Paper Bags Packaging Market

Increase in popularity of utilising biodegradable and organic paper bags will drive paper bags packaging market growth

Normal plastic bags take around 450 to 500 years to degrade, which results in significant devastation and pollution of both land and water. The production of biodegradable paper bags has begun among major companies; these bags are eco-friendly, elegant, and long-lasting. Paper bags made of biodegradable material are simple to make and safe for the environment. As paper carry bags are easy to reuse and recycle, they are now being used by major players in the retailing industry.

Better branding is a major driver of paper carry bag adoption; company names can be readily printed on the bags, and they also look chic. Paper carry bags help establish companies. One of the main factors fueling the growth of the  paper bags packaging market is the widespread adoption of biodegradable paper bags. In 2021, it was predicted that the  market for biodegradable plastic will be worth USD 4.1 billion. During the projection period, it is anticipated to increase at a compound annual growth rate (CAGR) of 9.7%.

With a sales share of more than 40.0%, starch-based was the leading product category for biodegradable plastics in 2021. With a revenue share of more than 43.0%, Europe was the largest regional market for biodegradable plastics in 2021. The European Union's prohibition on single-use plastics and the general high awareness of plastic waste are expected to drive the regional market for paper bags packaging throughout the projected period.

Online meal delivery services are becoming more popular with consumers since they provide hot dishes that are on the move at their doorstep. Customers also have the choice to select their preferred cuisine from a hotel's menu. Online meal delivery services are heavily used by students and bachelors who relocate to other places for employment and educational opportunities. They contribute to people's lives being simple and effortless. Online food delivery services are a significant commercial user of paper bags since they utilise them to transport large dishes like pizza, cakes, and heavy dinners to customers' doors.

Paper bags are strong and inexpensive; these unbleached paper bags are 100% safe for delivering food and heat resistant. The usage of paper bags in online food delivery services is increasing, which is propelling the expansion of the worldwide paper bags plastic market revenue. Many hotels and restaurants are putting their names on biodegradable paper bags to improve brand exposure among consumers.

Figure 1: Projected waste generation, by region (millions of tonnes/year)Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The United States does not yet have a nationwide tax or ban on plastic bags. However, the territories of American Samoa, Guam, the Northern Mariana Islands, the United States Virgin Islands, and Puerto Rico, as well as the states of California, Connecticut, Delaware, Hawaii (de facto), Maine, New Jersey, New York, Oregon, Vermont, and Washington, have all banned the use of disposable bags. A bill prohibiting throwaway bags in Colorado was also enacted by the Colorado General Assembly; it will come into effect in 2024.

All of the counties in Hawaii are among the almost 200 counties and municipalities that have passed regulations charging for plastic bags or outright prohibiting them. Although 152 Massachusetts cities and towns have already banned plastic shopping bags as of May 2022, some initiatives to do so nationwide. These factors enhance the plastic bags packaging market CAGR across the globe.

Rising consumer awareness regarding environmental issues is a pivotal driver for the Global Global Paper Bags Packaging Market Industry. As individuals become more informed about the detrimental effects of plastic pollution, there is a marked shift towards sustainable alternatives. This heightened awareness is prompting consumers to seek out brands that prioritize eco-friendly packaging solutions. Consequently, businesses are responding by increasing their offerings of paper bags, which are perceived as a responsible choice. This trend not only influences purchasing decisions but also encourages companies to invest in sustainable practices, thereby fostering a more environmentally conscious market landscape.

Government regulations promoting the reduction of plastic usage significantly influence the Global Global Paper Bags Packaging Market Industry. Many countries are implementing stringent policies aimed at curbing plastic waste, which in turn fosters the adoption of paper bags. For instance, various jurisdictions have enacted bans on single-use plastics, creating a favorable environment for paper packaging solutions. This regulatory landscape is expected to bolster the market, as businesses seek compliance while appealing to environmentally conscious consumers. The anticipated growth trajectory suggests that by 2035, the market could reach 6.39 USD Billion, reflecting the positive impact of these regulations.

The expansion of the retail sector plays a crucial role in driving the Global Global Paper Bags Packaging Market Industry. As retail businesses increasingly adopt paper bags for their packaging needs, the demand for sustainable options rises. This trend is particularly evident in grocery stores and fashion retailers, where paper bags are favored for their aesthetic appeal and eco-friendliness. The retail sector's growth is projected to contribute significantly to the market's expansion, with a compound annual growth rate of 4.42% anticipated from 2025 to 2035. This growth underscores the importance of packaging in enhancing brand image and customer experience.

The Global Global Paper Bags Packaging Market Industry is experiencing a notable shift towards sustainability. As consumers increasingly prioritize eco-friendly products, manufacturers are compelled to adopt sustainable practices. This trend is evidenced by the growing demand for biodegradable and recyclable paper bags, which are perceived as environmentally responsible alternatives to plastic. In 2024, the market is valued at approximately 3.97 USD Billion, indicating a robust consumer preference for sustainable packaging solutions. This shift not only aligns with global environmental goals but also encourages companies to innovate in their packaging designs, thereby enhancing their market competitiveness.

The Global Global Paper Bags Packaging Market Industry is poised for substantial growth, with projections indicating a market value of 6.39 USD Billion by 2035. This growth trajectory is underpinned by various factors, including increasing consumer demand for sustainable packaging solutions and supportive regulatory frameworks. The market is expected to experience a compound annual growth rate of 4.42% from 2025 to 2035, reflecting the ongoing shift towards eco-friendly alternatives. As businesses adapt to these changing dynamics, the paper bags market is likely to expand, offering new opportunities for innovation and investment.

Technological advancements in manufacturing processes are significantly enhancing the efficiency and quality of paper bags, thereby impacting the Global Global Paper Bags Packaging Market Industry. Innovations in production techniques allow for the creation of stronger, more durable paper bags that can compete with plastic alternatives. These advancements not only improve the functionality of paper bags but also reduce production costs, making them more accessible to a wider range of businesses. As technology continues to evolve, it is likely that the market will see an increase in the variety and customization of paper bags, further driving consumer interest and adoption.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. Asia Pacific, paper bags packaging market accounted for USD 1495.09 million in 2021 and is expected to exhibit a significant CAGR growth during the study period. China, India, and Japan are the top exporters of different commercial items to different regions of the world, and they are all part of the Asia-Pacific region. The expansion of paper bags packaging is due to FDI in retail has drawn international businesses to establish bases in the area.

The paper bags packaging market in India is witnessing robust growth, driven by increasing environmental awareness and stringent regulations against single-use plastics

Further, the major countries studied in the paper bags packaging market report are: The U.S., Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.Figure 3: Paper Bags Packaging SHARE BY REGION 2021

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America paper bags packaging market accounts for the second-largest market share. Major paper bags packaging market including the US, Canada, and Mexico are found in North America. Due to the high rate of multiple brand penetration, rising demand for packaged foods and ready-to-eat goods, expansion in the number of working women, and strong spending power, North America is one of the major regions in the  food & beverage and retailing paper bag packaging industry. During the anticipated timeframe, this is anticipated to fuel, market for paper bags packaging expansion in the area.

The retail and food services industry in the United States reached $549.3 billion in September 2019, according to the Census Government Organization. It made flat paperbags used in retail stores more necessary. Further, the US paper bags packaging market held the largest market share, and the Canada paper bags packaging market was the fastest growing market in this region.

In the meantime, the European paper bag packaging market was third worldwide. The primary contributors to this, paper bags packaging market expansion are Germany, the United Kingdom, France, Italy, Spain, and the rest of Europe. The presence of various high-end cosmetic firms in the area contributes to the expansion of the Germany paper bag packaging market. Food and beverage goods are typically packaged in paper bags.

Additionally, the demand for eco-friendly storage and paper bag packaging solutions is rising as a result of the food and beverage industry's increased interest in sustainable packaging goods, this will result in growth of UK paper bag packaging market.

Major market companies are spending a lot of money on R&D in order to diversify their product lines, which will propel the paper bags packaging industry's expansion even further. Market participants for paper bags packaging are engaging in a variety of strategic activities to increase their  presence in conjunction with significant industry changes, including key market developments, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organisations.

Businesses in the paper bags packaging industry area must offer inexpensive items if they want to expand and prosper in a market for paper bags packaging that is developing and where competition is intense.

Manufacturing locally to cut operating costs is one of the main business tactics used by manufacturers in the worldwide paper bags packaging industry to benefit customers and increase the market for paper bags packaging. Some of the most important advantages for medicine recently have come from the paper bags packaging industry.

The paper bags packaging market major players such as   WestRock Company, Smurfit Kappa, Mondi, Oji Holdings Corporation, Welton Bibby & Baron Ltd, NOVOLEX,  B&H Bag Company, Ecobags NZ, Primepac Industrial Limited, Huhtamaki Group, Bee Dee Bags, Langston Companies Inc.The Paper Bag Players captivate audiences with their whimsical paper-made characters who come to life on stage, blending creativity and humor in a truly one-of-a-kind theatrical experience.

An American manufacturer of corrugated packaging is WestRock. Following the merger of MeadWestvaco and RockTenn, it was established in July 2015. The second-largest packaging company in America is called WestRock. The organisation bought Plymouth Packaging, Inc. in January 2018. Later that month, rival pulp and paper manufacturer Kapstone will be acquired by WestRock. By the end of the third quarter of 2018, the acquisition is anticipated to be finalised.

Also, for quick service restaurants, coffee shops, retail stores, caterers, and vending operators, Huhtamäki Oyj (also known as Huhtamaki) manufactures food packaging, disposable containers, as well as egg cartons and fruit packaging. In 2021, Huhtamaki purchased Hihio-Art Packaging, a Chinese maker of paper bags, wrapping paper, and folding boxboard packaging, as well as Elif, a flexible packaging manufacturer with locations in Turkey and Egypt.