According to Smithers' newly released Research Report "future global linen and kraft paper packaging bag Market 2025", the global linen and kraft paper packaging bag market is expected to reach US $16.16 billion in 2020. Due to the economic chaos caused by the global epidemic of covid-19, the market demand decreased by US $17.72 billion compared with 2019. According to the report, with the economic recovery, the global market demand for linen and kraft paper packaging bags will rebound in 2021, and will expand at a compound annual growth rate (CAGR) of 1.8% from 2021 to 2025. By 2025, its global market size is expected to reach US $18.34 billion.

The global production of linen and kraft paper packaging bags was 18.63 million tons in 2019, 17.01 million tons in 2020, and 19.56 million tons by 2025. The Asia Pacific region is a large regional market in the world, accounting for 42.7% of the global market in 2019.

The epidemic of covid-19 has brought a serious impact on the global economy. The global stock market has recovered after falling by 30% - 40%, although it is still volatile. Governments of all countries will take major interventions in the money supply in the short term to support individuals and enterprises. Due to the sharp reduction in demand, oil prices have plummeted and showed a negative growth trend.

It is estimated that the global economy will shrink significantly by 4.2% in 2020. This will also have an impact on the packaging market, dragging down the market of linen and kraft paper packaging bags. From 2021 to 2025, linen and kraft paper packaging bag manufacturers will face new challenges in their efforts to increase sales.

According to Smithers' Research Report, the following four areas may become new growth points of enterprise sales:

Environmentally friendly brand

Consumers' environmental awareness increasingly affects their preferences for packaging appearance and commodity purchase decisions. Many consumers love those packaging products that are environmentally friendly and easy to recycle, such as linen and kraft paper packaging bags.

Many brand enterprises began to use kraft paper packaging, hoping to show environmental protection commitments to environmental consumers with the help of the "natural" appearance of brown kraft paper. According to a 2018 study by Coleman Parkes research, 75% of consumers will consider whether product packaging materials are environmentally friendly when making purchase decisions. Most consumers are willing to give up a brand for environmental protection and choose brand goods that use environmentally friendly packaging materials.

Kraft paper shopping bags are also becoming more and more popular in retail supermarkets, and are regarded as "fashion labels" by those millennial / cross century born shopping groups.

Major brands have developed new uncoated kraft paper packaging to meet this demand.

Enterprises around the world have also made many achievements in developing non Petrochemical functional barrier packaging materials. Billerudkorsn? S developed a kind of grease proof paper, namely basix repel pure. It is made of a paper based on oil repellent vegetable fiber, which is suitable for all kinds of food bags that need oil resistance.

In addition, other natural biopolymer coatings (such as barrier coating materials used in milk cartons) are being developed and tested on a large scale. In addition, other solutions under development include easy removal of functional coatings and adhesives (MFC).

Product innovation

In other market sources, manufacturers are also developing new linen and kraft paper packaging bag products to replace existing plastic packaging. Due to convenient distribution and low weight, many plastic packaging products have been widely used in the market. In view of its difficulty in recycling, multi-layer polymer plastic packaging has been rejected by more and more brands. If environmental protection products matching the performance of flexible plastic bags can be provided, this is a good market opportunity for packaging suppliers.

For example, German pet food manufacturer Mera Tiernahrung cooperates with Mondi company to use modei's flexibag recyclable paper bag in a new type of semi humid racket dog food it sells. This paper bag is made of paper with a single PE barrier coating and can be completely recycled. The paper bag has a special two-way air valve, which can discharge excess air after filling the bag, so as to greatly reduce the occupied space. At the same time, the resealable sealing strip can ensure that the contents of the bag remain fresh after being opened.

The household express food distribution market is growing, and some paper companies have also developed anti theft packaging bags to ensure the integrity of food distribution. There is also a lot of demand from online shopping express to replace the current paper plastic packaging with linen and kraft paper packaging bags. However, these packages need to be strong to protect the safety of the goods during shipment and can be resealed when the products are returned.

For example, the Italian supermarket chain esselunga cooperates with Botta packaging, a packaging company headquartered in Milan, to develop a kraft paper bag with corrugated paper lining for the safe delivery of online orders of eggs and bottled goods. This bag avoids the process that consumers need to distinguish packaging materials of different materials when recycling plastic foam packaging.

Optimize printing methods

Brands are increasingly demanding high printing quality packaging products. This is especially true in the FMCG industry. In this field, when competing with other goods, high-quality graphics determine the visual appeal of packaging on retail shelves. Digital (ink jet and toner) printing is increasingly used in linen and kraft paper packaging bags. This leads to higher requirements for kraft paper surface to adapt to the improvement of printing quality.

At the 2018 European glasses annual conference, HP exhibited the digital printing paper bags produced by seejong company from South Korea. Using HP pagewide t400s inkjet printer, seejong can economically produce medium and short batches of aesthetic kraft paper bags, and can add other promotional information in different languages and seasons.

Shrink packaging

In many end market areas, the size of packaging products has a trend of continuous reduction. Due to the decline of household population, food consumers tend to buy less frequently. However, this trend alleviates the impact of packaging lightweight to a certain extent. Because the use of these small packages for products with the same volume requires more paper materials, and the larger printing surface area requires more ink and adhesive.