Paper Based Consumer Bags Market

Paper-based Consumer Bags Market Snapshot

According to Future Market Insights research, during the projected period, the global paper-based consumer bags market is set to enjoy a valuation of US$ 3.1 Bn in 2022, and further expand at a CAGR of 4.7% to reach US$ 4.9 Bn by the year 2032. The sales of the paper-based consumer bags are anticipated to bolster with the top 5 companies projected to hold approximately 15-20% of the market by the end of 2022.

Based on the capacity segment, the 1-5 kg segment is projected to create a growth opportunity for the global paper-based consumer bags market due to increment in number of consumer for shopping. The 1-5 kg segment is anticipated to grow 1.9x the current market value during the forecast period.

According to the research conducted by Future Market Insights, the paper-based consumer bags market revenue totaled US$ 3.0 Bn in 2021. Considering the rising number of young consumer for shopping all over the world, the global paper-based consumer bags market is estimated to reach US$ 4.9 Bn by 2032, increasing at a CAGR of 4.7% throughout the forecast period.

The paper-based consumer bags market is expected to experience a lucrative growth outlook during the forecast period. A new estimation of FMI predicts that paper-based consumer bags sales will rise during 2022-2032 and is projected to generate an attractive incremental growth opportunity of US$ 1.9 Bn.

The surge in demand for eco-friendly packaging among the fashion brands is projected to bolster the demand for paper-based consumer bags. The paper-based consumer bags market is predicted to expand 1.7 times the current market value during the forecast period.

Historic Market Outlook for Paper-based Consumer Bags

The global paper-based consumer bags market witnessed a growth rate of 3.9 % during 2015-2021 and reached US$ 3.0 Bn in 2021.

The growing eco-friendly packaging trend among consumers and food brands is the major factor augmenting the sales of paper-based consumer bags in recent years. Traditional plastic bags were used by foodservice industry to deliver food products to consumers. Later, the government initiatives and ban imposed on the usage of plastic packaging created a growth opportunity for the global paper-based consumer bags market. Also, the development of various new foodservice outlets across the world propels the demand for foodservice packaging including foodservice paper bags.

The adoption of the online platform for food delivery drives the demand for paper packaging including foodservice paper bags. The increased online food orders create growth prospects for the global paper-based consumer bags market.

How does the Trend for Innovative Packaging Format Augment the Sales of Paper-based Consumer Bags Market?

The brands are focusing on adopting the paper packaging to meet their sustainability goals. Also, the need to match the consumer sentiments for sustainable and recyclable packaging solution the brands are adopting the paper packaging solutions. For instance, a division of L’Oréal USA adopted recycled, compostable, and recyclable paper-based bottle for its product. Also, the brands are redesigning their sustainable goals such as Kellogg committed to offer 100% sustainable packaging by 2025.

The increasing trend of adopting recycled and sustainable packaging solution among the various brands to meet the requirement of consumers as well as to meet the environment standards the brands are focusing more towards paper packaging.

Ismail Sutaria

Principal Consultant

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Category-wise Insights

Which Material is expected to Hold a Major Portion of the Global Paper-based Consumer Bags?

Based on material segment, the brown kraft segment is expected to hold major market share around 72% of the market value share by the end of 2032.

Brown kraft has various advantages over other materials. Brown kraft has excellent quality material. It has produced an aesthetic look and rusty feel. These factors are responsible to create growth opportunities for global paper-based consumer bags.

Which Bag type offers a Lucrative Growth Opportunity in the Global Paper-based Consumer Bags?

Based on the bag segment, the flat bottom segment is anticipated to grow at CAGR 5.3% during 2022-2032.

The flat bottom bags are available in all sort of material combination. Flat bags are widely used as ecofriendly packaging. It is known as sustainable packaging solution. Flat bags have excellent grease and water resistance property. It is suitable for all seal and fill machines.

Country-wise insights

How does India’s Paper Industry Expected to Drive the Demand for the Paper-based Consumer Bags?

India is expected to hold 56% of South Asia paper-based consumer bags market during 2022-2032.

According to Indian Paper Manufacturers Association (IPMA), Indian paper industry is contributed 5% world’s paper production industry. The per capita paper consumption in India 15Kg. This creates a growth opportunity for the paper-based consumer bags market in India.

Why is US Estimated to Augment the Demand for Paper-based Consumer Bags Market?

As per the FMI analysis, the US paper-based consumer bags market is estimated to expand at a CAGR of 3.4% during the forecast period due to the increasing consumption of packed food in US.

According to the National Retail Federation (NRF), retail sales in the U.S. grew around 6.7% in 2020. The growing retail sector creates demand for self-appealing, convenient, cost-effective, and lightweight packaging solution. Overall this is expected to create positive growth outlook for US paper-based consumer bags market.

Competitive Landscape

The key players operating in the paper-based consumer bags market are trying to focus on increasing their sales and revenues by expanding their capabilities to meet the growing demand. The key players are trying to adopt a merger & acquisition strategy to expand their resources and are developing new products to meet customer needs. Also, the players are focusing on upgrading their facilities to cater to the demand. Some of the recent key developments by the leading players are as follows –

• In May 2022, Smurfit Kappa Group plc, an integrated manufacturer of paper based packaging products, announced the acquisition of Atlas packaging. Atlas packaging is an independent corrugated packaging provider.
• In April 2022, WestRock Company, a leading provider of differentiated paper and packaging solutions, announced a partnership with Recipe Unlimited to implement a suite of recyclable paperboard packaging.

Scope of the Report

Paper-based Consumer Bags Market by Category

By Material, Paper-based Consumer Bags Market is Segmented as:

• Brown Kraft Bags
• White Kraft Bags

By Bag Type, Paper-based Consumer Bags Market is Segmented as:

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

By Capacity, Paper-based Consumer Bags Market is Segmented as:

• Less than 1 Kg
• 1-5 Kg
• Above 5 Kg

By Region, Paper-based Consumer Bags Market is Segmented as:

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Middle East & Africa
• Oceania