Craft Bags Market Share Analysis

Craft Bags Market Size and Share Analysis Forecast Outlook 2035

The craft bags sector has grown rapidly as brands increasingly focus on sustainability, premium aesthetics, and eco-conscious consumer preferences. Craft bags commonly made from recycled paper, biodegradable materials, and reusable fabrics, have become a necessity for the retail, food packaging, and gifting applications.

Consumers evidently seek stylish, functional, and environmentally conscious packaging solutions, thus prompting innovators among manufacturers to innovate with materials, designs, and printing techniques.To meet this regulatory burden and consumer needs, the manufacturers are investing in FSC-certified paper, soy inks, and new structural designs.

Commensurately, the craft bags industry is shifting toward enhanced durability-aesthetics-sustainability through compostable craft bags, water-resistant coatings, and the possibility of custom branding.

Tier 1 players, including Mondi Group, WestRock, and Smurfit Kappa, hold 38% of the market due to their extensive production capacity, strong supplier relationships, and ongoing innovation in eco-friendly materials.

Tier 2 companies, such as International Paper, DS Smith, and Novolex, capture 36% of the market by providing cost-effective and customized craft bag solutions across various industries.

Tier 3 consists of regional and niche players specializing in biodegradable bags, unique design solutions, and industry-specific craft packaging, holding 26% of the market. These companies focus on localized production, customized branding, and enhanced sustainability features.

Vendor Performance in the Craft Bags Market

Global Market Share by Key Players (2025)

Market Concentration (2025E)

Segment Analysis

Powering Success in Leading Industries

The craft bags industry serves multiple sectors where aesthetics, sustainability, and functionality are key. Companies are investing in innovative bag designs and eco-friendly printing technologies to enhance customer experience and brand reputation.

• Retail & Luxury Brands: Enhancing branding with premium, reusable craft bags.
• Food & Beverage: Ensuring food safety with grease-resistant, biodegradable bags.
• E-commerce & Subscription Services: Offering sustainable, branded shipping bags.
• Gifting & Events: Providing elegant, customizable craft bags for special occasions.

Vendor-Driven Product Categories

Manufacturers are optimizing craft bag production with recyclable materials, smart printing, and durable structural designs.

• Recycled & FSC-Certified Paper Bags: Reducing carbon footprint while maintaining durability.
• Compostable & Biodegradable Craft Bags: Supporting zero-waste initiatives.
• Soy-Based Ink & Water-Based Coatings: Enhancing eco-friendly printing and product safety.
• Custom-Printed & Die-Cut Bags: Improving branding and consumer appeal.

Who Shaped the Year

Sustainability and premium aesthetics are transforming the craft bags industry. Companies are adopting AI-driven quality control, plant-based inks, and reusable materials to create innovative packaging solutions that meet regulatory and consumer expectations. They are also developing water-resistant coatings to improve durability and extend bag lifespan. Manufacturers are integrating digital printing technology to enhance branding with high-resolution graphics. Additionally, firms are focusing on lightweight yet sturdy designs to optimize material efficiency and reduce production costs.

Year-on-Year Leaders

• Mondi Group: Developed fully compostable craft bags with enhanced durability.
• WestRock: Introduced water-resistant paper bags for food packaging applications.
• Smurfit Kappa: Expanded biodegradable and reusable craft bag offerings.
• International Paper: Innovated high-strength recycled paper bags for heavy loads.
• DS Smith: Strengthened eco-friendly printing techniques using soy-based inks.
• Novolex: Launched tamper-proof, resealable craft bags for e-commerce.
• Oji Holdings: Pioneered smart packaging solutions with QR-enabled branding.

Recommendations for Technology Suppliers

Technology suppliers should focus on automation, sustainable material integration, and intelligent printing solutions to support the evolving craft bags market. Partnering with premium brands and retailers will drive adoption.

• Sustainability Trends: Develop compostable and fully recyclable craft bag solutions.
• Automation & Efficiency: Improve manufacturing with AI-driven quality control and high-speed production lines.
• Customization & Scalability: Offer tailored bag designs for branding and protection.
• Regional Growth Dynamics: North America and Europe lead in sustainable packaging innovation, while Asia-Pacific dominates in cost-effective production.

Tier-Wise Vendor Classification (2025)

Key Company Initiatives

Leading manufacturers are advancing craft bag technology with sustainable materials, smart tracking, and AI-driven quality control.

Vendor Insights

The craft bags market is evolving as companies focus on sustainable materials, digital integration, and high-performance structural designs.

• Mondi Group leads in compostable, high-durability craft bags.
• WestRock pioneers water-resistant and biodegradable paper bags.
• Smurfit Kappa specializes in reusable and premium craft bag solutions.
• International Paper enhances high-strength recycled craft bags.
• DS Smith advances eco-friendly printing with plant-based inks.
• Novolex innovates in tamper-proof and resealable craft bag designs.
• Oji Holdings develops smart packaging with QR-enabled branding.

Future Roadmap

The industry will continue integrating AI-driven quality control, sustainable material innovation, and intelligent branding solutions. As environmental regulations tighten, manufacturers will accelerate the adoption of compostable and reusable craft bags. Companies will also enhance consumer engagement through interactive packaging and smart tracking features. Businesses will invest in lightweight yet durable materials to optimize production efficiency. They will adopt automation to scale up sustainable bag production without increasing costs. Additionally, firms will explore anti-counterfeiting measures to improve brand authenticity and security.

Top Segments Studied in the Craft Bags Market Outlook

By Industry:

• Retail & Luxury Brands
• Food & Beverage
• E-commerce & Subscription Services
• Gifting & Events

By Product Category:

• Recycled & FSC-Certified Paper Bags
• Compostable & Biodegradable Craft Bags
• Soy-Based Ink & Water-Based Coatings
• Custom-Printed & Die-Cut Bags