Total paper bag sales in North America are estimated to be valued at USD 3,203.8 million in 2023. Revenue is projected to reach USD 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 USD 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
| Attributes | Key Insights |
|---|---|
| Sales Value (2022) | USD 3,093.6 million |
| Expected Revenue (2023) | USD 3,203.8 million |
| Projected Revenue (2033) | USD 4,295.1 million |
| Forecast CAGR between 2023 to 2033) | 3.0% |
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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 USD 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.
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.
Principal Consultant
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.
| Countries | Value-based CAGR (2023 to 2033) |
|---|---|
| United States | 2.9% |
| Canada | 3.3% |
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 USD 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.
Canada is expected to propel at a CAGR of 3.3% from 2023 to 2033. It is poised to generate revenue of USD 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.
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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
| Product | Pinched Bottom Open Mouth |
|---|---|
| Value CAGR | 1.9% |
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.
| Material Type | Brown Kraft |
|---|---|
| Value CAGR | 2.5% |
The brown kraft segment is estimated to hold about 56.0% share by 2033. It is expected to register USD 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.
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:
| Attribute | Details |
|---|---|
| Estimated Industry Size in 2023 | USD 3,203.8 million |
| Projected Industry Size in 2033 | USD 4,295.1 million |
| Anticipated CAGR Growth Rate between 2023 and 2033 | CAGR of 3.0% |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Million, Volume in Units and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
| Segments Covered | Product Type, Material Type, Thickness, Distribution Channel, End-use, Region |
| Key Countries Covered |
United States, Canada |
| Key Companies Profiled | Mondi Plc; Smurfit Kappa; International Paper Company; JohnPac Inc; ProAmpac LLC; Stora Enso Oyj; Oji Holdings Inc; Novolex Holdings Inc; Conitex Sonoco; Ronopac Inc; Atlas Paper Bag Co Ltd; Huhtamki OYJ; Global-Pac Inc; United Bag, Inc; Material Motion Inc. |
The paper bag industry in North America is set to be valued at USD 3,203.8 million in 2023.
Sales are poised to reach at 3.0% CAGR through 2033.
The worth of the paper bag in North America in 2022 was USD 3,093.6 million.
In 2033, the demand for paper bag in North America is anticipated to reach USD 4,295.1 million.
Rising environmental awareness and substitute of plastic packaging to drive demand.
1. Executive Summary 2. Sales Overview 3. Key Sales Trends 4. Key Success Factors 5. PESTLE & Porter 5 Force Analysis 6. Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 7. Pricing Analysis 8. Demand (in Value or Size in USD million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 9. Sales Background 10. Analysis 2018 to 2022 and Forecast 2023 to 2033, by Product 10.1. Sewn Open Mouth 10.2. Pinched Bottom Open Mouth 10.3. Pasted Valve 10.4. Pasted Open Mouth 10.5. Flat Bottom 11. Analysis 2018 to 2022 and Forecast 2023 to 2033, by Material Type 11.1. Brown Kraft 11.2. White Kraft 11.3. Recycled Fiber 12. Analysis 2018 to 2022 and Forecast 2023 to 2033, by Thickness 12.1. Up to 50 Microns 12.2. 51 to 100 Microns 12.3. 101 to 150 Microns 12.4. Above 150 Microns 13. Analysis 2018 to 2022 and Forecast 2023 to 2033, by Distribution Channel 13.1. Direct Sale 13.2. Distributors 13.3. Bricks and Mortar 13.4. E-Retailers 14. Analysis 2018 to 2022 and Forecast 2023 to 2033, by End use 14.1. Food Service 14.1.1. Restaurants 14.1.2. Hotels, Resorts and Institutions 14.1.3. Online Food Delivery 14.1.4. Food Courts 14.2. Retail 14.3. E-Commerce 14.4. Other Industries 14.4.1. Building & Construction 14.4.2. Chemical 14.4.2.1. Agriculture & Allied Industries 15. Analysis 2018 to 2022 and Forecast 2023 to 2033, by Country 16. United States Analysis 2018 to 2022 and Forecast 2023 to 2033 17. Canada Analysis 2018 to 2022 and Forecast 2023 to 2033 18. Sales Structure Analysis 19. Competition Analysis 19.1. Mondi Plc 19.2. Smurfit Kappa 19.3. International Paper Company 19.4. JohnPac Inc 19.5. ProAmpac LLC 19.6. Stora Enso Oyj 19.7. Oji Holdings Inc 19.8. Novolex Holdings Inc 19.9. Conitex Sonoco 19.10. Ronopac Inc 19.11. Atlas Co Ltd 19.12. Huhtamki OYJ 19.13. Global-Pac Inc 19.14. United Bag, Inc 19.15. Material Motion Inc. 20. Assumptions and Acronyms Used 21. Research Methodology
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Industry Analysis of Paper Bag in North America
