Paper Bag Market Size, Share, By Product Type, Price Point, Shape, End-User, and Region - Trends, Analysis and Forecast till 2035

• Paper bag market size is expected to grow at USD 12.7 Billion by 2035.
• The target market was valued at USD 5.8 Billion in 2024.
• Target market is expanding at a CAGR of 9%.

A paper bag is a bag made of paper, usually Kraft paper. Paper bags are commonly used as shopping carrier bags and for packaging of some consumer goods. Target market is driven by increasing environmental awareness, government regulations against plastic usage, and growing consumer preference for sustainable packaging. In addition, booming retail sector in emerging economies, advanced innovation in product designing, and strong consumer base in retail sales are another factors propelling growth of the global market. Furthermore, technological advancements, which increases the efficiency and cost-effectiveness of production is also anticipated to create opportunities for growth of the global market over the forecast period.

Key Takeaways:

• Europe held the largest share of the market in 2024 due to environmental consciousness, regulatory measures, consumer preferences, and among others.
• Asia Pacific is projected to be the fastest-growing market in the coming years. This is due to strong manufacturers, high demand, significant strides in technology and innovation, among others.

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Key Drivers of Target Market:

Sustainability of Paper Bags is Expected to Propel Market Growth

Paper bags are becoming a popular sustainable choice for people, as these bags are fit perfectly for the environment and can help to reduce the amount of pollution produced by plastic bags. These bags are eco-friendly as they decompose naturally and can be recycled. For adopting sustainability, many key players are implementing paper bags to their customers for reducing amount of pollution, further boosting the paper bag market growth.

• For Instance, in June 2024, Zara previously launched Green to Pack, a program in which Inditex reuses warehouse-to-retail paper boxes up to five times before recycling them, per the release. Inditex also launched a “bring your own bag” initiative, which charges customers a fee for using paper bags and envelopes in certain markets. 

Restrains:

Inefficiency of Paper Bags can Hamper Market Expansion

Disadvantages of paper bags, such as leakage, more expensive as compared to plastic bags, required more storage space, considerably heavier than plastic bags, they can tear easily while carrying heavy items, and maintenance of consistent quality, supply chain disruptions, and among others which can limits the growth of target market.

• Counterbalance Statements: One of the major solutions to this problem is manufacturers can invests in advanced machinery, adoption of sustainable manufacturing practices and prioritize the use of recycled materials, investment in comprehensive training programs, establishment of strong relationships with reliable suppliers, and adherence to safety guidelines.

Opportunities:

Technological Development & Sustainability Trends will Creates Significant Opportunities in Upcoming Years

The upcoming trend of paper bag production is undergoing major changes due to global concerns about environmental sustainability. Sustainability has become an important factor influencing paper bag industry as paper bags are the top eco-friendly choice. Technological developments are evolution for the bag production process. Innovations in automation, robotics and AI supported systems promise to increase efficiency and product quality while reducing labor costs. These technological advances enable manufacturers to meet the growing demand for sustainable packaging solutions.

• For instance, in April 2024, The Package Decision Engine, an AI model designed and built by Amazon, is able to determine the most efficient type of packaging for each item it learns about, helping reduce the number of cardboard envelopes and boxes, paper dunnage, tape, and paper bags used to send purchases to customers. The model is an important example of how the company is using AI to meet its sustainability goals faster, while also helping reduce packaging, make deliveries more efficient, and ensure products remain protected during delivery. 

The market is segmented based on product type, price point, shape, end user, and region. 

Product Type

On the basis of product type paper bag market is segmented into sewn open mouth, pinched bottom open mouth, pasted valve, pasted open mouth, flat bottom. The flat bottom segment dominate the target market growth due to rising environmental concern and consumer preference.  

• For instance, in September 2022, Seal Packaging, a Luton-based packaging solutions provider, announced the launched of a new range of paper bags called Itsnotpaper.

Price Point

The paper bag market by price point is segmented into economy, premium, and medium.  The medium segment holds the largest paper bag market share as they can affect the balance between quality and affordability, making them a popular choice for a wide range of businesses.

Shape

The paper bag market by shape is segmented into rectangle, square, circle, and others. Rectangle shape segment is expected to dominate the target market due to its high demand, availability, and widespread usage, etc. 

End-User

On the basis of end-user paper bag market is segmented into agriculture & allied industries, building & cons, food & beverages, retail, chemical, pharmaceutical, and others. The retail segment dominate the target market growth as paper bags are used significantly to carry goods from retail stores, and among others.

Regional

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Europe: Europe region is expected to dominate the growth of the market during forecast period due to environmental consciousness, regulatory measures, consumer preferences, industry dynamics, and increasing awareness of plastic pollution.

• For Instance, in October 2024, Global paper and packaging company Mondi, based in Weybridge, England, has joined a group of companies in establishing a new alliance to address the circularity of paper bags used in the construction industry. This initiative demonstrates Mondi’s commitment to collaborating with industry partners across the value chain to increase recycling rates for used paper bags.

Asia Pacific: Asia Pacific region is considered to be the fastest growing region in the target market as countries, such as India, China, and many more are leading the charge significantly due to presence of strong manufacturers, high demand, significant strides in technology and innovation, and strong industrial base

Paper Bag Market Report Scope:

Segmentation:

By Product Type:

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

By Price Point: 

• Economy
• Premium
• Medium

By Shape:

• Rectangle
• Square
• Circle
• Others

By End User:

• Agriculture & Allied Industries
• Building & Cons
• Food & Beverages
• Retail
• Chemical
• Pharmaceuticals
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

Competitive Landscape:

The key players operating in the paper bag market include Novolex, Mondi, Bagitan Packaging, Oversolve Ltd., and among others. These key players focusing on different organic and inorganic strategies such as acquisition, merger, partnership, agreement, product launch, and approval to expand their product portfolio and strengthen their market presence globally.

List of Key Players in the Market:

• Novolex
• Mondi
• Bagitan Packaging
• Oversolve Ltd.
• SURYA VENTURES
• International Paper
• American Packaging Corporation
• ProAmpac
• Glichrist Bag Manufacturing LLC
• Global-Pak, Inc.
• GRUCONSA
• Smrufit Kappa

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• In October 2024, Uber will feature Releaf Paper’s bags made from fallen leaf fibers in its new global initiative to transition the food delivery and mobility sectors into eco-designed packaging, starting in France. The programme will begin with the Paris Innovation Pilot, into which Uber has invested almost USD 1 million (€915,261.27) to help local restaurants adopt sustainability-minded packaging solutions. 
• In September 2024, Mondi has collaborated with its long-term customer, Welton, Bibby and Baron, for developing a new paper-based bag for pre-packaged bread. The white and brown bags are created with Mondi’s FunctionalBarrier Paper Reduce to provide premium protection, strength, and appearance.
• In July 2024, The Coalition for Fair Trade in Shopping Bags has welcomed the United States Department of Commerce's publication of antidumping duty orders on paper shopping bag imports from eight countries, along with countervailing duty orders on imports from China and India.
• In January 2024, Amazon has announced that it has ended the use of non-recyclable packaging across Europe. The company says that all deliveries will be packed in either a flexible paper bag, board envelope or a corrugated board box.

Analyst View:      

The industry for paper bag market is placed for increasing environmental awareness, government regulations against plastic usage, growing consumer preference for sustainable packaging, booming retail sector in emerging economies, advanced innovation in product designing, and strong consumer base in retail sales. New innovations and development, advance technologies and many collaborations and partnerships helps to boost the growth of the market in upcoming years.

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