Unbleached Kraft Paperboard Sets USD 7.61 Bn in 2025 at 5.03% CAGR

Unbleached Kraft Paperboard Market Trends 2025 Surge in Coated Kraft Demand, Direct Sales Dominate

According to market projections, the unbleached kraft paperboard industry is expected to grow from USD 7.25 billion in 2024 to USD 11.84 billion by 2034, reflecting a CAGR of 5.03%. In 2024, Asia Pacific led the unbleached kraft paperboard market with 39% share. Coated grade and linerboard products dominated, while corrugated packaging and B2B sales led segments. Strong growth is expected in folding cartons and online retail by 2034.

 

Last Updated: 29 July 2025 Category: Material Packaging Insight Code: 5726 Format: PDF / PPT / Excel

The unbleached kraft paperboard market is projected to reach USD 11.84 billion by 2034, expanding from USD 7.61 billion in 2025, at an annual growth rate of 5.03% during the forecast period from 2025 to 2034. It is completely derived from renewable wood resources. These elements make Kraft paper a more environmentally friendly alternative to regular packaging material. Organizations are actively finding ways to lower their environmental footprint.

With Asia Pacific holding the largest share in 2024, the unbleached kraft paperboard market is expanding rapidly. The most popular grade type was coated unbleached kraft. Linerboard was dominated by product type, and the market for folding boxboard (folding cartons) will grow considerably. Food and beverages accounted for the largest end use, while retail and e-commerce logistics are set to grow quickly. By distribution channel, direct sales dominated the distribution channel, but online retail became the fastest growing among the distribution channel types.

Unbleached Kraft Paperboard Market Growth and Trends 2025

Key Takeaways

  • In terms of revenue, the market is valued at USD 7.61 billion in 2025.
  • The market is projected to reach USD 11.84 billion by 2034.
  • Rapid growth at a CAGR of 5.03% will be observed in the period between 2025 and 2034.
  • Asia Pacific dominated the unbleached kraft paperboard market with the largest revenue share of 39% in 2024.
  • By grade type, the coated unbleached kraft segment contributed the biggest revenue share of 63% in 2024 and will expand at a significant CAGR between 2025 and 2034.
  • By product type, the linerboard segment contributed 41% revenue share in 2024.
  • By product type, the folding boxboard (unbleached) systems segment will expand at a significant CAGR between 2025 and 2034.
  • By packaging type, the corrugated segment contributed 45% revenue share in 2024.
  • By packaging type, the folding cartons segment will expand at a significant CAGR between 2025 and 2034.
  • By end-use industry, the food and beverages segment dominated the market with a share of 29% in the year 2024.
  • By end-use industry, the retail and e-commerce segment is expected to grow significantly over the studied period.
  • By distribution channel, the direct sales (B2B) have dominated the segment with a share of 67% in the year 2024.
  • By distribution channel, the online retail segment is expected to grow significantly over the studied period.

Market Overview

Unbleached Kraft paperboard is a type of paperboard manufactured from wood pulp produced via the kraft process, which is not subjected to a bleaching stage. This retains its natural brown colour, resulting in a product known for its high strength, durability, recyclability, and eco-friendly profile. It is extensively used in packaging applications where strength and sustainability are critical, including corrugated boxes, folding cartons, and protective packaging.

Unbleached Kraft paperboard is renowned for its distinctive brown color and raw, natural appearance. The manufacturing process utilizes unbleached kraft pulp, which is derived from spruce and pine trees. These trees are selected for their eco-friendliness and durability, making unbleached kraft paper a sustainable choice. Unbleached kraft paperboard is classified from bleached kraft paper in that it does not undergo a bleaching procedure. Bleached kraft paper is intended to be bleached to achieve a lighter appearance, a soft surface, and enhanced printability. On the other hand, unbleached kraft paper retains the natural brown color and a slightly rougher texture.

Key Metrics and Overview

Metric Details
Market Size in 2025 USD 7.61 Billion
Projected Market Size in 2034 USD 11.84 Billion
CAGR (2025 - 2034) 5.03%
Leading Region Asia Pacific
Market Segmentation By Grade, By Thickness / Basis Weight, By Product Type, By Packaging Type, By End-use Industry, By Distribution Channel and By Region
Top Key Players WestRock Company, International Paper, Smurfit Kappa Group, Mondi Group, Sappi Limited, Stora Enso Oyj, Georgia-Pacific LLC, Billerud AB
  • Sustainability push: Growing global awareness about plastic pollution and environmental sustainability is expanding sectors to move toward paper-based alternatives, specifically unbleached kraft board, due to its minimal chemical processing.
  • E-commerce boom: The growth in online shopping has boosted the demand for durable and sustainable shipping and packaging materials, where unbleached kraft paperboard is a selected choice.
  • Food and beverage packaging: There’s a rising trend of using unbleached kraft board in takeout containers, beverage carriers, and bakery boxes, especially in organic and health-conscious brands.
  • Minimalist branding: The rustic look, natural and unbleached kraft board, meets well with minimalist and eco-conscious branding, gaining popularity in luxury and artisanal product packaging.
  • Circular economy initiatives: Governments and companies are marketing the usage of recyclable and compostable materials, serving unbleached kraft paperboard as a strategic benefit.

AI Integration in the Unbleached Kraft Paperboard Market

AI contributes to predictive maintenance systems that can identify potential issues before they occur, reducing the risk of equipment failures and unexpected downtime. In the near future, both OEMs and consumer packaged goods companies anticipate that predictive maintenance will play a crucial role. AI-powered vision systems can rapidly and precisely inspect packaging to meet quality standards, detecting defects like scratches, dents, or printing errors in real time. This largely reduces the chance of faulty products reaching consumers. AI-driven robots are revolutionizing packaging by boosting both accuracy and speed, automating repetitive tasks such as placing, picking, and packing items, which allows human workers to focus on more complex activities. Advanced AI algorithms are capable of adapting to different packaging environments.

Market Dynamics

Driver

The e-commerce growth has created new possibilities for Kraft generators. Industry trends display that corrugated boxes are being substituted with kraft paper bags layered with bubble wrap in the United States. A main competitor for Kraft and other regular packaging materials has been plastic. Hence, the last years were classified by the demonstration that was beginning to appear. To solve the toxic effects of plastics and place a heavier responsibility on preventing environmental damage, efforts have begun all over the globe to take action against plastic.

Restraint

One main challenge in terms of unbleached kraft paperboard is its poor resistance to moisture. Unless particular laminated or treated, it is not waterproof, which limits its usage in surroundings where exposure to humidity and water is likely. This challenge can be for uses such as food packaging, shipping materials, and outdoor storage that may experience wet conditions. The uncovered and textured surface does not carry ink as efficiently as blanketed or soft papers. Due to this, logos, printed designs, or images may lack brightness and accuracy. These elements can be a drawback for organizations whose goal is to make high-quality and attention-grabbing branding or promotional materials.

Opportunity

The unbleached kraft paper is completely compostable and biodegradable, breaking down naturally without touching the environment. This makes it a perfect alternative to materials like plastic that reside in landfills for years. By selecting unbleached kraft paper, particular businesses invest in lowering pollution and marketing a greener planet. One of the main features of Kraft paper is its recyclability. It can be recycled many times before its fibres weaken, specifically reducing waste and conserving natural resources. This circularity aligns with sustainable practices and assists eco-conscious lifestyles. Furthermore, because of its earthy tones and natural texture, unbleached kraft paper meets the latest minimalist design and eco-friendly nature trends. Its rustic look develops the request for handcrafted and craftsman products, while its neutral colour palette serves as an accurate canvas for customisation and branding.

Segmental Insights

How did the Coated Unbleached Kraft dominate the Unbleached Kraft Paperboard Market?

Coated unbleached Kraft (CUK) paperboard is widely recognized in the packaging sector as an eco-friendly paperboard grades that offer a more natural appearance and aesthetic. These paperboard grades are produced from recyclable materials such as unbleached wood pulp. Utilising unbleached recycled and pulp materials makes CUK and SUS a perfect choice for organizations seeking sustainable packaging solutions, as the uncoated papers also make this material very easy to recycle. One of the main elements of these paperboard grades is its natural brown colour, which gives an apparent aesthetic look. Hence, this natural colour can also be limited, as it may not be perfect for products that need darker colours. The CUK and SUS serve several benefits, which make them a selected choice for different packaging uses.

By Product type

How did the Linerboard Dominate the Product Type in the Unbleached Kraft Paperboard Market?

Linerboard is a kind of paperboard utilised for the outer facing of a corrugated box. Kraft linerboard is created from wood fiber that comes from the kraft procedure and specifically contains not more than 20% recycled materials. Testliner or recycled paper can be made of 100% five recycled material. And it is akin to material created from 805 virgin wood fiber, which makes it a perfect choice for custom corrugated packaging and POP shows. It serves an organic appearance. This serves an organic appearance because of a natural effect, while also being 100 % biodegradable and recyclable at the current time, which makes it a perfect choice for an eco-friendly packaging solution. This paperboard option is evergreen and rigid, suitable for different types of printing such as litho lamination and flexographic, embossing, die-cutting, and hot foil stamping too.

Folding boxboard is a kind of paperboard utilised for packaging, classified by its stalwart yet lightweight combination. It is created from a mixture of chemical and mechanical pulp, and it has a soft surface perfect for good-quality printing, making it perfect for graphics and branding. Prevalently used in food packaging, consumer goods, and pharmaceuticals, it can be easily folded and created in different forms and shapes, developing its versatility in various uses. Folding box board is linked to different concepts. It's popular for its printability and power; folding cartons can be created from different paperboard materials, including folding cartonboard.

How did the Corrugated Boxes Dominate the Packaging Type in the Unbleached Kraft Paperboard Market?

In terms of corrugated boxes, the inner linear layer is a kind of sheet using kraft paper, which forms the surface of the box. It creates a soft surface for the content or product and assists the overall infrastructure, power, and toughness of the box. White custom corrugated cartons are generated with the outer layers of linerboard sheets and fluted sheets between the linerboard sheets. They are produced in several styles and thicknesses to provide huge structural assistance to the weighty and heavy products of our brand. Corrugated crayons are relatively more protective and durable than folding cartons. This is because they are manufactured with more protective layers of linerboard and the fluted layers fused between the two. While folding cartons just demand one surface of packaging materials and do not need any additional inserts for the protection of products.

Folding cartons are designed from a single piece of paperboard, which is accurately scored, boarded, and then folded into a box shape. A main characteristic is that they are specifically stored and shipped flat, which makes them incredibly effective before assembly. Prevalent materials used for cosmetics packaging boxes are those with lower material costs as compared to the thicker chipboard utilised in the rigid boxes. The production procedure for folding cartons is frequently more updated, which leads to lower production costs. They assist a huge array of luxurious finishing options such as UV coating for protection and glass, hot foil stamping for metallic accents, and lamination, matte or gloss for durability and tactile feel.

How did the Food and Beverage Industry dominate the Unbleached Kraft Paperboard Market?

Unbleached kraft paper is increasingly popular in the food packaging sector due to its eco-friendly nature and versatility. Created from chemical pulp generated in the kraft procedure, this paper is known for its high tensile strength, which makes it perfect for packaging a variety of food items, including baked goods, fast food, snacks, and dry foods. Kraft paper is available in both unbleached and bleached formats, with the latter being more cost-effective and sustainable. It is often utilised to produce warps, paper bags, cartons, and pouches. Furthermore, Kraft paper can be laminated or coated with food-safe barriers to improve its resistance to grease, moisture, and oil, making it suitable for direct food contact. It's a printable surface that also allows for effective branding and labelling.

The fastest developing e-commerce sector not only generates a lot of waste but also needs an aesthetic and protective look from its packaging. Kraft paper is the ideal solution in this landscape, given its protective nature and sustainable and rustic brown kraft paper appeal. While the Kraft paper serves the ultimate rigid exterior, we can crumple Kraft paper as buffering inside the box as an alternative to bubble wrap and foam. We can create an elusive unboxing experience utilising branded mailers or tailored-printed wrapping sheets. The soft presentation of unbleached kraft paper is ideal for covering sensitive high-end products such as cosmetics, apparel, and even handmade goods.

How did Direct Sales Dominate the Unbleached Kraft Paperboard Market?

Direct sales of unbleached kraft paper have experienced constant growth, specifically driven by the growing demand for sustainable and biodegradable packaging solutions across different industries, especially in the food and retail sectors. Unbleached kraft paper, known for its natural brown colour, power and eco-friendliness, is prevalently sold directly by producers and paper mills to converters, end-users and packaging companies too. The cost-effectiveness of unbleached kraft paper, integrated with its recyclability and minimal processing, makes it attractive for huge buyers finding environmentally responsible packaging alternatives. Direct sales also assist in reducing supply chain costs, developing lead times, and ensuring constant quality, which is important for industrial and commercial uses.

Brown Kraft paper is one of the most adaptable and flexible kinds of packaging. One can conveniently discontinue in whatever size we need, scrunch it, or fit it to any infill demand. Kraft paper is totally recyclable. It takes lower chemical input to create kraft paper than to make bleached white paper products. On the other hand, online shops delight in unbleached kraft paper packaging. It is strong, rigid, and easy to ship. This assists in creating trust with the users. The huge logo on the front of the package is approximately as crucial as the protective nature of the package itself. Brands are enabled to convey their story using unbleached kraft paper.

By Region

Unbleached Kraft Paperboard Market Share 2024 (%)

How did the Asia Pacific dominate the Unbleached Kraft Paperboard Market?

Asia Pacific dominated the market in 2024, and the region is expected to sustain its position during the forecast period. Countries like China, India, Indonesia, and Vietnam are the main contributors to both the usage and production of kraft paper in the region. The push toward lowering single-use plastics has grown the move to unbleached kraft paperboard for packaging uses, specifically in retail, food, and logistics sectors. India and China, in particular, are witnessing a surge in demand due to fast urbanization, population growth, and government initiatives assisting sustainable packaging. Kraft paper mills in these countries are stretching capacity and updating technology to align with the growing requirements for both unbleached and bleached varieties. Furthermore, exports of kraft paper from Asian producers are growing, supplying global markets with cost-effective and sustainable packaging material.

Unbleached Kraft Paperboard Key Players

Unbleached Kraft Paperboard Market Top Key Players

Industry Leader Announcement

  • On 7 February 2024, Mondi, a top leader in paper and packaging, officially completed the acquisition of the Hilton pulp mill from West Fraser Timber, which is a crucial step to ensure the mill’s future and bolsters Mondi’s growth in the Kraft paper segment in North America. (Source: Pulpaper News)
  • On 7 February 2024, Romania’s tissue paper and corrugated cardboard manufacturer Vrancart secured a loan of Euro 16 million from local bank BRD. The protected funds are to enable the generator to grow its resilience in renewable energy sources. (Source: Pulpaper News)
  • On 2 May 2024, Twin Rivers Paper Company, a top producer of specialty paper products, disclosed that it had sold its Pine Bluff, Arkansas, unbleached kraft paper mill to American Kraft Paper Industries, an associate of top industrial group American Industrial Acquisition Corporation (AIAC). (Source: Pulpaper News)

Recent Developments

  • On 5 June 2025, Stora Enso revealed that the launch of specialized pulp grade- UKP Nova E, an unbleached kraft paper pulp UKP), designed particularly for electrical insulation papers. It aligns with the strict needs of low electrical conductivity and high mechanical power. (Source: Pulpaper News)

Unbleached Kraft Paperboard Market Segments

By Grade

  • Coated Unbleached Kraft (CUK)
  • Uncoated Unbleached Kraft (UUK)

By Thickness / Basis Weight

  • Below 100 GSM
  • 100–200 GSM
  • 201–300 GSM
  • Above 300 GSM

By Product Type

  • Linerboard
  • Saturating Kraft Paper
  • Wrapping Kraft Paper
  • Bag Kraft Paper
  • Corrugating Medium
  • Folding Boxboard (Unbleached)
  • Solid Bleached Substitute (SBS Alt.)

By Packaging Type

  • Corrugated Boxes
  • Folding Cartons
  • Bags & Sacks
  • Envelopes & Wraps
  • Tubes & Cores
  • Slip Sheets & Layer Pads

By End-use Industry

  • Food & Beverages
  • Consumer Electronics
  • Industrial Goods
  • Agriculture & Horticulture
  • Automotive
  • Healthcare & Pharmaceuticals
  • Retail & E-commerce
  • Building & Construction

By Distribution Channel

  • Direct Sales (B2B)
  • Distributors/Wholesalers
  • Online Retail

By Region

  • North America (Notable Growth)
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa (MEA)
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  • Insight Code: 5726
  • No. of Pages: 150
  • Format: PDF/PPT/Excel
  • Last Updated: 29 July 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Vidyesh Swar is a Senior Research Analyst at Towards Packaging, bringing over 4 years of dedicated expertise in market intelligence and strategic analysis across the dynamic world of packaging technologies and solutions.

Learn more about Vidyesh Swar

Aditi Shivarkar, with 14+ years in packaging market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards Packaging 's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

The primary growth drivers include the global push for sustainability, the rapid expansion of e-commerce, and increasing demand from the food and beverage packaging sector. Businesses and regulators are shifting from plastic to renewable, recyclable alternatives like unbleached kraft paperboard, making it a strategic material in circular economy models.

With the market projected to grow from USD 7.61 billion in 2025 to USD 11.84 billion by 2034 at a 5.03% CAGR, there is considerable investment potential. High demand across industries, favorable regulations against plastic use, and expanding applications in e-commerce and food packaging create a strong opportunity landscape.

AI enhances efficiency through predictive maintenance, quality control via vision systems, and automated packaging operations. These technologies reduce downtime, improve defect detection, and increase throughput, making operations leaner and more scalable for high-volume producers and converters.

Moisture resistance and limited printability remain key challenges. The rough texture and porous surface can hinder branding and high-quality printing, while uncoated varieties lack waterproofing unless treated, making them less ideal for moisture-prone applications.

Major players like WestRock, Mondi, International Paper, and Smurfit Kappa are expanding through acquisitions and technological upgrades. Innovation in sustainable pulp grades and regional expansion strategies are reshaping competition, while Asian manufacturers are boosting exports due to cost efficiency.

Food and beverage lead due to the material’s strength and compostability. Retail, e-commerce, and consumer electronics are also significant adopters, leveraging kraft’s sustainability and protective capabilities in packaging fragile or branded goods.

Global regulations discouraging single-use plastics and promoting eco-friendly materials are creating tailwinds for kraft paperboard. Government incentives, plastic bans, and industry-wide ESG mandates are accelerating the shift toward biodegradable and recyclable materials.

The future is robust, with technological integration, design innovation, and rising environmental consciousness shaping long-term growth. Companies are expected to invest in R&D for water-resistant and printable kraft solutions while aligning with green packaging trends and ESG frameworks.