The global foodservice paper bag market is poised for significant growth, with a compound annual growth rate (CAGR) of 3.1% from 2024 to 2034. Valued at USD 953.1 million in 2024, the market is projected to reach USD 1,293.3 million by 2034. This growth is primarily driven by increasing consumer and food brand preference for eco-friendly packaging solutions.
Core Concepts in the Foodservice Paper Bag Industry
- Current Market Valuation (2024): The market is expected to reach US$ 953.1 million in 2024.
- Projected Market Size by 2034: The market is estimated to reach US$ 1,293.3 million by 2034.
- Growth Potential: The market is anticipated to grow at a CAGR of 3.1% through 2034.
- Historical Outlook: From 2019 to 2023, the market exhibited a Historical CAGR (HCAGR) of 2.4%.
- Dominant Material Segment: The brown kraft sector is projected to achieve a market share of 9% in 2024.
- Leading End-Use Segment: The restaurant sector is expected to hold a 70% market share in 2024.
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The food service sector initially utilized conventional plastic bags when distributing food products to customers. Global demand for food service paper bags is expected to expand due to the change towards sustainable practices prompted by government initiatives and plastic usage constraints.
Growing demand for ecologically friendly food service paper bags, is expected to accompany the proliferation of food service outlets. This aligns with the food service paper bag market increasing inclination toward environmentally friendly solutions.
Regional Outlook:
- Due to the region’s vibrant food delivery culture and the application of stringent environmental regulations, food service paper bag adoption is on the rise throughout Asia Pacific.
- Foodservice businesses in Europe are adopting more recyclable and biodegradable packaging options to lessen their environmental effect, which encourages demand for foodservice paper bags.
- Due to stricter laws, consumer desire for environmentally friendly packaging, and the growth of the food delivery industry, the adoption of food service paper bags is prevalent in North America.
“Growing demand for environmentally friendly packaging options is expected to propel significant expansion in the food service paper bag market. Government rules and rising environmental consciousness act as major forces shaping market dynamics of foodservice paper bag,” says Lead Consultant Ismail Sutaria in Packaging at Future Market Insights (FMI).
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Key Takeaways:
- In the material category, the brown kraft segment to acquire a market share of 82.9% in 2024.
- The restaurants segment in the end use category to grab a share of 50.7% in 2024.
- From 2024 to 2034, the Indian biodegradable paper bag market is projected to strengthen at a 6.7% CAGR.
- China’s restaurant paper bag market is expected to surge at a CAGR of 5.9% through 2034.
- Thailand’s food service paper bag industry anticipates flourishing at a CAGR of 5.5% from 2024 to 2034.
- The Spain foodservice paper bag market is expected to evolve at a CAGR of 3.5% between 2024 and 2034.
- Between 2024 and 2034, the Japan biodegradable paper bag market is projected to evolve at a CAGR of 2.6%.
- The United Kingdom foodservice paper bag market is expected to experience expansion at a CAGR of 2.6% through 2034.
- Through 2034, the United States eco-friendly paper bag market is expected to expand at a CAGR of 2.4%.
- The food service paper bag market in Canada is forecast to rise at a CAGR of 2.1% until 2034.
- The eco-friendly paper bag market in South Korea is forecast to rise at a CAGR of 2.1% until 2034.
- The German foodservice paper bag market is projected to exhibit growth between 2024 and 2034 at a CAGR of 2.0%.
- The food delivery paper bag market in Italy is expected to rise at a CAGR of 1.8% until 2034.
- The France takeout paper bags industry anticipates flourishing at a CAGR of 1.6% from 2024 to 2034.
Segment Insights:
Brown Kraft Paper Bags:
- Market Share (2024): 82.9%
- Brown kraft paper bags are favored for their robustness and durability, providing superior protection for food items during handling and transportation. They appeal to sophisticated consumers seeking organic and artisanal food options, reflecting authenticity and handcrafted quality. These bags are versatile and ideal for various food service uses, from bakeries and delis to food trucks and takeaway establishments.
Restaurant Segment:
- Market Share (2024): 50.7%
- The rise in takeout and restaurant meals has increased demand for long-lasting, environmentally friendly food service paper bags. Their practicality for restaurant operations and effective handling and disposal maintains their market dominance. The expanding restaurant sector, coupled with growing consumer interest in eco-friendly packaging, makes the restaurant industry a significant source of revenue for the food service paper bag sector.
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Key Foodservice Paper Bag Vendors:
- WestRock Company
- Hutamaki Oyj
- Novolex Holdings LLC
- Ronpak Inc.
- Mondi Group
- Amcor Ltd
- International Paper Company
- Smurfit Kappa Group
- Welton Bibby And Baron Limited
- ProAmpac LLC
- Gerhard Schürholz GmbH
- Toybe Global Packaging
- AB Group Packaging
- Smith Anderson Group Ltd.
- Milhe & Avons
Noteworthy Developments:
- Novolex Holdings LLC announced in August 2022 the introduction of novel paper bags for restaurants and stores to provide more secure delivery. The paper bag features a flat bottom to keep objects safe, a wide opening for easy loading, and strong paper twist handles for dependable and simple carrying.
- WestRock Company invested US$ 47 million at its Claremont consumer factory in March 2022, expanding its production capacity.
- Huhtamaki Oyj purchased Portland-based Smith Anderson Group Ltd. in January 2022. The company is based in Eastern Europe and produces paper bags.
Key Segments:
By Material Type:
- Brown Kraft
- White Kraft
By Bag Type:
- Handle Bags
- Non-handle Bags
By End User:
- Restaurants
- Online Food Delivery
- Institutional
By Region:
- North America
- Latin America
- Europe
- South Asia
- East Asia
- Middle East and Africa
- Oceania
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 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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