The sales of ecommerce paper bags in Europe are estimated to be worth USD 1.8 billion in 2024 and are anticipated to reach a value of USD 2.8 billion by 2034. Sales are projected to rise at a CAGR of 4.4% over the forecast period between 2024 and 2034. The revenue generated by ecommerce paper bags in 2023 was USD 1.7 billion. The industry is anticipated to exhibit a Y-o-Y growth of 3.9% in 2024.
Textile is leading the end use category with 30% of value share in Europe ecommerce paper bags market. The textile leads the Europe e-commerce paper bags market, as it depend highly on the high online sales of clothing, accessories, and footwear, which are prone to require lightweight and ecofriendly packaging. For most fashion consumers, sustainability is perused with high demand, and here, recyclable paper bags fit perfectly into this category.
Paper bags encourage the branding and aesthetics, these are basically necessities in the fashion industry. Meanwhile regulatory pressure gives impetus towards sustainable packaging for textiles. Paper bags are offering positive experiences regarding unboxing when high street fashion brands are looking for customer engagement. Textile in Europe ecommerce paper bags industry is anticipated to grow further at 3.1% growth rate during assessment years.
Europe Ecommerce Paper Bags Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 1.7 billion |
| Estimated Size, 2024 | USD 1.8 billion |
| Projected Size, 2034 | USD 2.8 billion |
| Value-based CAGR (2024 to 2034) | 4.4% |
Block bottom bags among product type is most adopted paper bag in Europe with holding 21% of value share in 2024. Block bottom bags are seen to lead in ecommerce paper bags market in Europe due to their astute design and can thus hold anything right from the apparel to food items. The structure of the bag lends stability to the product it holds and is thus considered ideal for shopping. This block bottom structure also makes stacking quite easy, which naturally plays a helpful role in logistics and storage.
In addition, block bottom bags provide a large surface area for branding which is in line with the requirements of retailers for custom packaging. Their durability and flexibility make them a favorite for many sectors in e-commerce. Block bottom paper bags are projected to grow at 4.9% CAGR through 2034.
The ecommerce paper bags industry in Europe is set to experience moderate growth during the forecast period. It is projected to create an incremental opportunity of USD 1.0 billion and is predicted to rise 1.5 times the current market value through 2034.
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The below table presents the expected CAGR for the Europe ecommerce paper bags market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 4.5%, followed by a slightly lower growth rate of 4.2% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 4.5% (2023 to 2033) |
| H2 | 4.2% (2023 to 2033) |
| H1 | 4.3% (2024 to 2034) |
| H2 | 4.7% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 4.3% in the first half and remain relatively moderate at 4.7% in the second half. In the first half (H1) the market witnessed a decrease of 30 BPS while in the second half (H2), the market witnessed an increase of 40 BPS.
Rising Demand for Sustainable Packaging
The need for sustainable packaging has risen up as consumers are emphasizing green choices as not to dispose of wasteful plastics anymore and further minimize environmental impacts. Paper bags, being recyclable and biodegradable, appeal to every consumer who considers an environmentally friendly option for most purchases. The corporate world does the same as the transition in consumer preferences translates into practice in CSR commitments.
Many brands are actually reflecting pro-eco-friendly values, one of the ways they visibly demonstrate it is using eco-friendly bags or paper bags for packaging. It helps to convince certain buyers who do possess eco-consciousness but it also makes a brand look better because it is responsible and forward thinking in its approach.
Increase in Ecommerce & Online Shopping
The growth in e-commerce has recently surged due to the pandemic and has significantly increased the demand for efficient yet environmentally friendly packaging solutions. Brands are increasingly shifting their concentration from shipping to paper bags as a significant element of the brand experience because they have started to explore online shopping. The trend has been particularly appreciated by DTC brands that focus on direct relationships with customers.
This is a great first impression in retaining their core value while delivering maximum customer loyalty through the use of sustainable branded paper bags. Sustainable packaging also appeals to eco-conscious customers and enhances the reputation of the brand positioning it with boarder environmental expectations.
Limited Durability & Strength Restricts the Expansion
Paper bags are weaker than plastics since, generally, it is less weight bearing. This means that its application for heavy or bulky merchandise is somewhat limited, which in turn, limits the range of products that can be placed inside paper bags. Furthermore, paper bags are water sensitive and tend to deteriorate or tear upon exposure to wet or dampness conditions. It exposes ecommerce shipment as weakness as the bags are likely to tear open during shipping.
In this case, moisture sensitive products would therefore be damaged. Brands, therefore must weigh up these constraints with the sustainability advantages that entail secondary protective measures in ensuring the safety of the products.
Principal Consultant
The Europe ecommerce paper bags industry recorded a CAGR of 3.8% during the historical period between 2019 and 2023. The growth of the ecommerce paper bags industry was positive as it reached a value of USD 1.7 billion in 2023 from USD 1.5 billion in 2019.
The market for paper bags in e-commerce across Europe was relatively strong, basically on the back of increased online spending, severe environmental norms, and the increasing demand from customers who are turning toward more sustainable alternatives. The Europe ecommerce paper bags market had experienced steady growth in the wake of increasing consumer awareness related to environmental sustainability and higher government regulations toward reduced usage of plastics, coupled with an ecommerce boom, which the pandemic accelerated.
Growth throughout this period has hovered as companies sought to replace plastic packaging with paper-based alternatives despite some cost and supply-related issues in the paper pulp market. As paper bag manufacturing improved the durability and moisture resistance of paper bags, they were applicable to more products. In the meantime, despite the growing consumer demand for customization, using paper bags helped brands maintain their identity and improve customer experience.
In forecast years, there will be substantial growth attributable to ongoing regulatory pressure against plastic, corporate commitments to sustainability, technological improvement in recycled materials, as well as efficient ways of production. Innovation in paper bag production continues to strengthen products, improve water resistance, and even recyclability, and thereby expand the application into other categories of products, driven by demand that is growing even higher by increasingly stringent regulations such as the EU Green Deal, and ambitious sustainability targets across industries.
DTC brands, many of which are now coming from the sustainable-focused categories like fashion and personal care, will also advocate for paper bags. Other developments around the unboxing experience with premium finishes and custom design will attract high-end brands, and paper bags will become an indispensable packaging solution for ecommerce. This concentration on sustainability, backed by regulations, combined with innovation, opens up the paper bags market to vast growth through 2034.
Consumer demand, increasingly from the sustainability-conscious Gen Z buyer, will drive further organic growth in the market. Western Europe will remain the stronghold, but the markets in Eastern Europe will probably grow really fast as more and more of these customers embrace sustainability and e-commerce adoption grows.
Tier 1 companies in the Europe ecommerce paper bags industry include Mondi Plc, Papier Metler Gmbh, International Paper, and DS Smith Plc with market revenue above USD 30 million. These manufacturers are market leaders in ecommerce paper bags within Europe industry having extensive production capacity, different product offerings, and extensive manufacturing expertise. These companies are capturing around 14% to 18% of market share in the Europe ecommerce paper bags industry.
Tier 2 of the Europe ecommerce paper bags industry incorporates companies like Sealed Air Corporation, GASCOGNE SA, Billerud AB, Novolex Holdings LLC, and Smurfit Kappa Group with revenue of USD 10 to 30 million. They have limited presence, and well-maintained knowledge but may not have expertise and advanced manufacturing technology.
Tier 3 category in the Europe ecommerce paper bags market includes the small-scale players of the region with revenue below USD 10 million. These companies fulfil the local market demand and are recognized as an unorganized market. They have a country level presence, limited manufacturing facilities, and expertise in local market needs.
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The section below covers the industry analysis of the ecommerce paper bags market for different countries. Market demand analysis on key countries in several countries of the Europe, including Germany, UK, Spain, France, Italy, Russia, Poland, and others, is provided. UK projected to grow at 5.4% CAGR during forecast period while Poland is anticipated to reach almost 2.9% of value share in 2034 end.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| UK | 5.4% |
| Germany | 4.2% |
| Poland | 2.9% |
| Italy | 4.7% |
| Spain | 6.3% |
| France | 3.4% |
Germany is anticipated to reach 16.7% of the value share of Europe in 2034 and create incremental growth opportunity worth USD 172.4 million during assessment period. As per the International Trade Administration, USA Department of Commerce, the market for e-commerce in Germany is expanding. The total sales of e-commerce in Germany was recorded as USD 141.2 billion in 2022 which is around 11% more growth as compared to 2021.
With more and more consumers buying goods online, there is more movement of commodities and the need for supportive, often branded, packaging. The trend is leading to higher demand for environmentally friendly, sustainable packaging and particularly paper bags, German shoppers and business leaders placing much emphasis on the environmentally friendly practice.
There is also much impetus from stringent regulations on the use of plastics that is increasing the appeal for paper bags in quite a number of Germany e-commerce retailers. Hence, the rise in sales for e-commerce has increased the application of paper bags not only as an easily disposable packaging material but also as a branding agent in the dynamic market for e-commerce in Germany.
Food and drink industry in United Kingdom is one of the largest manufacturing sector with USD 139.2 million turnover, as per the Food and Drink Federation report. United Kingdom is anticipated to gain USD 621.9 million revenue in assessment period. Rising demand from consumers and government policies about reducing plastic waste have compelled food and beverage companies to change their approach towards the use of recyclable and ecofriendly paper bags in packaging and delivery.
Such movements in ecommerce food sectors like meal kits, takeaways, or specialty groceries is relevant because packaging sustainability may become a decisive factor for buyers. The more of these business that join the global commerce, the more there will be a demand for sturdy, food safe bags to protect and serve products with a good presentation to support the role that paper players in UK food and drink e-commerce markets.
The section contains information about the leading segments in the industry. Recycled paper is projected to grow at 3.7% CAGR through 2034. Cheese & dairy applications is projected to grow at 4.3% by end of 2034.
| Material | Recycled Paper |
|---|---|
| Value Share (2034) | 46.8% |
By 2034, the e-commerce paper bag market in Europe is expected to take in 46.8% by recycled paper with growth of 3.7%, mainly attributable to the environmental factor and to meet strict parameters in the European regulatory framework on environmental regulations. As the world goes green and businesses are now realizing the consequences of packaging that causes deforestation and minimizes wastage, recycled paper steps in as a low-impact alternative for sustainable packaging.
Paper recycling is often cheaper and more accessible as well, and the motive for companies to spend less without compromising on the aspect of sustainability is attractive enough. Recyclable paper quality has also improved over the years and quality recycled paper is strong and appropriate for an online application like e-commerce. This trend indicates a strong shift toward circular economy practices across industries.
| Size | Medium |
|---|---|
| Value Share (2034) | 37% |
Medium-sized paper bags are expected to capture about 37% of the market size by the end of 2034, with a revenue of USD 1,067.3 million due to its wide applicability in all kinds of e-commerce sectors. This size is good for hot online-selling items like apparel and accessories and other small household items because it finds a middle line between practicality and material efficiency.
Medium-weight and lightweight bags are very convenient to handle and cost-effective for shipping, not to mention helping to lessen the environment impact. Furthermore, they can provide ample space for branding, which stimulates customer interaction with companies. Their versatility and widespread usability make them suitable for various kinds of e-commerce needs.
European e-commerce paper bags market is an extremely competitive, driven by novel innovations in packaging make the key players, including Mondi, Smurfit Kappa, and DS Smith. Eco-friendly material types and designs are easy to customize for branding and become attractive for those companies and brands who put emphasis on sustainability and distinct branding. Local manufacturing hubs also bring firms logistical advantage in cost and emission terms.
Through strategic partnerships and acquisitions, companies have been able to reach more customers with changes in market demand. This is backed both by consumer preference for sustainability and regulatory pressures on the use of plastic.
Recent Industry Developments in Europe Ecommerce Paper Bags Market:
Ecommerce paper bags industry is divided into virgin kraft, sack kraft, recycled kraft, recycled paper, and other.
Ecommerce paper bags industry is segregated into side gusset, flat, block bottom, bottom gusset, double gusset, padded, and other.
The industry is classified by small, medium, large, extra-large, jumbo, and other customized.
The industry is classified by upto 70 gsm, 71 to 80 gsm, 81 to 100 gsm, 101 to 150 gsm, 151 to 200 gsm, and above 200 gsm.
The industry is classified by food & beverage, pharmaceutical & nutraceutical, personal care & cosmetics, homecare, furniture & garden, consumer electronics, textile, automotive parts, and others.
Key countries like Germany, Spain, Italy, France, UK, Benelux, Nordic, Russia, Poland, Romania, Hungary, Portugal, Austria, Bulgaria, Czech Republic and rest of Europe, have been covered in the report.
The Europe ecommerce paper bags industry is projected to witness CAGR of 4.4% between 2024 and 2034.
The Europe ecommerce paper bags industry stood at USD 1.7 billion in 2023.
The Europe ecommerce paper bags industry is anticipated to reach USD 2.8 billion by 2034 end.
Spain is set to record the highest CAGR of 6.3% in the assessment period.
The key players operating in the Europe ecommerce paper bags industry include Mondi Plc, Papier Metler Gmbh, International Paper, and DS Smith Plc.
1. Executive Summary 2. Industry Introduction 2.1. Market Taxonomy 2.2. Market Definition 3. Market Trends and Success Factors 4. Market Background 4.1. Macro-economic and Industry Outlook 4.2. Market Dynamics 4.3. Value Chain Analysis 4.4. List of Key Market Participants (Manufacturers/Channel Partners) 4.5. Analysis of Key Industry Matrices 4.6. Industry Development Roadmap 5. Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034 5.1. Historical Market Volume Analysis 5.2. Future Market Volume Projections 6. Pricing Analysis 7. Market Value (USD) Analysis 2019 to 2023 and Forecast 2024 to 2034 7.1. Historical Sales Analysis 7.2. Future Market Size and Growth Projections 8. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Material 8.1. Virgin Kraft (brown) 8.2. Sack Kraft 8.3. Recycled Paper 8.3.1. 50% Recycled 8.3.2. 100% Recycled 8.4. Others (Greaseproof Paper and Newsprint Paper) 9. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Product 9.1. Side Gussets (Pinch) 9.2. Flat (Envelope) 9.3. Block Bottom 9.4. Bottom Gusset 9.5. Double Gussets (Side + Bottom Gusset) 9.6. Padded 9.7. Others 10. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Size 10.1. Small 10.2. Medium 10.3. Large 10.4. XL 10.5. Jumbo 10.6. Other Customized 11. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Thickness 11.1. Up to 70 GSM 11.2. 71 to 80 GSM 11.3. 81 to 100 GSM 11.4. 101 to 150 GSM 11.5. 151 to 200 GSM 11.6. Above 200 GSM 12. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End Use 12.1. Food & Beverages 12.2. Pharmaceuticals & Nutraceuticals 12.3. Personal Care & Cosmetics 12.4. Home Care 12.5. Furniture & Garden 12.6. Consumer Electronics 12.7. Textile 12.8. Automotive Parts 12.9. Others 13. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Country 13.1. UK 13.2. Germany 13.3. Poland 13.4. Italy 13.5. Spain 13.6. France 13.7. Portugal 13.8. Austria 13.9. Romania 13.10. Bulgaria 13.11. Hungary 13.12. Czech Republic 13.13. Nordics 13.14. BENELUX 13.15. Rest of Europe 14. Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market and Country 15. Sales Analysis 2024 & 2034 by Key Market Segments for 30 Countries 16. Competition Outlook including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 17. Company Profile 17.1. Mondi Plc 17.2. Smurfit Kappa Group 17.3. Sealed Air Corporation 17.4. International Paper 17.5. DS Smith Plc 17.6. Stora Enso Oyj 17.7. Billerud AB 17.8. Welton Bibby And Baron Limited 17.9. Coveris Holdings SA 17.10. Proampac LLC 17.11. LC Packaging International BV 17.12. Huhtamaki Oyj 17.13. Novolex Holdings LLC 17.14. Gascogne SA 17.15. Papier Mettler GmbH 17.16. AB Group Packaging 17.17. Toybe Global Packaging 17.18. Carpad SpA 17.19. Raja SAS 17.20. Mayr-Melnhof Karton AG 17.21. MURAPLAST d.o.o. 17.22. Jonsac AB 17.23. Fiorini International Italia S.p.A. 17.24. Nordwerk Verpackungen GmbH & Co. KG 17.25. Masterpress S.A.
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Ecommerce Paper Bags Industry Analysis in Europe
