Global Paper Bags Packaging Market Is Predicted to Grow Around USD 5 Billion By 2030

The global paper bags packaging market size was worth around USD 3.47 Billion in 2022 and is predicted to grow to around USD 5 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.61% between 2023 and 2030.

The paper bags packaging market essentially is the industry that deals with the supply and production of paper bags that can be used for packaging purposes for different types of products. These bags are made of paperboard or paper and hence are more eco-friendly while encouraging sustainability. They also tend to have a lesser harmful impact on the environment as compared to other packaging materials like plastic. Paper bags can be used to package a variety of products including pharmaceuticals, cosmetics, groceries, food, and other retail or consumer goods.

The global paper bag packaging industry is made up of producers, suppliers, and distributors of the products. However, the other associated sectors providing services like branding and printing are equally important to the global market. There are several factors that are responsible for the growth in this segment but it also faces multiple roadblocks in terms of easy substitute availability and limitations of the product itself.

The global paper bag packaging market is projected to grow owing to the increasing rate at which country governments and world leaders are undertaking programs to promote the use of eco-friendly products as substitutes for plastic. The world is registering a surge in regulatory policies that have already assisted in establishing a dedicated consumer group for the global industry which has been consistently rising over the last couple of years. Various countries have banned the use of single-use plastic in the packaging sector leaving companies with no other choice but to opt for better substitutes like paper bags. Furthermore, industrial expansion is encouraged by the increasing shift in consumer preference as the end-users have started making informed and smart decisions.

Growth in the e-commerce sector is another important factor for a high global market CAGR. The online commerce platform is one of the largest consumers of the packaging industry but since they have recently come under scrutiny for becoming major polluters due to excessive use of plastic packaging, various e-commerce players have started using eco-friendly substitutes like paper. As the industry will grow during the forecast period, the demand for paper bag packaging is likely to increase at the same rate.

Although the future looks promising for the paper bags packaging industry, the cost of production of paper bags can sometimes be relatively high as compared to the substitutes like plastic. It can potentially lead to limited adoption of paper bags. Although these carriers seem to be the more logical choice in terms of environmental impact, they are still surrounded by a certain degree of risk associated with the impact on the ecology. This comes with the threat of excessive deforestation in case the demand for paper bags increases at a rapid rate causing the suppliers to have limited raw materials.

The increasing innovation may open higher growth opportunities whereas raw material supply could pose a major challenge.

The global paper bags packaging market is segmented based on product type, material type, and region

Based on product type, the global market is divided into flat bottom bags and multiwall bags.

• In 2022, the largest revenue was generated from the multiwall bags section owing to wider end-user applications
• These bags have several layers of paper helping in constructing the final structure of the bag and improving the stability, firmness, and durability of the product
• Some bags have a layer of polyethylene-coated paper or polyethylene foil in between barriers that act as grease repellant
• In 2019, Amazon used more than 115 million pounds of plastic for packaging purposes

Based on material type, the global market is divided into white kraft and brown kraft

• 2021 registered the highest growth in the white kraft segment since they offer a clearer surface for printing purposes which is an important marketing tool
• Furthermore, these kraft papers are more versatile as compared to brown kraft which is more significantly used as paper carrier bags
• The global kraft paper market may grow at a CAGR of 2.21% during the forecast period

Europe is anticipated to lead the global paper bags packaging market owing to the high production acceptance and production rate in the dominating countries of Italy, Germany, and France. The consumer awareness rate in these countries is exceptionally high. Furthermore, North America is projected to emerge with a high CAGR during the projection period driven by the growing government initiatives to encourage lesser use of plastic and more use of environment-friendly substitutes. In Asia-Pacific, India, and China are showing signs of lucrative regional markets due to the growing number of players offering a wide variety of paper bags for the packaging sector along with the massive growth in the e-commerce segment further propelled by changing consumer preference.

This review is based on a report by Zion Market Research, titled “Paper Bags Packaging Market By Product Type (Flat Bottom Bags and Multiwall Bags), By Material Type (White Kraft and Brown Kraft), By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2023 – 2030.”- Report at https://www.zionmarketresearch.com/report/paper-bags-packaging-market

Recent Developments:

• In November 2022, Pack’d, a frozen fruit and smoothie brand, announced the launch of a new type of packaging film which is completely recyclable. The new product will be used to package the company’s products
• In December 2021, Premier Packaging registered the launch of a 100% recyclable packaging paper. The new innovation will allow the production of heat-sealable recyclable paper bags
• In February 2022, UFlex launched a new range of flexible packaging products
• In November 2022, MODIVO announced that it has selected Mondi for taking care of the company’s e-commerce industry packaging concerns

The global paper bags packaging market is led by players like:

• Langston Companies Inc.
• WestRock Company
• Welton Bibby & Baron Ltd
• Mondi
• B&H Bag Company
• Smurfit Kappi
• Bee Dee Bags
• Huhtamaki Group
• Primepac Industrial Limited
• Oji Holdings Corporation
• Ecobags NZ
• NOVOLEX.

The global paper bags packaging market is segmented as follows:

By Product Type

• Flat Bottom Bags
• Multiwall Bags

By Material Type

• White Kraft
• Brown Kraft

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa

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