Paper Bags Market Size, Share & Trends Analysis Report By Product Type (Sewn Open Mouth, Pinched Bottom Open Mouth, Pasted Valve, Pasted Open Mouth, Flat Bottom, Others), By Material Type (Brown Kraft, White Kraft), By Thickness (1 Ply, 2 Ply, 3 Ply, > 3 Ply), By End-Use Industry (Food and Beverages, Pharmaceutical, Retail, Construction, Chemicals, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Paper Bags Market Size

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 significantly driven by the surge in e-commerce and retail sectors, which require eco-friendly and sustainable packaging solutions to meet consumer expectations and lower their environmental impact. The cost-effectiveness and recyclability of paper bags compared to other alternatives make them an attractive option for businesses aiming to optimize packaging expenses while aligning with green initiatives.

Additionally, the food and beverage industry’s growing demand for safe, hygienic, and biodegradable packaging further fuels the adoption of paper bags. Furthermore, consumers are increasingly favoring brands that demonstrate social responsibility, prompting companies to switch to paper bags as part of their corporate sustainability strategies. This shift is further supported by rising urbanization and changing consumer lifestyles, which lead to higher consumption of packaged goods requiring convenient and environmentally sound packaging options.

Emerging Market Trends

Innovations in paper bag designs

Innovations in paper bag designs are rapidly advancing, focusing on enhancing durability and sustainability through reusable and waterproof coatings. These developments address the traditional limitations of paper bags, such as poor moisture resistance and limited lifespan, making them more practical for everyday use.

• For instance, in April 2024, Smart Planet Technologies introduced HyperBarrier, a ternary nanocomposite coating for paper-based flexible packaging. This innovation provides a 20-fold improvement in oxygen barrier performance and a 15-fold improvement in moisture barrier performance compared to conventional polyethylene coatings. HyperBarrier is recyclable, reduces plastic content by up to 40%, and integrates seamlessly into existing manufacturing processes without requiring significant adjustments.

Such breakthroughs are encouraging wider adoption of paper bags across industries, including retail and foodservice, where eco-friendly alternatives are increasingly demanded by consumers and regulators alike.

Paper Bags Market Growth Factors

Growing environmental awareness and push towards sustainability

Growing environmental awareness is a prominent driver for the global paper bags market, as consumers and businesses increasingly prioritize sustainable packaging solutions. The harmful impacts of plastic pollution on ecosystems and human health have raised concerns worldwide, motivating a shift towards biodegradable and recyclable alternatives like paper bags.

• For instance, the official theme for World Environment Day 2025 is “Beat Plastic Pollution.” The campaign aims to increase worldwide awareness of the harmful impact plastic waste has on ecosystems, wildlife, and human health. The United Nations Environment Programme (UNEP) led global campaigns encouraging individuals and communities to reduce plastic usage and adopt sustainable alternatives. Events included clean-up drives, educational programs, and policy discussions aimed at fostering a global commitment to environmental preservation.

This growing consciousness drives demand for eco-friendly packaging, pushing manufacturers and retailers to adopt paper bags as a preferred choice.

Market Restraint

Higher production cost compared to plastic bags

One of the significant restraints for the global paper bags market is the higher production cost compared to conventional plastic bags. Paper bags generally require more raw materials, energy, and specialized manufacturing processes, which drive up their overall cost.

Additionally, the sourcing of sustainable and high-quality paper materials can be expensive, further increasing production expenses. This cost difference makes paper bags less attractive to some businesses, especially in price-sensitive markets where plastic bags remain cheaper and more readily available. As a result, many manufacturers and retailers hesitate to fully switch to paper bags, limiting the market’s growth potential despite increasing environmental concerns and regulatory pressures.

Current Market Opportunities

Government regulations banning single-use plastic bags

Government regulations banning single-use plastic bags are creating significant growth opportunities for the paper bags market. As countries and cities enforce stricter policies to reduce plastic pollution, demand for sustainable packaging alternatives like paper bags is increasing rapidly.

• For instance, Dubai enforced a ban on single-use plastics in January 2025, following Abu Dhabi's earlier ban in 2021. This initiative is part of the UAE's broader strategy to achieve carbon neutrality by 2050.
• Similarly, the Gambia introduced a National Action Plan to end plastic pollution, aiming to reduce plastic waste by 86% over the next decade. This plan includes a phased ban on single-use plastic bottles and improved waste management infrastructure.

Such regulations drive manufacturers and retailers to adopt paper bags, fueling market expansion worldwide.

Regional Insights

The Asia Pacific region exhibits significant growth potential due to rising urbanization and expanding retail and e-commerce sectors. Increasing environmental awareness, combined with governmental initiatives to reduce plastic waste, supports the shift toward paper-based packaging. Growing disposable incomes and evolving consumer preferences favor sustainable products. Furthermore, local manufacturers are investing in advanced technologies to enhance product quality and affordability. The rising demand from foodservice and hospitality industries, along with increasing export activities, positions Asia Pacific as a key market for paper bag adoption.

China’s Paper Bags Market Trends

China’s market is rapidly growing due to stringent government bans on single-use plastics in major cities like Shanghai and Beijing. Rising environmental awareness and government incentives encourage retailers and e-commerce platforms to adopt paper bags. For example, Alibaba promotes eco-friendly packaging initiatives, boosting demand. Additionally, the expansion of the food delivery sector drives paper bag usage as a sustainable alternative to plastic.

• India’s paper bags market is expanding significantly, fueled by nationwide bans on plastic bags in states such as Maharashtra and Tamil Nadu. Increased environmental activism and government campaigns like “Swachh Bharat” promote sustainable alternatives. Retail chains and local vendors are shifting to paper bags, with brands like Fabindia adopting eco-friendly packaging. The growth of the organized retail and food delivery sectors also supports this rising demand for paper bags.

North America Market Trends

The North American paper bags market is driven by strong environmental regulations and widespread consumer preference for sustainable packaging. Businesses across retail and foodservice sectors are rapidly shifting away from plastic to comply with eco-friendly policies. Increasing awareness campaigns and corporate social responsibility initiatives further boost adoption. Additionally, advancements in manufacturing technologies support production efficiency. The region’s mature retail infrastructure and high purchasing power enable the demand for innovative, reusable paper bag solutions, fueling steady market growth.

U.S Paper Bags Market Trends

The US market is expanding significantly, driven by state-level plastic bag bans in California, New York, and other states. Retail giants like Walmart and Target have incorporated paper bags as part of their sustainability initiatives. The rise of environmentally conscious consumers and legislation promoting biodegradable packaging has accelerated the demand for paper bags in grocery stores, restaurants, and e-commerce sectors nationwide.

• Canada’s market for paper bags is growing rapidly due to strong environmental policies and bans on single-use plastics, like in British Columbia and Quebec. Major retailers such as Loblaws and Canadian Tire are adopting paper bags to meet consumer demand for sustainable packaging. Additionally, government incentives encourage businesses to switch to eco-friendly alternatives, further boosting market growth in both urban and rural areas across the country.

Europe Paper Bags Market Trends

Europe’s market is propelled by stringent government bans on single-use plastics and comprehensive sustainability policies. Growing environmental consciousness among consumers encourages the use of biodegradable and recyclable packaging. The robust retail and hospitality industries actively seek eco-friendly alternatives, while technological innovations improve paper bag durability and usability. Collaboration between private and public sectors fosters market expansion, and investments in green packaging infrastructure contribute to a competitive landscape. These factors collectively promote the rapid adoption of paper bags across various applications in the region.

France Paper Bags Market Trends

France’s market is driven by strict government bans on single-use plastics, encouraging retailers to switch to sustainable packaging. For example, major supermarkets like Carrefour have replaced plastic bags with paper alternatives. Growing environmental awareness among consumers fuels demand for eco-friendly bags in the retail and food sectors. Additionally, innovative biodegradable coatings enhance paper bag durability, boosting market growth in the country.

Italy’s market for paper bags benefits from strong sustainability initiatives and increasing adoption by the fashion and food industries. Brands like Benetton and Eataly use customized paper bags to promote eco-friendly packaging. The government’s plastic ban regulations and consumer preference for recyclable products propel market expansion. Moreover, Italy’s robust tourism sector boosts demand for branded paper bags in retail and hospitality, supporting steady market growth.

Product Type Insights

The sewn open mouth segment holds a dominant position in the global paper bags market due to its durability and versatility. These bags are widely used in packaging bulk materials such as cement, chemicals, and food grains, offering strong resistance to tearing and handling. Their open mouth design allows easy filling and sealing, making them suitable for both manual and automated packaging processes. The sewn closure ensures enhanced strength, which is critical for heavy or granular products. This combination of robustness and convenience drives their extensive adoption across various industries, reinforcing their leadership in the product type segment.

Material Type Insights

Brown kraft paper is the leading material type in the paper bags market, prized for its natural, unbleached appearance and superior strength. Its eco-friendly nature and recyclability align perfectly with the surging environmental regulations and consumer demand for sustainable packaging. Brown kraft paper offers excellent tear resistance and moisture absorption, making it suitable for packaging an extensive range of products, from food items to industrial goods.

Additionally, its cost-effectiveness compared to bleached alternatives makes it highly preferred by manufacturers and end-users alike. These factors collectively sustain its dominance as the preferred material type in the market.

Thickness Insights

The 2 ply paper bags segment dominates due to the balanced combination of strength and flexibility it offers. With two layers of paper, these bags provide enhanced durability and better resistance to punctures and tears compared to 1 ply while maintaining cost efficiency over thicker options. This thickness level is especially favored for packaging moderately heavy products and goods requiring reliable protection during transportation and storage. The 2 ply construction also supports various printing and customization options, making it popular among brands aiming for effective marketing through sustainable packaging. Its versatility across multiple industries drives its market leadership.

End-Use Industry Insights

The food and beverages segment is a key driver of growth in the paper bags market, accounting for a significant share of demand. Increasing consumer preference for eco-friendly and biodegradable packaging in this industry is boosting paper bag adoption for products such as bakery items, fresh produce, takeaway foods, and beverages. Paper bags provide excellent breathability, preserving product freshness while reducing plastic waste. Regulatory pressure to minimize single-use plastics in food packaging further accelerates this trend.

Additionally, the ability to customize paper bags with branding and nutritional information makes them attractive for food and beverage companies focused on sustainability and customer engagement.

Company Market Share

Leading companies in the paper bags market are focusing on innovation by developing stronger, more durable, and eco-friendly materials to enhance product appeal. They are expanding production capacities, adopting sustainable sourcing practices, and investing in advanced manufacturing technologies. Additionally, many are forming strategic partnerships with retailers and e-commerce platforms to increase distribution while emphasizing customization and branding options to meet diverse consumer needs and boost market penetration globally.

Mondi Group is a global leader in packaging and paper, specializing in sustainable solutions. Founded in 1967 in South Africa by Anglo American plc, it became an independent entity in 2007 through a demerger. In the paper bags market, Mondi leverages its expertise in eco-friendly packaging to offer innovative, recyclable, and biodegradable paper bags. The company focuses on lowering environmental impact by using responsibly sourced raw materials and advanced technologies. Mondi’s strong presence across Europe, North America, and emerging markets, combined with its commitment to sustainability, positions it as a key player driving the shift toward greener packaging solutions worldwide.

• In April 2025, Mondi partnered with Evonik to introduce a recyclable, pre-made paper bag designed for chemical powders. The new bag eliminates the plastic-coated layer of previous packaging, reducing the overall weight by 30% and lowering the carbon footprint. Made from high porosity kraft paper, it ensures secure sealing and is recyclable according to CEPI v.3 and 4evergreen standards.

Recent Developments

• 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.
• February 2025- EP Group has unveiled the RePapaPac® bag at Packaging Innovations & Empack 2025. Crafted from high-strength biodegradable paper, it can hold up to 20kg and withstands up to 50 uses. The bag is fully recyclable and has been adopted by retailers like Marks & Spencer and Morrisons.
• February 2025- At PrintPack India 2025, Ronald Machines Worldwide introduced a square-bottom paper bag-making machine featuring a seven-servo system. The machine can produce up to 230 bags per minute and allows for quick size changes, enhancing production efficiency.