In 2023, the market for paper bags is expected to be worth US$ 5.4 billion. By 2033, its net value will be US$ 8.2 billion. The global market is expected to increase at a CAGR of around 4.1% from 2023 to 2033.
The Market Share of Paper Bags in USA Growing With the High CAGR of 89.1% in 2023. The USA’s food processing industry is experiencing remarkable growth, catering to global tastes with innovative, healthy bakery and beverage products. This culinary diversity has fueled an increasing demand for custom paper bags. With its vast population, the USA stands as a dynamic hub for digital investment and start-ups, making it a prime market for paper bag packaging. Several factors contribute to this surge in demand. First, the preference for flexible packaging allows for easy customization and adaptation to various products. Second, the emphasis on eco-friendly packaging aligns with sustainability goals, making paper bags an eco-conscious choice. Additionally, the cost-effectiveness and reduced packaging waste associated with paper bags make them an attractive option for both businesses and consumers.
In Q3 2022, the retail e-commerce sector in the USA saw a substantial 3.0 percent increase, reaching $265.9 billion, according to the USA Census Bureau, even after considering seasonal fluctuations but excluding price changes. This boost in online sales further supports the demand for paper bags as a packaging solution for the ever-expanding e-commerce industry.
Due to its high level of sustainability and appealing color & design options, paper bags are increasingly being used for carrying and packaging items. Paper bag demand has greatly expanded in recent years as a result of growing knowledge about the importance of using eco-friendly and biodegradable products.
Paper bags are regularly used in restaurants, retail outlets, groceries, and shopping malls. Prominent players in the packaging industry are choosing paper as a material for introducing a wide variety of bags, which will provide high tear resistance and stiffness. Paper bags are considered to be a better alternative for plastic bags because of numerous properties such as cost-effectiveness, environmentally friendly, and high disposable income. Overall, the global paper bags is projected to witness tremendous growth in the forecast period.
Request Sample: https://www.futuremarketinsights.com/reports/sample/rep-gb-2765
Key Takeaways of Paper Bags Market Study
- By material type, the brown kraft segment is expected to hold more than 3/4th value share in the global paper bags market.
- By product, the sewn open mouth segment is likely to register a CAGR of 5% over the forecast period in the global paper bags market.
- By thickness, the < 2 ply segment is expected to expand at a CAGR of 5% in next ten years in the global paper bags market.
- Western Europe is estimated to capture around 1/4th of the paper bags market share in the assessment period.
- India paper bags market is projected to showcase considerable growth at a CAGR of 6.0% in the next ten years.
“High popularity of nutritious and healthy baked goods, as well as beverages is likely to bode well for the paper bags market. Key companies are hence expected to launch innovative paper bags and tie up with leading food & beverage brands to expand their presence,” says a lead analyst at Future Market Insights.
Top Trends Pushing Sales of Paper Bags across the Globe
- Environmental Awareness: Increasing awareness of the environmental impact of plastic bags has led to a shift towards more sustainable and eco-friendly alternatives. Paper bags are considered a more environmentally friendly option as they are biodegradable and recyclable.
- Plastic Bans and Regulations: Many countries and cities have implemented bans or restrictions on single-use plastic bags, pushing consumers and businesses to adopt paper bags as a more acceptable alternative.
- Corporate Social Responsibility (CSR): Many businesses are adopting sustainable practices and promoting their environmental responsibility. Using paper bags instead of plastic is seen as a part of CSR efforts, which can enhance a brand’s image.
- Consumer Preferences: Consumers are increasingly choosing products and packaging that align with their values. Paper bags are often perceived as a more sustainable and eco-friendly option, and this drives their popularity.
- Customization and Branding: Paper bags can be easily customized and branded, making them an attractive option for businesses looking to promote their brand and create a unique shopping experience.
- E-commerce Growth: With the surge in online shopping, there’s a growing need for packaging solutions that are not only durable but also environmentally friendly. Paper bags have found their place in e-commerce packaging.
- Innovative Designs and Materials: The paper bag industry has been innovating in terms of designs and materials. This includes the development of stronger and more durable paper bags, as well as innovative features like handles and closures.
Market Drivers-
- Sustainability Concerns: The increasing awareness of environmental issues and the desire to reduce plastic waste have driven the demand for paper bags. Consumers and businesses alike are opting for eco-friendly alternatives.
- Plastic Bans and Regulations: Government regulations and bans on single-use plastics in various regions have accelerated the adoption of paper bags. This has pushed businesses to shift towards more sustainable packaging options.
- Consumer Preferences: Many consumers now actively seek out products and brands that use sustainable packaging. Paper bags are perceived as more environmentally responsible, and this consumer preference is a significant driver in the market.
- Retail and E-Commerce Growth: The growth of the retail industry, as well as the surge in e-commerce, has increased the demand for packaging materials, including paper bags. These sectors are significant contributors to the paper bags market.
- Corporate Social Responsibility (CSR): Companies are increasingly focusing on CSR initiatives, and sustainable packaging is a vital component of these efforts. This drive has led to the adoption of paper bags by various businesses.
- Customization and Branding: Paper bags can be easily customized with brand logos and designs. This personalization is a valuable marketing tool, driving businesses to choose paper bags over generic plastic options.
Paper Bags to Witness Spurring Demand among Building and Construction Companies
The global paper bags market is poised to face heavy demand from the retail sector, which accounts for more than 50% of demand. Retail sector has been showing strong performance in most of the regions, barring Latin America and Eastern Europe. Both these regions are yet to come out of the clutches of economic slowdown, with recovery process gradually picking up pace.
In the Middle East and Africa, a significant demand for paper bags is expected to be from the building and construction industry. Some parts of the region have been involved in war for the last few years, which has resulted in political stalemate.
As peace is restoring in the region, foreign firms are expected to facilitate international efforts to rebuild war-torn nations. Numerous countries have come forward and shown keenness for the same. As paper bags with porosity has high strength, a surging demand for these bags is expected in the next ten years. They will be used for carrying construction materials and cement in building & construction industries.
Ask an Analyst: https://www.futuremarketinsights.com/ask-the-analyst/rep-gb-2765
Competitive Landscape: Paper Bags Market
- WestRock Company,
- Mondi Inc.,
- York Paper Company Limited,
- Smurfit Kappa Group Plc,
- United Bags, Inc.,
- International Paper Company,
- Global-Pak, Inc.,
- Novolex Holdings, Inc.,
- JohnPac Inc.,
- Ronpak,
- Paperbags Limited,
- Welton Bibby And Baron Limited,
- Genpak Flexible,
- Langston Companies, Inc.,
- El Dorado Packaging, Inc.
among others are prominent players in the paper bags market. The paper bags market is fragmented and tier 1 players currently hold 40% to 45% of share.
Paper Bags Market Outlook by Category
By Product:
- Sewn Open Mouth
- Pinched Bottom Open Mouth
- Pasted Valve
- Pasted Open Mouth
- Flat Bottom
By Material Type:
- Brown Kraft
- White Kraft
By Thickness:
- 1 ply
- 2 ply
- 3 ply
- > 3 ply
By End Use:
- Agriculture & Allied Industries
- Building & Construction
- Food & Beverage
- Retail
- Chemicals
- Others
Request Customization: https://www.futuremarketinsights.com/customization-available/rep-gb-2765
About the Packaging Division at Future Market Insights
The packaging division at Future Market Insights provides an in-depth historical analysis and projections for the next ten years and covers the competition landscape through a unique dashboard view. Ranging from packaging materials, packaging machinery to packaging designs & formats, Future Market Insights has an exhaustive database for these industry verticals, serving clients with unique research offerings and strategic recommendations. With a repository of 1,000+ reports, the team has analyzed the packaging industry comprehensively in 50+ countries. The team evaluates every node of the value chain and provides end-to-end research and consulting services; reach out to explore how we can help.
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer, Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 5000 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
Contact Us:
Future Market Insights Inc.
Christiana Corporate, 200 Continental Drive,
Suite 401, Newark, Delaware – 19713, USA
T: +1-845-579-5705
For Sales Enquiries: sales@futuremarketinsights.com
Website: https://www.futuremarketinsights.com
LinkedIn| Twitter| Blogs | YouTube
