Paper Bags Market

Paper Bags Market Size and Share:

The global paper bags market size was valued at USD 6.0 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 8.6 Billion by 2033, exhibiting a CAGR of 4.05% during 2025-2033. Asia Pacific currently dominates the market, holding a significant market share of over 36.5% in 2024. This growth is fueled by industrial expansion, rising environmental consciousness, and government-driven sustainability initiatives.

The primary driver of the paper bags market is the growing demand for eco-friendly packaging solutions from consumers. With the rising awareness of environmental issues, consumers and businesses alike are moving away from plastic packaging and towards more sustainable alternatives. For example, Brisbane startup Earthodic raised USD 4 million in Seed funding for 2024 to bring recyclable, bio-based waterproof coatings for paper packaging closer as alternatives to traditional packaging and reduce landfill waste and microplastic pollution. Paper bags are biodegradable and recyclable; thus, they are a greener alternative to packaging. This is further complemented by governmental regulations and policies that have resulted in the banning and restriction of single-use plastic products. The demand for paper bags is likely to continue growing as businesses seek to meet sustainability goals and regulatory requirements.

The United States is the key market for global paper bags, driven by an increasing need for eco-friendly and sustainable packaging solutions. For example, in 2024 American Packaging Corporation expanded its RE Sustainable Packaging range with high-performance curbside paper packaging that provides protection, extended shelf life, and is 30% down on carbon footprint. With the increased awareness of environmental issues among consumers and growing concern over plastic waste, businesses from retail, and food service, to e-commerce have started using paper bags as a substitute for plastic. The U.S. government has also enacted regulations to curtail single-use plastics, thus fueling the shift toward paper bags. As a result, the paper bag market in the U.S. is witnessing tremendous growth as manufacturers focus on innovation, quality, and sustainability to meet changing consumer expectations.

Paper Bags Market Trends:

The Increasing Environmental Concerns

Key driver to the market growth is the increasing awareness of environmental sustainability. The media coverage related to environmental degradation, environmental campaigns, and scientific reports have made people realized the hazardous impact that plastic waste has on the environment. People are opting for eco-friendly alternatives, and paper bags are preferred because they are biodegradable and have a lesser environmental footprint. According to a 2021 report from the American Forest and Paper Association, 94% of Americans can access community paper recycling programs, illustrating the extensive framework developed for paper recycling. Paper bags are made from renewable resources and can decompose much more quickly, which aligns well with the growing global movement toward sustainability and responsible consumption. Paper bag production encourages the use of recycled materials so that they may become ecologically appealing.

Imposition of Various Government Regulations

Most governments have enacted legislations and policies that aim to reduce plastic waste, which indirectly influences the demand for paper bags as an eco-friendly alternative. Regulations often take the form of a ban or levy on single-use plastic bags, forcing retailers and consumers to switch to more sustainable alternatives. Apart from encouraging a market shift, they increase public awareness of the impacts of plastic waste on the environment. As of 2020, nine U.S. states have imposed restrictions or bans on plastic bags, and 13 states have local laws that provide restrictions on their usage, according to the Sea Grant Law Center. Besides contributing to a changing market, these policies also raise public awareness regarding the environmental effects of plastic waste. Besides, the legal environment supports paper bags industry growth as companies and firms adjust to the changed legal circumstances. Furthermore, government regulations are usually accompanied by specifications and recommendations for the production and use of paper bags so as to ensure sustainability and efficiency.

Changing Consumer Preferences Towards Eco-friendly Products

A shift in the consumer preference of the market for more sustainable and eco-friendly products is a big factor driving market growth. With this, consumers today are highly aware of their environmental impact and want to keep up with this shopping choice and values of sustainability and responsibility. As such, paper bags are popular because people see them as a greener alternative to plastic bags. The American Forest and Paper Association continues to report the paper remains to be one of the most recycled substances with significantly high recycling rates. The overall recycling rate in 2021 for cardboard boxes was at a high 91.4% while the entire paper recycling increased to 68%. This signals how consumers will now accept more paper-based solutions for packaging purposes. They are biodegradable, recyclable, and largely made from materials that are reused, a fitting solution for an eco-conscious consumer. For one, the beauty of paper bags-they look natural and rustic-contributes to their popularity. Also, they have gained popularity among businesses as a tool in branding and to let customers know that the business cares for the environment.

Significant Growth in the Retail Industry

According to the experts in the industry, plastic is reported to degrade only in about 100 to 500 years, hence causing massive pollution to the environment. Paper is, however widely acknowledged to be one of the most biodegradable products in the world; thus, making it an appropriate raw material in the manufacture of retail bags. Retail industry expansion has been contributed by increasing consumer expenditure, urbanization, and proliferation of supermarkets and hypermarkets that boost market growth. Paper bags are widely used in retail stores for packaging and carrying goods. Additionally, the rapid growth of organized retailing, characterized by the shift from traditional markets to supermarkets and malls, which often prefer paper bags due to their durability, aesthetic appeal, and environmental benefits, is strengthening the market growth. Moreover, the growth of the retail industry in developing countries, which is accompanied by increased environmental awareness and regulatory measures, is further boosting the market growth. Besides this, paper bags have become a symbol of quality and responsibility in the retail space, often used by retailers to project a positive brand image.

Recent Advancements in Manufacturing Technologies

In August 2022, the Load & Fold Bag and the Load & Seal Bag were launched by Novolex, which are paper bags made with tamper-evident materials offering enhanced protection in transporting or delivering products, making them best for restaurants or retailers seeking dependable packaging alternatives. Technological advancements in the manufacturing processes, leading to significant improvements in the quality, durability, and versatility of paper bags, are boosting the market growth. In line with this, modern manufacturing techniques allow for the production of stronger and more resilient paper bags capable of carrying heavier items without tearing. They have expanded the use of paper bags beyond traditional sectors like grocery and retail to industrial and luxury packaging. Other innovations in printing and design technology have improved the paper bag's aesthetics, making them a good product for branding and marketing purposes, thus contributing to the growth of the market. Additionally, innovations in sustainable manufacturing processes that can make paper bags with lower environmental impact are propelling the market growth.

Paper Bags Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global paper bags market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on product type, material type, thickness, distribution channel, and end-use industry.

Analysis by Product Type:

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

Sewn open mouth leads the market with around 35.5% of the market share in 2024. Sewn open mouth bags represent the largest segment due to their versatility and durability. They can be kraft paper-based and are further distinguished by a sewn top which seals very firmly after filling. They have wide usages in agriculture, animal feeds and chemicals, where the packing requires to be tough and reliable. Not only this, but the sewn open mouth design will also give them great practicality for packing the granular materials, powders and other bulk products. In addition, they are easy to handle and can be branded with company and product information, making them a popular choice among business enterprises.

 Analysis by Material Type:

• Brown Kraft
• White Kraft

Brown kraft leads the market with around 63.8% of market share in 2024. Brown kraft paper bags account for the largest percentage because of strength, durability, and sustainability; they are minimally processed which not only leaves the natural strength of the wood fibers, therefore making the bag very robust and tear-resistant, but also reducing the environmental cost associated with bleach and other chemicals. Brown kraft paper bags are highly preferred in grocery, retail, construction, and agricultural industries where durability is a primary requirement. They are also favored for their eco-friendliness, as they are often made from recycled materials and are fully biodegradable and recyclable.

Analysis by Thickness:

• 1 Ply
• 2 Ply
• 3 Ply
• > 3 Ply

2 ply leads the market with around 52.4% of market share in 2024. 2 ply paper bags hold the largest market share due to their enhanced strength and durability. They are made with two layers of paper, providing a better balance between material strength and weight. In addition, it increases their resistance to tears and punctures, thus making them suitable for a broader range of applications, including retail and food service. Moreover, the double-layer construction also allows for better printability and branding opportunities, which is essential for businesses looking to enhance their visibility. Additionally, the versatility and moderate cost of 2 ply paper bags make them a popular choice among businesses that require a reliable yet economical packaging solution.

Analysis by Distribution Channel:

• Online
• Offline

Offline leads the market with around 75.8% of market share in 2024. The offline channel holds the highest market share because of its established infrastructure and customer preference for a physical buying experience. This includes brick-and-mortar supermarkets, hypermarkets, specialty stores, and wholesale distributors. Moreover, the offline channels have a strength in that they offer immediate availability of the product and a tangible shopping experience where customers can touch and feel the quality and suitability of paper bags. These enable direct business-to-business (B2B) relationships which are fundamental for high volume transactions and custom orders, while offline channels also cover a wide scope of paper bag products as diverse as grocery and retail, hospitality, and food service industry needs.

Analysis by End-Use Industry:

• Food and Beverages
• Pharmaceutical
• Retail
• Construction
• Chemicals
• Others

Retail leads the market in 2024. The retail sector represents the largest segment due to the widespread use of paper bags in shopping and merchandise packaging. It encompasses a diverse range of businesses, from small local shops to large multinational chains, all requiring paper bags for customer convenience and product packaging. With versatility, paper bags come in multiple sizes, strengths, and designs to cater for an extensive scope of retail uses such as apparel, electronics, and home appliances, which also increases the growth rate of this market. Further, the aesthetics and customizations that paper bags provide, hence meeting the retail business branding and marketing strategies, increase the market growth.

Regional Analysis:

• North America 
  • United States 
  • Canada 
• Europe 
  • Germany 
  • France 
  • United Kingdom 
  • Italy 
  • Spain
  • Russia
  • Others 
• Asia Pacific 
  • China 
  • Japan 
  • India 
  • South Korea 
  • Australia 
  • Indonesia 
  • Others 
• Latin America 
  • Brazil 
  • Mexico 
  • Others 
• Middle East and Africa

In 2024, Asia Pacific accounted for the largest market share of over 36.5%. Asia Pacific holds the biggest market share mainly due to its fast economic growth, growing retail industry, and environmental awareness. The region has also seen growth due to growing consumer spending, urbanization, and stringent laws against plastic bags. In addition, a large population base in the region is driving the high demand for paper bags, especially in consumer-centric sectors, such as food and beverages (F&B) and retail, which are supporting the growth of the market. Besides this, the Asia Pacific e-commerce industry, growing at a robust pace, is further boosting the market growth.

Key Regional Takeaways:

United States Paper Bags Market Analysis

US accounts for 82.60% share of the market in North America. US rapidly expanding industry is food and beverage. As per the U.S. Department of Commerce, there were 42,708 food and beverage processing facilities in the United States in 2022. The industry is increasingly focusing on sustainable packaging solutions, including paper bags, to meet the regulatory guidelines and for consumers demanding eco-friendly alternatives. In multiple states, where plastic packaging has been banned, quick-service restaurants, cafes, and food delivery services are reporting high demand for paper-based takeaway and carryout bags. Besides, the increase in the usage of paper bags for packaging bakery products, fresh produce, and organic food items is in support of the industry's sustainability objectives. Major food chains and beverage companies commit to a reduction in plastic waste. Increasing demand for robust, recyclable paper bags may well lead them to remain one of the more prominent parts of sustainable food packaging in the US market.

North America Paper Bags Market Analysis

The North American paper bags market is experiencing robust growth, driven by increasing consumer demand for sustainable and eco-friendly packaging solutions. Rising awareness of environmental issues, coupled with stringent regulations aimed at reducing plastic waste, is pushing businesses and consumers toward paper-based alternatives. For instance, in 2024, shoppers in Philadelphia increased their use of paper bags by 157% following the plastic bag ban, highlighting a shift toward sustainable packaging. In the U.S., local governments have implemented policies banning single-use plastic bags, further boosting demand for paper bags in retail, food service, and e-commerce sectors. Additionally, advancements in paper bag manufacturing technologies have enhanced the strength, durability, and recyclability of paper bags, making them a viable option for a wide range of applications. This market growth is further supported by consumer preference for biodegradable, recyclable products, leading to a promising future for paper bag manufacturers in North America.

Europe Paper Bags Market Analysis

An industry report indicates that online retail sales in the EU and UK are projected to grow by 6.2% annually from 2024 to 2029, and this will be a major factor driving the demand for paper bags in the area. More and more e-commerce sites continue to grow; retailers go for sustainable packaging solutions such as paper bags that meet regulatory compliance and are suitable for eco-friendly consumers. The online retailers are now shifting towards the use of recyclable and biodegradable materials for packaging, shipping, and product protection, aligning with the stringent EU directives banning single-use plastics. This has led to the investment by brands in premium and customized paper packaging in order to differentiate themselves and enhance consumer experience. Contributing factors to the requirement of more durable, attractive, and eco-friendly paper bags are the entry of new-age DTC brands along with grocery delivery services and e-fashion retailing. The European paper bags market is now expected to grow upwardly during the forecast period due to higher penetration of e-commerce in the region.

Asia Pacific Paper Bags Market Analysis

As per IBEF, the national pharmaceutical sector reached USD 42 billion in 2021 and is projected to reach USD 65 billion by 2024. Such enormous growth in the pharmaceutical sector contributes significantly to the growing demand for paper bags in the Asia-Pacific region for sustainable and regulatory compliant packaging solutions. With the increasing governmental regulations on the use of eco-friendly packaging, and the pharmaceutical industry's quest for biodegradable, non-toxic, and tamper-proof materials for packaging, paper bags are the new alternative for plastic. A lot of pharmaceutical companies and medical retailers are turning to paper-based pouches and bags for medicines, prescriptions, and over-the-counter drugs, in line with sustainability goals. This market in the region is further fueled by growth in online pharmacy services and increasing healthcare infrastructure in the region. With increasing environmental concerns and adherence to industry regulations, this Asia-Pacific paper bags market will expand with sustained growth.

Latin America Paper Bags Market Analysis

Brazil and Mexico emerge as the hub for e-commerce growth in Latin America, representing a huge market opportunity for paper bags. Reports indicate that Brazil had 77.4 million e-commerce users and an additional 38.8 million online shoppers in 2023. This digital shift in retail creates a demand for sustainable packaging such as paper bags, as consumers look for businesses to reduce the use of plastics in packaging. As more e-commerce websites are emerging, and consumers' preference for green packaging is rising, retailers, logistics companies, and food delivery services are accepting paper bags for safe and green packaging. More stringent government rules to reduce plastic waste in Brazil, Mexico, and Colombia have also been working as a fuel for the market. With the expansion of the Latin American e-commerce sector, it will be driven by the need for strong, customizable, and recyclable packaging solutions across different sectors such as retail, food delivery, and logistics.

Middle East and Africa Paper Bags Market Analysis

The growth rate in the Middle East and Africa region is exponentially huge, mainly raising the demand of paper bags within food delivery and retail packaging. As per the USDA Foreign Agricultural Service, in 2020, the UAE saw an increase from USD 421 Million in the retail value of food e-commerce, reaching a total of USD 1,072 Million. There was an increasingly prominent shift of moving food sales towards online channels along with subsequent home deliveries. This significant growth has increased the need for sustainable and eco-friendly packaging solutions, making paper bags an alternative to plastic packaging because of its biodegradable and recyclable nature. Besides, initiatives by the government encouraging sustainability and raising consumers' awareness about environmental issues have made food delivery services, supermarkets, and restaurants opt for paper-based packaging. This demand is further augmented by the need for paper bags that are more durable, customizable, and environmentally friendly. Thus, growth in the MEA region food e-commerce, particularly in Saudi Arabia, the UAE, and South Africa, will continue to spur demand for such paper bags over the next few years.

Competitive Landscape:

The competitive landscape of the paper bags market is characterized by the presence of numerous global and regional players. Major companies focus on product innovation, sustainable practices, and expanding their production capacities to meet the growing demand for eco-friendly packaging solutions. Key players in the market emphasize the development of high-quality, durable, and customizable paper bags to cater to a wide range of industries such as retail, foodservice, and e-commerce. Additionally, companies are adopting advanced manufacturing technologies to reduce costs and improve efficiency. Strategic partnerships, mergers, and acquisitions are common, enabling businesses to enhance their market position and reach new customers. For instance, in January 2025, International Paper and DS Smith merged to form a global leader in sustainable packaging, enhancing innovation, expanding geographic reach, and combining expertise in North American and EMEA regions.

The report provides a comprehensive analysis of the competitive landscape in the paper bags market with detailed profiles of all major companies, including:

• American Packaging Corporation
• B & H Bag Company
• El Dorado
• Genpak LLC
• Gilchrist Bag Manufacturing LLC
• Global-Pak Inc.
• Grupo Consist S.A.
• International Paper
• Kent Paper & Packaging Supplies
• Mondi Group
• Novolex Holdings LLC
• Paperbags Ltd.
• Ronpak Inc.
• Smurfit Kappa Group

Latest and New Developments:

• September 2024: Novolex revealed the purchase of American Twisting's assets, enhancing its market presence and broadening the product lineup.
• April 2024: International Paper and DS Smith Plc have come to an agreement to merge through an all-stock transaction that aims to create a global leader in sustainable packaging solutions.
• October 2021: Mondi Group partnered with Taurus Packaging, a South African company, to create reusable paper shopping bags.
• February 2021: Smurfit Kappa allocated USD 40 million in Latin America to bolster its paper sacks operations.
• December 2020: Novolex acquired B&H Bag company to enhance its production capacity.

Paper Bags Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the paper bags market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global paper bags market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the paper bags industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.