Global Paper Bags Market, By Product (Flat Paper Bag, Multi-Wall Paper Sacks, Open Mouth, Self-Opening-Style (SOS) Bags, Lock Paper Bags, Stand Up Pouch, Pasted Valve, Medical Grade Paper Pouches, and Others), Usage (Single Use and Re-Usable), Capacity (Less than 1 KG, 1 KG- 5 KG, 5 KG- 10 KG, and More than 10 KG), Sealing and Handling (Heat Seal, Hand Length Handle, Ziplock, Twisted Handle, Flat Handle, and Others), Shape (Rectangle, Square, Circular, and Others), Distribution Channel (B2B and B2C), End-User (Food and Beverages, Animal Feed, Pharmaceuticals, Cosmetic Products, Agriculture, Construction, Chemicals, and Others) - Industry Trends and Forecast to 2031.
Paper Bags Market Analysis and Insights
Paper bags are manufactured from wood pulp, which easily decomposes, does not release any toxic gasses in the soil, and has no impact on the animal and groundwater levels. They are in high demand in all regions due to their properties such as they are reusable, recyclable, biodegradable, and, most importantly, helping to reduce plastic waste. Their manufacturing is also low-cost and the process is easy compared to other packaging solutions. They are in more demand in the retail sector as shopping bags, as multi-wallpaper bags with twisted handles on the upper have the strength to carry consumer goods.
The growing awareness of the environmental impact of plastic bags has led to an increased demand for eco-friendly alternatives such as paper bags, which is driving the market growth. However, stringent rules and regulations regarding deforestation are restraining the market growth.
Increasing awareness of social issues and rising usage of bio-based products is expected to create opportunities for market growth. On the other hand, fluctuation in the price of wood pulp is expected to pose a challenge to market growth.
Data Bridge Market Research analyzes that the global paper bags market is expected to reach USD 10,374,785.69 thousand by 2031 from USD 6,679,671.71 thousand in 2023, growing with a substantial CAGR of 5.8% in the forecast period of 2024 to 2031.
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016 – 2021)
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Quantitative Units
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Revenue in USD Thousand
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Segments Covered
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Product (Flat Paper Bag, Multi-Wall Paper Sacks, Open Mouth, Self-Opening-Style (SOS) Bags, Lock Paper Bags, Stand Up Pouch, Pasted Valve, Medical Grade Paper Pouches, and Others), Usage (Single Use and Re-Usable), Capacity (Less than 1 KG, 1 KG- 5 KG, 5 KG- 10 KG, and More than 10 KG), Sealing and Handling (Heat Seal, Hand Length Handle, Ziplock, Twisted Handle, Flat Handle, and Others), Shape (Rectangle, Square, Circular, and Others), Distribution Channel (B2B and B2C), End-User (Food and Beverages, Animal Feed, Pharmaceuticals, Cosmetic Products, Agriculture, Construction, Chemicals, and Others)
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Countries Covered
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U.S., Canada, Mexico, Germany, France, U.K., Italy, Turkey, Spain, Netherlands, Russia, Belgium, Switzerland, Norway, Finland, Denmark, Sweden, and Rest of Europe, China, Japan, South Korea, India, Australia, Singapore, Malaysia, Thailand, New Zealand, Taiwan, and Vietnam, Philippines, Indonesia, Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, Saudi Arabia, U.A.E., South Africa, Israel, Egypt, and Rest of Middle East and Africa
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Market Players Covered
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Inteplast Group, Amcor plc, International Paper, Coveris, NIPPON PAPER INDUSTRIES CO., LTD, Daio Paper Corporation, THE PACK CORPORATION, Papier-Mettler KG, Rengo Co., Ltd, Huhtamaki India Ltd, Mondi, ProAmpac, Novolex, Oji Holdings Corporation, WestRock Company, Ronpak, Smurfit Kappa, Wisconsin Converting Inc., Shop Paper Bag, AMERICAN PAPER BAG, Bulldog Bag Ltd., Conitex Sonoco, and UNITED BAGS, INC., among others
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Market Definition
Paper bags are made of paper which is made from wood pulp obtained from trees. Kraft paper and initiation Kraft paper are the most common papers used in manufacturing paper bags. Paper bags are commonly used as shopping bags, packaging, and sacks. They have also come in multi-walls, which provide strength to store and transport food, beverage, and animal feed products. For handling of the load, they also have twisted or flat handles for handling goods. They are highly used in the retail sector for carrying shopping items.
Global Paper Bags Market Dynamics
This section deals with understanding the market drivers, opportunities, restraints, and challenges. All of this is discussed in detail below:
Driver
- Growing Inclination Towards Utilizing Environmentally Sustainable and Biodegradable Packaging Solutions
Packaging plays an important role as paper bag packaging in food packaging protects foods against physical, chemical, and environmental factors that could contaminate the food if not packaged correctly. The essential role of packaging is to protect the product from damage during transit but packaging also protects the product in the warehouse and retail shoes before the sale of the product. Different type of packaging is used for different types of product.
The demand for eco-friendly and biodegradable products for packaging is increasing as eco-friendly and biodegradable products have low-cost production and can be reused and recycled, which lowers the production of waste in the region. Several manufacturers prefer paper bag packaging as the packaging process is cost-effective and produces less toxins in nature.
Paper bags are of low cost and easy to decompose which also helps in maintaining the environment balance as they decompose faster and release less toxic gases which have no harm on animals. Thus, manufacturers prefer paper bags for packaging food and beverage products among others leading to an increase in the preference for eco-friendly and biodegradable products, which is driving the market growth.
Restraint
- Stringent Rules Regarding the Deforestation
Deforestation means cutting down trees to a larger extent as paper is made from wood pulp, which is produced from the wood of trees. With the increase in the demand for paper for several purposes, deforestation in several regions has increased leading to an imbalance in the environment and an increase in the effect of greenhouse gases in the surroundings. Forts are also facing problems of forest fires which leads to the low production of wood pulp for paper manufacturing. So, the government of several regions has made stringent rules and regulations to be followed strictly by people in the region.
Thus, stringent rules and regulations by the government or higher authorities in different regions towards deforestation is restraining the market growth as manufacturers are facing problems with raw material and are not able to import and export the raw material.
Opportunity
- Increasing Awareness of Social Issues and Rising Usage of Bio-Based Products
Several types of packaging are used in different applications which results in the production of waste. Plastic packaging is used for food and beverages, cosmetics, and consumer goods. Plastic is non-biodegradable on decomposition and it releases toxic gases in the soil which is dangerous for animals and groundwater. Hence, steps have been taken to ban plastic bag packaging as it is harmful to the environment.
In developing countries, people are becoming aware of the increasing waste, environmental pollution, and harmful effects of plastic products and packaging. Manufacturers are shifting the business from plastic packaging to paper bag packaging as government regulations are also increasing for the ban of single-use plastic bags or non-biodegradable products.
Thus, the increasing awareness of increasing waste, environmental pollution, and harmful effects of plastic products and packaging will increase the usage of bio-based products, which is expected to provide opportunities for market growth.
Challenge
- High Cost of Paper Bags as Compared to Plastic Bags
Manufacturers encounter increased expenses in sourcing sustainable materials and implementing eco-conscious production practices as the demand for eco-friendly packaging solutions rises. The higher costs associated with paper bags, stemming from the need for environmentally responsible materials and production methods, pose a challenge in maintaining competitive pricing in a market where cost-effectiveness remains a key consideration for businesses and consumers alike. This pricing challenge necessitates a delicate balance between sustainability and affordability. While consumer preference for eco-friendly packaging is growing, the cost disparity between paper bags and traditional alternatives such as plastic remains a barrier. Manufacturers face the ongoing challenge of optimizing production efficiencies, innovating cost-effective designs, and exploring alternative materials to mitigate the higher production costs, ensuring that eco-conscious packaging remains accessible and competitive within the broader market landscape. Hence, the high cost of paper bags compared to plastic bags is expected to act as a challenge to market growth.
Recent Developments
- In November 2023, Rengo Co., Ltd. acquired a 30% stake in Velvin Containers Private Limited, a prominent corrugated packaging manufacturer in India. With this equity involvement, the company will rebrand as Velvin Rengo Containers Private Limited under Rengo's ownership. Rengo's stake in Velvin Containers is anticipated to generate synergies among Rengo Group entities, both domestically in Japan and internationally. This move aligns with Rengo's global strategy, positioning the company to capitalize on India's burgeoning corrugated packaging market and further strengthening its presence overseas
- In September 2023, Smurfit Kappa and WestRock made a merger. The merger between WestRock and Smurfit Kappa Group significantly reshaped the Latin American packaging landscape, consolidating assets and market shares across Brazil and Mexico, and enhancing their regional dominance. This strategic move bolstered their position in Mexico, securing a notable share of the containerboard and industrial packaging markets, and amplifying their competitive edge and market presence in the region
- In June 2023, BEIJING EAST IP LTD, representing Daio Paper Corporation, secured the validity of its "packaging bag" design patent, ensuring the exclusivity of its innovative packaging for premium products and boosting its market edge. This victory in the invalidation case safeguarded Daio Paper's rights, curbing imitation, and fortifying consumer protection, affirming the brand's distinctiveness and market position
- In February 2023, International Paper was named on the list of Fortune magazine's most admired companies. The company stated they are much honored to feature for the 20th time on the occasion of the international paper's 125th year in the industry. This award helped the company gain more recognition among the other players in the market
- In February 2022, NIPPON PAPER INDUSTRIES CO., LTD. and Elopak ASA forged a Memorandum of Understanding (MoU), enhancing their partnership in liquid-paper packaging. This partnership, focused on joint business development, leveraged their expertise, assets, and networks to advance sustainable packaging solutions, reinforcing Nippon Paper's position in Japan's packaging field and propelling their commitment to delivering eco-friendly packaging solutions to the market. This strategic alliance enabled Nippon Paper to amplify its market presence and fortify its dedication to sustainable packaging innovations, aligning with its mission of enriching lives through environmentally conscious practices
Global Paper Bags Market Scope
The global paper bags market is segmented into seven notable segments based on product, usage, capacity, sealing and handling, shape, distribution channel, and end-user. The growth among segments helps you analyze niche pockets of growth and strategies to approach the market and determine your core application areas and the differences in your target markets.
Product
- Flat Paper Bag
- Multi-Wall Paper Sacks
- Open Mouth
- Self-Opening-Style (SOS) Bags
- Lock Paper Bags
- Stand Up Pouch
- Pasted Valve
- Medical Grade Paper Pouches
- Others
On the basis of product, the market is segmented into flat paper bag, multi-wall paper sacks, open mouth, Self-Opening-Style (SOS) bags, lock paper bags, stand up pouch, pasted valve, medical grade paper pouches, and others.
Usage
- Single Use
- Re-Usable
On the basis of usage, the market is segmented into single use and re-useable.
Capacity
- Less than 1 KG
- 1KG-5 KG
- 5 KG-10 KG
- More than 10 KG
On the basis of capacity, the market is segmented into less than 1 KG, 1 KG- 5 KG, 5 KG- 10 KG, and more than 10 KG.
Sealing and Handle
- Heat Seal
- Hand Length Handle
- Ziplock
- Twisted Handle
- Flat Handle
- Others
On the basis of sealing and handle, the market is segmented into heat seal, hand length handle, zip lock, twisted handle, flat handle, and others.
Shape
- Rectangle
- Square
- Circular
- Others
On the basis of shape, the market is segmented into rectangle, square, circular, and others.
Distribution Channel
- B2B
- B2C
On the basis of distribution channel, the market is segmented into B2B and B2C.
End-User
- Food and Beverages
- Animal Feed
- Pharmaceuticals
- Cosmetic Products
- Agriculture
- Construction
- Chemicals
- Others
On the basis of end-user, the market is segmented into food and beverages, animal feed, cosmetic products, agriculture, construction, pharmaceuticals, chemicals, and others.
Global Paper Bags Market Regional Analysis/Insights
The global paper bags market is segmented into seven notable segments based on product, usage, capacity, sealing and handling, shape, and distribution channel, end-user.
The countries covered in this market report are U.S., Canada, Mexico, Germany, France, U.K., Italy, Turkey, Spain, Netherlands, Russia, Belgium, Switzerland, Norway, Finland, Denmark, Sweden, and Rest of Europe, China, Japan, South Korea, India, Australia, Singapore, Malaysia, Thailand, New Zealand, Taiwan, and Vietnam, Philippines, Indonesia, Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, Saudi Arabia, U.A.E., South Africa, Israel, Egypt, and Rest of Middle East and Africa.
Asia-Pacific is expected to dominate the market as it has major manufacturers and a high demand for paper bags. The U.S. is expected to dominate in the North America region as there is high demand for paper bag products, and various companies are also launching new products in the market. China is expected to dominate in the Asia-Pacific region as it has made significant strides in technology and innovation. Germany is expected to dominate in the Europe region as it has a strong industrial base, with a particular focus on manufacturing and engineering.
The country section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, regulatory acts, and import-export tariffs are some of the major pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands and the impact of sales channels are considered while providing forecast analysis of the country data.
Competitive Landscape and Global Paper Bags Market Share Analysis
The global paper bags market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product approvals, product width and breadth, application dominance, and product type lifeline curve. The above data points provided are only related to the company’s focus on the market.
Some of the major players operating in the global paper bags market are Inteplast Group, Amcor plc, International Paper, Coveris, NIPPON PAPER INDUSTRIES CO., LTD, Daio Paper Corporation, THE PACK CORPORATION, Papier-Mettler KG, Rengo Co., Ltd, Huhtamaki India Ltd, Mondi, ProAmpac, Novolex, Oji Holdings Corporation, WestRock Company, Ronpak, Smurfit Kappa, Wisconsin Converting Inc., Shop Paper Bag, AMERICAN PAPER BAG, Bulldog Bag Ltd., Conitex Sonoco, and UNITED BAGS, INC., among others.
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