Recycled Paper Bags Market Size, Share, By Product Type (Flat Paper Bags, Satchel Paper Bags, Twist Handle Bags, Folded Handle Bags, and Others), By Material Type (Kraft Paper, White Paper, Coated Paper, and Recycled Paper), By End-User (Retail, Food & Beverages, Pharmaceuticals, Consumer Goods, and Industrial), and By Region - Trends, Analysis and Forecast till 2034

Recycled paper bags market size was valued at USD 7.35 Billion in 2024 and is expected to reach USD 12.59 Billion by 2034, growing at a CAGR of 6.1%.

The global recycled paper bags market has grown tremendously in recent years because of growing awareness for sustainability and sensitivity towards ecology. As consumers and businesses alike line up with increasing awareness about the detriments of plastic pollution, alternatives such as recycled paper bags have appeared on the scene as a viable and eco-friendly alternative to traditional plastic bags. This market covers the production, distribution, and use of paper bags produced from recycled materials for packaging and carrying goods in an eco-friendly manner.   Awareness of the environment and the associated rules and regulations are believed to be the predominant drivers of a rise in the market for recycled paper bags. Therefore, various government and organizational-level policies have been adopted worldwide to minimize the use of plastics while aiming for the sustainability of their products. This has made people prefer eco-friendly products, giving recycled paper bags a market opportunity. Secondly, with the increased sustainable packaging, businesses are influenced to embrace recycled paper bags to show how responsible they are on matters of concern about the environment. The product category for recycled paper bags includes shopping bags, grocery bags, food packaging, and industrial packaging. The product comes in various shapes, sizes, and thicknesses, making it usable across different purposes and applications. Production involves garbage papers such as newspapers, magazines, and cardboard collection, which are then processed into pulp. The pulp is further used to develop paper bags through techniques such as making and printing paper.   The first great advantage of recycled paper bags includes several environmental benefits. Plastic bags and paper bags quickly degrade and decompose in landfills, apart from the fact that they emit less carbon dioxide since paper bag production consumes less energy. Recycled paper bags also reduce waste because they feature materials that, without manufacturing these bags, would have been dumped in landfills or dumping sites.

Besides all those benefits, there are some drawbacks to the recycled paper bags market. The cost of recycled paper bags is the first concern, as they outweigh plastic bags, making them unaffordable when ordered in huge amounts. The other drawback of recycled paper bags is the need for more satisfaction with the durability and strength of the bags while carrying hefty weights compared to plastic bags. The producers are continuously trying to raise the quality and performance of recycled paper bags while simultaneously trying to reduce the cost of production. By the end, the global recycled paper bags market has become a fast-growing industry that stimulates high profitability due to the growing environmental consciousness and national legislation regarding the negative environmental impacts of plastic and paper waste. The demand for recycled paper bags is expected to continue increasing as consumers and businesses grow increasingly environmentally aware. Although the problems of cost and durability remain, technology and manufacturing processes are most likely to overcome these challenges. The future of the recycled paper bags market looks promising, as this product allows consumers to switch to a more sustainable option from plastic bags.

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Key Drivers of Target Market:

Growing Environmental Awareness

• Increasing awareness at the global level regarding environmental issues, mainly plastic pollution, has significantly driven the demand for recycled paper bags. Consumers and businesses find an eco-friendly alternative to plastic bags, thus the shift towards recycled paper bags. Furthermore, when such a change is promoted by governmental policies and regulations that ban or restrict the usage of single-use plastic, eco-friendly packaging becomes an indispensable component of any industry.

Supportive Government Regulations

• Consenting governments worldwide are modifying policies that curb plastic wastage and indirectly use reusable material. Several countries have banned single-use plastic bags and have also imposed plastic packaging taxes or levies, which will indirectly force businesses to use recycled paper bags and hence heal the market.

Restrains:

Costlier to Produce than Plastic Bags

• Despite growing demand, recycled paper bags often tend to be costlier to produce than plastic bags or even paper bags made of virgin grades. Collection and sorting, processing, and manufacturing recycled paper are all costlier, thereby acting as a barrier to small and medium enterprises. Price sensitivity holds potential limitations in the adoption of bags in developing markets.

Opportunities:

Market Expansion in Emerging Markets 

• The recycled paper bags markets in Asia-Pacific, Latin America, and African emerging markets have started to provide the growth area. In these areas, with increasing awareness about environmental issues and increased governmental bids to regulate plastic use, increased demand is levying on the use of these bags in sustainable packing. This is an area where a firm can capitalize on expanding their footprint and establishing local retail and manufacturer partnerships.

The market is segmented based on Product Type, Material Type, End-User, and Region.

Product Type Insights:

• Flat Paper Bags: Flat paper bags are light and design-simple, single-layered bags without gussets or other features, making manufacturing them easier and lighter in weight. They are usually used to carry flat things, like magazines, books, and light groceries. Due to the less complicated structure, these have been the retailer's and grocery store's choice of providing a cheap and eco-friendly alternative means of packaging. These sorts of bags can be found in almost any retail or, in fact, during any event or show for brochure distribution or any other promotional material.
• Satchel Paper Bags: These bags have much deeper gussets, allowing them to expand further for bulky items. Satchel paper bags are greatly used in the food and beverages industry, especially in take-out orders, bakery products, and groceries. They have an ideal design to ensure the bag stays upright, and when filled, the items have the most minor strain possible. This section derives relevance as a substitute for plastic bags in food product retailing.
• Twist Handle Bags: Twist handle bags are noted for having strong, twisted paper handles attached to the top of the bag for more durability and comfort to carry heavier contents. This comes from supermarkets, high-end retail stores, boutiques, and brand outlets. It has aesthetic appeal given by the addition of a twisted handle. Hence, these bags are indeed very much in vogue with brands that want to offer a superior unboxing experience to their customers and project sustainability towards the environment.
• Folded Handle Bags: These bags are similar to twist-handle bags, except that the handles are made by folding and reinforcing the paper material. They are known to be very strong and, hence, usually serve to carry heavyweight items like books, groceries, and household goods. These qualities make them, therefore, a wise choice for businesses that are more focused on sustainability without losing the aspect of practicality.
• Others: Specialty bags will fall under one of the above categories but not general retail bags, e.g., die-cut handle bags, wine bags, and custom-designed bags. Some will cross into specific industries or even niche/subset markets—the wine and spirits industry, luxury retail, or event marketing for promotional usage. The diversity of this segment is representative of the increasing demand for customized and innovative packaging solutions that align with sustainability goals.

Material Type insights:

• Kraft Paper: Kraft paper is strong, biodegradable paper made from wood pulp by the kraft process. Strength and resistance to tearing are the main features of kraft paper, and its extensive use in this field is projected. Kraft paper bags have become very common in retail and grocery industries, requiring strength, biodegradability, and an eco-friendly nature. The natural brown color also makes it likable to those brands that strive to portray an eco-friendly image.
• White Paper: The crisp and premium looks make white paper bags more preferred in white variety. Quite common in high-end retail and events, the food service made of bleached kraft paper is an excellent surface for getting print jobs. It is a desirable material for any brand's packaging solutions. These are not as strong as unbleached kraft paper but are durable and, along with a better recyclability rate, support green trends.
• Coated Paper: Coated paper bags have an extra thin layer of coating, such as that of polyethylene or any biodegradable material, which keeps them moisture and grease-resistant and also acts as a barrier against other external conditions. This makes such bags important in the food and beverage industries, given the required sturdiness of the pack and the ability to hold liquid or greasy items packaging. The coating increases the service/life performance of the bag while holding onto an ecological profile in cases of biodegradable coatings.
• Recycled Paper: The recycled paper bags are made of post-consumer or post-industrial paper waste because they support a circular economy by not demanding virgin paper use. Recycled paper bags are well accepted and are a hot-selling topic for businesses interested in sustainability and reducing carbon footprints. Though not as strong as virgin paper, recycled paper is still applicable in many applications, especially in retail and other consumer products. The use of recycled paper finds favor with sensitive consumers to serve nature.

End-User insights:

• Retail: The retail industry is one of the largest consumers of recycled paper bags. Retailers are increasingly adopting paper bags from fashion and apparel stores to bookstores and supermarkets to replace single-use plastic bags. This shift has been induced mainly by consumer demand for sustainable packaging and, in most regions of the world, regulations banning or limiting the use of plastic bags. This means that retailers tend predominantly to buy customized paper bags that ensure the real embodiment of their brand identity for the rest of the shopping consumers.
• Food & Beverages: Food and beverage packaging uses recycled paper bags for home delivery of food, bakery items, groceries, and so on. Sustainability has been one of the crucial reasons for promoting paper bags over plastic ones, as several food products require the biodegradability of paper bags to maintain their freshness. The food and beverage industry itself, slowly moving toward offering more sustainable packaging solutions of its own, in conjunction with the increasing public concern toward environmental awareness, has been a prime reason for the rise in demand for recycled paper bags. Paper bags have primarily made an impact with the thumping trend in the fast food and restaurant industry, and loose paper bags have turned out to be a fashion style in this industry, thereby uplifting the industry.
• Pharmaceuticals: In the pharmaceutical industry, medicines, drugs, and other promotional materials are packed in paper bags made from recycled paper. These pharmaceutical bags are light, cost-effective, and eco-friendly for the industry. Pharmaceutical companies aim to bring out more sustainable packaging solutions in their corporate social responsibility portfolio. Thus, the usage of recycled paper bags perfectly aligns with this agenda.
• Consumer Goods: Consumer goods companies extensively use recycled paper bags for electronics, cosmetics, toys, and home goods. The packaging is done using the bags, and it goes from raw material to finished products in the form of bags, replacing non-recyclable or plastic bags. Brands in such sectors take advantage of recycled paper bags to sell their enterprises by proving their sustainability in the industry, thus attracting green personality customers.
• Industrial: Recycled paper bags are selected and made to pack high volumes of materials, tools, and parts for various uses within the industrial sector. It is not the leading area for recycled paper bags, as is in this market region from the retail or food, but in this environment, the demand should soon rise as companies use this segment for sustainable operation techniques. Perhaps the uses are more varied in this sector, in as much as those applications that do not require durability as a factor will include the added value of sustainable packaging. Illustrations are those of light components and bulk shipment secondary packaging.

Regional insights:

• North America: The demand for recycled paper bags in North America is supported by healthy levels of consumer awareness about environmental issues and recently introduced regulations that restrict the usage of plastic bags; the demand for recycled paper bags is also supported by an essential level of consumer or customer awareness of environmental issues and the regulations brought upon recently restricting the usage of plastic bags. The U.S. and Canada stand to be essential markets for recycled paper bags, too; Both the retail and foodservice sectors are utilizing sustainable packaging. The growth of e-commerce in the area has meant increasing demand for recycled paper bags consumed in customer packaging and home deliverables.
• Europe: Europe has been and continues to be at the forefront of sustainability. This is the same regarding the growing recycled paper bag industry. Strict environmental regulations, such as the E.U.'s single-use plastics directive, enhance the application of paper bags in the region's industries. The central countries are Germany, France, and the U.K. markets, which are further within the angle of a strong emphasis on reducing plastic waste and encouraging recycling. In addition to this, the region is well-developed in terms of its recycling infrastructure, further boosting the market for recycled paper bags.
• Asia-Pacific: The Asia-Pacific region experiences the highest growth rate for the recycled paper bags market, with increasing environmental awareness and various government initiatives to decrease the use of plastic. China, Japan, India, and Australia are among the countries with increasing demand levels, particularly from retail, food, and industrial consumers. The expanding middle class and urbanization in the region also drive increased use of sustainable packaging.
• Latin America: Markets are growing in Latin America because of increasing awareness of people toward the related issues of the environment and government legislations to promote sustainable living. Brazil, Mexico, and Argentina are the strong markets, holding major demand from the retail and food service sectors. The consumer goods industry has gained momentum in this part globally and utilizes recycled paper bags as one of its sustainability strategies.
• Middle East & Africa: Middle East and Africa are the emerging markets for recycled paper bags. Although these regions are in the nascent stage, there is an increase in the adoption of sustainable packaging due to increased consumer awareness and government surveyors for waste management. Maximum recycled paper bags are consumed in this geography in high retail and food sectors with efforts toward reducing plastic waste and working to promote an eco-friendly alternative.

Recycled Paper Bags Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the target market report based on Product Type, Material Type, End-User, and Region.

Segmentation:

By Product Type:

• Flat Paper Bags
• Satchel Paper Bags
• Twist Handle Bags
• Folded Handle Bags
• Others

By Material Type:

• Kraft Paper
• White Paper
• Coated Paper
• Recycled Paper

By End-User:

• Retail
• Food & Beverages
• Pharmaceuticals
• Consumer Goods
• Industrial

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Recycled Paper Bags Market include Mondi Group, Smurfit Kappa, International Paper Company, WestRock Company, DS Smith, Stora Enso, Georgia-Pacific LLC, Holmen Group BillerudKorsnäs, Oji Holdings Corporation, Sappi Limited Nippon Paper Industries, Segezha Group, UPM-Kymmene Corporation, Cascades Inc.

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• In June 2024, the European Union included more stringent regulations to reduce single-use plastics. This further nudges the adoption of recycled paper bags as it mandates retailers across the region to limit plastic bag consumption by a minimum of 80 percent by 2026 to increase demand for paper alternatives.
• In May 2024, Packers' news with Retail Chain: Some other truly impressive news is that a major European retail chain and Mondi Group, one of the leading packaging and paper companies in the world, have agreed in May 2024 to replace at least half of all conventional plastic bags currently marketed in the world with recycled paper bags by the end of 2025. Such a transformation would assist in using less plastic within the context of the climate crisis.
• In April 2024, the U.S. Environmental Protection Agency (EPA) pledged $200 million in funding to repair the recycling infrastructure throughout the states. This proper infrastructure setup will increase the availability of high-quality recovered paper and reduce costs significantly, supporting the recycled paper bags market growth in North America.

• Mondi Group
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Smurfit Kappa
• International Paper Company
• WestRock Company
• DS Smith
• Stora Enso
• Georgia-Pacific LLC
• Holmen Group
• BillerudKorsnäs
• Oji Holdings Corporation
• Sappi Limited
• Nippon Paper Industries
• Segezha Group
• UPM-Kymmene Corporation
• Cascades Inc.

“*” marked represents similar segmentation in other categories in the respective section.

Research Objective and Assumption

• Research Objectives
• Assumptions
• Abbreviations

Market Preview

• Report Description
  • Market Definition and Scope
• Executive Summary
  • Market Snippet, By Product Type
  • Market Snippet, By Material Type
  • Market Snippet, By End-User
  • Market Snippet, By Region
• Opportunity Map Analysis

Market Dynamics, Regulations, and Trends Analysis

• Market Dynamics
  • Drivers
  • Restraints
  • Market Opportunities
• Market Trends
• Product Launch
• Merger and Acquisitions
• Impact Analysis
• PEST Analysis
• Porter’s Analysis

Market Segmentation, By Product Type, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Flat Paper Bags
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Satchel Paper Bags
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Twist Handle Bags
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Folded Handle Bags
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Others
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Material Type, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Kraft Paper
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• White Paper
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Coated Paper
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Recycled Paper
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By End-User, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Retail
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Food & Beverages
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Pharmaceuticals
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Consumer Goods
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Industrial
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Region, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Regional Trends
• North America
  • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Material Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By End-User, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • U.S
    • Canada
• Asia Pacific
  • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Material Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By End-User, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • India
    • Japan
    • South Korea
    • China
    • Rest of Asia Pacific
• Europe
  • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Material Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By End-User, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • UK
    • Germany
    • France
    • Russia
    • Italy
    • Rest of Europe
• Latin America
  • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Material Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By End-User, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • Brazil
    • Mexico
    • Rest of Latin America
• Middle East and Africa
  • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Material Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By End-User, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East and Africa

Competitive Landscape

• Heat Map Analysis
• Company Profiles

• Mondi Group
• Smurfit Kappa
• International Paper Company
• WestRock Company
• DS Smith
• Stora Enso
• Georgia-Pacific LLC
• Holmen Group
• BillerudKorsnäs
• Oji Holdings Corporation
• Sappi Limited
• Nippon Paper Industries
• Segezha Group
• UPM-Kymmene Corporation
• Cascades Inc.

The Last Word

• Future Impact
• About Us
• Contact