The global sales of paper bags are estimated to be worth USD 6.4 billion in 2024 and are anticipated to reach a value of USD 9.9 billion by 2034. Sales are projected to rise at a CAGR of 4.4% over the forecast period between 2024 and 2034. The revenue generated by paper bags in 2023 was USD 6.2 billion. The industry is anticipated to exhibit a Y-o-Y growth of 3.5% in 2024.
Retail are the highest consumers of paper, accounting for more than 45% of the global paper bags market share. With the awareness of actions to minimize plastic usage, retailers, especially in groceries, fashion, and department stores, have started using paper bags to meet levels that will be subjected to the green standards of the environment and the image portrayed by the brand.
There is a preference for paper bags, too, as they are biodegradable and may be branded. Besides, regulatory pressure across several geographies to eliminate single-use plastics leads to this demand in the retail segment also. Ecommerce has also been driving demand for tough paper bags used in packaging.
Global Paper Bags Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 6.2 billion |
| Estimated Size, 2024 | USD 6.4 billion |
| Projected Size, 2034 | USD 9.9 billion |
| Value-based CAGR (2024 to 2034) | 4.4% |
Pinched bottom open mouth paper bags are anticipated to gain more than 32% of market share in forecast years in overall paper bags market. Sturdy enough for bulk packaging, the bags give a tight seal and excellent seal for bulks in merchandise by their packaging. Generally, filling and stacking is almost easy, making it a preferred bag in some industries, such as agriculture and construction.
Furthermore, their hard structure enables them to carry heavier weights; therefore, averted likelihood of tear in the process of transport. With such pinched bottom open mouth bags, industries aim towards not only efficiency but also sustainable packaging solutions, both of which pinched bottom open mouth bags can bring forth.
The paper bags industry is set to experience moderate growth during the forecast period. It is projected to create an incremental opportunity of USD 3.7 billion and is predicted to rise 1.5 times the current market value through 2034.
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The below table presents the expected CAGR for the global paper bags market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 4.6%, followed by a slightly lower growth rate of 4.2% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 4.6% (2023 to 2033) |
| H2 | 4.2% (2023 to 2033) |
| H1 | 4.5% (2024 to 2034) |
| H2 | 4.7% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 4.7% in the first half and remain relatively moderate at 4.1% in the second half. In the first half (H1) the market witnessed a decrease of 40 BPS while in the second half (H2), the market witnessed an increase of 20 BPS.
Growth in the Foodservice Industry Owing to the Fast-Paced Lifestyle and On-the-go Meal
The food service industry is to witness growth during the forecast period owing to the improvements in the economic condition of developing countries, and fast-paced lifestyle. On-the-go meal trend is increasingly growing across a lot of countries. Paper bags for the foodservice market growth is fueled by the expansion in the quick service restaurants which rely heavily on foodservice disposable packaging.
Paper bags for food service are widely used in the food & beverages segment, which in turn includes restaurants, hotels, and cafes, and are expected to witness lucrative growth opportunities as the takeaway culture expands. Other factors that provide momentum to the growth of the global paper bags for foodservice are increased growth of the online delivery of food, which requires proper and leakage-proof food packaging which fuels the market for paper bags in the foodservice industry.
Government Regulations and Bans on the Use of Plastics
The plastic ban has been adopted by the European Union and as reported, 112 countries, states and cities around the world have imposed bans on plastic products. It is for this reason that consumers are turning to safe and natural packaging options. Ban on plastic bags is taken very seriously in Chinese provinces, followed by European countries. Plastic pollution is a huge problem that highlights many wildlife and ocean health problems. Developing countries are more likely to ban certain types of plastic bags because they face poor plastic waste management.
Africa stands out among these countries for not having a strong lobbying force with plastic producers. Due to strict government regulations and sustainability concerns, plastic consumption is declining, creating a huge opportunity for paper bags for the food service industry. The benefit of eliminating prepress steps like making plates with label content helps save a lot of time for the manufacturers. Further, digital printers also provide ease in printing finer details like serial numbers, barcodes, etc. in small fonts without distorting the image quality.
The advanced features like the availability of UV ink help to keep the label print quality unharmed under exposure to different temperatures and light conditions. As a result of several benefits of digital printing many label makers and end-use industry players prefer digitally printed labels for their products as they are comparatively economical, and efficient and help in attracting maximum customers.
Principal Consultant
The global paper bags industry recorded a CAGR of 2.7% during the historical period between 2019 and 2023. The growth of the paper bags industry was positive as it reached a value of USD 6.2 billion in 2023 from USD 5.6 billion in 2019.
Global paper bags market has been growing at a moderate rate due to several reasons. Previously the market was prominently captured by the plastic bags. In order to reduce the impact of global warming, challenges due to climatic change and environmental pollution, many governments are emphasizing the use of eco-friendly and easily recyclable packaging solutions.
As per study conducted by IVL Swedish Environmental Research Institute, it is concluded that the paper bags made up of either virgin fibers or recycled pulp have remarkable low impact on global warming potential compared to low density polyethylene bags. Paper bags have less impact on environmental pollution compared to plastic bags since they can decompose easily.
There is an increasing use of biodegradable and compostable paper bags for the food service sector given the emerging environmental concerns. With rising environmental awareness, the demand for greener packaging solutions is increasing, which offers opportunity for manufacturers to develop and supply biodegradable and compostable food service paper bags.
Many countries are considering or already imposing a tax on the plastic bag or an absolute ban on its use. Such instances would most likely arouse the paper bag industry to opt more for paper bag as a packaging material. The most recent sustainable techniques of production and development of biodegradable coatings are the factors that will influence the future paper bag industry.
These developments can be quite pivotal in determining the course of the sector. People are increasingly buying things over the web and also are requesting them to deliver their purchases at their homes. Online shopping and home delivery have brought many new needs, and paper bag would be an ideal fit because more and more customers shop over the web and require strong yet light packing for their items. The paper bag is becoming very popular as a relatively inexpensive, customizable, and available product in various sizes and designs.
Retail and e-commerce companies are at the forefront of this market's demand with the use of paper bag for packaging and enhanced unboxing experience. The smart paper bag is gaining popularity in the current day due to smart packaging applications like clinical monitoring and smart packaging. This avenue allows vendors to trace shipments and provide product information for customers through QR codes, opening market growth doors.
Tier 1 companies in the global paper bags industry include International Paper Company, Mondi Plc, Oji Holdings Corporation, Smurfit Kappa Group Plc, Stora Enso Oyj with market revenue above USD 100 million. These manufacturers are market leaders in paper bags within global industry having extensive production capacity, different product offerings, and extensive manufacturing expertise. These companies are capturing around 15% to 25% of global market share in the paper bags industry.
Tier 2 of the global paper bags industry incorporates companies like Novolex Holdings, Inc, Atlantic Packaging Products Ltd, Langston Companies, Inc. Ronpak, Detmold Packaging Pty. Ltd., Wisconsin Converting Inc., McNairn Packaging, Inc., Welton Bibby And Baron Limited with 25% to 35% of market share. They have limited presence, and well-maintained knowledge but may not have expertise and advanced manufacturing technology.
Tier 3 category in the global paper bags market includes the small-scale players of the region with market share of 50% to 60%. These companies fulfil the local market demand and are recognized as an unorganized market. They have a country level presence, limited manufacturing facilities, and expertise in local market needs.
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The section below covers the industry analysis of the paper bags market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, South Asia & Pacific, East Asia, Western Europe, Eastern Europe, and others, is provided.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 2.8% |
| Germany | 1.9% |
| UK | 3.0% |
| Canada | 3.5% |
| India | 6.2% |
| China | 6.4% |
| Japan | 3.9% |
| Brazil | 4.3% |
During the forecast period, the Indian paper bags market is expected to grow at a CAGR of 6.2%. The food service sector in India is a highly heterogeneous and vibrant industry. This industry encompasses street vendors and food trucks on the bottom end as well as five-star restaurants and cafes. Still, the sector is quite unorganized largely in terms of food safety and hygiene standards despite the fact that the industry has risen sharply over the past few years.
The Indian restaurant industry expanded considerably over the last decade and such trend is likely to remain in the near future. Actually, the sector accounts for the largest source of employment opportunities and is a significant economic contributor to the country, considering that it has been estimated that the restaurant industry accounts for almost 2.1% of India's GDP.
Although dispersed and unorganized, the food service industry constitutes a significant share of the industry. According to IBEF, the food service segment is expected to grow from USD 41 billion in 2022 to 79.65 billion by 2028, thus leaving sufficient scope for growth of the paper bags market in India.
The USA paper bags market is projected to create an incremental opportunity of USD 364.8 million during 2023 and 2034. The USA has one of the largest retail market in the world as most of the big retail companies are located there.
The total retail sales in the United States have grown considerably in the last decade. The retail industry has gone through a lot of transformation after the pandemic and accelerated the digital offering by quickly adapting to customer’s needs. Consumers changing preferences towards plant-based food and packaged food is a key driver for the paper bags market. According to the USA Department of Commerce (Census), retail sales in the USA increased by 1.4% from last year.
Retail and food service sales in the USA accounted for USD 714 billion in September 2024. Retail is one of the industry sectors that use a lot of paper bags because customers as well as brands are gravitating toward low-cost, sustainable packaging solutions in the USA. The increasing retail sector in the US will, therefore, open up considerable growth opportunities for the paper bags market.
The section contains information about the leading segments in the industry.
| Material | Brown Kraft Paper |
|---|---|
| Value Share (2034) | 78% |
The brown kraft paper segment is expected to hold a market share of 78% due to the product’s eco-friendliness, strength, and durability. It is quite strong in durability, suitable for packing heavy material such as construction and agricultural. The eco-friendly customers like this color since it has not undergone bleach process.
At the same time, the manufacturing process requires less energy and consumes lesser cost than the types bleached. This has better tear resistance; therefore, it is suitable for a wide range of industrial applications, giving it more strength to be in a position as a preferred choice in the market due to its recyclability.
| Thickness | 1 Ply |
|---|---|
| Value Share (2034) | 42.6% |
1 ply paper bags is anticipated to gain 42.6% of market share in the end of assessment period. Single-layer paper bags, with their cost-effectiveness and lighter weight, will ensure an increase in market share at the end of the assessment period. These are primarily used in retail chains such as bakeries, grocery stores, and food takeaways. Due to low production costs compared to multi-ply ones, they are somewhat of the cheapest option for a business that is environmentally conscious about packaging.
They are easy to recycle and biodegradable as well. This characteristic keeps them in line with the growing demand for environmentally friendly packaging. Such a combination of cost-effectiveness and environmental attributes drives their increasing market share.
Several prominent players in the paper bags market are significantly investing in innovation, research, and development to discover new applications and enhance their offerings. Manufactures prioritize safety, product quality, and customer satisfaction to expand their customer base.
Key manufacturers of paper bags are focusing on developing recycled material packaging and developing packaging solutions to meet sustainability demand. They are adopting a merger & acquisition strategy to expand their resources and are developing new products to meet customer needs.
Recent Industry Developments in Paper Bags Market
Paper bags industry is divided into sewn open mouth, pinched bottom open mouth, pasted valve, pasted open mouth, and flat bottom.
Paper bags industry is segregated into brown kraft, and white kraft.
The industry is classified by 1 ply, 2 ply, 3 ply, and > 3 ply.
The industry is classified by end use as agriculture & allied industries, building & construction, food & beverage, retail, agriculture, chemicals, and others.
Key countries of North America, Latin America, Western Europe, Eastern Europe, South Asia & Pacific, East Asia, and Middle East and Africa (MEA), have been covered in the report.
The global paper bags industry is projected to witness CAGR of 4.4% between 2024 and 2034.
The global paper bags industry stood at USD 6.4 billion in 2023.
The global paper bags industry is anticipated to reach USD 9.9 billion by 2034 end.
East Asia is set to record the highest CAGR of 5.7% in the assessment period.
The key players operating in the global paper bags industry include includes International Paper Company, Mondi Plc, Oji Holdings Corporation, Smurfit Kappa Group Plc, and Stora Enso Oyj.
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 Product Type 8.1. Sewn Open Mouth 8.2. Pinched Bottom Open Mouth 8.3. Pasted Valve 8.4. Pasted Open Mouth 8.5. Flat Bottom 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Material Type 9.1. Brown Kraft 9.2. White Kraft 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Thickness 10.1. 1 ply 10.2. 2 ply 10.3. 3 ply 10.4. > 3 ply 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End Use 11.1. Agriculture & Allied Industries 11.2. Building & Construction 11.3. Food & Beverage 11.4. Retail 11.5. Chemicals 11.6. Others 12. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 12.1. North America 12.2. Latin America 12.3. Western Europe 12.4. East Asia 12.5. South Asia & Pacific 12.6. Middle East and Africa (MEA) 12.7. Eastern Europe 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. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 17. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 18. Middle East and Africa (MEA) Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 19. Eastern Europe 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 Countries 21. Competition Outlook including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 22. Company Profile 22.1. International Paper Company 22.2. Mondi Plc 22.3. Oji Holdings Corporation 22.4. Smurfit Kappa Group Plc (Smurfit WestRock) 22.5. Novolex Holdings, Inc 22.6. Stora Enso Oyj 22.7. Atlantic Packaging Products Ltd 22.8. Langston Companies, Inc. 22.9. Ronpak 22.10. Detmold Packaging Pty. Ltd. 22.11. Wisconsin Converting Inc. 22.12. McNairn Packaging, Inc. 22.13. Welton Bibby And Baron Limited 22.14. Paperbags Limited 22.15. JohnPac Inc 22.16. Atlas Paper Bag Co. Ltd. 22.17. Swiss Pac Pvt. Ltd. 22.18. Gerhard Schürholz GmbH 22.19. Global-Pak, Inc. 22.20. United Bags, Inc. 22.21. Alya Packaging 22.22. JiRong Packing Products Co, Ltd.
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Paper Bags Market
