The paper bags market is poised for a steady upward trajectory, with the industry projected to generate USD 6,786 million in revenue in 2025 and scale up to an estimated USD 10,438.2 million by 2035. This growth reflects a CAGR of 4.4% over the forecast period of 2025 to 2035. In comparison, the market size stood at USD 6,500 million in 2024, indicating a clear shift toward environmentally responsible alternatives in the global packaging sector.
A key area of demand comes from retail and foodservice sectors. Fast food chains and coffee shops are increasingly using custom-printed paper bags not just for packaging, but also as a vehicle for brand promotion and to project an eco-conscious image.
Paper bags are a sustainable alternative to plastic bags and are made primarily from paper pulp derived from wood or recycled paper. They are biodegradable, recyclable, and environmentally friendly, making them an attractive option for retailers and consumers alike.
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Paper bags come in various sizes, styles, and designs, catering to a wide range of uses, from packaging groceries and baked goods to retail and promotional purposes. Custom-printed paper bags, in particular, have become a popular choice for brand promotion and are widely used by food service businesses and retailers to convey an eco-friendly image.
Key Trends in the Paper Bags Market
- Increasing Demand for Custom-Printed Paper Bags: Custom-printed paper bags have gained significant popularity, particularly in the food service industry. Fast-food chains, coffee shops, and restaurants are increasingly using these bags for brand promotion. These custom bags not only serve as functional packaging but also help businesses communicate their eco-friendly values to consumers. The growing trend of sustainability in the food service sector is a major factor behind the surge in demand for these bags.
- Growth of Organic and Specialty Food Packaging: The rise of organic and specialty food products has led to a demand for specific types of paper bags, such as greaseproof and moisture-resistant bags. These specialized bags are used to package snacks, baked goods, and coffee, as they provide the necessary protection against oils, moisture, and grease. This trend is being fueled by the increasing consumer preference for healthy and organic food options, which are often sold in more sustainable packaging formats.
- Adoption of Paper Bags by Supermarkets and Retailers: Supermarkets, fresh produce retailers, and grocery stores are increasingly shifting towards using paper bags for packaging fruits, vegetables, and dry goods. This shift is in response to consumer demand for eco-friendly packaging alternatives and growing regulations aimed at reducing plastic waste. Paper bags offer a sustainable solution, and retailers are adopting them to align with environmentally conscious consumer preferences.
Key Takeaways From the Paper Bags Market
- The global paper bags market recorded a CAGR of 3.2% during the period from 2020 to 2024.
- The market reached a value of USD 6,500 million in 2024, reflecting steady growth.
- The USA is projected to grow at a CAGR of 3.3% through 2035.
- Spain is expected to witness a stronger CAGR of 4% in the European region by 2035.
- Two Ply bags are estimated to hold a 38% market share in the thickness segment by 2025.
- Pasted valve bags are forecasted to dominate the product type segment, with over 32% market share by the end of 2025.
Organic and Specialty Food Growth: Fueling Functional Innovation
The growth of organic and specialty food markets has opened up new avenues for paper bag innovations. These markets often require packaging solutions that maintain product integrity without compromising sustainability. As a result, greaseproof and moisture-resistant variants of paper bags are gaining traction. These specialized paper bags are ideal for packaging items like baked goods, nuts, coffee beans, and artisan snacks.
Competitive Landscape
New products are being developed and introduced to the market by major players in the global paper bag business. They are expanding their geographic reach and integrating with other businesses. A small number of them are also working together and forming partnerships with start-up businesses and local brands.
Key Developments in Paper Bags Market:
- In July 2024, Mondi announced a partnership with CMC Packaging Automation to serve as CMC’s preferred kraft paper partner, aiming to develop innovative packaging solutions.
- In October 2024, Coles Introduced a washable paper bag priced at USD 15, designed to carry up to 20kg and withstand machine washing. This launch aligns with Coles’ initiative to phase out single-use plastic bags in favor of durable, eco-friendly alternatives.
Key Players in Paper Bags Market
- International Paper Company
- Mondi Plc
- Oji Holdings
- Smurfit Kappa
- Novolex
- Stora Enso
- Atlantic Packaging
- Langston Companies
- Ronpak
- Detmold Packaging
- Wisconsin Converting
Global Paper Bags Market Segmentation
By Product Type:
The paper bags market is divided into sewn open mouth, pinched bottom open mouth, pasted valve, pasted open mouth, and flat bottom.
By Material Type:
The market is segmented by material type into brown kraft and white kraft.
By Thickness:
The industry is classified based on thickness into 1 ply, 2 ply, 3 ply, and more than 3 ply.
By End Use:
The market includes various end-use industries such as agriculture & allied industries, building & construction, food & beverage, retail, agriculture, chemicals, and others.
By Region:
Key Countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East & Africa are covered.
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