Paper Bags Market

Surge in Demand from Retail Sector Bolstering Growth

With the retail industry transforming due to change in regulations and consumer preferences, the demand for paper bags is projected to surge exponentially.

Steered by the rising awareness among consumers regarding threats posed by disposal of plastic waste on the environment, the retail sector is gradually shifting towards green packaging solutions. Paper bags have emerged as safer and cheaper alternatives to plastic shopping bags, which is why they have emerged as a preferred packaging solution within the retail sector.

The increase in number of shopping malls, hypermarkets/super markets, and others, coupled with the modern lifestyle, growing preference for doorstep delivery, and others, will therefore propel the growth of the paper bags market.

Increase in Concern for Marine Animals

Plastic packaging being non-biodegradable are extremely harmful to the marine lives such as fish, sea turtles, marine mammals, sea birds, and others. Ingestion of plastic debris by marine animals causes suffocation, drowning, and starvation resulting in deaths of the marine organisms.

In order to safeguard marine lives, several laws and regulations have been implemented. For instance, Gov. Phil Murphy has signed a new law in November, 2020, banning business from using plastic straws, polystyrene food containers, and single-use plastic bags in New Jersey in order to prevent plastic wastage from streaming into rivers, oceans, and landfills.

Key Challenges

The recent COVID-19 outbreak has hugely affected key end users of paper bags such as retail, food, beverages, and others. As a result the market is experiencing decrease in demand.

Added to this, the manufacturing of products was significantly hampered during lock down, resulting in decline in growth of market. Other factors such as unavailability of labors, difficulties in sourcing raw materials due to restrictions on transport, and overall supply chain disruptions have caused hindrances to growth. However, FMI has forecast the market to recover by the end of 2021 or beginning of 2022.

Region-Wise Analysis

APEJ Paper Bags Market

Asia Pacific Excluding Japan (APEJ) is presently leading the global paper bags market. Abundance availability of raw materials, easily available labors, and other factors are driving the APEJ paper bags market.

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The expanding retail and agricultural industries in the countries such as China, India, and others are boosting the APEJ market. The rising demand for affordable and sustainable packaging solutions will drive the market in the region. According to FMI, China is expected to remain dominant in the APEJ market over the forecast period.

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North America Paper Bags Market

North America has emerged as the second-leading market for paper bags. Growing concerns pertaining to environmental damage caused by plastic wastage has resulted in increase in demand for paper bags in North America. Also, surging sales recorded via hypermarket, super markets, retail sectors, and others are spurring the North America paper bags market growth.

According to FMI, pinched bottom open mouth followed by sewn open mouth paper bag types are set to lead the market in the coming years.

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Western Europe Paper Bags Market

Western Europe has emerged as a highly lucrative market for paper bags. The surge in demand from the expanding retail, foods & beverages industries, in countries such as France, Germany, Spain, and others, is boosting the Western Europe market for paper bags.

According to FMI, Germany is expected to sustain in the leading position in Western Europe market during the forecast period.

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Category-wise Insights

Pinched Bottom Open Mouth Paper Bags to Gain Traction

Pinched bottom open mouth paper bags are manufactured with anti-counterfeiting label. This kind of paper bags are produced using heat seal closure, which offers airtight sealing on both ends in order to protect the inside product from external agents while ensuring sift proof packaging.

Pinched bottom open mouth paper bags are widely used in the packaging of sensitive and high-end products such as minerals, chemicals, foods, pet care products, pet foods, chemicals, building & construction materials, and others.

Presently, this kind of paper bags are dominating the global market and are expected to continue leading through the forecast period.

Brown Kraft Material to Emerge Dominant

Brown kraft is the highly preferred across the world for manufacturing paper bags. Brown kraft material is fully recyclable and has impressive strength as it is composed of high level of sulfur and low level of lignin.

This type of material has high durability and high resistance to piercing making it hugely preferred among a broad category of end users starting from agriculture to chemicals.

As brown kraft material can be manufactured easily from natural sources such as bamboo, wood, and others, it is cost-effective and highly popular.

Paper Bags with < 2 Ply Thickness to Maintain the Lead

Paper bags with < 2 ply thickness are lightweight, affordable, and have diverse applications in packaging of foods, agricultural materials, and other sectors. This kind of paper bags are highly efficient for one time use.

Paper bags with < 2 ply thickness are currently dominating the global market and are expected to remain dominant due to their versatile application through the forecast period.

Competitive Landscape

The presence of several companies, both large and small, has rendered the global paper bags market highly competitive. Some of the leading companies are focusing on product launches to gain competitive advantage in the market. There also is immense focus towards offering more sustainable solutions.

For instance, Waddington Europe, a brand of Novolex Holdings, Inc., has launched their extensive range of 100% food packaging solution and zero to landfill status in November, 2020. Their new Eco Blend™ Pura and Eco Blend™ 100 products are made with 100% cost effective materials and are cost effective in order to become affordable to large portion of consumers.

WestRock Company has launched their new Paper Sack and Bag Paper Packaging Solutions- FibreGreen® in 2020, which are SFI® certified, renewable, and recyclable. Their product solutions come with clean surface for optimal printing, heavyweight grades ideal for grocery, lightweight grades ideal for carry-out, lunch, and liquor bags, recycled grades ideal for meeting sustainability objectives, and others to fulfil huge requirements from the end users.

Some of the key market players are-

• Smurfit Kappa Group Plc
• International Paper Company
• Novolex Holdings, Inc.
• Ronpak
• Welton Bibby And Baron Limited
• El Dorado Packaging, Inc.
• Langston Companies, Inc.
• United Bags, Inc.
• Genpak Flexible
• Global-Pak, Inc.
• York Paper Company Limited
• Paperbags Limited
• JohnPac Inc.
• WestRock Company

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report

Paper Bags Market Report: Scope

Key Questions Answered by the Report

• At what CAGR is the paper bags market expected to grow?

  According to Future Market Insights (FMI), the paper bags market is anticipated to grow by 4.1% CAGR during the forecast period from year 2020 to 2030.

• Which are the top companies in paper bags market?

  Some of the top companies in global paper bags market are Smurfit Kappa Group Plc, International Paper Company, Global-Pak, Inc., Langston Companies, Inc., and others.

• Which category of paper bags is highly sought-after?

  Pinched bottom open mouth paper bags is the most lucrative segment by product type of the paper bags market and anticipated to maintain the lead throughout the forecast period.

• Which is the preferred material type in paper bags market?

  Brown Kraft is the most preferred material type in the global paper bags market.

• How are companies planning to gain competitive edge in paper bags market?

  With competition getting tougher, key market players are focusing on more diverse and advanced product launching in order to target broad end users. As the key end users such as retail, agriculture, and others are getting inclined towards sustainable or green packaging solutions, the top companies are emphasizing on producing recyclable and reusable paper bags.

• Who is the leading end user in the paper bags market?

  Retail segment is the leading end user industry in the global paper bags market and is expected to remain dominant during the forecast period.

• Which is the largest market for paper bags?

  APEJ (Asia Pacific Excluding Japan) is the largest market for paper bags followed by North America and Western Europe. According to FMI, APEJ will sustain in the leading position throughout the forecast period from the year 2020 to 2030.

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• Is this research conducted by Future Market Insights?

  Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst

• What research methodology is followed by FMI?

  FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology

• Who are the respondents for primary research?

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• What are the sources of secondary research?

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Paper Bags Market: Taxonomy

Product Type

• Sewn Open Mouth
• Pinched Bottom Open Mouth
• Pasted Valve
• Pasted Open Mouth
• Flat Bottom

Material Type

• Brown Kraft
• White Kraft

Thickness

• <2 Ply
• 2 Ply
• 3 Ply
• > 3 Ply

End Use

• Agriculture & Allied Industries
• Building & Cons
• Food & Beverage
• Retail
• Chemicals
• Others

Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific Excluding Japan
• Middle East and Africa
• Japan