Kraft Paper Bags Market Outlook 2025 to 2035

The Kraft Paper Bags Market is poised for significant growth between 2025 and 2035, driven by increasing consumer demand for eco-friendly and biodegradable packaging alternatives. The market was valued at USD 4,960 million in 2025 and is projected to reach USD 9,480 million by 2035, expanding at a compound annual growth rate (CAGR) of 6.7% over the forecast period.

Few of the horizontal key influencing constraints behind the growth of kraft paper bags market are rising demand for eco-friendly packaging materials and regulations against single-use plastic bags. The recyclable, compostable and economical nature of Kraft paper bags is driving their demand in the food & beverage, retail and e-commerce sector.

In addition, improvements in durability, moisture resistance, and printing technology are making Kraft paper bags an even more versatile and attractive option for branding and marketing.

However, the market has some challenges to face, such as fluctuating prices of raw materials and unawareness about the longevity of the paper-based alternatives against plastics bags. Wearisome as these challenges are, sustained advances in material potency, coatings, and manufacturing efficiencies are expected to pave new paths to growth.

Metric Overview

Metric Value
Market Size (2025E) USD 4,960 million
Market Value (2035F) USD 9,480 million
CAGR (2025 to 2035) 6.7%

The kraft paper bags market set out on the path of proliferating growth with the rising need for sustainable packaging solutions. Decade trends: The shift away from plastics along with continuous innovations in high-strength and biodegradable paper types are set to propel market growth for the next decade.

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Regional Market Analysis

North America

The kraft paper bags market is led by North America owing to rising consumer inclination towards eco-friendly and biodegradable packaging solutions. The United States and Canada dominate the region because of strict environmental regulations, increasing bans on plastic bags and a strong preference for recyclable materials in retail and food packaging.

Surging trend towards sustainable shopping Practices, in addition to the crisp expansion of the e-commerce sector, have significantly propelled the uptake of kraft paper bags. And big brands and retailers are investing in more compostable and reusable packaging, increasing the market demand. But hurdles like the volatility of raw material prices and durability issues relative to plastic products could hinder market growth.

Europe

Europe is a noteworthy market for kraft paper bags, owing to the stringent sustainability policies, circular economy practices, and enhanced consumer consciousness about preserving the environment. Accordingly, we observe that Germany, the UK, France, and Italy lead the way due to existing above-average recycling infrastructure and substantial government support for single-use plastics elimination.

In this article we will discuss the customers who have switched to kraft paper bags in food, retail and logistics sector to reduce plastic waste on one hand & government laws taking it on one hand. Moreover, recent advancements in paper bag production, such as enhanced strength and water resistance, further increase product attractiveness.

But, given emerging regulatory frameworks, Nigerian players may need to adapt; sustainable alternatives aren't as cheap to manufacture as plastic bags.

Asia-Pacific

Asia-Pacific is anticipated to exhibit the highest growth rate in the kraft paper bags market over the forecast period, owing to rapid urbanization, increasing bans on plastic bags, and increasing demand for sustainable packaging solutions. A growing number of businesses and consumers are opting for the greener alternatives, leading countries like China, India, Japan, and South Korea to make healthy investments in paper-based substitutes.

The food and retail sector is booming and the rise in environmental consciousness is driving the demand for kraft paper bags in the region. Market penetration is enhanced by technological developments in paper production and the convergence of affordable printing technologies. But drivers like supply chain problems, availability of raw materials and competition with traditional plastic packaging are still top worries for practitioners in the field.

Challenges and Opportunities

Challenges

Price Volatility and Supply Chain Disruptions

Kraft paper bags are largely made from raw materials like unbleached wood pulp and recycled fibers. Yet volatile raw material costs, deforestation issues, and supply chain disruptions remain major hurdles. The increasing demand for sustainable packaging has heightened competition for raw materials, resulting in higher production costs and longer lead times.

To address these challenges, producers are increasingly turning to local sourcing, new fiber alternatives, and more efficient recycling infrastructure to keep costs stable and production flowing.

Opportunities

Expansion of Plastic-Free Packaging Initiatives

As governments and corporations increasingly impose bans on single-use plastic, demand for kraft paper bags as an environmentally-friendly substitute fuels growth. These sectors include retail, food & beverage, e-commerce and personal care, all of which are moving to biodegradable, compostable and recyclable packaging in order to achieve their sustainability objectives.

As the packaging landscape continues to evolve, companies that innovate with water-resistant coatings, reinforced paper handles, and customizable printing solutions will benefit from expanding market opportunities and grassroots brand differentiation.

Shifts in the Market from 2020 to 2024 and Future Trends 2025 to 2035

The demand for kraft paper bags significantly increased from 2020 to 2024, as governments started implementing bans on plastic bags, e-commerce industry flourished, and consumers became more alert about eco-friendly packaging. But elevated production costs and a lack of consistent recycling infrastructure and limited moisture resistance still posed challenges. Manufacturers responded by producing reinforced kraft materials, compostable coatings, and lightweight but strong paper bag designs.

Biodegradable nano coatings and AI supply chain management will create new business opportunities in 2025 to 2035 period in future: new-gen fiber reinforced kraft materials. Smart packaging with embedded QR codes for tracking recyclability, AI-optimized bag design for efficiency, and enhanced water resistance will all converge to drive adoption higher.

Market Shifts: A Comparative Analysis (2020 to 2024 vs. 2025 to 2035)

Market Shift 2020 to 2024 Trends
Regulatory Landscape Bans on single-use plastic bags
Technological Advancements Moisture-resistant kraft coatings
Industry Adoption Retail, food & beverage leading the transition
Supply Chain and Sourcing Shortages of sustainable raw materials
Market Competition Growth of eco-packaging start-ups
Market Growth Drivers Eco-conscious consumers and plastic bans
Sustainability and Energy Efficiency Increased use of recycled kraft materials
Consumer Preferences Minimalist, eco-friendly, reusable bag demand
Market Shift 2025 to 2035 Projections
Regulatory Landscape Mandatory use of biodegradable, compostable packaging
Technological Advancements Nano coating advancements for durability and water resistance
Industry Adoption Widespread adoption in luxury, personal care, and healthcare sectors
Supply Chain and Sourcing AI-driven supply chain optimization and localized sourcing
Market Competition Emergence of AI-powered packaging design solutions
Market Growth Drivers Smart packaging, AI-based waste reduction, and circular economy focus
Sustainability and Energy Efficiency Zero-waste production processes and carbon-neutral kraft bags
Consumer Preferences Personalized, interactive, and fully biodegradable packaging

Country-wise Outlook

United States

The growth of kraft paper bags in the USA region is majorly driven by environmentally concerned consumers and strict regulatory policies restricting the use of plastic. Green packaging: Consumers are embracing eco-friendly packaging solutions, and businesses are adopting biodegradable packaging solutions to minimize waste and achieve sustainability goals.

Paper-based packaging of industry-leading brands are incorporated into e-commerce and retail shopping further fuelling demand for container board and other grades. Additionally, the market is growing due to the factors regarding the durability and strength of the bags.

Country CAGR (2025 to 2035)
United States 6.5%

United Kingdom

The market for kraft paper bags in the united kingdom is growing, as sustainability becomes a greater focus and the government brings increasingly stricter regulations in place to restrict single-use plastics. This has led to a surge of growth in the market as retailers, grocery stores and other foodservice providers start to transition to paper alternatives.

Petition of consumers to recyclability and compostability also made kraft paper bags more preferred options. The simplicity of online grocery deliveries and sustainable shopping habits play an active role in continuous market growth too.

Country CAGR (2025 to 2035)
United Kingdom 6.0%

European Union

Since the region has well-established sustainability policies, the kraft paper bags market will have huge growth opportunities from the European Union. Germany, France, Italy and other nations lead the way toward paper-based packaging as consumer demand for green alternatives grows.

For instance, the European Commission has set regulations against plastic waste, effectively driving their transition over to kraft paper bags in retail, foodservice, and logistics applications. On the other hand, growing investments in advanced manufacturing technologies of paper bags are also boosting product quality and performance.

Country CAGR (2025 to 2035)
European Union 6.3%

Japan

Japan’s market for kraft paper bags is growing amid rising environmental awareness and the government’s pledge to reduce plastic waste. Details such as the country’s emphasis on sustainable packaging solutions, along generational lines, and the growth of organic food and specialty stores has driven demand.

On the other hand, premium paper bag designs, usually employed in the packaging of luxury retail and high-end consumer goods, are also increasing in popularity. Furthermore, the counterbalancing of paper materials in delivery and e-commerce packaging would bolster the market growth.

Country CAGR (2025 to 2035)
Japan 6.1%

South Korea

In South Korea, a similar surge is happening with kraft paper bags as the government has been encouraging sustainable packing solutions by limiting the use of plastic bags. Another growing trend within the foodservice industry - especially among coffee chains and fast-food restaurants - is the use of kraft paper bags for purely takeaway orders.

Market growth is also being lifted by the thriving eCommerce sector and the rise of eco-conscious brands. Enhancements in durability, moisture-resistant coatings, and similar advancements in paper bag innovations help create growth opportunities in the market.

Country CAGR (2025 to 2035)
South Korea 6.4%

Segmentation Outlook

Solid Unbleached Board Emerges as the Preferred Material for Kraft Paper Bags Owing to Strength and Sustainability

The kraft paper bags market has been segmented into material type-Solid Unbleached Board, Solid Bleached Board, Virgin Bleached Board, and Others; and by Thickness-2 ply, 2 & 3 ply and Above 3 ply. Brands and retailers are increasingly moving towards durable, recyclable, and biodegradable materials, as eco-friendly packaging becomes a more significant focus.

Solid Unbleached Board is the most commonly used tray and the material of choice for food and retail products where strength and cost are of primary importance.

Solid Unbleached Board Leads Due to Its Robustness and Recyclability

Material Type Market Share (2025)
Solid Unbleached Board 54.1%

In 2025, Solid Unbleached Board is projected to hold 54.1% of the market share due to its resistance to tear, high strength, and low ecological footprint. Commonly used in grocery, industrial, and heavy-duty retail bags, natural brown unbleached paper is popular with businesses and consumers inclined toward eco-friendliness.

It provides a more affordable and eco-friendly option in comparison to bleached paper boards, due to its compatibility with sustainable inks and low requirements for chemical processing.

2 & 3 Ply Segment Gains Momentum for Balancing Durability and Weight Efficiency

Thickness Market Share (2025)
2 & 3 ply 61.7%

By thickness, the 2 & 3 ply segment is expected to account for a commanding market share of 61.7% in 2025, as this selection represents an optimum choice between strength, flexibility and economy of material. These variants are particularly successful in retail, food delivery and promotional use cases, where mid-level durability is needed without significantly impacting on either price or environmental footprint.

Growth of the segment is also blamed on the growing trend for bulk-packaging in urban areas, and increasing pressure for brands to reduce the use of plastic-based packaging.

Competitive Outlook

The kraft paper bags market is growing on account of shift to environmentally friendly options and regulations around single-use plastic bagsthey’re recyclables and biodegradables, durable for retail, food packing and industrial use. The demand from grocery chains, quick-service restaurants and apparel brands for reactive modalities has led to manufacturers very quickly ramping their production while also investing in automation.

Innovations in printing and bag customization for brand use are also aiding brands keep a focus on sustainability while continuing to drive consumer engagement.

Market Share Analysis by Key Players & Manufacturers

Company/Organization Name Estimated Market Share (%)
Mondi Group 17-22%
Novolex ( Duro Bag) 14-18%
Smurfit Kappa Group 11-15%
International Paper 8-12%
Other Manufacturers 33-45%

Key Company & Product Offerings

Company/Organization Name Key Offerings/Activities
Mondi Group Expanded production of 100% recyclable kraft paper bags for retail and food packaging in 2024.
Novolex ( Duro Bag) Launched grease-resistant and moisture-resistant kraft bags for foodservice in 2025.
Smurfit Kappa Group Provided printed kraft paper bags with FSC certification and custom branding options in 2024.
International Paper Enhanced production lines to meet large-scale retail demand for reinforced kraft shopping bags.

Key Market Insights

Mondi Group (17-22%)

Mondi remains a global leader in sustainable packaging with its extensive range of kraft paper bags tailored for retail, food, and industrial applications. The company has introduced water-based barrier coatings for added bag durability while ensuring full recyclability.

Novolex (Duro Bag) (14-18%)

As a dominant North American player, Novolex'sDuro Bag brand focuses on performance-grade paper bags for the QSR and grocery segments. Their eco-conscious portfolio includes compostable, grease-resistant, and customizable carryout solutions.

Smurfit Kappa Group (11-15%)

Smurfit Kappa leverages its circular economy expertise to produce kraft bags using virgin and recycled paper, offering full-color printing, ergonomic handles, and sturdy construction tailored to e-commerce and retail logistics.

International Paper (8-12%)

International Paper targets major retail chains and big-box stores, delivering high-volume kraft bag solutions. Their emphasis on durability, strength, and automated manufacturing makes them a preferred supplier for large-scale operations.

Other Key Players (33-45% Combined)

Other notable contributors include:

  • WestRock Company - Offers kraft paper bags with reinforced gussets and handles for bulkier products.
  • Billerud AB - Supplies lightweight, food-safe kraft bags designed for premium grocery and bakery applications.
  • Hotpack Packaging LLC - Focuses on paper bags for foodservice providers in the Middle East and Africa.
  • Global-Pak Inc. - Specializes in custom kraft bags with variable load capacities for industrial and agricultural uses.
  • El Dorado Packaging, Inc. - Delivers high-barrier kraft paper bags for seeds, flour, and powdered goods, catering to agro-industrial customers.

Frequently Asked Questions

What was the overall size of the kraft paper bags market in 2025?

The overall market size for the kraft paper bags market was USD 4,960 million in 2025.

How big is the kraft paper bags market expected to be in 2035?

The kraft paper bags market is expected to reach USD 9,480 million in 2035.

What will drive the demand for kraft paper bags during the forecast period?

The demand for kraft paper bags is expected to rise due to increasing environmental concerns, government regulations banning plastic bags, growing consumer preference for sustainable packaging, and expanding applications in retail, food, and e-commerce sectors.

List the top five countries contributing to the kraft paper bags market.

The top five countries driving the development of the kraft paper bags market are the USA, Germany, China, India, and France.

Which segment in type is expected to lead in the kraft paper bags market?

Flat-bottom Kraft paper bags and stand-up kraft paper bags are expected to dominate the market due to their growing usage in retail, grocery, and food service applications.

Table of Content
  1. Executive Summary
  2. Industry Introduction, including Taxonomy and Market Definition
  3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
  4. Global Market Demand Analysis 2020 to 2024 and Forecast 2025 to 2035, including Historical Analysis and Future Projections
  5. Pricing Analysis
  6. Global Market Analysis 2020 to 2024 and Forecast 2025 to 2035
    • Material Type
    • Thickness
    • Sales Channel
    • End use industry
  7. Global Market Analysis 2020 to 2024 and Forecast 2025 to 2035, By Material Type
    • Solid Unbleached Board
    • Solid Bleached Board
    • Virgin Bleached Board
    • Others
  8. Global Market Analysis 2020 to 2024 and Forecast 2025 to 2035, By Thickness
    • 2 ply
    • 2 & 3 ply
    • Above 3 ply
  9. Global Market Analysis 2020 to 2024 and Forecast 2025 to 2035, By Sales Channel
    • Manufacturers
    • Distributors
    • Retailers
    • Hypermarkets
    • Specialty Stores
    • Convenience Stores
    • Warehouse/Wholesale Clubs
    • E-retail
  10. Global Market Analysis 2020 to 2024 and Forecast 2025 to 2035, By End use industry
    • Food & Beverage Industry
    • Retail
    • Homecare & Personal Care
    • Healthcare & Pharmaceutical
    • Agriculture
    • Others
  11. Global Market Analysis 2020 to 2024 and Forecast 2025 to 2035, By Region
    • North America
    • Latin America
    • Western Europe
    • Eastern Europe
    • East Asia
    • South Asia Pacific
    • Middle East and Africa
  12. North America Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  13. Latin America Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  14. Western Europe Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  15. Eastern Europe Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  16. East Asia Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  17. South Asia Pacific Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  18. Middle East and Africa Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  19. Sales Forecast 2025 to 2035 by Material Type, Thickness, Sales Channel, and End use industry for 30 Countries
  20. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
  21. Company Profile
    • International Paper
    • WestRock Company
    • Druk Exporting Company
    • Aeroplast Ltd.
    • Novolex
    • Dharmanandan Offset
    • Jagisa Packaging Industries

Key Segmentation

By Material type:

  • Solid Unbleached Board
  • Solid Bleached Board
  • Virgin Bleached Board
  • Others

By Thickness:

  • 2 ply
  • 2 & 3 ply
  • Above 3 ply

By Sales channel:

  • Manufacturers
  • Distributors
  • Retailers
  • Hypermarkets
  • Specialty Stores
  • Convenience Stores
  • Warehouse/Wholesale Clubs
  • E-retail

By End use industry:

  • Food & Beverage Industry
  • Retail
  • Homecare & Personal Care
  • Healthcare & Pharmaceutical
  • Agriculture
  • Others

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