Market Overview
Global Paper Bags Market size and share is currently valued at USD 6.09 billion in 2024 and is anticipated to generate an estimated revenue of USD 9.17 billion by 2034, according to the latest study by Polaris Market Research. Besides, the report notes that the market exhibits a robust 4.2% Compound Annual Growth Rate (CAGR) over the forecasted timeframe, 2025 - 2034
Paper bags, once considered a traditional alternative, have undergone a significant transformation. Modern manufacturing techniques have resulted in more durable, recyclable, and customizable bags made from virgin or recycled paper. With growing focus on reducing plastic dependency, paper bags are now considered a premium choice for brands looking to align with global sustainability goals.
Paper bags are especially preferred due to their biodegradability, compostability, and ease of recycling. The shift is further accelerated by governmental legislation, carbon reduction goals, and rising consumer awareness.
Market Segmentation
1. By Product Type
Flat Paper Bags: Often used in bakeries and pharmaceuticals.
Satchel Paper Bags: Popular in food takeaway and retail stores.
Handle Paper Bags: Widely used in apparel, luxury retail, and shopping.
Sewn Open Mouth Bags (SOM): Used in industrial and agricultural packaging.
Pinch Bottom Open Mouth Bags (PBOM): Employed for heavier-duty applications.
2. By Material Type
Brown Kraft Paper: Strong, durable, and ideal for carrying heavy goods.
White Kraft Paper: Offers a clean aesthetic and high printability for branding.
Recycled Paper: Supports circular economy initiatives, growing rapidly in adoption.
3. By End-Use Industry
Retail and Shopping Malls
Food and Beverage
Pharmaceutical
E-Commerce
Personal Care and Cosmetics
Industrial and Construction
4. By Distribution Channel
Offline (Brick-and-Mortar Stores)
Online (E-commerce Platforms)
Browse Full Insights:
https://www.polarismarketresearch.com/industry-analysis/paper-bags-market
Market Trends – Country-wise Analysis
United States
The U.S. continues to be one of the leading markets for paper bags, with many states implementing plastic bag bans (e.g., California, New York, and Oregon). The demand for biodegradable shopping bags is particularly strong in grocery retail chains like Whole Foods and Trader Joe’s. Additionally, the e-commerce boom is driving interest in kraft paper bags for safe, sustainable delivery packaging.
Germany
Germany’s circular economy framework and strong environmental legislation are fostering rapid adoption of eco-friendly packaging. Supermarkets like ALDI and Lidl have entirely phased out plastic bags in favor of recyclable and compostable paper options. Furthermore, the country's efficient waste management infrastructure supports the viability of sustainable packaging solutions.
India
India’s nationwide ban on single-use plastic bags in many states has fueled the growth of domestic paper bag production. Both large retailers and small businesses are now opting for kraft paper bags. As the country promotes “Make in India” and sustainable entrepreneurship, paper bags are fast becoming a staple in both urban and semi-urban retail spaces.
China
The Chinese government has mandated reductions in plastic use across tier-one cities like Shanghai and Beijing. There is a growing movement toward biodegradable shopping bags, especially among fashion retailers and restaurants. Investments in paper recycling and innovations in bag strength have enhanced the market’s potential.
France
France’s early ban on plastic bags and robust commitment to the Green Deal has positioned it as a European leader in sustainable packaging solutions. Paris-based fashion retailers now favor customized white kraft paper bags for luxury branding. Food service sectors have also transitioned to using printed paper takeaway bags.
United Kingdom
UK supermarkets such as Tesco and Sainsbury’s have committed to reducing plastic and increasing the use of eco-friendly packaging. The government’s Extended Producer Responsibility (EPR) scheme incentivizes businesses to switch to sustainable alternatives, boosting demand for paper bags.
Brazil
Brazil’s urban centers like São Paulo and Rio de Janeiro are witnessing increasing use of paper bags, driven by state-level environmental regulations and consumer awareness. Local producers are focusing on affordable, biodegradable shopping bags for mass-market retailers and food services.
United Arab Emirates
UAE retailers and hospitality venues, particularly in Dubai and Abu Dhabi, are leading the shift towards sustainable packaging solutions in the Middle East. Luxury brands and shopping malls are adopting custom-printed kraft and paper bags to reflect eco-conscious values and meet government sustainability guidelines.
Key Companies
1. Mondi Group
Headquartered in the UK and Austria, Mondi is a global packaging giant offering eco-friendly packaging and paper bags made from sustainably sourced materials. Their “EcoVantage” paper blends recycled and fresh fibers for optimal durability.
2. International Paper Company
As one of the largest paper and packaging producers globally, International Paper is a major supplier of kraft paper bags for retail and food service markets. The company emphasizes FSC-certified sourcing and circular economy integration.
3. Novolex (Duro Bag)
Novolex’s Duro Bag division is a prominent U.S.-based producer of biodegradable shopping bags, serving a wide array of customers from grocery chains to fast food restaurants. The brand is recognized for its innovation in handle design and bag strength.
4. Smurfit Kappa
Smurfit Kappa, an Irish multinational, provides sustainable packaging solutions with a focus on paper-based alternatives. Their portfolio includes paper bags for agriculture, retail, and e-commerce, leveraging custom print capabilities and recyclability.
5. WestRock
This American company offers a broad range of paper-based packaging products, including bags and paperboard solutions. WestRock integrates cutting-edge printing technologies with sustainability, catering to both B2B and B2C markets.
6. Hotpack Global
Headquartered in the UAE, Hotpack serves the Middle East and Asian markets with paper bags tailored for food and beverage applications. They are known for blending cost-effectiveness with eco-friendly packaging solutions.
7. Billerud AB
A Swedish company focusing on renewable packaging materials, Billerud produces high-strength paper for industrial and consumer applications. Their paper bag materials are known for excellent durability and compatibility with automated filling systems.
Conclusion
The global Paper Bags Market is entering a transformative era, driven by a blend of environmental urgency, regulatory mandates, and shifting consumer values. Countries across the globe are increasingly adopting paper bags as a symbol of sustainability and corporate responsibility. The market’s versatility — serving industries from fashion to food to e-commerce — is cementing its growth trajectory.
While challenges like cost and raw material sourcing persist, advancements in kraft paper bags, recyclable content, and sustainable forestry are addressing these concerns. Leading companies are innovating rapidly to develop sustainable packaging solutions that not only meet the needs of today’s conscious consumers but also align with global environmental goals.
More Trending Latest Reports By Polaris Market Research:
Drilling Waste Management Market
Dicyclopentadiene (DCPD) Market
Semiconductor Dry Etch System Market
Europe Crop Protection Chemicals Market
Top 20 Nitrile Butadiene Rubber Manufacturing Companies in 2025
Leading Top 10 Firms in Sustainable Packaging Market in 2025
