Retail Paper Bag Market Outlook from 2024 to 2034
The global retail paper bag market size is estimated to stand at USD 1.8 billion in 2024. The market valuation is projected to surpass USD 2.7 billion by 2034, registering a consistent CAGR of 4.3%.
Key Highlights:
- Retail outlets are increasing their use of sustainable packaging solutions to comply with government regulations. Governments are encouraging the circulation of paper bags, known for their eco-friendly functions like biodegradable, non-toxic, lightweight, and recyclable, to reduce plastic burden.
- Surging acceptance of paper bags in multiple end use industries like pharmaceuticals, food and beverages, consumer electronics, etc.
- Rising public concerns about the safety of marine animals and the environment are lifting the demand for retail paper bags.
- Growing demand for retail bags with improved functionality and quality is offering scope for growth of retail paper bag manufacturers.
| Attributes |
Details |
| Retail Paper Bag Market Size (2024) |
USD 1.8 billion |
| Retail Paper Bag Market Forecasted Size (2034) |
USD 2.7 billion |
| Projected Value CAGR (2024 to 2034) |
4.3% |
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Retail Paper Bag Market Trends and Opportunities
| Attributes |
Details |
| Trends |
- Vendors are prioritizing the use of recycled paper bags to reduce their contribution to deforestation caused by traditional paper production for retail bags. Recycled paper bags are strong and can be used to carry numerous retail goods.
- Surging prices and consumption of wood-based paper have led consumers to search for alternatives to reduce their ecological footprint. Up till now, bamboo and sugarcane have shown promising results in this area. Stenqvist is an example for other market players in terms of innovation. The company offers carrier bags composed of renewable raw material sugarcane.
|
| Opportunities |
- Businesses are using customized paper bags as a marketing strategy for their store. This perception is opening a plethora of opportunities for market leaders. Players can thus closely work with businesses to help them stand out from their competition, as eco-conscious consumers are drawn to stores that have similar sentiments about the environment.
- Upsurge in online shopping is forecast to propel sales of packaging supplies like paper bags for businesses offering home delivery options or selling their products at eCommerce platforms.
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Retail Paper Bag Market Analysis by Region
The Asia Pacific is anticipated to witness heightened demand for retail paper bags over the next 10 years. Consumers and businesses in the region are waking up to the ‘modern menace’ created by polyethylene bags.
To move ahead as a responsible region, countries in Asia Pacific are markedly increasing their paper bag usage. Further, leading producers from developed regions are shifting their manufacturing facilities to Asia in hopes of profiting from the low labor cost, high availability of raw materials, and supportive government policies.
North America and Europe are estimated to display a consistent adoption of retail paper bags, attributable to rising food consumption and notable paper packaging across various domains. Steady sales of retail paper bags recorded via supermarkets, retail sectors, and hypermarkets are also a key factor in driving the regional market.
| Country |
Forecasted CAGR (2024 to 2034) |
| United States |
2.2% |
| Germany |
2% |
| China |
5.3% |
| India |
5.7% |
| Japan |
2.8% |
Adoption of Retail Paper Bags to Steadily Rise in the United States
According to the latest market survey conducted by FMI analysts, the United States is projected to increase its uptake of paper bags at retail outlets by a CAGR of 2.2% through 2034. Such market dynamics can be explained by:
- Prohibition on the supply of plastic carry bags in supermarkets and retail stores. For instance, a new plastic policy, issued on June 8, 2022, intends to limit the procurement, distribution, and sale of single-use plastic packaging and products to eventually phase out single-use plastic products by 2032.
- Lack of plastic bags has catapulted the demand for paper bags, which is projected to sustain through the upcoming years.
- Top reasons behind the change in consumer behavior are paper is viewed as a renewable resource and it breaks down in landfills as opposed to polythene bags.
Consumers in Germany Show Concern over Materials Unfit for Planet’s Sustainability
The size of retail paper bag market in Germany is projected to expand at a CAGR of 2% from 2024 to 2034. The sustained demand for retail paper bags is driven by:
- Increasing use of paper bags in numerous businesses across virtually all industries, such as food and beverage, restaurants, retail, apparel, etc.
- Consumer surveys conducted in the country showcase that consumers are becoming knowledgeable and proactive in restricting their use of plastic packaging. Consumers in Germany are instead opting for paper packaging wherever possible to conserve the environment.
- A nationwide ban on single-use plastic bags at stores, malls, and supermarkets is giving an edge to the producers of paper-based retail bags.
India is Predicted to be a Fertile Ground for Retail Paper Bag Manufacturers
The retail paper bag demand in India is projected to rise at a competitive 5.7% CAGR through 2034. The market forces that are offering a strategic ride are:
- Mounting consumerism in the Indian economy is giving a strong headway to retail paper bag merchants.
- Increasing environmental considerations are contributing to a demand build-up for eco-friendly carriers among consumers.
- Businesses of all sizes and categories are focusing on reducing their carbon footprint, thus they are catalyzing this shift toward paper bags.
China to Observe Heightened Demand for Retail Paper Bags Through 2034
In China, the market for retail paper bag is predicted to flourish at a projected CAGR of 5.3% through 2034. Growth factors are as follows:
- Meaningful growth in the country is attracting numerous developers of retail paper bags to set up their production units to capitalize on the expanding consumer base.
- A spike in the sales of consumer goods in China is driving the demand for retail paper bags.
- Significant mobile usage and affordable net packs in China are contributing to the rapidly expanding e-commerce economy in the country. This in turn is raising China’s demand for sustainable packaging solutions.
Japan to Drive Consistent Sales of Retail Paper Bags
The retail paper bag market in Japan is forecast to increase at a CAGR of 2.8% through 2034. Estimated growth in Japan is driven by:
- Country-wide consumption of kraft paper bags to pack groceries as they have high tensile force and 80 to 120 grams in weight. These properties make them a promising solution for food takeaways as well.
- Restaurants across Japan are adapting to the on-the-go lifestyle of consumers to increase their sales. This is assessed to surge the purchases of retail paper bags to pack on-the-go food options.
Retail Paper Bag Industry Analysis by Segment
Share of Brown Kraft Material to be Unusually High in the Overall Retail Paper Bag Market in 2024
| Attributes |
Details |
| Top Material |
Brown Kraft |
| Market Share in 2024 |
57.9% |
The brown kraft segment is predicted to be strikingly larger than its counterpart in 2024 as the segment’s share is estimated to stand at 57.9%. Top factors that are propelling segment growth are:
- Brown kraft is an appealing packaging choice for retailers seeking cost-effective and eco-friendly solutions.
- Durability, versatility, and strength of brown kraft-made retail paper bags make them a suitable option for multiple retail applications, ranging from groceries to clothing.
- Increasing preference for natural and rustic look afforded by brown kraft paper, especially among small businesses that sell artisanal and natural-looking products to convey originality.
- Seasonal use of brown kraft paper for decoration during Halloween, Christmas, or any other festive season.
Notable Demand for Retail Paper Bags with Sewn Open Mouth Designs are Suggestive of their Popularity
| Attributes |
Details |
| Top Product Type |
Sewn Open Mouth |
| Market Share in 2024 |
38.6% |
Sewn open-mouth bags enjoy widespread popularity among consumers. As a result, the segment is anticipated to procure more than 1/3rd share of the global market in 2024. Key factors driving this product are:
- Businesses are drawn to sewn open mouth bags as they are less prone to ripping and tearing while carrying heavier items, compared to pasted or glued seams.
- Improved weight distribution of contents within these paper bags enhance the load-bearing capacity. Thus, increasing its use and proliferation.
- Products packed in sewn open mouth bags convey sophistication owing to their clean and finished appearance. Brands are therefore distinguishing their products or certain product categories with this packaging design to promote a more upscale brand image.
Top Competitive Strategies with a Focus on Business Expansion of Retail Paper Bags
- Increasing investment in research and development of more functional and durable retail paper bags.
- Surging investments to produce paper bags sustainably to justify the eco-friendliness of paper bags and make a meaningful impact on the environment.
- Market players are planning to acquire small and medium-size players or collaborate with other players to produce paper bags at a larger scale.
- Providing an option to customize the bag to match the brand’s vision. Several businesses can then turn up to incorporate the store’s contact details, name, and logo to promote themselves.
- Principal players are concentrating on increasing and enhancing their distribution network to have an edge over their competitors.
Featuring Latest Developments in the Retail Paper Bag Market
- Mondi plc, a leading provider of eco-friendly paper and packaging, announced in December 2022 that it is commencing operations at its greenfield facility in Morocco, which is worth USD 18 million. This facility can manufacture over 100 million paper bags yearly.
- Smurfit Kappa plc reportedly invested USD 33 million in the Fortaleza plant in Brazil in January 2022. The company is thus expected to capitalize on the increasing demand for distinct and sustainable packaging.
- Novolex officially announced the acquisition of Flexo Converters USA Inc. in July 2021. The latter company is a renowned manufacturer of custom, stock, and recycled paper bags and sacks. This strategic acquisition is aimed at fulfilling the growing customer demand for paper bags and sacks via Flexo’s production capacity.
Key Retail Paper Bag Suppliers and Producers
- Hood Packaging Corporation (Canada)
- Paper Sacks Factory (UAE)
- Novolex (USA)
- United Bags, Inc. (USA)
- Holmen Group (Sweden)
- Georgia-Pacific LLC. (USA)
- OJI Holding Corporation (Japan)
- WestRock Company (USA)
- DS Smith Plc. (UK)
- Ronpak (USA)
- B&H Bag Company (USA)
- Smurfit Kappa Group PLC. (Ireland)
- International Paper Company (US)
- Hotpack Packaging Industries LLC (Dubai)
- National Paper Products Company (Saudi Arabia)
- Others
Frequently Asked Questions
How Big is the Retail Paper Bag Market?
The retail paper bag industry is forecasted to be valued at USD 1.8 billion in 2024.
What is the Future Forecast of the Retail Paper Bag Market?
The retail paper bag market size is projected to surpass USD 2.7 billion by 2034.
What is the Projected CAGR for the Retail Paper Bag Industry?
The CAGR of the retail paper bag industry is estimated to be around 4.3% through 2034.
Which are the Leading Companies offering Retail Paper Bag?
Hood Packaging Corporation, Paper Sacks Factory, and Novolex are retail paper bag market leaders.
Which Countries Drive the Demand for Retail Paper Bags?
India and China are the key consumers of retail paper bags.
