"Overview of Paper Bags Market"
The demand for paper bags was estimated at USD ~5 billion in 2018. It is projected to witness a CAGR of 4.2% during the forecast period (2019-2027)
Consistently increasing demand for paper bags from the retail sector due to strong growth in the retail sector coupled with the changing preference of consumers towards biodegradable packaging are factors proliferating the demand for paper bags market. Due to changing regulatory standards worldwide and ban on single-use plastics and an increasing trend for a sustainable packaging solution are factors further supporting the paper bags market growth. For instance, in 2015, The European government passed a directive 94/62/EC for the consumption of plastic bags which in turn forced retailers to switch from plastic bags to paper bags. Additionally, the rising demand for on-the-go retail food is also one of the factors driving the paper bags market. Apart from this, the recyclability of paper and advancement in the packaging industry has allowed companies to innovate their products. In addition, rapid urbanization, increasing individual income and rapidly changing customer lifestyles are thrusting market growth.
Paper bags are one of the key components of the packaging industry. The growth of the global paper & paperboard market globally which accounts for US$ ~178 Bn in 2018 is also supporting the market growth of the paper bags market. The benefits of paper bags including quality, recyclability, and security of items encased among others are helping the industry to grow. Paper bags find applications in consumer goods, pharmaceutical, stationery, and personal & home care products among others.
As per product, multi-wall paper sacks expected to dominate the market owing to durability.
By product, flat paper bags is expected to witness the highest growth in the paper bags market across the globe. It is expected to hold XX% of the total market.
On the basis of product, the paper bags market is further classified into flat paper bags, multi-wall paper bags and others. Multi-wall paper bags segment dominated the market with more than 45% of market share. This is due to the benefits offered by these bags including strong, and durable among others. Multi wallpaper bags can further be classified into paste vale bags, sewn open mouth bags, and pinch bottom open mouth bags among others.
In contrast, the flat paper bags segment is expected to witness the highest growth during the forecast period. This growth is attributed to the fact that bags are commonly used for bakeries, groceries, cafes, and in the food & beverage industry. This is due to they are lightweight, reliable, recyclable and cost-effective.
By application, the retail segment is estimated to dominate the paper bags market
Based on the application the global paper bags market is bifurcated into food & beverage, pharmaceutical, retail, construction, chemicals, and others. Amongst these, the retail segment dominated the market and accounted for the major revenue share. This can be associated with rising demand for consumer goods and increasing number of retail stores across the globe. Ban on single-use plastic has forced retailers to shift from using plastic bags to paper bags.
On the other hand, the construction segment is expected to witness highest growth during the forecast period. This can be associated with the increasing usage of multi-wall kraft paper sacks cement packaging so as the demand for cement is increasing simultaneously the paper bags market will also proliferate.
Asia Pacific region to dominate the overall paper bags market in terms of revenue share.
Asia Pacific region is leading the paper bags market and represents US$ XX Bn in terms of market share and is expected to register a CAGR of XX% during the forecast period. Owing to rising urbanization, bolstering retail industry and modernization in developing regions including China, and India among others. Additionally, the rising purchasing power, changing the lifestyle of the consumers, and preference for biodegradable products in the region are further fueling the market growth in the region.
On the contrary, Asia Pacific region is trailed by North America which accounts for a share more than 20% of market. This growth can be associated with the rising concerns towards sustainable packaging solutions and government initiative in the region.
The prominent players in the paper bags packaging market include National Paper Products Company (Saudi Arabia), DS Smith Plc. (U.K.), Hotpack Packaging Industries LLC (Dubai), International Paper Company (U.S.), Smurfit Kappa Group PLC. (Ireland), B&H Bags Company (U.S.), Ronpak (U.S.), WestRock Company (U.S.), OJI Holding Corporation (Japan), Georgia-Pacific LLC. (U.S.), Holmen Group (Sweden), United Bags, Inc. (U.S.), Novolex (U.S.), Paper Sacks Factory (UAE), and Hood Packaging Corporation (Canada) .
Segmentation of Global Paper Bags Market:
Paper Bags Market by Product Type:
- Flat Paper Bags
- Multi-wall Paper Sack
Paper Bags Market by Application:
- Food & Beverage
Paper Bags Market by Material:
- Brown Kraft
- White Kraft
Paper Bags Market by Region:
- North America
- South America
- Middle East & Africa