Cement and ClinkerWebinar

Price presentation

Markers: Med Basin, Persian

Gulf-Arabian Sea and East
Africa
Global Kraft Paper Bag Market
& Forecast
May 21, 2020

CW Group LLC | T: +1-702-866-9474 | F: +1-928-832-4762 | Connecticut, USA

Agenda

▪ Introduction to CW Group
▪ Global Kraft Paper Bag Market & Forecast
highlights
− Overview and methodology
− Macroeconomic overview
− Kraft paper bag market overview

2
Presenters

▪ Responsible for providing qualitative and quantitative analysis for

Prashant Singh CW Research. Manages BD for research and consulting projects
Associate Director in Middle East, Asia, and Africa.
psingh@cwgrp.com ▪ Bachelor’s Degree in International Business and Economics from
M:+91 887 960 7047 Saint Peter’s University, New Jersey, US and a Master of Science
degree in International Business from Seton Hall University, New
Jersey, USA

▪ Executes quantitative analysis for CW Research's price and

Wanderson volume assessments in the building material and heavy industrial
Teixeira sectors. Experience in the construction industry.
Junior Business Analyst ▪ Degree in International Relations from La Salle, Rio de Janeiro,
wt@cwgrp.com Brazil
M:+351 930 636 142

3
About the CW Group

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 Strategic advisory  Syndicated market /  Market reporting services
 Management consulting industry study reports  Newsletters
 M&A advice  Reference forecasts  Online data access
 Transaction support  Data and chart-books  Publications
 Due diligence  Commodity price  Meetings
assessments

Business &
Seasoned experts Network & access Proprietary data
technical

CEMENT, BUILDING
MATERIALS & STEEL, METALS & CHEMICALS DRY BULK CARGO,
PORTS AND
POWER, ENERGY
CONSTRUCTION MINING
INFRASTRUCTURE AND SOLID FUELS

4
Client Confidential Information

Global Kraft Paper Bag Market & Forecast

Report highlights

5
What does it include
▪ Executive summary
▪ Methodology
▪ Global Kraft Paper Bag Market Overview
– Types of Kraft paper bag forms
– Market segmentation based on end-user industries
– Market participants
– Alternatives
– Market drivers and market constraints
– Innovation
▪ Competitive overview
– Regional market shares by main manufacturers
– Recent developments
– SWOT of major market participants by region
▪ Historical review (2015-2020) and outlook (2020-2025)
▪ Global and regional Kraft paper bag market size in USD
▪ Company profiles
– BillerudKorsnäs, Mondi, Segezha, Stora Enso,
WestRock and others

For more details visit: https://www.cwgrp.com/research/research-products/paper-

pulp/product/298-global-kraft-paper-bag-market-forecast-report-forecast-to-2025

6
Key end-user segments discussed

Building Materials Agriculture

▪ Main product: ▪ Main product:
o Cement o Wheat
▪ Other products: ▪ Other products:
o Aggregates o Maize
o Sand and gravel o Rice
o Lime o Coarse grains
o Other lightweight building o Soybeans
materials o Other coarse grains

Food Products Chemicals

▪ Main product:
o Sugar
▪ Other products:
o Whey powder
o Whole milk powder
o Skim milk powder
o Sugar beet
o Oats
o Other food products
▪ Main product:
o Fertilizers
▪ Other products:
o Bitumen
o Synthetics rubber
o Powder detergent
o Other chemicals
Client Confidential Information

Macroeconomic overview

8
The economic outlook is as grim as grim gets
Global Economic Outlook 2020 (% GDP)
Start of Year Current
6% 5%
2% 3% 3%
1% 1% 0% 0%

-3%
-6% -6%
-8%
-9%
US Euro Area UK Japan China Emerging Global
Markets

US Economic Outlook 2020 (% GDP)

Q1 Q2 Q3 Q4 Annual
19% 23% 21% 16%
12% 13%
5% 3%

-1% -5%
-4% -6% -3%
-10% -8% -10%

-34% -38%
-40%

Deutsche Bank Goldman Sachs JP Morgan Morgan Stanley

Source: Deutsche Bank, Goldman Sachs, JP Morgan, Morgan Stanley, CRFB, CW Research
 The explosion of COVID-19 pandemic has taken the world by storm,
its impact is still unfolding at this moment…

Source: CW Research, GRN data base

10
Client Confidential Information

Kraft Paper Bag Market & Forecast Report

highlights

11
Sustained growth of the building materials market will continue to be a
major force for the Kraft paper bag market
Building Materials production (mn tons) Kraft paper bag market size (USD)
Cement Sand and Gravel Lime Other BM
CAGR
4,500 2%

3,000

1,500

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 2020E 2025F

Industry trends COVID-19: Industry impact

▪ Key markets in regions like Middle East and
Africa have switched from using three-ply bags
to two-ply bags
▪ Demand for high filling speeds has driven
demand for porous papers.
▪ Manufactures are investing in eco-friendly
cement sacks
▪ Use of paper bags significantly reduce the total
carbon emission of cement packaging
▪ Supply chain disruptions
▪ Paper and pulp prices witnessed increases
due to production shortage
▪ Kraft paper bag is witnessing lower demand
from cement and building materials industries,
as major companies lowered down their
production

Source: CW Group
Within Kraft paper bags market, the Agriculture segment is expected
to witness the biggest growth in the forecasted period
Production (mn tons) Kraft paper bag market size (USD)
Wheat Maize Rice
CAGR
Soybean Other coarse grains Other oilseeds
4%

1,000

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 2020E 2025F

Industry trends COVID-19: Industry impact

▪ Open mouth bags are the most commonly ▪ Supply chain disruptions
used by many grain processing companies
▪ Agriculture industry has been stable during
▪ In Africa, the average PP woven bag size is this pandemic, suffering minimal disruption
100 kg, while in the other regions is 50 kg
▪ PE-Inliners are applied to open mouth and
valve bags in order to protect content from
moisture
▪ In the long term, China intends to switch from
bulk to bag, as its increases containerization

Source: CW Group
 Kraft paper bags enjoy an important share of the food market, not only
due to sustainability focus as well as consumer preference
Production (mn tons) Kraft paper bag market size (bn, USD)
Sugar Whey Powder
Whole milk powder Skim milk powder CAGR
Sugar beet Oats 4%

300

150

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 2020E 2025F

Industry trends COVID-19: Industry impact

▪ Manufacturers are investing in different coating ▪ Supply chain disruptions
technologies for its range of products. Dy-pack ▪ Higher demand for food products, due to
launched a paper bag with a coating barrier to lockdown applied in many parts of the world
provide vapour protection
▪ This led to an increase in demand for Kraft
▪ Dust-proof and watertight paper sacks are also paper bags in this segment
a new trend in the market, as they prevent
contact between the paper and product, with a
high barrier film

Source: CW Group
 Although at a much smaller scale, Kraft paper bag market driven by
chemical products is expected to grow at a steady pace
Production (mn tons) Kraft paper bag market size (bn, USD)
Fertilizers Bitumen Detergent Synthetic rubber
CAGR
4%
400

200

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 2020E 2025F

Industry trends COVID-19: Industry impact

▪ Chemical products are preferable transported
as bulk or big bags and are likely to remain
transported as bulk
▪ Kraft paper bag demand in expected to witness
a slight growth, as HDPE and PP Woven
remain the most common type of bag used
▪ Accelerated oversupply for many chemical
products, due to drastic lower demand
▪ Due to the essential nature of fertilizers
demand for the agriculture sector and it’s
impact on food security, actual long term
impacts of the global pandemic are expected
to be minimal on this sector

Source: CW Group
Global Kraft paper bag market is expected to grow almost three
percent over the next five years
Global Kraft paper bag market outlook for 2025F (bn USD)
Agri
Other
Building Materials Food Products cult Totals
Products*
ure

China

Asia Ex-
China

Western
Europe

North
America
Eastern
Europe &
CIS
Middle
East

Africa

Latin
America

Totals

Source:
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About CW Research
CW Research is a leader in syndicated and data-driven market research solutions. The company offers independent
perspectives on multiple industrial market segments(e.g., cement, metals & minerals, and specialty chemicals) and
deep functional expertise in market intelligence, sourcing intelligence, commodity pricing intelligence.
CW Research also provides custom industry and competitive research programs for operating companies, financial
analysts, consultants, governments, suppliers and many others as well as tailored studies together with CW Advisory.
For more information: research.cwgrp.com.

Contacts

Prashant Singh Carolina Pereira Liviu Dinu

Associate Director Manager, Advisory and Market Services &

Research Marketing Consultant

psingh@cwgrp.com cp@cwgrp.com ld@cwgrp.com

CW Group LLC
PO Box 5263, Greenwich,
CT 06831 USA
T: +1-702-866-9474
F: +1-928-832-4762
www.cwgrp.com