Global Paper Bags Market Poised For Significant Growth, Projected To Reach USD 10,438.2 Million By 2035 Amidst Rising Demand For Eco-Friendly Packaging Solutions | FMI

(MENAFN- GlobeNewsWire - Nasdaq) Impact of Plastic Bag Bans on the Rising Demand for Paper Bags in the USA, Government regulations restricting single-use plastics in states like California, New York, and Oregon are driving businesses to adopt recyclable and biodegradable paper bags, while major retailers and eco-conscious consumers accelerate this shift.

NEWARK, Del, March 03, 2025 (GLOBE NEWSWIRE) -- The global paper bags market is poised for significant growth, with projections indicating an increase from USD 6,786 million in 2025 to USD 10,438.2 million by 2035, reflecting a steady CAGR of 4.4% during the forecast period. This upward trajectory is fueled by the rising demand for eco-friendly packaging alternatives as businesses and consumers shift towards sustainability.

The demand for paper bags is experiencing significant growth due to increasing environmental concerns, stringent government regulations on plastic usage, and a shift in consumer preferences toward sustainable packaging . As businesses and retailers worldwide focus on reducing plastic waste, paper bags have emerged as a viable alternative, particularly in the food, retail, and e-commerce sectors. The growing adoption of eco-friendly packaging solutions by major brands and businesses is further fueling market expansion. Additionally, urbanization and the rising disposable income of consumers have contributed to the increased demand for paper bags in emerging economies, particularly in countries such as India, China, and Brazil.

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Looking ahead, the Paper Bags Market Share Analysis indicates continued industry growth, driven by several key trends. Firstly, advancements in manufacturing technologies are enhancing the durability and strength of paper bags, making them more suitable for carrying heavier items. Secondly, the demand for customizable and printed paper bags is increasing, as brands seek innovative ways to enhance their packaging aesthetics and reinforce brand identity. The market share of paper bags is expanding as businesses across retail, food, and e-commerce sectors increasingly adopt eco-friendly packaging solutions. Additionally, sustainability-driven regulations and consumer preference for biodegradable alternatives further contribute to the growing dominance of paper bags in the global packaging industry.

Additionally, there is a growing inclination toward biodegradable and compostable paper bags made from recycled materials to align with sustainability goals. The expansion of e-commerce and food delivery services is also a crucial factor driving the market, as companies prioritize sustainable packaging solutions. Furthermore, government incentives and policies promoting the use of biodegradable materials will continue to push the adoption of paper bags. With ongoing innovations in material development and production processes, the industry is expected to expand at a steady pace, offering new opportunities for manufacturers and businesses looking to invest in eco-friendly packaging solutions.

Food & Beverage Sector Leading Market Growth

The food and beverage industry is the dominant end-user, accounting for 46% of the paper bag market share. The increasing restrictions on plastic bags and a shift toward environmentally conscious packaging have accelerated the adoption of paper bags in restaurant take-out, bakery, and grocery store operations. Custom-printed paper bags are widely used by fast-food chains and coffee shops for branding, reinforcing their commitment to sustainability.

The market is also witnessing increased demand for greaseproof and moisture-resistant paper bags, catering to organic and specialty food packaging needs. Supermarkets and fresh produce retailers are increasingly using paper packs for fruits, vegetables, and dry groceries, further driving growth in the sector.

Brown Kraft Paper: The Material of Choice

Brown kraft paper remains the preferred material, capturing over 70% of the market share due to its strength, durability, and eco-friendliness. Made from virgin wood pulp, it is recognized for its high tear resistance, making it ideal for grocery and industrial applications. Compared to white kraft paper, brown kraft is a more cost-effective and less chemically processed option, aligning with the growing demand for biodegradable and recyclable materials.

Key Industry Trends & Market Drivers

1. Rising Preference for Eco-Friendly Packaging

Consumers worldwide are increasingly opting for sustainable packaging, driven by awareness of plastic pollution and environmental concerns. As a result, major retailers, grocery stores, and restaurants are transitioning to paper-based packaging solutions, aligning with corporate sustainability initiatives and consumer expectations.

2. Expansion of the Food Delivery & Takeout Industry

The rapid expansion of food delivery services , led by platforms like Uber Eats, DoorDash, and Zomato, has significantly boosted demand for paper bags. Governments in several countries, including Canada, Australia, and the EU, have implemented plastic reduction policies, further accelerating the transition toward paper-based alternatives. These paper bags also serve as branding tools for businesses, offering customizable printing options for logos and promotional messages.

The paper bag market is witnessing robust growth driven by regulatory policies and evolving consumer preferences. However, to ensure long-term success, manufacturers need to focus on improving the durability and water resistance of paper bags while addressing cost concerns through sustainable production innovations,” Says a Lead Consultant Ismail Sutaria in Packaging at Future Market Insights .

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Country-wise Paper Bags Market Growth Forecast (2025-2035)

Country	CAGR (2025-2035)	Impact of Government Regulations
USA	3.3	%	Several states have banned plastic bags; growing sustainability initiatives drive demand for paper bags.
Germany	2.9	%	Strict EU regulations on single-use plastics are accelerating the shift toward paper packaging.
China	5.3	%	Nationwide bans on plastic bags and incentives for eco-friendly alternatives boost market growth.
UK	2.8	%	Levy on plastic bags and commitment to sustainability encourage the adoption of paper bags.
Spain	4.0	%	Stringent policies under EU directives push retailers toward paper-based alternatives.
India	5.5	%	Comprehensive bans on single-use plastics across multiple states fuel the rapid expansion of the paper bags market.
Canada	3.1	%	Federal ban on plastic checkout bags supports the demand for paper alternatives.

Growth Opportunities in the Paper Bags Market

Eco-Friendly Packaging Demand – Rising environmental concerns and bans on single-use plastics are driving demand for sustainable alternatives like paper bags.

Expansion in E-Commerce & Retail – The booming e-commerce and retail sectors are adopting paper bags for packaging, creating significant growth potential.

Innovative & Customizable Designs – Increasing demand for branded, printed, and customized paper bags offers opportunities for manufacturers to enhance product appeal.

Government Regulations & Incentives – Stringent regulations on plastic use and incentives promoting biodegradable packaging are boosting paper bag adoption.

Technological Advancements – Innovations in material strength, water resistance, and durability are improving the usability of paper bags, expanding their applications across industries.

Understanding the Evolution of Packaging Formats: Key Insights for Modern Brands:

Key Players in Paper Bags Market

• International Paper Company
• Mondi Plc
• Oji Holdings
• Smurfit Kappa
• Novolex
• Stora Enso
• Atlantic Packaging
• Langston Companies
• Ronpak
• Detmold Packaging
• Wisconsin Converting
• McNairn Packaging
• Welton Bibby and Baron
• JohnPac
• Atlas Paper Bag
• Swiss Pac
• Gerhard Schürholz
• Global-Pak
• United Bags
• JiRong Packing

Global Paper Bags Market Segmentation

By Product Type:

• 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
• More than 3 Ply

By End Use:

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

By Region:

• North America (U.S., Canada, Mexico)
• Latin America (Brazil, Argentina, Rest of Latin America)
• East Asia (China, Japan, South Korea)
• South Asia & Pacific (India, Australia, ASEAN countries)
• Western Europe (Germany, U.K., France, Italy, Spain, Rest of Western Europe)
• Eastern Europe (Russia, Poland, Rest of Eastern Europe)
• Middle East & Africa (GCC Countries, South Africa, Rest of MEA)
  

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