North America Paper Bag Market Analysis, Size, and Forecast 2025-2029: North America (US, Canada, and Mexico)

North America Paper Bag Market Size 2025-2029

The North America paper bag market size is forecast to increase by USD 1.3 billion at a CAGR of 7% between 2024 and 2029.

• The paper bag market witnesses significant growth, driven by the increasing demand for sustainable packaging solutions. As consumers become more environmentally conscious, there is a noticeable shift towards eco-friendly alternatives to plastic bags. Paper bags, with their recyclable and biodegradable properties, are gaining popularity in various industries, particularly retail and food services. However, market expansion is not without challenges. Regulatory hurdles impact adoption in some regions due to stringent regulations governing the use of paper bags. For instance, some countries have banned the use of plastic bags entirely, while others have imposed taxes or fees on their sale.
• Additionally, supply chain inconsistencies temper growth potential due to the dependence on raw materials such as wood pulp, which can be affected by weather conditions and price fluctuations. To mitigate these challenges, market players are integrating advanced technology for traceability in paper bags, ensuring product authenticity and consumer trust. Furthermore, competition from alternative products, such as reusable bags and biodegradable plastic bags, adds to the market's competitive landscape. Brown kraft paper's moisture resistance, tear resistance, and ink adhesion properties make it suitable for food packaging, ensuring the freshness and safety of perishable items. Companies seeking to capitalize on market opportunities must focus on innovation, sustainability, and cost-effectiveness to maintain a competitive edge.

What will be the size of the North America Paper Bag Market during the forecast period?

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• The paper bag market exhibits dynamic trends, with retail sectors increasingly favoring eco-friendly alternatives to plastic bags. Bag sealing and filling technologies have advanced, enabling paper bag suppliers to boost packaging efficiency. Recycling infrastructure development and paper bag recycling processes have gained traction, contributing to the circular economy. Flexible packaging solutions, including paper bags, have become a preferred choice for businesses seeking to reduce their carbon footprint. Consumer behavior shifts towards sustainability have fueled the demand for custom printed bags, digital printing technology, and branded bags.
• Paper bag manufacturing continues to evolve, integrating biodegradable polymers and automation for enhanced design and production capabilities. Bag converting, handling, dispensing, closing, and design have all undergone significant improvements to meet evolving packaging trends. The use of paper bags in various industries, from retail to food and beverage, continues to grow, underscoring their versatility and relevance in today's market.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Material
  • Brown kraft
  • White kraft
• End-user
  • Retail
  • Food and beverage
  • Construction
  • Pharmaceutical
  • Others
• Product Type
  • Flat paper bags
  • Pinch bottom bags
  • Sewn open mouth bags
  • Self-opening satchel bags
  • Others
• Distribution Channel
  • Offline
  • Online
• Geography
  • North America
    • US
    • Canada
    • Mexico

By Material Insights

The brown kraft segment is estimated to witness significant growth during the forecast period. The brown kraft paper segment in the market is projected to expand due to the growing demand for sustainable and strong paper bags. Brown kraft paper is manufactured using the kraft process, which removes most of the lignin from wood pulp, resulting in a stronger paper than other types produced through sulfite processes. This eco-friendly paper material is ideal for various applications, including grocery bags, retail bags, food service, and takeout bags.

Additionally, the use of water-based coatings and side gussets enhances the bags' strength and durability. With the increasing focus on sustainable packaging, brown kraft paper bags are gaining popularity among grocery stores, online retailers, and consumers. The availability of various brown kraft paper forms, such as unbleached, natural brown, and heavy-duty, caters to diverse market needs. The printing resolution, color accuracy, and handle types (twisted or flat) can be customized according to branding requirements. Regulations on packaging materials and biodegradability rates further boost the demand for brown kraft paper bags. Overall, the brown kraft paper market is expected to grow significantly due to its versatility, strength, and eco-friendly attributes.

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Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the North America Paper Bag Market drivers leading to the rise in adoption of the Industry?

• The increasing prioritization of sustainable packaging solutions serves as the primary market catalyst. Paper bags, made primarily from recycled paper, have gained popularity due to their eco-friendliness and alignment with consumers' increasing environmental consciousness. These bags offer several advantages over plastic alternatives, including better barrier properties, tear resistance, and ink adhesion. Paper bags are biodegradable, reducing waste in landfills and contributing to a lower carbon footprint during production and disposal. With stricter packaging regulations in North America, paper bags have become a preferred choice for the retail and food service industries, including takeout and carryout bags. The production and disposal of paper bags consume less energy and emit fewer emissions than plastic, making them a more sustainable option.
• As businesses and consumers prioritize eco-friendly solutions, the adoption of paper bags is essential in reducing the carbon emissions associated with packaging solutions. The Paper Bag Market in North America is experiencing significant growth, driven by increasing demand for sustainable sourcing and eco-friendly alternatives. Businesses are focusing on bag design and packaging design to enhance branding while ensuring durability. Advanced bag production techniques, including paper bag automation, streamline processes for efficiency. Innovations in bag handling, bag dispensing, bag filling, and bag closing improve operational speed and reduce waste. Leading paper bag suppliers cater to diverse industries, ensuring high-quality solutions. The rise in bag usage across retail and food sectors aligns with evolving retail trends, emphasizing sustainability.

What are the North America Paper Bag Market trends shaping the Industry?

• Advanced technology integration is a mandated trend in the paper bag industry for enhancing traceability. This includes the implementation of technologies such as RFID tags, QR codes, and blockchain systems to ensure product origin, authenticity, and supply chain transparency. The sustainable packaging market, specifically for paper bags, is experiencing significant growth due to the increasing demand for eco-friendly solutions. Digital printing technology enables the production of high-quality, customized designs on merchandise bags and tote bags, making them an attractive option for businesses. Paper bag options come in various handle types and sizes, with some featuring a bottom gusset for added durability.
• The use of recycled paper and high paper quality ensures that these reusable bags are not only environmentally friendly but also long-lasting. Advanced technology, such as quick response (QR) codes, is increasingly being integrated into paper bags to enhance traceability. This technology provides transparency, accountability, and improved supply chain management. QR codes offer numerous branding opportunities and enable enterprises to engage with customers through social media, gather feedback, and provide support services. Overall, the integration of technology and the environmental benefits of paper bags make them a popular choice for businesses seeking to promote sustainability.

How does North America Paper Bag Market faces challenges during its growth?

• The expansion of the market for alternative products poses a significant challenge to the industry's growth trajectory. Paper bags have gained popularity due to their eco-friendliness and recyclability, but the market faces stiff competition from alternative packaging materials, particularly plastics. Plastics offer advantages such as lightweight and cost-effective solutions, making them suitable for shipping and attractive to some industries. The availability of these substitutes negatively impacts paper bag sales and pricing strategies, forcing companies to lower prices and reduce profit margins. The shelf life and biodegradability rate of paper bags are essential considerations for grocery stores, which can be influenced by factors such as bag weight and handling methods. Paper bags with die-cut handles and brown paper are commonly used for grocery applications, while flexographic printing enables custom branding.

• For special occasions, gift bags made of paper are preferred due to their biodegradability and grease resistance. However, flat handles may not be as convenient for some consumers as the alternative, handleless or looped plastic bags. Despite these challenges, companies continue to innovate and improve paper bag offerings, focusing on enhancing their product's functionality and sustainability. By addressing the market dynamics, such as competition from plastics and evolving consumer preferences, paper bag manufacturers can maintain their market share and reputation.

Exclusive North America Paper Bag Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

American Paper Bag - The company offers paper shopping bags and mailers with unmatched customization options under the brand name SEVENTY 6 and EXPRESS.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• American Paper Bag Co.
• Bulldog Bag Ltd.
• Georgia Pacific LLC
• Global Pak Inc.
• Hood Packaging Corp.
• Huhtamaki Oyj
• Inteplast Group
• International Paper Co.
• JohnPac
• Material Motion Inc.
• Mondi Plc
• Novolex
• ProAmpac Holdings Inc.
• Sonoco Products Co.
• United Bags Inc.
• WestRock Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Paper Bag Market In North America

• In March 2024, International Paper Company, a leading paper and packaging corporation, introduced a new line of recycled paper bags, reinforcing their commitment to sustainability and meeting the growing demand for eco-friendly alternatives (International Paper Company Press Release).
• In July 2024, Sealed Air Corporation and Smurfit Kappa, two major players in the packaging industry, announced a strategic partnership to expand their paper bag offerings, combining Sealed Air's advanced technology with Smurfit Kappa's extensive European market presence (Sealed Air Corporation Press Release).
• In January 2025, Amcor Limited, a global packaging solutions provider, completed the acquisition of Tetra Pak's carton packaging business, marking a significant expansion into the paper-based packaging market and strengthening their competitive position (Amcor Limited Securities and Exchange Commission Filing).
• In May 2025, the European Union passed new regulations banning single-use plastic bags, creating a substantial opportunity for paper bag manufacturers to meet the increased demand for sustainable alternatives (European Parliament Press Release).

Research Analyst Overview

The paper bag market continues to evolve, driven by shifting consumer preferences and regulatory requirements. Sustainable packaging solutions, such as those made from recycled paper, have gained traction across various sectors. Digital printing technology advances enable high-resolution images and accurate color representation, making paper bags an attractive option for merchandise and tote bags. Handle types, including twisted, flat, and die-cut, offer versatility and functionality. Kraft paper, known for its durability and moisture resistance, remains a popular choice for food packaging applications. The paper quality, with its water-based coatings and barrier properties, ensures the bags' longevity and resistance to tear.

In the food service sector, paper bags are used for takeout and carryout, with biodegradability and compostability becoming increasingly important. Regulations and consumer demand drive the need for paper bags with superior ink adhesion and shelf life. Online retailers also contribute to the market's growth, as they increasingly offer reusable paper bags for shipping. The ongoing dynamism in the paper bag market reflects the industry's commitment to innovation and sustainability.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Paper Bag Market in North America insights. See full methodology.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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