The market for paper bags is estimated to generate a market size of USD 6.79 billion in 2025 and would increase to USD 10.44 billion 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 6.79 billion |
| Industry Value (2035F) | USD 10.44 billion |
| 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.
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.
The market is segmented based on product type, material type, thickness, end use, and region. By product type, the market is divided into sewn open mouth, pinched bottom open mouth, pasted valve, pasted open mouth, and flat bottom. In terms of material type, it is segmented into brown kraft and white kraft. Based on thickness, the market is categorized into 1 ply, 2 ply, 3 ply, and greater than 3 ply.
Based on end use, the market is classified into agriculture & allied industries, building & construction, food & beverage, retail, chemicals, and others (healthcare & pharmaceuticals, personal care & cosmetics, hospitality & foodservice, electronics & electrical goods packaging). Regionally, the market is classified into North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe, and the Middle East and Africa.
The pasted valve bags segment holds a 32% market share in 2025, driven by its superior durability and ease of filling in high-volume operations. These bags are widely used in cement, food, and chemical industries where dust-free packaging and fast filling are critical. Valve construction allows automated filling lines to operate efficiently while minimizing spillage and waste, thus improving productivity and reducing operational costs.
Additionally, multi-ply construction enhances moisture resistance and tear protection, making these bags ideal for powdered and granular products, such as flour, sugar, cement, and specialty chemicals. The growing demand for high-performance packaging in industries where product integrity and safety are paramount is accelerating their adoption. The segment is further supported by rising environmental concerns, as industries shift away from plastic-based flexible packaging toward recyclable paper solutions.
Meanwhile, sewn open mouth and pinched bottom open mouth bags remain strong in agriculture and industrial packaging due to their robust structure, allowing safe handling of bulk grains, animal feed, and fertilizer. Pasted open mouth bags are valued for versatility across smaller retail and specialty food applications, particularly for flour, spices, and sugar. Flat bottom bags are gaining momentum in retail and foodservice sectors for their shelf stability and premium look, ideal for takeaway and luxury retail packaging.
| Product Type | Share (2025) |
|---|---|
| Pasted Valve | 32% |
The two ply segment accounts for a 38% market share in 2025, supported by its optimal balance of strength, sustainability, and cost. Two ply paper bags offer excellent tear resistance and moisture protection, making them ideal for packaging grains, sugar, flour, and various food ingredients across food and beverage and agricultural sectors. Their lightweight structure reduces shipping costs, while kraft material ensures recyclability, aligning with evolving sustainability standards.
Two ply bags are preferred in retail grocery applications, organic stores, and farmers' markets, where both durability and an eco-friendly image are critical. In foodservice, two ply is increasingly used for takeaway and delivery bags, providing a robust alternative to single-use plastic. Manufacturers are also adopting custom printing on two ply bags to enhance brand identity and marketing appeal.
One ply bags remain relevant for lightweight retail applications, such as fashion and cosmetics, where visual appeal outweighs heavy-duty protection. Three ply and greater-than-three ply bags serve heavy-duty uses in chemicals, construction materials, and export packaging, where superior strength is essential for transport safety. However, as industries increasingly prioritize both performance and environmental responsibility, two ply continues to dominate as the preferred solution across diverse end-use markets.
| Thickness | Share (2025) |
|---|---|
| Two Ply | 38% |
The brown kraft paper segment is projected to grow at a CAGR of 5.6% from 2025 to 2035, supported by its strength, cost-efficiency, and eco-friendly appeal. Brown kraft offers high durability, tear resistance, and excellent printability, making it ideal for both industrial and retail packaging. It aligns perfectly with growing consumer demand for biodegradable and recyclable solutions, driving its adoption across agriculture, food and beverage, and retail sectors.
In the agriculture and allied industries, brown kraft bags are widely used for grains, seeds, and animal feed packaging. In the food and beverage sector, they are used for dry food packaging and takeaway applications. Retailers prefer brown kraft for its natural aesthetic and eco-conscious positioning, which resonates strongly with environmentally aware consumers.
Meanwhile, white kraft paper is gaining momentum, particularly in premium retail and personal care packaging. Its clean appearance and superior print clarity make it attractive to brands seeking high-end shelf impact and strong brand identity. The shift toward premium packaging in foodservice and cosmetics is expected to further boost demand for white kraft paper over the coming years, making it an increasingly important complementary material segment.
| Material Type | CAGR (2025 to 2035) |
|---|---|
| Brown Kraft | 5.6% |
The food and beverage segment is projected to grow at a CAGR of 6.2% from 2025 to 2035, fueled by regulatory mandates to eliminate single-use plastics and growing consumer preference for sustainable packaging. Paper bags are widely used for bakery items, takeaway, groceries, snacks, and dry food packaging, with strong growth across both premium and mass-market categories. Branded paper bags in the foodservice industry are also gaining traction, offering excellent marketing value and eco-friendly appeal.
The agriculture and allied industries sector continues to rely heavily on paper bags for packaging grains, seeds, and fertilizers, providing protection during transportation and storage. In retail, eco-conscious consumers are driving the shift from plastic to paper shopping bags, especially in grocery, apparel, and department stores.
In chemicals and building and construction, multi-ply paper bags ensure safe transport of powdered and granular materials, such as cement, lime, and plaster. Emerging demand from healthcare and pharmaceuticals, personal care and cosmetics, hospitality and foodservice, and electronics packaging is further expanding market opportunities, as these sectors embrace paper bags to meet their environmental and corporate social responsibility goals.
| End Use | CAGR (2025 to 2035) |
|---|---|
| Food & Beverage | 6.2% |
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.
Tier 1 companies comprise market leaders capturing significant market share in paper bags 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.
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.
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. |
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2025) | USD 6.79 billion |
| Projected Market Size (2035) | USD 10.44 billion |
| CAGR (2025 to 2035) | 4.4% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Market Analysis Parameters | Revenue in USD billion |
| By Product Type | Sewn Open Mouth, Pinched Bottom Open Mouth, Pasted Valve, Pasted Open Mouth, And Flat Bottom |
| By Material Type | Brown Kraft and White Kraft |
| By Thickness | 1 ply, 2 ply, 3 ply, and more than 3 ply |
| By End Use | Agriculture & Allied Industries, Building & Construction, Food & Beverage, Retail, Agriculture, and Chemicals |
| Regions Covered | North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe, Middle East and Africa |
| Countries Covered | United States, Japan, Germany, India, United Kingdom, France, Italy, Brazil, Canada, South Korea, Australia, Spain, Netherlands, Saudi Arabia, Switzerland |
| Key Players | International Paper Company, Mondi Plc, Oji Holdings, Smurfit Kappa, Novolex, Stora Enso, Atlantic Packaging, Langston Companies, Ronpak, and Detmold Packaging |
| Additional Attributes | Dollar sales by value, market share analysis by region, country-wise analysis |
| Customization and Pricing | Available upon request |
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.
The market is projected to reach USD 10.44 billion by 2035, growing from USD 6.79 billion in 2025, at a CAGR of 4.4%.
The pasted valve bags segment is growing the fastest, holding a 32% market share in 2025.
The two ply segment dominates the market with a 38% market share in 2025.
Key drivers include plastic bag bans, rising demand for eco-friendly packaging, and growth of the food & beverage takeout industry.
Top players include International Paper Company, Mondi Plc, Oji Holdings, Smurfit Kappa, Novolex, and Stora Enso.
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Paper Bags Market
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