Global Paper Bags Market Grows Steadily at a CAGR of 5.15%

Introduction

The global paper bags market is experiencing substantial growth, largely driven by the expansion of the e-commerce and retail industries. These sectors are prioritizing eco-friendly and sustainable packaging solutions to align with consumer demands and reduce environmental impact. Paper bags offer a cost-effective and recyclable alternative to conventional packaging materials, making them an appealing choice for companies looking to cut packaging costs while supporting sustainability goals.

In addition, the food and beverage industry’s increasing need for hygienic, biodegradable, and safe packaging options is accelerating the use of paper bags. Consumers are also showing a stronger preference for brands that embrace social and environmental responsibility, encouraging businesses to adopt paper bags as part of their green initiatives. This trend is further amplified by rapid urbanization and evolving consumer habits, which are driving demand for convenient and eco-conscious packaging for everyday products.

Market Dynamics

Growing environmental awareness and push towards sustainability drive the global market

Rising environmental awareness is playing a pivotal role in driving the global paper bags market, as both consumers and businesses increasingly seek out eco-friendly packaging options. Growing concerns over the detrimental impacts of plastic pollution on the environment and health of humans have led to a widespread shift toward sustainable, biodegradable alternatives such as paper bags.

• For example, the theme for World Environment Day 2025 is “Beat Plastic Pollution,” emphasizing the urgent need to address plastic waste. Led by the United Nations Environment Programme (UNEP), the campaign promotes global awareness through clean-up initiatives, educational outreach, and policy discussions. These efforts aim to encourage people and communities to minimize plastic use and adopt environmentally responsible solutions.

This heightened environmental consciousness is fueling demand for sustainable packaging, encouraging retailers and manufacturers to choose paper bags as a greener alternative.

Government regulations banning single-use plastic bags create tremendous opportunities

Government-imposed bans on single-use plastic bags are opening up major growth prospects for the paper bags market. As more countries and cities implement stringent measures to curb plastic pollution, the need for eco-friendly packaging solutions like paper bags is surging.

• For example, Dubai implemented a ban on single-use plastics in January 2025, building on Abu Dhabi’s similar restriction introduced in 2021. These efforts align with the UAE’s long-term goal of achieving net-zero carbon emissions by 2050.
• Similarly, The Gambia launched a National Action Plan aimed at eliminating plastic pollution. The initiative targets an 86% reduction in plastic waste over the next ten years and includes a phased ban on single-use plastic bottles along with improved waste management systems.

These regulatory actions are prompting both manufacturers and retailers to transition to paper bags, thereby accelerating global market growth.

Regional Analysis

The Asia Pacific region is witnessing robust growth in the paper bags market, driven by increasing environmental regulations and rising consumer awareness. Countries like China and India have implemented strict bans on single-use plastic bags, boosting demand for sustainable alternatives. For instance, India’s Plastic Waste Management Rules encourage the use of paper bags, supporting local manufacturers. Additionally, e-commerce giants such as Flipkart and Alibaba are adopting eco-friendly packaging, accelerating paper bag usage.

Furthermore, the region’s expanding retail and foodservice sectors further contribute to growth, with cafes and restaurants in Australia and Japan shifting toward biodegradable paper bags to appeal to eco-conscious customers. Innovations like water-resistant and reusable paper bags are gaining traction, addressing durability concerns. However, challenges remain due to raw material costs and supply chain limitations. Thus, Asia Pacific’s strong regulatory support and shifting consumer preferences present significant opportunities for market players in the paper bags industry.

Key Highlights

• The global paper bags market size was valued at USD 6.02 billion in 2024 and is estimated to grow from USD 6.33 billion in 2025 to reach USD 9.46 billion by 2033, growing at a CAGR of 5.15% during the forecast period (2025–2033).
• The global paper bags market is segmented by product type into sewn open mouth, pinched bottom open mouth, pasted valve, pasted open mouth, flat bottom, and others. The sewn open mouth segment dominated the market.
• By material type, the market is divided into brown kraft and white kraft. The brown kraft segment held the largest market share.
• Based on thickness, the market includes 1 ply, 2 ply, 3 ply, and more than 3 ply. The 2 ply segment held a dominant market share.
• By end-use industry, the market is categorized into food and beverages, pharmaceutical, retail, construction, chemicals, and others.
• Asia-Pacific is the highest shareholder in the global market.

Competitive Players

1. International Paper
2. Mondi Group
3. WestRock Company
4. Huhtamaki Oyj
5. DS Smith Plc
6. Seaman Paper Company
7. Novolex Holdings, Inc.
8. Bagcraft Packaging Group
9. Smurfit Kappa Group
10. Coveris Holdings S.A.

Recent Developments

• In May 2025- At Packaging Première 2025, Fedrigoni launched a collection of luxury papers for shopping bags, including the new Terrae paper made from recycled fibers and natural pigments. The collection offers various textures and colors, allowing brands to create bespoke, sustainable packaging solutions.

Segmentation

1. By Product Type
   1. Sewn Open Mouth
   2. Pinched Bottom Open Mouth
   3. Pasted Valve
   4. Pasted Open Mouth
   5. Flat Bottom
   6. Others
2. By Material Type
   1. Brown Kraft
   2. White Kraft
3. By Thickness
   1. 1 Ply
   2. 2 Ply
   3. 3 Ply
   4. > 3 Ply
4. By End-Use Industry
   1. Food and Beverages
   2. Pharmaceutical
   3. Retail
   4. Construction
   5. Chemicals
   6. Others
5. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa