Craft Bags Market - Forecast from 2026 to 2031

Craft Bags Market is set to rise at a 4.33% CAGR, growing from USD 1.872 billion in 2025 to USD 2.414 billion in 2031.

The craft bags market represents a distinct and growing segment within the packaging industry, defined by an emphasis on aesthetic appeal, material authenticity, and bespoke design. These bags, often characterized by a rustic or artisanal appearance and constructed from natural or eco-conscious materials, serve as more than mere containers; they function as a tactile extension of a brand's identity and product story. Market growth is fueled by converging trends in consumer behavior, retail evolution, and a broad-based shift toward sustainable and experiential commerce.

A central driver of demand is the powerful alignment of craft bags with the global movement toward sustainable and eco-friendly packaging. Heightened environmental awareness among consumers and corporations has created a preference for packaging solutions that are recyclable, biodegradable, or compostable. Craft bags, frequently made from materials like recycled paper, natural jute, cotton, or unbleached kraft paper, inherently communicate an eco-conscious ethos. This positions them as a preferred choice for brands across sectors seeking to demonstrate environmental responsibility and meet the expectations of a discerning customer base that values transparency and sustainability in the product lifecycle.

Concurrently, the explosive growth of e-commerce and specialized direct-to-consumer retail has fundamentally reshaped packaging requirements. In a digital marketplace where the unboxing experience serves as a critical touchpoint, packaging must deliver both physical protection and emotional engagement. Craft bags, with their textured, visually distinctive qualities, provide a tangible sense of quality and care that enhances perceived product value and differentiates brands in a crowded online space. This is particularly vital for small businesses, artisans, and makers selling via platforms like Etsy or independent web stores, where unique, branded packaging is an integral component of marketing and customer retention.

The market is further propelled by the enduring cultural strength of the artisanal and Do-It-Yourself (DIY) movement. The popularity of handmade, small-batch, and locally sourced goods-spanning food, cosmetics, home decor, and apparel-creates a natural demand for packaging that reflects the craftsmanship and authenticity of the contents. A mass-produced, glossy bag would contradict the narrative of an artisanal product. Craft bags, by contrast, reinforce the story of uniqueness, quality, and human touch, making them an essential element for businesses in this space. This trend extends into corporate gifting and promotions, where companies utilize craft bags to convey thoughtfulness and a premium, curated experience.

The food and beverage sector has emerged as a particularly prominent and high-growth application segment for craft bags. This adoption is driven by multiple factors: the rise of takeout and delivery services requiring durable yet presentable packaging, the growth of specialty food purveyors (e.g., craft bakeries, coffee roasters, gourmet grocers), and consumer demand for eco-friendly alternatives to plastic. Craft bags offer an ideal solution, providing a rustic, appealing aesthetic that suggests freshness and quality, while often meeting functional needs like grease resistance or structural integrity for heavier items. They serve as a mobile billboard for cafes, restaurants, and food brands, enhancing the overall customer experience from purchase to consumption.

Personalization and branding flexibility are inherent competitive advantages of craft bags. Their material composition typically offers an excellent surface for printing, stamping, embossing, or the addition of custom tags and labels. This allows businesses of all sizes to create highly customized packaging that reinforces brand identity, communicates key messages, and fosters a direct connection with the customer. The adaptability of craft bags to various sizes, shapes, and closure types (e.g., drawstrings, twisted paper handles) further supports creative and product-specific packaging solutions.

Geographically, North America is projected to hold a significant share of the global craft bags market. This leadership is underpinned by a deeply entrenched DIY and maker culture, a robust ecosystem of small businesses and e-commerce platforms specializing in handmade goods, and a mature consumer base with strong preferences for sustainability and premium presentation. The region's well-developed retail infrastructure, both online and offline, facilitates the widespread availability and adoption of these packaging solutions across diverse industries.

The competitive landscape includes a mix of specialized packaging manufacturers, converters, and companies operating at the intersection of sustainability and design. Key strategies focus on material innovation-developing new recycled content papers, plant-based coatings, and truly compostable material blends-while expanding capabilities in digital printing and short-run customization to serve small-batch producers effectively. Success in this market hinges on the ability to marry aesthetic appeal with functional performance and credible environmental credentials, providing clients with a packaging solution that elevates their brand and resonates with contemporary consumer values.

In summary, the craft bags market is driven by the powerful convergence of sustainability, e-commerce, and the desire for authentic brand expression. It transcends basic utility, serving as a critical tool for storytelling, customer engagement, and environmental stewardship. The market's continued expansion will be shaped by the ongoing growth of the artisanal economy, innovations in sustainable material science, and the evolving role of packaging as a central component of the consumer experience in an increasingly digital and values-driven commercial landscape.

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Report Coverage:

• Historical data from 2021 to 2025 & forecast data from 2026 to 2031
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
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• Revenue Growth and Forecast Assessment of segments and regions including countries
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Craft Bags Market Segmentation

• By Product Type
• Block Bottom
• Confectionery
• Paper Carry
• Others
• By End User
• Food & Beverages
• Pharmaceuticals
• E-commerce
• Cosmetics
• Others
• By Geography
• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Indonesia
• Thailand
• Others