Paper Bag Global Market Report 2024

Paper bags are containers crafted from paper, employed for carrying groceries or various items. These bags serve as an environmentally friendly substitute for plastic, being biodegradable, recyclable, and crafted from renewable resources.

The primary varieties of paper bags include flat-bottom bags, pinched-bottom bags, sewn open-mouth bags, pasted valve bags, and others. Flat-bottom bags, distinguished by their upright stance due to flat bottoms, are extensively utilized by takeout restaurants and culinary businesses. These bags serve diverse industries, including animal food packaging, organic product packaging, and more. Brown kraft and white kraft are the predominant materials, suitable for single-use or reusable applications. These paper bags are distributed through various channels such as convenience stores, supermarkets, hypermarkets, specialty stores, e-commerce, and other distribution channels serving end-users in food and beverages, pharmaceutical, retail, construction, chemicals, and other sectors.

The paper bag market research report is one of a series of new reports from The Business Research Company that provides paper bag market statistics, including the paper bag industry global market size, regional shares, competitors with a paper bag market share, detailed paper bag market segments, market trends, and opportunities, and any further data you may need to thrive in the paper bag industry. This paper bag market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The paper bag market size has grown strongly in recent years. It will grow from $5.87 billion in 2023 to $6.18 billion in 2024 at a compound annual growth rate (CAGR) of 5.3%. The growth observed in the historical period can be attributed to environmental awareness and regulations, shifts in consumer preferences and lifestyle, trends in retail and packaging, availability and pricing of raw materials, and the influence of brand image and corporate social responsibility (CSR).

The paper bag market size is expected to see strong growth in the next few years. It will grow to $7.72 billion in 2028 at a compound annual growth rate (CAGR) of 5.7%. The anticipated growth in the forecast period can be attributed to the development of circular economy and recycling infrastructure, the expansion of e-commerce, adherence to global packaging regulations, increasing consumer awareness, and a focus on supply chain resilience. Major trends in the forecast period include innovations in design and functionality, technological advancements in manufacturing, brand image and corporate social responsibility (CSR), and an emphasis on lightweight and durable materials.

The burgeoning prevalence of online food delivery services is anticipated to be a significant driver for the expansion of the paper bag market in the foreseeable future. Online food delivery services, encompassing third-party platforms facilitating the ordering and delivery of authorized food products, have witnessed a notable surge. Paper bags emerge as a versatile and eco-friendly packaging solution, offering a multitude of advantages for online food delivery services, including branding opportunities, moisture resistance, heat retention, and serving as an environmentally conscious alternative to plastic bags and other packaging materials. As of July 2022, Zomato Ltd., an India-based food delivery company, reported substantial growth in its operations. In the fiscal year 2022, Zomato successfully fulfilled 535 million orders, reflecting a remarkable 124% increase compared to the preceding fiscal year, FY21. This surge in online food delivery services underscores the driving force behind the escalating demand for paper bags in the market.

The projected growth of the paper bag market is expected to be driven by stringent government regulations concerning single-use plastic bags. Single-use plastic bags, typically made from polyethylene, face increased scrutiny from regulatory authorities, leading to limitations or outright bans. This regulatory environment fosters a heightened demand for eco-friendly alternatives, with paper bags emerging as a preferred choice. Businesses and consumers, compelled by environmental policies and a commitment to reducing plastic waste, are actively seeking sustainable options. This surge in demand positions the paper bag market as a compliant solution in regions with rigorous regulations against single-use plastics. As of August 2021, the Ministry of Environment, Forest and Climate Change, an India-based government agency, implemented the Plastic Waste Management Amendment Rules, 2021. These rules not only prohibit various identified single-use plastic items with low utility and high littering potential but also mandate increased thickness for plastic carry bags, alongside legal enforcement of guidelines for extended producer responsibility. Consequently, the stringent government regulations pertaining to single-use plastic bags are instrumental in propelling the growth of the paper bag market.

Prominent companies within the paper bag market are actively engaged in the development of new products, specifically recyclable paper bags, as a strategic initiative to secure a competitive edge. Recyclable paper bags represent an environmentally friendly alternative made from paper that can be collected and processed for reuse, thereby promoting sustainability and minimizing environmental impact. A case in point is the initiative taken by PACK'D, a UK-based food and beverages company, in November 2022. The company introduced recyclable paper bags for its packaging, incorporating a flexible paper film as an eco-friendly substitute for traditional plastic. These bags are designed for easy disposal, aligning with PACK'D's commitment to reducing plastic usage. Noteworthy features of these bags include their scrunchable form, addressing storage concerns, particularly in busy freezers, and showcasing adaptability. In essence, the launch of recyclable paper bags by PACK'D underscores the company's dedication to practicality, sustainability, and innovation in packaging solutions.

Prominent companies in the paper bag market are actively innovating by introducing new products, such as eco-friendly Vertical Form Fill Seal (VFFS) paper bags, as part of their strategy to gain a competitive advantage. Vertical Form Fill Seal (VFFS) is a packaging machine technology commonly used in various industries, including food and pharmaceuticals, to create, fill, and seal bags or pouches with different products. In March 2022, WePack Ltd., a UK-based contract packing company, took a significant step by launching an eco-friendly VFFS solution entirely made from paper. The VFFS paper bags offered by WePack are created using a continuous stream packing method. These robust bags, composed of 100% paper, can be heat-sealed for the storage of dry and food products. The recyclable paper film allows for full branding without the need for additional labeling. Moreover, these bags can be formed into stand-up pouches, offering space-saving benefits and reducing transport costs compared to alternatives such as glass jars or plastic packaging. WePack provides customization options for branding, using food-safe inks, and offers plain or printed pouches to meet diverse business needs. This innovative approach to developing eco-friendly VFFS paper bags reflects WePack's commitment to sustainability and meeting the evolving demands of the market.

In April 2022, Kari-Out, a U.S.-based manufacturer and distributor specializing in paper, aluminum, recyclable food containers, and food ingredients, successfully acquired Paper Bags USA for an undisclosed amount. This strategic acquisition is centered around strengthening Kari-Out's presence in the paper packaging sector. The addition of Paper Bags USA's domestic production capabilities complements Kari-Out's extensive import network. Moreover, the acquisition aims to provide enhanced custom print options, offering customers more opportunities for branded packaging solutions. Paper Bags USA, the acquired company, is a U.S.-based manufacturer specializing in paper bags.

Major companies operating in the paper bag market report are International Paper Company, WestRock Company, Smurfit Kappa Group plc, Oji Holdings Corporation, Mondi plc, Sonoco Products Company, Visy Industries Pty Ltd., Novolex Holdings LLC, Papier-Mettler KG, Genpak LLC, Ronpak Inc., Champion Packaging & Distribution Inc., Interflex Group Inc., Paperbag Limited, Packaging Pro Inc., Bedford Paper Inc., Bagcraft Packaging LLC, Bulldog Bag Ltd., International Converter Inc., Wisconsin Converting Inc., United Bags Inc., Global-Pak Inc., Burgass Carrier Bags Ltd., CEE Schisler Packaging Solutions LLC, Gilchrist Bag Manufacturing LLC, Thai Showa Paxxs Company Limited, American Paper Bag LLC, Novplasta Cz s.r.o., Rosenbloom Groupe Inc., Paperera de Girona SA, Ampac Holdings LLC, Emerald Packaging Inc.

North America was the largest region in the paper bags market in 2023. Asia-pacific is expected to be the fastest-growing region in the global paper bag market report during the forecast period. The regions covered in the paper bag market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the paper bag market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The paper bag market consists of sales of merchandise bags, euro tote, bakery bags, party bags, mailing bags, plain bags, printed bags, multi-wall bags, and laminated bags. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Paper Bag Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on paper bag market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for paper bag ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The paper bag market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: Flat Bottom Bags; Pinched Bottom Bags; Sewn Open Mouth Bags; Pasted Valve Bags; Other Types
• 2) By Material Type: Brown Kraft; White Kraft
• 3) By Usage: Single Use; Reusable
• 4) By Distribution Channel: Convenience Stores; Supermarkets Or Hypermarkets; Specialty Stores; E-Commerce; Other Distribution Channels
• 5) By End-User: Food And Beverages; Pharmaceutical; Retail; Construction; Chemicals; Other End-Users
• Companies Mentioned: International Paper Company; WestRock Company; Smurfit Kappa Group plc; Oji Holdings Corporation; Mondi plc
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.