Retail Bags Market Size valued at USD 15.2 Billion in 2023. The Retail Bags industry is projected to grow from USD 16.08 Billion in 2024 to USD 25.24 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.80% during the forecast period (2024 - 2032). Increased awareness and adoption of sustainable and eco-friendly packaging solutions and a rise in e-commerce and online shopping are the key market drivers enhancing the growth of market.
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for retail bags is being driven by the rising awareness and adoption of sustainable and eco-friendly packaging solutions. The growing concern about environmental issues, like plastic pollution and climate change, has led consumers and businesses to prioritize eco-friendly practices. Many consumers now actively seek products and brands that demonstrate a commitment to sustainability. Governments and regulatory bodies globally are imposing stricter regulations on single-use plastics and encouraging the use of environmentally friendly packaging materials.
Additionally, the preferences of consumers are shifting towards eco-friendly and reusable packaging solutions. Many shoppers prefer to patronize businesses that offer reusable bags or use materials like recycled paper, Paper Straw, cloth or biodegradable plastics for Retail Bags. The retailers recognize the importance of their brand image and reputation. Using sustainable Retail Bags not only aligns with corporate social responsibility but also enhances a brand’s image as environmentally conscious and socially responsible. Further, the businesses that adopt sustainable Retail Bags can attain a competitive edge in market. Sustainability practices can attract new customers, retain existing ones, and differentiate a brand from its competitors. While sustainable materials may have higher upfront costs, they often provide long-term cost savings. Reusable Retail Bags, for example, can reduce the need for frequent bag replenishment, ultimately benefiting a retailer’s bottom line.
Offering reusable and eco-friendly Retail Bags can foster customer loyalty. Shoppers who appreciate a retailer’s commitment to sustainability are more likely to return for further purchases. Environmental organizations and campaigns raise awareness about the detrimental impact of single-use plastics. Such efforts influence consumer behavior and encourage the use of reusable bags. Many businesses have set sustainability targets and initiatives as part of their corporate responsibility strategies. Adopting eco-friendly Retail Bags aligns with these goals and demonstrates a commitment to sustainability. The advancements in materials science have led to the development of innovative, sustainable materials for Retail Bags, including recycled paper. Organic fabrics and biodegradable plastics.
For instance, international agreements and initiatives, such as the United Nations Sustainable Development Goals, focuses on the importance of reducing plastic waste and promoting sustainability. Retailers may align their practices with these commitments. Thus driving the Retail Bags market revenue.
The Retail Bags market segmentation, based on material type, includes Plastic, Paper and Others. The plastic segment dominates the market, accounting for the largest market revenue, as plastic bags have been widely used in various retail sectors for several decades, mainly due to their durability, cost-effectiveness, versatility and ease of production. The plastic bags are lightweight, transparent and can be easily customized and recycled. Further, paper bags are expected to witness significant growth due to the emphasis on sustainability and government regulations.
The Retail Bags market segmentation, based on end users, includes Grocery Stores, Food Service and Others. The grocery stores category dominates the market, as the grocery stores generate a consistently high volume of bag usage on a daily basis due to the large number of customers they serve. These stores require a range of bag sizes to accommodate different types of items, and most of the grocery stores provide single-use plastic bags to customers. However, due to environmental concerns, there is a shift toward more sustainable options like paper bags, reusable cloth bags and biodegradable plastics. Further, the growth of online grocery shopping and delivery services has increased the demand for Retail Bags. On the other hand, the food service segment is expected to experience sustainable growth throughout the forecast period.
Figure 1: Retail Bags Market by End User, 2022 & 2032 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study gives market insights into the North America, Europe, Asia-Pacific and the Rest of the World. The North American Retail Bags market area dominates the market of Retail Bags as it boasts a thriving retail sector with a multitude of grocery stores, supermarkets, department stores and food service establishments. The region has implemented restrictions and a ban on single-use plastic bags, promoting the adoption of eco-friendly alternatives. Also, the region’s retailers often view Retail Bags as an extension of their branding and marketing efforts.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.
Figure 2: RETAIL BAGS MARKET SHARE BY REGION 2022 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Retail Bags market accounts for the second-largest market share due to the shift towards sustainable packaging, growth in e-commerce and use of Retail Bags as a means of branding and marketing. Further, the German Retail Bags market held the largest market share, and the UK Retail Bags market was the rapid-growing market in the European region.
The Asia-Pacific Retail Bags Market is anticipated to grow at a rapid CAGR from 2023 to 2032. This is because of the rapid expansion of e-commerce in the region, ongoing urbanization in several countries of this region and the shift towards sustainable packaging solutions. Moreover, China’s Retail Bags market held the largest market share, and the Indian Retail Bags market was the fastest-growing market in Asia-Pacific region.
Leading market players are investing hugely in research and development in order to expand their product lines, which will help the Retail Bags market grow even more. Market players are also undertaking a variety of strategic activities to spread their footprint, with important market developments including higher investments, new product launches, contractual agreements, mergers and acquisitions, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, the Retail Bags industry must offer cost-effective items.
Manufacturing locally to reduce the operational costs is one of the key business tactics used by the manufacturers in the Retail Bags industry to benefit clients and grow the market sector. In recent years, the Retail Bags industry has offered some of the most significant advantages to several commercial industries. Major players in the Retail Bags market, including Smurfit Kappa Group PLC, BioPak Pty Ltd, El Dorado Packaging Inc., Mondi Group PLC, International Paper Company, Global-Pak Inc., Attwoods Packaging Company, The Carry Bag Company, GreenPack Limited, Welton Bibby and Baron Limited, and others, are trying to increase market demand by investing in the research and development operations.
CCL Industries, founded in 1951 and headquartered in Toronto, Ontario, Canada, is a multinational company that specializes in the production of labels, packaging and various other innovative solutions for businesses across different industries. The CCL Container specializes in the manufacturing of specialty aluminum aerosol cans and bottles. Their products are used in the personal care, pharmaceutical and industrial sectors. In August 2022, CCL Industries Inc, a leader in specialty packaging labels, announced a partnership with Avery Dennison Corporation, a leader in labeling and packaging materials, to develop and commercialize smart Retail Bags that can track product movement and provide other valuable insights to retailers. This partnership will enable CCL Industries to offer its customers more innovative retail bag solutions.
Smurfit Kappa Group plc, commonly referred to as Smurfit Kappa, is a multinational packaging company headquartered in Dublin, Ireland. The company operates in the packaging and paper industry, specializing in corrugated packaging, containerboard and other paper-based products. It serves customers across a wide range of industries, including the food and beverage, consumer goods, industrial and e-commerce. In November 2022, Smurfit Kappa Group plc, a leading provider of paper-based packaging solutions, acquired Recycled Paper Products, Inc., a leading manufacturer of recycled paper bags, for $1.4 billion. This acquisition gives Smurfit Kappa a stronger position in the sustainable Retail Bags market.
Retail Bags Industry Developments
October 2022: Mondi plc, a leader in packaging and paper, acquired Advanced Packaging Solutions (APS), a leading manufacturer of customized Retail Bags, for $225 million. This acquisition gives Mondi a broader portfolio of Retail Bags and expands its customer base.
September 2022: Huhtamaki Oyj, a leader in ipn food packaging, announced a partnership with BIO-On S.p.A., a leading manufacturer of bioplastics, to develop and commercialize sustainable Retail Bags made from bio-based materials. This partnership will enable Huhtamaki to offer its customers more sustainable Retail bag options.
August 2021: CCL Industries Inc., a leader in specialty packaging labels, announced a partnership with Avery Dennison Corporation, a leader in labeling and packaging materials, to develop and commercialize smart Retail Bags that can track product movement and provide other valuable insights to retailers. This partnership will enable CCL Industries to offer its customers more innovative bag solutions.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 15.2 Billion |
| Market Size 2024 | USD 16.08 Billion |
| Market Size 2032 | USD 25.24 Billion |
| Compound Annual Growth Rate (CAGR) | 5.80% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, The Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Material Type, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Smurfit Kappa Group PLC, Mondi Group PLC, El Dorado Packaging Inc., Attwoods Packaging Company, BioPak Pty Ltd, Global-Pak Inc., The Carry Bag Company, International Paper Company, Welton Bibby and Baron Limited, GreenPack Limited |
| Key Market Opportunities | Increased consumption of the personal care products and cosmetics. |
| Key Market Dynamics | Increased awareness and adoption of sustainable and eco-friendly packaging solutions. |
Retail Bags Market Highlights:
Frequently Asked Questions (FAQ) :
The Retail Bags market size valued at USD 25.24 Billion in 2023.
The market is foreseen to rise at a CAGR of 5.80% during the forecast period, 2024-2032.
North America held the largest share in the market
The key participants in the market are Smurfit Kappa Group PLC, BioPak Pty Ltd, Mondi Group PLC, El Dorado Packaging Inc., International Paper Company, Attwoods Packaging Company, Global-Pak Inc., The Carry Bag Company, Welton Bibby and Baron Limited, GreenPack Limited.
The plastic material type dominated the market in 2023.
The grocery stores had the largest share of the market.
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