classified by end uses such as food & beverages, healthcare, electrical & electronics, automotive, personal care & cosmetics, textile, building & construction, and household.
Key countries of North America, Latin America, Europe, East Asia, South Asia, Middle East & Africa, and Oceania have been covered in the report.
The global machine glazed paper industry is projected to witness a CAGR of 4.6% between 2024 and 2034.
The global machine glazed paper industry stood at USD 13,645.2 million in 2023.
The global machine glazed paper industry is anticipated to reach USD 22.35 billion by 2034 end.
East Asia region is set to record the highest CAGR of 6.0% in the assessment period.
The key players operating in the global machine glazed paper industry include Smurfit Kappa Group, Nippon Paper Industries Co., Ltd, Stora Enso Oyj, Mondi Group Plc, BillerudKorsnas AB, Heinzel Group, and Gascogne Papier SAS.
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Machine Glazed Paper Market
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