The market for paper bags is estimated to generate a market size of USD 6,786 million in 2025 and would increase to USD 10,438.2 million by 2035. It is expected to increase its sales at a CAGR of 4.4% over the forecast period 2025 to 2035. Revenue generated from paper bags in 2024 was USD 6,500 million.
The food & beverage sector is mostly fueled with paper bags with 46% market share due to rising environmental factors. Due to plastic bag limitations and environment-aware consumers pushing businesses towards green alternatives, take-out and delivery operations of restaurants, bakeries, and grocery stores are adopting paper bags.
Custom-printed paper bags are used by fast-food chains and coffee shops for brand promotion while transferring their eco-friendly image. The expansion of organic and special food items has created the demand for greaseproof and moisture barrier forms of paper bags to pack snack foods, coffee, and baked goods. Supermarkets and fresh produce retailers also offer fruits, vegetables, and dry groceries in paper packs.
Global Paper Bags Industry Forecast
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 6,786 Million |
| Industry Value (2035F) | USD 10,438.2 Million |
| CAGR (2025 to 2035) | 4.4% |
Brown kraft paper capture over 70% of the paper bags market. It is the most widely used material in the paper bag industry due to its improved durability, affordability, and eco-friendliness. It is made from virgin wood pulp and has high strength and tear resistance, making it ideal for heavy-duty applications such as industrial packaging and grocery bags.
Brown kraft paper is less processed and has fewer chemicals used than white kraft paper, so it is an eco-friendlier and affordable option. The demand for biodegradable and recyclable packaging has significantly contributed to the demand for brown kraft paper, mainly from the food, retail, and industrial sectors.
The paper bags market will expand with lucrative opportunities during the forecast period, as it is estimated to provide an incremental opportunity of USD 3938.2 million and will increase 1.6 times the current value by 2035.
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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.
| Particular | Value CAGR |
|---|---|
| H1 | 4.2% (2024 to 2034) |
| H2 | 4.6% (2024 to 2034) |
| H1 | 3.4% (2025 to 2035) |
| H2 | 5.4% (2025 to 2035) |
In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 4.2%, followed by a slightly higher growth rate of 4.6% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to decrease slightly to 3.4% in the first half and remain relatively moderate at 5.4% in the second half. In the first half (H1) the market witnessed a decrease of 80 BPS while in the second half (H2), the market witnessed an increase of 80 BPS.
Emerging Consumer Preference Toward Eco-Friendly and Biodegradable Packaging
As world consumers have become environmentally conscious, the transformations have been in the shift toward sustainable and biodegradable packaging solutions, particularly in the case of paper bags. Plastic pollution awareness motivates many consumers to avoid plastics-a call further inspired by the adverse effects of plastics on the environment-and go for friendly-choice alternatives such as paper bags, as these are biodegradable, recyclable, and compostable.
Thus, retailers and restaurants in grocery stores will increasingly shift from purely plastic or plastic-free packaging to paper. These are included in the corporate sustainability initiatives forcing brands to use responsible and recyclable materials for their packaging.
By adopting plastic reduction policies, many countries such as Canada, Australia, and a dozen EU countries have expectedly contributed to the demand for paper bags across their sectors, including food servicers, fashion, and retail. More so, while sustainable packages make a purchasing factor, paper bags will remain the preferred worldwide packaging.
Expansion of the Food and Beverage Takeout Industry
As the rising trend in food delivery and takeaway businesses grows, so does the demand for paper bags as a primary packaging option. The latest trend of food delivery companies such as Uber Eats, DoorDash, and Zomato indicates that restaurants and cafes also need to go along and change from their polythene storage and packaging materials to paper bags for delivery and take-away purposes.
Hence, some states have prohibited single-use plastics, and it has encouraged food service options to adopt better eco-friendly ones such as kraft paper bags. Paper bags also facilitate branding opportunities since they can be printed easily with logos, graphics, and advertisement messages for enhanced visibility.
The new trend and consumer demand for going green are compelling the entire food sector to abandon plastic to satisfy legislation and customer preference. Thus, the paper-bag industry's growth is predicted to dominate globally due to that trend.
High Production Costs and Limited Durability May Restrict the Market
More expensive production of paper bags compared to plastic bags is one of the greatest problems for the paper industry. Paper-bag production appears to be more expensive for industries since it needs much raw material, power, and water.
Additionally, the paper bags themselves are less rugged compared to the plastic one, particularly with respect to wet conditions or heavy use, making them undesirable for transporting liquid products, frozen products, or bulk material. This represents some level of deterrent to extensive uptake of paper across most shops since they would continue to hold onto.
Apart from the biodegradable and recyclable nature of paper bags, there is a need for effective waste management infrastructure to guarantee proper disposal. Paper bags can also be involved in deforestation problems in nations with less than advanced recycling facilities, unless they are produced from forests raised sustainably. All this durability and cost factor can suppress mass adoption, especially in cost-conscious markets.
| Key Investment Area | Why It’s Critical for Future Growth |
|---|---|
| Sustainability & Eco-Friendly Materials | As plastic bag bans rise around the world, investing in compostable, recyclable, and biodegradable paper bags will be consistent with consumer pressure and environmental regulation. |
| Strength & Durability | Advances in reinforced handles, water-resistant finishes, and multi-layered constructions will enhance the durability and load-carrying capacity of paper bags. |
| Lightweight & Cost Saving Solutions | Producing thinner but durable paper bags will decrease raw materials cost while preserving functionality for retail, foodservice, and grocery use. |
| Customization & Branding | Embossing, high-quality printing, and custom designs will enable companies to increase brand awareness and consumer interaction. |
| Automation & High-Speed Production | Investing in high-production methods will provide large-scale, low-cost manufacturing, guaranteeing a consistent supply to match rising demand. |
The global paper bags market achieved a CAGR of 3.2% in the historical period of 2020 to 2024. Overall, the paper bags market performed well since it grew positively and reached USD 6,500 million in 2024 from USD 5730.5 million in 2020.
The paper bags market experienced steady growth from 2020 to 2024, driven by increasing government regulations banning single-use plastics, rising consumer preference for eco-friendly packaging, and growing adoption in retail and food service industries.
| Market Aspect | 2020 to 2024 (Past Trends) |
|---|---|
| Market Growth | Substantial growth with plastic bag bans and heightened consumer awareness about environmentally friendly solutions. |
| Material Trends | Majorly kraft paper, recycled paper, and virgin pulp for durability and strength. |
| Consumer Demand | Strong demand from grocery, food delivery, and fashion retail for sustainable packaging. |
| Technological innovations | Improvements in tear-resistance and waterproof coatings to achieve enhanced functionality. |
| Sustainability Initiatives | Increased emphasis on FSC-approved (Forest Stewardship Council) and recyclable paper raw materials in efforts to eliminate deforestation. |
| Market Aspect | 2025 to 2035 (Future Projections) |
|---|---|
| Market Growth | Steep growth catalyzed by international sustainability initiatives, government initiatives, and widening adoption in foodservice, retail, and online shopping industries. |
| Material Trends | Move towards reusable, water-resistant, and biodegradable paper bag solutions with enhanced durability. |
| Consumer Demand | Growing preference for premium, branded, and reusable paper bags with creative designs for better customer experience. |
| Technological innovations | Innovations in high-strength, light-weight paper bags with biodegradable finishes and digital printings for custom orders. |
| Sustainability Initiatives | Very high pressure toward carbon-free manufacturing, closed-loop recycling models, and innovative reuse paper bag ideas. |
| Factor | Consumer Priorities (2020 to 2024) & (2025 to 2035) |
|---|---|
| Performance (Durability, Strength, Moisture Resistance) |
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| Aesthetics & Branding |
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| Product Availability & Convenience |
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| Reusability & Circular Economy |
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| Smart Features & Technology Integration |
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| Factor | Manufacturer Priorities (2020 to 2024) & (2025 to 2035) |
|---|---|
| Performance (Durability, Strength, Moisture Resistance) |
|
| Aesthetics & Branding |
|
| Product Availability & Convenience |
|
| Reusability & Circular Economy |
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| Smart Features & Technology Integration |
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Between 2025 and 2035, the demand for paper bags is expected to rise due to expanding applications in sustainable grocery and e-commerce packaging, growing innovations in durable and water-resistant paper bag materials, and increasing emphasis on circular economy initiatives promoting biodegradable and recyclable alternatives.
Tier 1 companies comprise market leaders capturing significant market share 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 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 and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include International Paper Company, Mondi Plc, Oji Holdings, Smurfit Kappa, Novolex, Stora Enso.
Tier 2 companies include mid-size players 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 Atlantic Packaging, Langston Companies, Ronpak, Detmold Packaging, Wisconsin Converting, McNairn Packaging, Welton Bibby And Baron, JohnPac, Atlas Paper Bag, Swiss Pac, Gerhard Schürholz, Global-Pak, United Bags, JiRong Packing.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets. 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.
| Region | 2020 to 2024 (Past Trends) |
|---|---|
| North America | Growth in paper bag usage in retail, grocery, and foodservice sectors. |
| Latin America | Gradual market growth due to rising awareness of sustainability. |
| Europe | Leading market due to strict EU sustainability laws and plastic bans. |
| Middle East & Africa | Emerging market with rising adoption in UAE and South Africa due to sustainability drives. |
| Asia Pacific | Fastest-growing market driven by bans on plastic bags in India, China, and Japan. |
| Region | 2025 to 2035 (Future Projections) |
|---|---|
| North America | Increasing use of innovative and sustainable materials for higher durability. |
| Latin America | Strengthening of local production to meet growing demand. |
| Europe | Shift toward 100% recyclable and reusable paper bags. |
| Middle East & Africa | Expansion of eco-friendly policies promoting paper-based packaging solutions. |
| Asia Pacific | Rapid expansion of local paper bag manufacturing due to government regulations. |
The section below covers the future forecast for the paper bags market in terms of countries. Information on key countries in several parts of the globe, including North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe and MEA is provided. USA is expected to account for a CAGR of 3.3% through 2035. In Europe, Spain is projected to witness a CAGR of 4% by 2035.
| Country | Value CAGR (2025 to 2035) |
|---|---|
| USA | 3.3% |
| Germany | 2.9% |
| China | 5.3% |
| UK | 2.8% |
| Spain | 4.0% |
| India | 5.5% |
| Canada | 3.1% |
The bans on plastic bags are driving more demand for environmentally friendly options such as paper bags in USA Various states such as California, New York, and Oregon have restricted their usage of single-use plastic bags in shops, which is driving businesses to adopt paper bags that could be recyclable or biodegradable. Also, larger retailers such as Walmart, Target, and Whole Foods are substituting plastic bags with paper-packaging in response to the environmental law as well as consumer expectation to do so.
Growing green awareness among American consumers has led to the demand for environmentally friendly packaging solutions. Compostable and recyclable paper bags are now becoming widely accepted from grocery stores to food takeaway considerations as well as retail packaging. The demand for durable and premium-quality paper bags in the USA remains to grow further with increasing plastic-reduction policy executions by more cities and states.
Germany boasts having Europe's strongest green legislation in regards to their strict environmental controls that promote green package solutions such as paper bags. Germany, pursuant to the EU Single-Use Plastics Directive, keeps plastics in check by limiting their occurrence and seeking other environmentally sound methods. Environmentally aware Germans ensure that all stakeholders are subject to pressure concerning sustainable and recycling uses of raw materials.
Supermarkets and shopping chains such as Aldi, Lidl, and Rewe have all but eliminated plastic bags in favor of paper and re-useable cloth bags. Secondly, Germany's highly developed system of recycling also means that paper bags are economically re-used for the benefit of the country's circular economy vision.
As with the trend of environmentally friendly package solutions, durable, FSC-certified (Forest Stewardship Council) paper bags' demand is also growing continuously from various sectors of business, from food to fashion and e-commerce.
The section contains information about the leading segments in the industry. In terms of thickness segment type, two Ply is being estimated to account for a share of 38% by 2025. By product type, pasted valve bags are projected to dominate by holding a share above 32% by the end 2025.
| Thickness Segment | Market Share (2025) |
|---|---|
| Two Ply | 38% |
Two ply is the market leader since the best combination of strength, cost, and sustainability. 2- Ply bags are vastly different from one pouches bags have high strength, tear resistance characteristics, which is appropriate for retail, food & beverages, and agriculture usage.
Such bags are widely used for grain packing, sugars, and flours as they safeguard the products very well against damage and moisture. Moreover, 2-ply bags are light and low in cost. Everywhere, it is best for small businesses and large producers. 2-ply kraft paper bags are becoming increasingly significant as businesses are looking for eco-friendly alternatives to plastic bags.
| Product Type | Market Share (2025) |
|---|---|
| Pasted Valve Bags | 32% |
Pasted valve bags are the leaders in paper bag markets because of their high resistance, durability, and filling ease. They are extensively utilized in cement, food, and chemical industries where dust-free and efficient filling is critical. The valve construction supports automated filling, enhancing productivity and minimizing waste.
Multi-ply construction offers tear resistance and protection from moisture and is thus utilized to hold powdered or granular merchandise. In addition, these bags offer customization facilities such as different sizes of valves and printing for brands. Their rising popularity is also because of eco-friendly trends, and with industries turning their attention away from plastic packaging.
Key players of global paper bags industry are developing and launching new products in the market. They are integrating with different firms and extending their geographical presence. Few of them are also collaborating and partnering with local brands and start-up companies
Key Developments in Paper Bags Market:
| Manufacturer | Vendor Insights |
|---|---|
| Mondi Group | Global market leader in paper and packaging with sustainable paper bags of various forms for diverse industries like food and retail. |
| Smurfit Kappa Group | Leaders in the innovation of paper-based packaging with a focus on being sustainable and recyclable to serve the market's demands. |
| WestRock Company | Excels in paper and packaging solutions and manufactures several types of paper bags for usage with durability and sustainability. |
| International Paper Company | Large international leader in the packaging industry based on fiber, delivering premium paper bags for application in a range of industries. |
| Novolex Holdings, Inc. | Markets a large range of paper bag products focused on sustainable resources and custom-printed designs specifically for retail and food service. |
Key Players in Paper Bags Market
The global paper bags industry is projected to witness CAGR of 4.4% between 2025 and 2035.
The global paper bags industry stood at 6,500 million in 2024.
Global paper bags industry is anticipated to reach USD 10,438.2 million by 2035 end.
East Asia is set to record a CAGR of 5.5% in assessment period.
The key players operating in the global paper bags industry include International Paper Company, Mondi Plc, Oji Holdings, Smurfit Kappa, Novolex, Stora Enso.
The paper bags market is divided into sewn open mouth, pinched bottom open mouth, pasted valve, pasted open mouth, and flat bottom.
The market is segmented by material type into brown kraft and white kraft.
The industry is classified based on thickness into 1 ply, 2 ply, 3 ply, and more than 3 ply.
The market includes various end-use industries such as agriculture & allied industries, building & construction, food & beverage, retail, agriculture, chemicals, and others.
Key Countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East & Africa are covered.
Paper Bags Market
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