Paper Packaging Market – By Raw Material, Product, Application– Global Forecast, 2025-2034

Paper Packaging Market Size

The global paper packaging market was valued at USD 410.5 billion in 2024, with expectations to reach USD 596.5 billion by 2034, growing at a CAGR of 3.8%.
 

Paper packaging involves corrugated boxes, paper bags, and cartons that are commonly used to safeguard and ship products across a range of industries. It is biodegradable, and recyclable puts it in line as a greener option than plastic packaging and complements world moves towards environmentally friendly practices.?
 

The food industry expansion drives the demand for attending paper packaging. Greater demand for convenience and ready to eat foods raises the need for more efficient and cost-effective packaging. The increase in the use of paper packaging is driven by the growth in the pharmaceutical industry as well. For instance, there is a growing global appetite for medicines and other healthcare products which will increase the need for proper secure and sustainable packaging. Paper-based packs meet the requirements for the protection of pharmaceutical products while supporting the environmental sustainability agenda. The use of substitutes for plastic also stimulates the development of the paper packaging market. Altogether, the growth in food and pharmaceutical industries, in addition to the global shift towards sustainable alternatives, drives the paper packaging.
 

Despite continuous growth there are challenges in the market which restrict the growth. One of the challenges is the paper package’s resistance to moisture and water. Unlike plastic or metal made packages, paper materials can get water soaked, which makes them lose their considerable amount of strength. Because of this, paper-based packaging will not be effectively used in packaging for high moisture products and frozen foods which lowers a paper packages practicality. While paper resistant coatings and dyes that increase a package's strength exist, they are not usually eco-friendly.
 

Another issue is its minimal barrier performance. Paper packages are less resistant to protective factors like air, light, and pollution when compared to plastic and metal packages. Such barriers compromise the shelf life of some goods, especially in food and medicine.
 

Besides, paper packaging is more vulnerable to damages in transit or with handling. These negative attributes make it less suited for heavy and bulky, or long-distance shipping. Losing these products becomes easier due to their greater fragility. These challenges need to be met by ongoing innovation in materials science to enhance the strength and barrier characteristics of paper-based products while not compromising their environmental advantages.
 

Paper Packaging Market Trends

• Improvements in technology relevant to paper packing: The use of paper for packaging has been made possible by innovations such as biodegradable coatings and water-resistant treatments. In this regard, FiberLean MFC technology development is an example since its advances in paper fibers improves its strength and barrier properties, enabling such paper to be used for packaging food and liquids. Furthermore, the increased use of automation in the manufacturing processes has also greatly reduced the amount of energy that is consumed, thus, making the production of paper packaging more eco-friendly. 
   
• Increasing expenses due to supply problems: The increase in costs of other materials along with the increased shipment and supply constraints due to the pandemic have also affected the paper packaging industry. Delay and increased expense in shipping pulp increases cost. Also, waste recycling and management systems are too inefficient which depresses growth in many parts of the world that don’t have good recycling systems. 
   
• Expansion in the e-commerce sector: The combined effect of growth in paper use and the increased popularity of online shopping has led to greater demand for paper-based packaging material. As businesses shift focus to selling goods online, there is greater need for efficient, eco-friendly, and low-cost packaging options. Paper packaging is now in huge demand owing to its lightweight, easy adaptability towards recycling, and customized designs for different products.
   
• Consumer demand for sustainable packaging: Research done by DS Smith based in the UK found that 51% of grocery items using plastic packaging could be substituted or modified in a more environmentally conscious way such as using sustainable designs. This suggests strong potential in using paper-based packaging to satisfy the increasing demand of the consumers that are conscious about their carbon consumption.
   

Paper Packaging Market Analysis

The paper packaging market by raw material is segmented into fresh sources and recycled wastepaper. Recycled wastepaper accounted for 53.6% of the market share in 2024.
 

• Recycled wastepaper is the dominant raw material in the paper packaging market due to its cost-effectiveness and environmental benefits It profoundly saves the use of virgin pulp paper, which in return reduces the production deforestation and energy consumption rate. Governments globally are implementing stringent policies on waste management, which positively impacts the application of recycled materials in the packaging industry.
   
• Branding and brand owners across different industries such as food and beverages, personal care, electronics, etc. prefer using recycled paper for packaging because of its sustainability value. Companies are rapidly changing their branding strategy by incorporating eco-friendly alternatives like paper packaging which helps in achieving corporate social responsibility (CSR) objectives along with sustainability goals.
   
• Decades of experience and new technological advancements in paper recycling processes has made it possible to incorporate the use of recycled paper in even stronger and durable products. Innovative methods are improving barrier and moisture resistance making it more economically favorable when compared to traditional fresh fiber based packaging.
   
• For high strength and food grade applications where hygiene and structure integrity is vital, fresh fiber sources are still important. However, increasing deforestation and environmental damage concern will yield the recycled alternatives more favorability in market share.
   

Based on product, the paper packaging market is segmented into folding boxboard, solid unbleached board, solid bleached board, white lined chipboard and containerboard. Folding Boxboard made up 24.8% of the market in 2024.
 

• Folding boxboard encompasses the strongest products on the paper packaging frontier for its popular use in industries like food, beverages, pharmacy, and cosmetics – all of which utilize it for its superior strength, lightweight, and excellent printability. In addition, its high stiffness-to-weight ratio guarantees low-priced transportation costs on top of immense durability.
   
• The food packaging sector is one of the main consumers of folding boxboard since it offers a non-toxic and recyclable material that can be used in direct food contact solutions. Moreover, many regulatory entities around the globe have strict requirements regarding food packaging, which greatly magnifies the consumption of high-grade paperboard like folding boxboard.
   
• Folding boxboard is the main form of packaging utilized in the pharmaceutical industry for drugs, medical devices, and personal care items. Pharmaceutical companies opt for folding boxboard enhanced with high strength print and embossing features for branding, labelling, and even anti-counterfeiting purposes.
   
• Retail and e-commerce folding boxboard packaging solutions, along with many others, have benefitted from the increase in sustainability initiatives and plastic reduction efforts. In addition, countless firms are replacing their folding boxboard with plastic blister packs and rigid containers to fulfil their environmental pledges.
   
• Folding boxboard's mechanical moisture resistance and durability, stemming from plastic-based packaging, serve as great benefits which, together with advancements in coating and barrier technologies, have significantly bolstered the material's standing.
   

Based on application, the paper packaging market is segmented into food & beverages, non-durable goods, durable goods and medical. Food & beverages made up 40.1% of the market in 2024.
 

• The paper packaging market is primarily dominated by food and beverages owing to the shift in consumer preferences towards eco-friendly and sustainable packaging materials. The conversion to paper substitutes has been expedited by growing concern towards the environment and government legislation aimed at reducing the use of plastic.
   
• Papercraft offers lightweight, recyclable, and customizable solutions which has increased their application in bakery goods, dairy products, frozen items, and ready to eat meals. To increase brand value and meet sustainability targets, various brands have shifted to using paper-based cartons and containers.
   
• There has been a greater need to accommodate the growing customer focus on health and using safe and non-toxic packaging materials. Paper based food containers are favoured amongst consumers as they are less likely to chemically contaminate food compared to plastic, making them safe and compliant with rigorous hygiene standards.
   
• The increase in the number of quick service restaurants (QSRs) and the growth in online food delivery has created a greater need for food packaging supplies such as takeaway boxes, paper cups, wraps, and other containers. In a bid to achieve their sustainability objectives, many top global restaurant chains are now opting to use paper-based solutions.
   
• Waxing and waning barrier coating enzymes have aided in paper packaging's sustainability as an eco-friendly substitute for plastic by enhancing the longevity and moisture resistance of the product's barrier. Novel coatings that provide advanced resistance to grease and water are facilitating the use of paper packaging in the food industry while still allowing for its recyclability.
   

U.S. paper packaging market accounted USD 110.1 billion in 2024.
 

• U.S. dominates in the North American paper packaging industry because of the government’s influence towards sustainable packaging. Initiatives like the Extended Producer Responsibility (EPR) and the prohibition on single-use plastics made it necessary for many industries to switch to paper-based alternatives. Moreover, the shift to sustainable solutions for packaging and net-zero emission goals by corporations are paying handsomely in paper-based options.
   
• The growth of the food & beverages, e-commerce, and pharmaceutical industries have strongly supported the paper packaging market. The boom in the sales of goods coupled with at-home delivery has boosted the demand for folding cartons, paper mailers, and corrugated boxes. There is a growing adoption of sustainable packaging to meet consumer and legal requirements. There is also a wider use of biodegradable coatings and moisture resistant paper that make products made from paper stronger which makes them the most suitable for many industries.
   
• The U.S. market has seen a significant shift towards marketing eco-friendly sustainable packaging products because of sustainable and green consumerism. There is a growing preference among consumers for recyclable and biodegradable packaging as a positive shift in sustainability culture and awareness is observed. There has also been an increase in demand for food grade non processed and non-harmful packaging materials, especially in the packaged food and beverage industry.
   
• Research show that consumers tend to view products delivered in paper-based packaging as superior and socially responsible resulting in brands increasing the use of paperboard, kraft paper, and even compostable paper wraps to appeal to their customers. Furthermore, younger generations especially millennials and Gen Z increasingly consider sustainability when buying products which forces companies to move towards eco-friendly paper-based packages rather than plastic.
   

Paper Packaging Market Share

Paper packaging industry is highly competitive, with leading competitors working towards innovation and sustainability to strengthen their foothold in the industry. WestRock and Smurfit Kappa Group are top industry players that utilize sophisticated packaging technologies alongside their robust supply chain networks. These companies have constantly focused their R&D efforts towards developing sustainable plastic alternatives, eco-friendly packaging, and high-performance materials to meet the ever-rising global need.
 

With their comprehensive business model that includes everything from sourcing raw materials to designing packaging, WestRock operates in numerous markets successfully. The company's focus on capturing a market share with their unique offering such as recyclable and biodegradable coatings have also blended beautifully with circular economy principals. WestRock have further deepen the foothold with the acquisition driven growth strategy by merging with other important regional operators. Furthermore, the company has established itself as the main supplier to large players in the market of e-commerce and retail, especially in the food and beverage sectors, as well as online shopping.
 

Smurfit Kappa Group has marked its indelible presence in the global arena with Europe and North America as its strong manufacturing base. The group has continuously expanded its focus on industry innovation, which has helped streamline its market share integration, capitalizing on the recent trend verging towards fiber-based substrates substituting plastics. In addition to perpetually expanding their construction capabilities, the firm’s investment has further developed in digital printing and smart packaging technology, which acts as a differentiating factor and sustains the company's competitive edge.
 

Like other well-known companies Smith, International Paper group, Mondi PLC, and Packaging Corporation of America, these also put primary focus into diversification, mergers & acquisition of the brand, and eco-friendly practices to optimize additional market share. It is anticipated that due to stronger regulation and growing consumer bias towards recyclable and biodegradable goods, these manufacturers will consistently maintain a more aggressive approach towards innovation and growth, thereby changing the balance of competition for the global paper packaging market.
 

DS Smith is one of the global providers for sustainable paper packaging solutions that have a keen focus on recyclability and fiber-based materials. The firm DS Smith has invested considerably in circular economy policies to ensure that the companies packaging products are 100% recyclable. The firm has also increased its footprint in North America through various mergers and acquisitions which has strengthened the firm’s position in e-commerce and retailing breakout sectors. Furthermore, DS Smith works alongside other leading brands and companies to create packaging designs that are environmentally friendly by minimizing carbon emissions as well as improving supply chain management.
 

Mondi leads globally in flexible and sustainable paper-based packaging. The company has significantly broadened its product range with the introduction of high barrier paper packaging for food and consumer goods. Mondi's recent investment on European manufacturing plants is to improve production efficiency as well as respond to the ever-increasing demand for recyclable packaging. The company is well-known for making a shift in the industry by producing lighter, yet stronger, paper-based products.
 

Paper Packaging Market Companies

Some of the eminent market participants operating in the paper packaging industry include:

• DS Smith
• International Paper Group
• ITC Limited
• Mondi plc
• Nippon Paper Industries
• Oji Holding Corporation
• Packaging Corporation of America
• Smurfit Kappa Group
• Stora Enso
• Svenska Cellulosa Aktiebolaget
• WestRock 
   

Paper Packaging Industry News

• In March 2025 - Ahlstrom has introduced LamiBak Flex, a novel base paper for flexible food packaging. It enhances barrier properties while reducing primer coating necessity, in turn saving cost. It can be coated, metallized, or extruded as a pouch or sachet material.
   
• In March 2025- KM Packaging launched K-Nature Paper HBe, a high barrier, kerbside recyclable paper packaging material. It is made of more than 85% paper with a PE coating and EVOH barrier, making it a sustainable substitute towards flexible plastic packaging in many applications.
   
• In February 2025- Koehler Paper has partnered with the Italian pasta firm Astrabio to produce heat-sealable flexible paper packaging for pasta. The Koehler NexPlus Seal Pure paper was able to provide protection, recyclability, and lower carbon footprint as compared to traditional plastic packaging.
   
• In October 2024- Suzano finalized the purchase of two industrial plants from Pactiv Evergreen in Arkansas and North Carolina. This was accompanied by an increase of 420,000 metric tonnes of paperboard capacity, which established Suzano as a Liquid Packaging Board supplier in North America.
   

The Paper Packaging market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Billion and volume in terms of Kilo Tons from 2021–2034 for the following segments:

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Market, By Raw Material

• Fresh sources
• Recycled wastepaper

Market, By Product

• Folding boxboard
• Solid unbleached board
• Solid bleached board
• White lined chipboard
• Containerboard

Market, By Application

• Food & beverages
• Non-durable goods
• Durable goods
• Medical

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE