Foodservice Paper Bags Market in the USA Thrives on Environmental Concerns, Likely To Reach Us$ 1,575.9 Million By The End Of 2032 | FMI

The valuation of the worldwide foodservice paper bags market is projected to hit US$ 958.4 Million by the year 2022. Subsequently, it is anticipated to experience a compound annual growth rate (CAGR) of 5.1% spanning from 2022 to 2032. This trajectory indicates that the market could achieve a value of US$ 1,575.9 Million by the culmination of 2032.

Foodservice Paper Bags Market in the USA is set to witness substantial growth, with the country expected to capture around 80% of the North America market share over the next decade. This surge in demand is attributed to the increasing environmental concerns and a growing preference among U.S. consumers for recyclable and sustainable packaging solutions. As the amount of waste accumulating in landfills continues to rise, consumers are seeking eco-friendly alternatives.

The American Forest & Paper Association (AF&PA) reports that paper is one of the most widely recycled materials in the USA, making it a favored choice for environmentally-conscious consumers. The high recyclability of paper packaging, including foodservice paper bags, is expected to drive their adoption even further. With a consistent paper recycling rate of over 63% since 2009, the USA’s commitment to sustainability is evident, leading to an increased demand for innovative and eco-friendly packaging solutions. This trend underscores the promising future of foodservice paper bags in the U.S. market.

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The foodservice paper bag market has shown steady growth with a CAGR of 4.1% from 2015 to 2021. It is poised for further expansion in the future, driven by factors such as heightened environmental concerns, government regulations, and the overall growth of the foodservice industry.

Key Takeaways

• Brown kraft-based paper bags are expected to account for more than 4/5th of market value, owing to their stiffness.
• Non-handle bags will remain the most sought type, capturing nearly 2/3rd of market value, backed by their convenience and low cost.
• On the basis of end-use, restaurants are poised to capture more than half of overall global value, ascribed to the rising trend of take-away.
• Europe is projected to spearhead the regional landscape of the market, capturing more than 1/3rd of market value.
• East Asia will prevail as the second most lucrative regions through the forecast period, holding a quarter of the market value.

Key Players:

• WestRock Company
• Hutamaki Oyj
• Novolex Holdings LLC
• Ronpak Inc.
• Mondi Group
• Amcor Ltd
• International Paper Company

Competitive Landscape

Major players operating in the global foodservice paper bags market are trying to expand their capacities by developing their facilities. Also, several key players are adopting the merger and acquisition strategy to strengthen and increase their resources. These players are focusing on developing innovative paper bags to gain more market shares.

Some of the latest developments by key players are as follows–

• In August 2022, Novolex Holdings LLC announced the launch of innovative paper bags for more secure deliveries for retailers and restaurants. The paper bag offers a wide opening for easy loading, a flat bottom to keep items secure, and sturdy paper twist handles for easy & reliable carrying.
• In March 2022, WestRock Company expanded its production facility by investing US$ 47 Million at its consumer facility in Claremont.
• In January 2022, Huhtamaki Oyj acquired a company named Smith Anderson Group Ltd. in Portland. The company manufactures and sells paper bags in Eastern Europe.

Trends Shaping the Foodservice Paper Bags Market

1. Eco-Friendly Materials: Consumers are favoring brands that prioritize eco-friendly packaging. As a result, there’s a surge in demand for foodservice paper bags made from recycled paper or materials like kraft paper.
2. Customization: Businesses are recognizing the branding potential of paper bags. Custom prints, logos, and unique designs enhance brand visibility and customer engagement.
3. Versatility: Foodservice paper bags are no longer limited to traditional takeout. They are now used for packaging a wide range of items, including bakery products, fruits, and even gourmet meals.
4. Regulations and Standards: Government regulations aimed at reducing plastic waste are driving businesses to adopt sustainable alternatives like paper bags.

Foodservice Paper Bags: Impact on the Food Industry

The Foodservice Paper Bags Market’s impact extends beyond its eco-friendly nature. These bags offer practical advantages to both businesses and consumers:

• Heat Retention: Insulated paper bags are excellent at retaining heat, making them a preferred choice for delivering hot foods like pizzas and other takeout orders.
• Breathability: Paper bags allow food to breathe, preventing sogginess in products like fried items and maintaining their crispness.
• Branding and Advertising: Customized paper bags serve as mobile advertisements, showcasing a brand’s identity to potential customers as they’re carried around.
• Consumer Preference: As consumers become more conscious of their environmental footprint, businesses that offer sustainable packaging options like paper bags gain a competitive edge.

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Foodservice Paper Bags Market Outlook by Category

By Material Type:

• Brown Kraft
• White Kraft

By Bag Type:

• Handle Bags
• Non-handle Bags

By End User:

• Foodservice Outlets
• Online Food Delivery
• Institutional

By Region:

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Middle East & Africa
• Oceania