Kukil Paper Expands Shift to Paper Packaging Amid Petrochemical Supply Volatility

Kukil Paper, an affiliate of SM Group, is accelerating its transition from petrochemical-based packaging materials to paper alternatives, as volatility in raw material supply reshapes the packaging market.

The company announced it has successfully replaced consumable packaging for a global ice cream brand with paper-based materials and is now supplying the product on a stable basis. Kukil Paper is also developing greaseproof paper for dairy applications, including margarine and butter packaging, as part of a broader expansion into food-grade paper solutions.

The shift comes as supply instability of petrochemical feedstocks such as naphtha—linked to the ongoing Middle East conflict—has driven up prices and disrupted availability of plastic packaging materials. In response, paper is increasingly being adopted as a substitute across industries.

Food and consumer goods companies are accelerating efforts to reduce plastic usage. Dongwon F&B reported cutting approximately 27 tons of plastic annually through its “Yangban Perilla Oil Laver Eco Package.” Meanwhile, Moorim and Shinsegae Food jointly developed the “Neofore Absorbent Pad,” replacing conventional plastic-based materials with 100% natural pulp.

Kukil Paper has been expanding its portfolio of paper-based conversions, including packaging for sanitary products, release liners, and other applications traditionally reliant on petrochemicals. The company is also extending paper usage into everyday items, such as disposable restaurant aprons.

Founded in 1978, Kukil Paper specializes in industrial and specialty paper and operates production lines tailored for food printing and packaging. Its product range includes paper straws, paper-based wet wipes, honeycomb packaging, and kraft pouch packaging.

The company is also investing in next-generation technologies through a government-backed project led by the Ministry of Trade, Industry and Energy. The initiative focuses on developing biomanufacturing processes using bacterial cellulose and commercializing greaseproof and waterproof paper products.

A company representative said demand for paper packaging is rising rapidly due to raw material instability and tightening global environmental regulations, adding that Kukil Paper aims to respond proactively through its specialty paper expertise and ongoing technology development.