The global sales of kraft paper shopping bags is estimated to be worth USD 2,804.2 million in 2024 and anticipated to reach a value of USD 3,805.4 million by 2034. Sales are projected to rise at a CAGR of 3.1% over the forecast period between 2024 and 2034. The revenue generated by kraft paper shopping bags in 2023 was USD 2,723.9 million. The industry is anticipated to exhibit a Y-o-Y growth of 2.8% in 2024.
Customized bags are poised to reach USD 1,071.2 million by 2024 with a growing CAGR of 3.3% during the assessment period. Customized bags due to ability to enhance brand visibility allowing business to showcase their logos, colors, and unique designs. The flexibility offered by these customized bags from printing to material finishing catering to the wide personalized demands of consumers.
Global Kraft Paper Shopping Bags Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 2,723.9 million |
| Estimated Size, 2024 | USD 2,804.2 million |
| Projected Size, 2034 | USD 3,805.4 million |
| Value-based CAGR (2024 to 2034) | 3.1% |
White paper is anticipated to grow at a CAGR of 3.9% during the forecast period and is predicted to gain an incremental opportunity worth USD 546.5 million. The shopping bags made out of white paper provide a blank canvas thus enhancing the visibility of branding and designing. Further, the white paper's ability to convey a sense of purity and hygiene makes it an ideal choice for the food industry.
Supermarkets are anticipated to reach USD 1,425.5 million by 2024 with a CAGR of 3.2% during the forecast period. Supermarkets due to their high volume of transactions and diverse offering of products require durable and reliable packaging solutions for various items like groceries, household goods and others. Supermarkets promote sustainability by using alternatives to traditional plastics including paper bags, which is poised to fuel the market for kraft paper shopping bags.
Food and beverages are predicted to account for 28.1% of the total market share with a growth rate of 3.1% during the forecast period. The rise in food delivery and takeout services particularly for freshly produced, bakery goods, meals and beverages necessitates reliable and durable packaging solutions. Kraft paper offers durability and can maintain the integrity of the food, further, its recyclability and biodegradability appeal to eco-conscious consumers.
The market for East Asia kraft paper is anticipated to reach a market valuation of USD 821.6 million in 2024 and is expected to reach USD 1,239.8 million by the end of 2034. The region's growth is attributed to the increasing consumer spending and urbanization leading to convenient and eco-friendly packaging solutions in supermarkets, retail stores, and food services.
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The below table presents the expected CAGR for the global kraft paper shopping bags market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the year from 2023 to 2033, the business is predicted to surge at a CAGR of 3.3%, followed by a slight decrease in rate of 3.1% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1 | 3.3% (2023 to 2033) |
| H2 | 3.1% (2023 to 2033) |
| H1 | 3.5% (2024 to 2034) |
| H2 | 3.3% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 3.5% in the first half and slightly decrease to 3.3% in the second half. In the first half (H1) the market witnessed an increase of 20 BPS while in the second half (H2), the market witnessed an increase of 20 BPS.
Printing Advancement in Kraft Paper Production to Drive the Market
Technological advancements in kraft paper production resulted in enhanced strength, durability, and aesthetic of kraft paper bags making them more versatile and attractive for applications including shopping. Innovation in the pulping processes by using advanced chemicals improved the tensile strength and tear resistance of the kraft paper bags allowing them to carry heavy loads without loss in quality.
Advancements in printing and finishing technology creating aesthetically appealing kraft paper bags with high quality and intricate designs catering to various brand needs. Digital printing and flexographic printing offer superior color accuracy and create detailed eye-catching designs giving special finishes such as embossing, debossing, and UV coating further boosting the visual appeal of these bags to drive the market for luxury and premium quality designed kraft paper bags.
For instance, In February 2024, As a printing partner Detpak’s printing touch to the new bakery bags specially designed under the campaign strategy to market the ongoing road trip for the South Australian Tourism Commission.
Sustainability Reporting & Transparency to Drive the Market for Kraft Paper Shopping Bags
The growing demand from consumers for eco-friendly and sustainable products pushing manufacturers to adopt alternative packaging materials like Kraft Paper to meet this growing demand. Manufacturers are emphasizing sustainability reporting and transparency by openly sharing their environmental impact and efforts to reduce it. By offering this information about the sustainable materials used for the production companies' showcasing their commitments towards environment stewardship.
This transparency in sustainability efforts builds the trust of customers thus gaining loyalty which is crucial for long-term business. For instance, Billerud’s reusable paper bags are made from 100% renewable fibers that consist of recyclable and biodegradable paper. These bags are strong enough to carry up to 21 kg heavy loads.
Competition from Alternate Materials to Pose Challenges
The market for kraft paper shopping bags may face challenges from alternate materials such as biodegradable plastics and other natural fibers like cotton. Biodegradable plastics degrade more easily than traditional plastic materials which appeals to eco-conscious consumers and businesses. These biodegradable plastics offer more versatility in terms of durability and moisture resistance as compared to kraft paper making it suitable for a wide range of applications.
Reusable fabric bags made from jute, cotton or other natural fibers are other materials adding competition by offering long-term solutions to single-use plastics for businesses prioritizing reusability and longevity. This competition by other materials forces kraft paper manufacturers to continuously innovate to further keep up the race.
Principal Consultant
The global kraft paper shopping bags industry recorded a CAGR of 2.3% during the historical period between 2019 and 2023. The growth of the kraft paper shopping bags industry was positive as it reached a value of USD 2,723.9 million in 2023 from USD 2,434.3 million in 2019.
The kraft paper shopping bags market experienced growth from 2019 to 2023 with the increasing consumer demand for sustainable solutions coupled with the imposed strict regulations by various governments.
This limits single-use plastic products pushing manufacturers to opt for alternative solutions such as biodegradable and recyclable materials including paper. Kraft paper due to its durability, strength and ability to withstand heavy weights and tear-resistant properties makes kraft paper ideal for manufacturing bags for various applications from groceries to clothing items.
Kraft paper shopping bags are easily customized with logos, colors, and designs offering brands a cost-effective way to boost their brand visibility and create new branding opportunities for manufacturers. The trend of bigger luxury and premium product brands like Nike, Puma, Zara, and others using kraft paper bags promoting sustainability to further fuel the market growth.
Manufacturers in the industries are continuously innovating kraft paper bags thus increasing quality, design and functionality such as the development of multi-layered bags with a water-resistant coating and reinforced handles enhancing the durability and usability of these bags. Further expansion of e-commerce and foodservice industries aiming for reducing their carbon footprint using paper bags for delivery of products is poised to drive the market for kraft paper shopping bags.
Tier 1 companies comprise market leaders with a market revenue of above USD 80 million capturing significant market share of 15% to 20% in global market. These market leaders are characterized by high production capacity and a wide product portfolio.
These market leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base. They provide a wide range of series including recycling, and manufacturing utilizing the latest technology meeting regulatory standards providing the highest quality.
Prominent companies within Tier 1 include Mondi Plc, Smurfit Kappa Group Plc, International Paper Company, Novolex Holdings, Inc., and Billerud AB.
Tier 2 companies include mid-size players with revenue of USD 10 to 80 million having presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong market knowledge. These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach.
Prominent companies in tier 2 include Ronpak, Welton Bibby And Baron Limited, ProAmpac, Langston Companies, Inc., United Bags, Inc., Global-Pak, Inc., York Paper Company Limited, Paperbags Limited, JohnPac Inc, and Adeera Packaging Pvt. Ltd.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 10 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the industry analysis for the kraft paper shopping bags market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Europe, and others, is provided.
The United States is anticipated to remain at the forefront in North America, with a value share of 2.5% through 2034. In South Asia & Pacific, India is projected to witness a CAGR of 4.1% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 2.5% |
| Canada | 1.9% |
| Germany | 2.1% |
| Italy | 2.7% |
| UK | 2.9% |
| India | 4.1% |
| Thailand | 3.3% |
Invest India stated that the e-commerce market in India is at the forefront of growth with a projected market size worth USD 325 billion by the end of 2030. This growth in e-commerce is fueled by growing internet penetration in India, with over 918 million subscribers in September 2023.
In addition to this close to 100% of pin codes in India experienced a rise in e-commerce adoption. Invest India also stated that in tier 2, tier 3 and tier 4 cities the fashion and accessories category accounted for more than 60% of transactions by volume.
This rapid growth in e-commerce for online shopping of clothing, electronics, groceries, and other household items increases the demand for durable and eco-friendly packaging solutions for delivering these products safely.
Kraft paper bags offer durability, strength and are recyclable aligning with the demands of sustainability attracting e-commerce companies and thus raising the adoption of these kraft paper shopping bags to reduce carbon footprint and meet government regulations driving the market.
USDA (US Department of Agriculture) published an article stating that the food service industries in the United States supplied around USD 1.3 trillion worth of food in 2022.
Off which the full service and limited food service the largest segments for commercial food service accounted for USD 463 billion and USD 468 billion respectively. USDA also stated that the commercial food service market accounted for 69.3% of all the food away from home sales in 2022.
This growth in sales of foodservice in the USA is poised to boost the kraft paper shopping bags market with a rise in takeout food and delivery services. Further expansion of foodservice industry consisting of restaurants, cafes, and food delivery services necessitating sturdy and eco-friendly packaging solutions boosting the adoption of kraft paper shopping bags as it aligns with consumer demand for eco-friendly packaging solutions. This trend of sustainable packaging is expected to drive the market for kraft paper shopping bags in the USA.
The section contains information about the leading segments in the industry. Supermarkets are anticipated to grow at a CAGR of 3.2% during the assessment period and are projected to reach a market valuation of USD 1,040.3 million by 2024. Additionally, food and beverages are projected to gain an incremental opportunity worth USD 305 million with an incremental expansion of 1.4x times the total market value.
| Material | Brown Kraft |
|---|---|
| Value Share (2034) | 68.1% |
Paper shopping bags made of brown Kraft to dominate the kraft paper shopping bags predicted for accounting 61.3% overall market share by 2024. Brown kraft paper offers excellent strength, durability, and eco-friendly properties. Its recyclability and biodegradability attract eco-conscious consumers further the robust nature of the kraft paper allows it to lift heavy loads making it a preferable choice for groceries and retail shopping bags.
| Product | Standard Bags |
|---|---|
| Value Share (2034) | 49.3% |
The standard bag is forecast to reach a market valuation of USD 1,197.4 million by 2024 gaining a 42.7% market share by 2024. Standard kraft paper shopping bags due to their versatility, cost-effectiveness and wide range of applicability make it used universally for groceries and retail shopping best catering to both consumers as well as commercial sectors. In addition to this customized standard bags with branding and designs offer as best marketing tool for businesses.
Key players operating in the kraft paper shopping bags market are investing in the development of innovative sustainable solutions and entering into partnerships. Key kraft paper shopping bags providers have also been acquiring smaller players to grow their presence to further penetrate the kraft paper shopping bags market across multiple regions.
Recent Industry Developments in the Kraft Paper Shopping Bags Market
In terms of material, the industry is divided into brown Kraft and White Kraft.
In terms of product, the industry is segregated into standard bags, specialty bags, and customized bags.
By application, the market is divided into food & beverages, pharmaceutical & health care, cosmetics and personal care, and industrial.
The market is classified by end use such as super market, hyper market, direct sales, and e-commerce.
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and the Middle East & Africa have been covered in the report.
The global kraft paper shopping bags industry is projected to witness a CAGR of 3.1% between 2024 and 2034.
The global kraft paper shopping bags industry stood at USD 2,723.9 million in 2023.
The global kraft paper shopping bags industry is anticipated to reach USD 3,805.4 million by 2034 end.
East Asia region is set to record the highest CAGR of 4.2% in the assessment period.
The key players operating in the global kraft paper shopping bags industry include Mondi Plc, Smurfit Kappa Group Plc, International Paper Company, Novolex Holdings, Inc., and Billerud AB.
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. Global 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. Global 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. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Material 8.1. Brown Kraft 8.2. White Kraft 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Product 9.1. Standard Bags 9.2. Specialty Bags 9.3. Customised Bags 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Application 10.1. Food & Beverages 10.2. Pharmaceutical & Health Care 10.3. Cosmetics and Personal Care 10.4. Industrial 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End Use 11.1. Super Market 11.2. Hyper Market 11.3. Direct Sales 11.4. E-Commerce 12. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 12.1. North America 12.2. Latin America 12.3. East Asia 12.4. South Asia & Pacific 12.5. Western Europe 12.6. Eastern Europe 12.7. Middle East & Africa 13. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 14. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 16. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 17. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 18. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 19. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 20. Sales Analysis 2024 & 2034 by Key Market Segments for 30 Key Countries 21. Competition Outlook including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 22. Company Profile 22.1. Mondi Plc 22.2. Smurfit Kappa Group Plc 22.3. International Paper Company 22.4. Novolex Holdings, Inc 22.5. Ronpak 22.6. Welton Bibby And Baron Limited 22.7. ProAmpac 22.8. Langston Companies, Inc. 22.9. United Bags, Inc. 22.10. Billerud AB 22.11. Global-Pak, Inc. 22.12. York Paper Company Limited 22.13. Paperbags Limited 22.14. JohnPac Inc 22.15. Adeera Packaging Pvt. Ltd.
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Kraft Paper Shopping Bags Market
