Paper Packaging Market Size, Share & Trends Analysis Report By Grade (Recycled, Virgin), By Material (Corrugated Boxes, Folding Cartons, Paper Bags & Sacks), By Application (Food & Beverages, Healthcare), By Region, And Segment Forecasts, 2025 - 2030

Paper Packaging Market Size & Trends

The global paper packaging market size was valued at USD 397.5 billion in 2024 and is projected to grow at a CAGR of 4.8% from 2025 to 2030. This growth is driven by a rising demand for sustainable packaging solutions as consumers and businesses increasingly prioritize eco-friendly options. Paper packaging is lightweight, recyclable, and biodegradable, making it an attractive alternative to plastic and other non-biodegradable materials.

In addition, stringent government regulations and policies promoting sustainable packaging practices further propel market growth. The expansion of e-commerce and the need for cost-effective, customizable packaging solutions also contribute significantly to the market's upward trend. Innovations in paper packaging design and material development continue to enhance its appeal, ensuring its continued relevance in various industries.

The regulations on single-use plastics significantly impact the paper packaging market in Europe, driving a substantial shift towards sustainable alternatives. The European Union's Single-Use Plastics Directive (SUPD) and the Packaging and Packaging Waste Regulation (PPWR) impose stringent restrictions on various plastic products, compelling businesses to seek eco-friendly substitutes, particularly paper-based packaging solutions. These regulations aim to reduce plastic waste and set clear targets for recyclability, encouraging innovation in packaging materials. As a result, companies across sectors such as food and beverages are increasingly adopting paper packaging to comply with these new standards and meet consumer demand for sustainable products.

Countries such as France and Germany are leading this transition, with France implementing strict laws to promote paper alternatives and Germany focusing on recycling and circular economy practices. The heightened regulatory environment has fostered a surge in demand for paper packaging as businesses strive to align their operations with environmental sustainability goals. This shift is further supported by consumer preferences favoring biodegradable and recyclable materials, making paper packaging an integral part of corporate strategies to reduce plastic dependency. However, challenges remain, including the need for improved barrier properties in paper products and the potential environmental impact of increased paper consumption if not managed sustainably.

Grade Insights

The recycled paper segment accounted for the largest share of 55.7% in 2024 due to the growing emphasis on sustainability and environmental responsibility. Recycled paper packaging is favored for its lower environmental impact, as it reduces the need for virgin materials and minimizes waste. Additionally, advancements in recycling technologies have improved the quality and performance of recycled paper, making it a viable and attractive option for various industries. The demand for eco-friendly packaging solutions, driven by both consumer preferences and regulatory pressures, has significantly contributed to the growth of this segment.

The virgin papersegment is expected to grow at a CAGR of 2.2% from 2025 to 2030. Despite the strong push towards sustainability, there remains a consistent demand for virgin paper packaging due to its superior strength, durability, and pristine quality. Virgin paper is often preferred for applications requiring high-quality packaging, such as food, pharmaceuticals, and personal care products, where hygiene and product protection are paramount. The growth in this segment is also supported by ongoing innovations in material science, which aim to enhance the sustainability and performance of virgin paper products.

Material Insights

Corrugated boxes held the largest revenue share in 2024, owing to their widespread use across various industries, including e-commerce, food and beverage, and industrial sectors. They are favored for their durability, lightweight nature, and recyclability, making them ideal choices for shipping and storage. The growing demand for sustainable packaging solutions has further boosted the popularity of corrugated boxes, which are made from renewable resources and can be easily recycled.

The folding cartons segment is anticipated to grow at a CAGR of 5.2% over the forecast period. Folding cartons are widely used for packaging products such as food, beverages, personal care items, and pharmaceuticals. The increasing demand for eco-friendly packaging solutions and the expansion of the e-commerce industry are key drivers for the growth of this segment. Folding cartons offer the advantage of being customizable, lightweight, and recyclable, which aligns with the growing consumer preference for sustainable packaging.

Application Insights

The food & beverages segment dominated the global paper packaging market in 2024. Paper packaging offers several benefits, such as being lightweight, recyclable, and biodegradable, which align perfectly with the growing emphasis on sustainability and environmental responsibility. In the food and beverage sector, paper packaging is widely used to maintain the quality and safety of products while providing an eco-friendly alternative to plastic. The demand for convenient and safe packaging for ready-to-eat meals, snacks, and beverages has significantly contributed to the dominance of this segment.

The e-commerce and retail segment is projected to grow at the fastest rate over the forecast period. Paper packaging is increasingly preferred in e-commerce due to its versatility, durability, and sustainability. The growing consumer preference for online shopping, driven by convenience and accessibility, has significantly increased paper-based packaging for shipping and handling goods. Furthermore, retailers focus on reducing their environmental footprint and aligning with consumer expectations for eco-friendly packaging, which is expected to drive further growth in this segment.

Regional Insights

North America accounted for a 23.2% revenue share of the global paper packaging market in 2024 due to the strong presence of major packaging companies and the growing demand for sustainable packaging solutions in the region. Increasing consumer awareness regarding environmental issues and stringent regulations promoting the use of recyclable materials have significantly boosted the paper packaging market in North America.

U.S. Paper Packaging Market Trends

The U.S. dominated the North American paper packaging market in 2024, driven by a robust industrial base and the rapid expansion of the e-commerce sector. Stringent environmental regulations and the increasing focus on reducing plastic waste further promote the adoption of paper packaging solutions in the country.

Europe Paper Packaging Market Trends

The paper packaging market in Europe is anticipated to grow steadily throughout the forecast period. This growth is supported by the European Union's stringent regulations on single-use plastics and the strong emphasis on circular economy practices. Countries such as Germany and France are leading the transition towards sustainable packaging solutions, with significant investments in recycling infrastructure and eco-friendly packaging technologies.

Asia Pacific Paper Packaging Market Trends

The Asia Pacific dominated the global paper packaging market in 2024, driven by the region's booming e-commerce sector and the growing demand for packaged food and beverages. Rapid urbanization, increasing disposable incomes, and shifting toward sustainable packaging solutions have further fueled the market's growth.

Latin America Paper Packaging Market Trends

The paper packaging market in Latin America is expected to grow at a CAGR of 5.2% from 2025 to 2030. This growth is primarily driven by the increasing demand for sustainable packaging solutions and the region's expanding food and beverage industry. Governments in Latin America are also implementing regulations to reduce plastic waste and promote the use of recyclable materials, which is expected to boost the adoption of paper packaging.

Key Paper Packaging Company Insights

Some of the key companies in the paper packaging market include International Paper Company, WestRock Company, Smurfit Kappa Group, DS Smith Plc, Mondi Group, Crown Holdings, Inc., and others.

• International Paper Company offers a wide range of packaging products, including corrugated packaging, solid fiber packaging, molded fiber packaging, and paper bags. Their solutions cater to various industries, such as eCommerce, food and beverage, personal care, and manufacturing.

• Mondi Group specializes in sustainable packaging, offering a wide range of paper-based packaging solutions, including corrugated packaging, flexible packaging, and specialty papers.

Recent Developments

• In April 2024, International Paper and DS Smith Plc finalized an agreement to merge, establishing a global leader in sustainable packaging solutions. This strategic consolidation is designed to enhance operational efficiencies, streamline supply chains, and lower costs. By leveraging their complementary expertise, the combined entity aims to accelerate innovation and realize substantial synergies that arise from increased global scale.

• In March 2024, ProAmpac finalized the acquisition of UP Paper, a prominent manufacturer specializing in recycled kraft paper. This strategic move will enhance ProAmpac's offerings in the recycled paper packaging sector and strengthen its footprint in high-growth market segments.

Paper Packaging Market Report Scope

Global Paper Packaging Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global paper packaging market report based on grade, material, application, and region.

• Grade Outlook (Volume, Kilotons: Revenue, USD Million, 2018 - 2030)

  • Virgin Paper

  • Recycled Paper

• Material Outlook (Volume, Kilotons: Revenue, USD Million, 2018 - 2030)

  • Corrugated Boxes

  • Folding Cartons

  • Paper Bags & Sacks

  • Liquid Packaging Cartons

  • Others

• Application Outlook (Volume, Kilotons: Revenue, USD Million, 2018 - 2030)

  • Food & Beverages

  • Personal Care & Cosmetics

  • Healthcare

  • Consumer Goods

  • E-commerce & Retail

  • Industrial Packaging

• Regional Outlook (Volume, Kilotons: Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Turkey

    • Netherlands

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

    • Thailand

    • Vietnam

    • Philippines

    • Australia

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • Saudi Arabia