Paper Bag Global Market Report 2026

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.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the paper bag market by increasing costs of imported kraft paper, pulp, adhesives, and printing equipment used in flat bottom, pinched bottom, and pasted valve bag production. North America and Europe are most affected due to dependence on imported paper raw materials, while Asia-Pacific faces pricing pressure on export-oriented paper bag manufacturing. These tariffs are raising production costs and squeezing supplier margins. However, they are also encouraging domestic pulp production, local sourcing of paper inputs, and investments in regional paper bag manufacturing facilities.

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 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 $6.43 billion in 2025 to $6.84 billion in 2026 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to shift away from plastic packaging, rising environmental awareness among consumers, expansion of retail and grocery sectors, availability of kraft paper materials, growth of food takeaway services.

The paper bag market size is expected to see strong growth in the next few years. It will grow to $8.86 billion in 2030 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to increasing implementation of plastic ban regulations, rising demand for sustainable retail packaging, expansion of e-commerce packaging needs, growing investments in recyclable packaging materials, innovation in paper bag durability. Major trends in the forecast period include increasing adoption of eco-friendly packaging solutions, rising demand for reusable paper bags, growing use of custom printed paper bags, expansion of automated paper bag manufacturing, enhanced focus on strength and load-bearing capacity.

The rapid expansion of online food delivery services is expected to drive the growth of the paper bag market in the coming years. Online food delivery services refer to digital, third-party platforms that facilitate the ordering and delivery of authorized food products. Paper bags serve as a versatile and environmentally friendly packaging solution for these services, offering advantages such as effective branding opportunities, moisture resistance, heat retention, and a sustainable alternative to plastic bags and other packaging materials. For example, in January 2024, according to the Food Standards Agency (FSA), a UK-based government body, during 2022/23 the FSA collaborated with Deliveroo, Just Eat, and Uber Eats on the development of a proposed Food Safety Charter. This initiative outlined aggregator commitments to food safety and their plans to work with the FSA to improve food safety standards. During the same period, agreed milestones were achieved, including the creation of both a high-level framework and a detailed policy proposal for the Food Hygiene Delivery Model (FHDM). Therefore, the growing adoption of online food delivery services is driving demand for paper bags.

Major companies operating in the paper bag market are increasingly focused on developing advanced recyclable and biodegradable paper-based packaging solutions to strengthen their competitive positioning and meet rising sustainability expectations. Recyclable and biodegradable paper-based packaging solutions are products primarily made from paper that can naturally decompose and be reprocessed into new materials after use, thereby reducing environmental impact. For instance, in August 2025, Zeal X, a China-based paper bag manufacturer, introduced its FSC-certified Kraft Paper Bag, a fully recyclable, biodegradable, and plastic-free packaging solution designed for retail, apparel, footwear, and courier applications. The bag is produced using premium kraft paper sourced from sustainably managed forests, offers high tear resistance and strong load-bearing capacity, and supports full customization in size, printing, and handle options to address diverse branding requirements. This launch highlights the accelerating shift toward sustainable, high-performance paper packaging within the paper bag industry.

In October 2023, Rawlings & Son Ltd., a UK-based supplier of glass packaging and drink-processing containers, acquired Paper Bag Co. for an undisclosed amount. Through this acquisition, Rawlings aimed to expand its product portfolio to include sustainable, bespoke, and wholesale paper bags, diversifying its offerings beyond glass packaging and strengthening its presence in the eco-friendly retail packaging segment. Paper Bag Co. is a UK-based manufacturer that produces a wide range of paper bags, including luxury laminated and unlaminated bags, kraft paper bags, twisted-handle and flat-handle carrier bags, catering bags, and custom-printed paper bags for retail customers.

Major companies operating in the paper bag market are International Paper Company, WestRock Company, Smurfit Kappa Group plc, Oji Holdings Corporation, Mondi plc, Visy Industries Pty Ltd, Novolex Holdings LLC, Ronpak Inc., Paperbag Limited, Bagcraft Packaging LLC, Burgass Carrier Bags Ltd., Gilchrist Bag Manufacturing LLC, American Paper Bag LLC, Paperera de Girona SA, Sonoco Products Company, Genpak LLC, Champion Packaging & Distribution Inc., Packaging Pro Inc., International Converter Inc., Global-Pak Inc., CEE Schisler Packaging Solutions LLC, Ampac Holdings LLC, Emerald Packaging Inc.

North America was the largest region in the paper bags market in 2025. 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, South East Asia, 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, Taiwan, 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 Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses 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, including technological disruption, regulatory shifts, and changing consumer preferences? 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, 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. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• 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 technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• 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.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• 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 company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Flat Bottom Bags; Pinched Bottom Bags; Sewn Open Mouth 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
• Subsegments:
• 1) By Flat Bottom Bags: Kraft Flat Bottom Bags; Colored Flat Bottom Bags
• 2) By Pinched Bottom Bags: Kraft Pinched Bottom Bags; Colored Pinched Bottom Bags
• 3) By Sewn Open Mouth Bags: Kraft Sewn Open Mouth Bags; Colored Sewn Open Mouth Bags
• 4) By Other Types: Recyclable Paper Bags; Biodegradable Paper Bags; Custom Printed Paper Bags
• Companies Mentioned: International Paper Company; WestRock Company; Smurfit Kappa Group plc; Oji Holdings Corporation; Mondi plc; Visy Industries Pty Ltd; Novolex Holdings LLC; Ronpak Inc.; Paperbag Limited; Bagcraft Packaging LLC; Burgass Carrier Bags Ltd.; Gilchrist Bag Manufacturing LLC; American Paper Bag LLC; Paperera de Girona SA; Sonoco Products Company; Genpak LLC; Champion Packaging & Distribution Inc.; Packaging Pro Inc.; International Converter Inc.; Global-Pak Inc.; CEE Schisler Packaging Solutions LLC; Ampac Holdings LLC; Emerald Packaging Inc.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; 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.
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