In 2023, the market for paper bags is expected to be worth US$ 5.4 billion. By 2033, its net value will be US$ 8.2 billion. The global market is expected to increase at a CAGR of around 4.1% from 2023 to 2033.

Due to its high level of sustainability and appealing color & design options, paper bags are increasingly being used for carrying and packaging items. Paper bag demand has greatly expanded in recent years as a result of growing knowledge about the importance of using eco-friendly and biodegradable products.

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Paper bags are regularly used in restaurants, retail outlets, groceries, and shopping malls. Prominent players in the packaging industry are choosing paper as a material for introducing a wide variety of bags, which will provide high tear resistance and stiffness. Paper bags are considered to be a better alternative for plastic bags because of numerous properties such as cost-effectiveness, environmentally friendly, and high disposable income. Overall, the global paper bags is projected to witness tremendous growth in the forecast period.

Key Takeaways of Paper Bags Market Study

• By material type, the brown kraft segment is expected to hold more than 3/4^th value share in the global paper bags market.
• By product, the sewn open mouth segment is likely to register a CAGR of 5% over the forecast period in the global paper bags market.
• By thickness, the < 2 ply segment is expected to expand at a CAGR of 5% in next ten years in the global paper bags market.
• Western Europe is estimated to capture around 1/4^th of the paper bags market share in the assessment period.
• India paper bags market is projected to showcase considerable growth at a CAGR of 0% in the next ten years.

“High popularity of nutritious and healthy baked goods, as well as beverages is likely to bode well for the paper bags market. Key companies are hence expected to launch innovative paper bags and tie up with leading food & beverage brands to expand their presence,” says a lead analyst at Future Market Insights.

Highly Active Retail Sector to Enhance Paper Bags Sales across the Globe

The retail sector is positively powering the economy of developed nations. Retailers in the global market often capitalize on high consumer confidence in the economy. Competitive pricing allows retailers to engage with their consumers.

The retail sector accounts for more than 50% of the paper bags industry in developed regions such as North America and Europe. Hence, strong retail sales are anticipated to play a pivotal role in paper bags market expansion in the next ten years.

Manufacturers are increasingly aware of harmful effects of plastic packaging on the environment. It is further resulting in a dramatic shift of preference for environmentally friendly packaging solutions such as paper. Paper bags have exhibited high penetration in the market in the last couple of years.

Developing countries across the globe are likely to present lucrative opportunities for growth as it is home to a few emerging markets. Strong retail sector outlook, coupled with high preference for paper bags, is expected to ensure a positive outlook for the global paper bags market.

Paper Bags to Witness Spurring Demand among Building and Construction Companies

The global paper bags market is poised to face heavy demand from the retail sector, which accounts for more than 50% of demand. Retail sector has been showing strong performance in most of the regions, barring Latin America and Eastern Europe. Both these regions are yet to come out of the clutches of economic slowdown, with recovery process gradually picking up pace.

In the Middle East and Africa, a significant demand for paper bags is expected to be from the building and construction industry. Some parts of the region have been involved in war for the last few years, which has resulted in political stalemate.

As peace is restoring in the region, foreign firms are expected to facilitate international efforts to rebuild war-torn nations. Numerous countries have come forward and shown keenness for the same. As paper bags with porosity has high strength, a surging demand for these bags is expected in the next ten years. They will be used for carrying construction materials and cement in building & construction industries.

Competitive Landscape: Paper Bags Market

• WestRock Company,
• Mondi Inc.,
• York Paper Company Limited,
• Smurfit Kappa Group Plc,
• United Bags, Inc.,
• International Paper Company,
• Global-Pak, Inc.,
• Novolex Holdings, Inc.,
• JohnPac Inc.,
• Ronpak,
• Paperbags Limited,
• Welton Bibby And Baron Limited,
• Genpak Flexible,
• Langston Companies, Inc.,
• El Dorado Packaging, Inc.

among others are prominent players in the paper bags market. The paper bags market is fragmented and tier 1 players currently hold 40% to 45% of share.

Paper Bags Market Outlook by Category

By Product:

• Sewn Open Mouth
• Pinched Bottom Open Mouth
• Pasted Valve
• Pasted Open Mouth
• Flat Bottom

By Material Type:

• Brown Kraft
• White Kraft

By Thickness:

• 1 ply
• 2 ply
• 3 ply
• > 3 ply

By End Use:

• Agriculture & Allied Industries
• Building & Construction
• Food & Beverage
• Retail
• Chemicals
• Others