Industry Analysis of Paper Bag in North America

An Overview of Paper Bag in North America from 2023 to 2033

Total paper bag sales in North America are estimated to be valued at US$ 3,203.8 million in 2023. Revenue is projected to reach US$ 4,295.1 million by 2033 end. Sales are anticipated to expand at a CAGR of 3.0% over the forecast period between 2023 and 2033.

Revenue generated from the sales of paper bag in North America valued at US$ 3,093.6 million at the end of 2022. The retail segment by end-use accounts for almost 43.4% share in terms of value by the end of 2023

The brown kraft segment is estimated to hold a share of almost 56.1% leads the North America paper bag within the material type category. It is expected to expand at a CAGR of 2.0% over the forecast period from 2023 to 2033. In terms of thickness, the 101 to 150 microns segment is anticipated to surpass at 2.0% CAGR between 2033 and 2033.

Key Highlights Driving Demand for Paper Bag in North America

• There has been a significant shift towards eco-friendly packaging options, including paper bag. This due to increasing environmental concerns. This trend is driven by consumers' preference for sustainable and biodegradable packaging materials.
• North American cities and states have implemented or are considering bans on single-use plastic bag, further boosting the demand for paper bag as an alternative.
• Businesses are increasingly using paper bag as a means to enhance their branding efforts. Customized paper bag with unique designs and logos are gaining popularity.

2018 to 2022 North America Paper Bag Industry Analysis vs. 2023 to 2033 Forecast

The demand for paper bag in North America grew at a CAGR of 1.9% in the historical period from 2018 to 2022. It is anticipated to witness a CAGR of 3.0% in the projection period. Revenue generated from paper bag sales in North America stood at US$ 3,093.6 million in 2022.

There is a growing emphasis on sustainability and environmental consciousness, with consumers and businesses opting for eco-friendly packaging alternatives over plastic-based materials. With growing environmental awareness, e-commerce companies are shifting towards sustainable packaging solutions. Paper bag are eco-friendly and biodegradable, making them an attractive option.

Various e-commerce businesses use branded paper bags to enhance their brand image and provide a better unboxing experience for customers. This will increase the demand for custom-printed paper bags across North America.

Paper bag can be customized in terms of size, shape, and design, allowing e-commerce companies to tailor packaging to their specific needs. The growth of the e-commerce space is leading to an increase in online shopping, directly correlating with the demand for packaging materials like paper bags.

Various regulations and bans on single-use plastics in North America have led e-commerce companies to explore paper bag as a compliant alternative. Government regulations and policies aimed at reducing plastic usage further push this trend.

Key players are recognizing the marketing value of paper bag and using them as branding opportunities to convey their eco-conscious commitments to the growing rate of consumers who prioritize sustainability.

For instance, a study conducted by the International Food Information Council (IFIC) reveals that almost 40% of consumers across North America base their decisions on the environmental sustainability of a particular product.

Insight into End Use Industries Impacting Paper Bag Sales in North America

Paper bag address environmental, economic, and hygienic concerns while providing several benefits to different industries. It includes foodservice, retail, e-commerce, agriculture, and building & construction industries across North America. These markets are constantly looking for more dependable and environmentally responsible packaging choices.

Paper-based packaging such as paper bag, in addition to meeting regulatory standards, is part of a fully sustainable approach that matches consumers’ rising awareness of environmental obligations. This makes them an ideal replacement for plastic-based packaging across several applications.

Advancement in paper bag manufacturing technology is another factor that has led to improved durability and versatility of the products. It helps drive their adoption in various industries, such as retail, food service, and hospitality. These factors collectively influence the demand for paper bag in North America.

Ismail Sutaria

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Outline of Important Trends Shaping Sales

• The growing adoption of smart paper bag is a notable trend in the paper bag market. It signifies a shift towards incorporating innovative technologies into paper bag designs to enhance their functionality. This bag often features embedded QR codes or RFID tags, providing consumers with access to product information and promotions when scanned with a smartphone.
• Plastic bag with built-in tracking sensors are being developed to help track product conditions during transportation. Such advancements in printing technologies are enabling the production of smart paper bag which simultaneously align with sustainability goals. This trend caters to the evolving needs of businesses and consumers, emphasizing convenience and sustainability.
• Growing environmental concerns has given rise to the trend of biodegradable and compostable paper bag in the food service landscape. Several key players are jumping on this trend and adding biodegradable and compostable food service paper bag to their portfolio, either through new product innovation or through acquisition.

Country wise Insight

The table below shows the growth potential of demand for paper bag in North America regarding CAGR. Based on this, it is expected that Canada is set to monopolize sales during the forecast period. It is likely to expand at 3.3% CAGR between 2023 and 2033. It is followed by the United Sates, projected to propel at 2.9% CAGR from 2023 to 2033.

Shift Towards Eco-friendly Alternatives to Drive Demand in the United States

The demand for paper bag in the United States is projected to witness a CAGR of 2.9% between 2023 and 2033. It is anticipated to generate revenue of US$ 3,362.9 million by 2033 end.

The demand for paper bags in the United States is driven by increasing awareness and a shift away from single-use plastic bags. Various states and municipalities in United States have implemented plastic bag bans and fees. It will further aid in driving demand for paper bag as an eco-friendly alternative.

Businesses in the United States opt for custom-printed paper bag to promote their brand. This trend has led to a growing demand for personalized and branded paper bag. Paper bag are favored for their recyclability, which aligns with sustainability goals and regulations.

Manufacturers continuously innovate in design, incorporating features such as handles and reinforced bottoms for added convenience and durability. Key players in the United States include International Paper Company, WestRock, Grorgia-Paific, and others.

Paper Bag Manufacturers in Canada to Introduce New Materials

Canada is expected to propel at a CAGR of 3.3% from 2023 to 2033. It is poised to generate revenue of US$ 932.2 million by 2033.

Demand for paper bag in Canada is growing due to rising concerns about plastic pollution. Paper bag is seen as an eco-friendly option and a perfect alternative to plastic bag. The retail industry, including grocery stores and boutiques, is a significant consumer of paper bag in Canada.

Growing trends towards customized and branded paper bag in the Canada will drive growth for paper bag. Businesses use paper bags as a marketing tool, with unique designs and branding to enhance their image. Manufacturers in Canada are crafting paper bags with different materials, such as recycled and kraft paper. The choice of material can impact cost and environmental footprint of the bag.

Category-wise Insights

The table below highlights the demand for paper bag in North America based on different categories. Under the product segment, the pinched bottom open mouth is set to register a 1.9% CAGR through 2033. It is followed by the sewn open mouth segment and pasted value segment.

Based on the material, the demand for brown kraft is estimated to surpass at 2.5% CAGR between 2023 and 2033. It is followed by the white kraft bag and recycled fiber segment during the forecast period

Pinched Bottom Open Mouth Segment to Gain Traction

Based on the product type, the pinched bottom open mouth segment is anticipated to hold around 25.4% of the share by 2033. Pinched bottom open mouth paper bag are used by several end users such as retail stores, restaurants and cafes, farmers’ markets, and bakeries.

Compared to conventional paper bag, PBOMs often have a bigger base, making them more robust and unlikely to topple over. This makes them a preferred option for several food & beverage and e-commerce applications. Increasing demand for online grocery delivery services is another factor driving the segment.

These bag offer customizable options, catering to various industries and product types. Retailers might opt for this packaging solution due to its ease of display and customer accessibility. Positive perception of paper packaging will contribute to growing demand for paper bag in North America.

Brown Kraft Paper Bag to Take Center Stage in North America

The brown kraft segment is estimated to hold about 56.0% share by 2033. It is expected to register US$ 2,407.2 million by 2033.

Brown kraft paper bag is renowned for their strength and durability, and most are also resistant to moisture penetration and other environmental complications. Compared to other types of paper, its relative inexpensiveness makes it an ideal choice for use across several industries. Brown kraft paper bag has been witnessing high demand for the packaging of food products such as flour and sugar, among others.

Brown kraft paper bags are often perceived as eco-friendly compared to plastic bags. It helps align with the growing preference for sustainable and environmentally responsible packaging options. Retailers and grocery stores have switched to brown kraft paper bag as part of their commitment to sustainability, further increasing demand for these bag in North America.

Competitive Landscape

Key manufacturers are trying to focus on increasing their production capacity to meet the increasing demand for paper bag. They are increasing their product portfolio to cater to North America's growing demand for paper bags.

Key players are exploring alternative packaging materials and designs to reduce environmental impact. This includes using paper based raw materials. They are shifting towards eco-friendly production methods, using recycled materials, and reducing their carbon footprint. This aligns with the growing consumer preference for sustainable products. They offer customizable paper bag options for businesses to help manufacturers attract clients looking to promote their brands. Custom printing and unique designs are common strategies to differentiate products.

Recent Developments observed in the North America Paper Bag Industry:

• In April 2023, Sonoco announced the launch of EnviroFlex® Paper Ultimate (ULT) 1.0, a sustainable packaging option a superior oxygen, moisture, and grease barrier.
• In May 2023, Mondi used their kraft paper to produce Protector Bag ExpandForm, a bag made of paper solution with an expanded function for securely rolling up mattresses. With Protector Bag ExpandForm, conventional plastic packaging is replaced by a flexible, recyclable substitute.
• In August 2022, Novolex Holding LLC launched the Load & Fold, and Load & Seal range of paper shopping bag, which boasts of tamper-proof design to provide a more secure method of transport and delivery for restaurants and retailers.

Scope of Report

Key Segments

By Product Type:

• Sewn Open Mouth
• Pinched Bottom Open Mouth
• Pasted Valve
• Pasted Open Mouth
• Flat Bottom

By Material Type:

• Brown Kraft
• White Kraft
• Recycled Fiber

By Thickness:

• Up to 50 Microns
• 51 to 100 Microns
• 101 to 150 Microns
• Above 150 Microns

By Distribution Channel:

• Direct Sale
• Distributors
• Bricks and Mortar
• E-Retailers

By End Use:

• Food Service
  • Restaurants
  • Hotels, Resorts and Institutions
  • Online Food Delivery
  • Food Courts
• Retail
• E-Commerce
• Other Industries
  • Building & Construction
  • Chemical
  • Agriculture & Allied Industries

By Region:

• United States
• Canada