North America Paper Bag Market by Material and End-user - Forecast and Analysis 2024-2028

North America Paper Bag Market Size 2024-2028

The North America paper bag market size is forecast to increase by USD 926.54 million, at a CAGR of 6.46% between 2023 and 2028. Market growth is influenced by various factors, notably the escalating emphasis on sustainable packaging solutions driven by environmental concerns and consumer preferences for eco-friendly products. Moreover, increasing government regulations banning the use of plastic packaging materials further propel market expansion as businesses seek alternatives to comply with sustainability standards. Additionally, the booming e-commerce industry fuels demand for packaging solutions capable of safeguarding products during transit while minimizing environmental impact. These factors collectively underscore the pivotal role of sustainable packaging in meeting evolving market demands and regulatory requirements. As businesses increasingly prioritize environmental sustainability and adapt to changing consumer preferences, the demand for eco-friendly packaging solutions is expected to continue rising, driving market growth in the foreseeable future.

Study Period	2024-2028
Base Year For Estimation	2023
CAGR	6.46%
Forecast period	2024-2028
Fastest Growing Region	North America at 100%
Largest Segment	Material

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Market Size and Forecast

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Market Dynamics 

The market is witnessing significant growth due to the increasing demand for eco-friendly packaging solutions in the retail sector. Paper-bags, made from wood pulp, are gaining popularity as an alternative to conventional bags. These reusable and recyclable bags come in various forms, shapes, sizes, and materials, including multi-wallpaper-bags, flat paper bag, self-opening-style (SOS) bags, lock paper bags, and stand up pouche with pasted valve. The use of paper-bags helps reduce the amount of plastic waste, toxic gases, and contamination of groundwater levels. Moreover, the trend towards sustainability and reducing carbon footprint is driving the demand in the luxury paper bags segment as well. The energy required for recycling paper is less compared to plastic, making it a more environmentally friendly option. Overall, the market in North America is expected to continue its growth trajectory due to these factors. Our researchers analyzed the data with 2022 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.

Key Market Driver

Growing emphasis on sustainable packaging solutions is the key factor driving the market. Paper bags, made primarily from wood pulp and recycled paper, have gained popularity in North America due to their eco-friendly attributes. These shopping bags and multi-wallpaper bags, featuring twisted handles, resonate with consumers' increasing concern for the environment. Compared to plastic, paper-bags decompose easily in soil, minimizing waste and reducing energy consumption during production and disposal. In the retail sector, paper bags are increasingly used as eco-friendly packaging solutions for various industries, including food and beverages. Kraft paper sacks and flat paper bags are common types, with self-opening-style (SOS) bags, lock paper bags, and stand-up pouches also available.

Moreover, the adoption of paper-bags helps mitigate plastic waste, reduce deforestation, and minimize environmental pollution from toxic gases and chemicals associated with plastic packaging. Additionally, paper bags are reusable, recyclable, and biodegradable, making them a sustainable alternative for various industries. As the focus on sustainability grows, the North American market is poised for continued expansion, reflecting a collective dedication to environmental responsibility. Such factors are expected to drive the market growth during the forecast period. 

Significant Market Trends

Integration of advanced technology for traceability in paper bags is the primary trend shaping the market. The market is driven by the rising need for transparency and accountability in packaging solutions. Advanced technology, such as QR codes, is increasingly used for traceability, enhancing supply chain visibility. This technology offers opportunities for branding and customer engagement in the retail sector. Paper bags come in various forms, including multi-wallpaper bags with twisted handles, flat paper bags, and self-opening-style (SOS) bags. Kraft paper, a common material, is eco-friendly and biodegradable, reducing waste production and environmental pollution. However, physical and chemical factors during production, storage in warehouses, and use can impact the quality of paper bags.

However, the food and beverages industry is a significant consumer, with applications including sacks, food packaging, and lock paper bags. The shift towards sustainable materials, such as bio-based products, is a growing trend to replace plastic packaging and reduce toxic gases and deforestation. Sealing and handling techniques are crucial for maintaining the integrity of paper bags. Such factors are expected to drive the market growth during the forecast period. 

Major Market Challenge

Fluctuations in the costs of raw materials used in manufacturing paper bags are the major challenge that affects market expansion. Paper bags are a common packaging solution in various sectors, including retail and food and beverages. The primary raw material for manufacturing paper bags is paper, which is derived from wood pulp. The cost of paper bags is influenced by several factors, including the price of wood pulp, energy consumption, and demand-supply dynamics. Wood pulp prices can fluctuate due to global supply and demand conditions. The manufacturing process of paper involves significant energy usage. Paper bags come in various forms, such as flat paper bags, multi-wall paper sacks, self-opening-style (SOS) bags, lock paper bags, and stand-up pouches. They are used for packaging a wide range of products, including food and beverages, and are often preferred over plastic bags due to their eco-friendliness and sustainability. However, the production of paper bags also has environmental implications. The use of wood pulp contributes to deforestation and soil erosion, while the manufacturing process can lead to toxic gas emissions and waste production. Bio-based and recycled materials, such as kraft paper and biodegradable plastics, are being explored as alternatives to reduce the environmental impact. Animal waste and plastic waste can also be used as raw materials for paper bag production, making it a more sustainable option.

Additionally, the retail sector, particularly in the area of shopping bags, has seen a shift towards reusable, recyclable, and biodegradable paper bags. The use of paper bags in the warehouse and for packaging retail shoes is also increasing. In summary, the paper bag market is influenced by various physical and chemical factors, including the price of wood pulp, energy consumption, and environmental concerns. The market offers various types of paper bags, including flat paper bags, multi-wall paper sacks, self-opening-style (SOS) bags, lock paper bags, and stand-up pouches, which are used for packaging a wide range of products. The use of sustainable materials, such as kraft paper and biodegradable plastics, is becoming increasingly popular to reduce the environmental impact of paper bag production. Such factors are expected to hinder the market growth during the forecast period. 

Market Segmentation 

Market Material Analysis

The brown craft segment is estimated to witness significant growth during the forecast period. The North American market for paper bags is projected to expand during the forecast period. These bags are manufactured using wood pulp, derived from trees, and undergo the kraft process, which eliminates most lignin and enhances strength. Sustainably sourced brown kraft paper is utilized in producing these bags, offering ease of use and convenience. Paper bags come in various forms, including unbleached, natural brown, and heavy-duty, and serve as packaging solutions in the retail sector.

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The brown craft segment was the largest segment and was valued at USD 1.50 billion in 2018.  Shopping bags, multi-wallpaper bags, and sacks are popular types, featuring twisted handles and suitable for food and beverages. Waste production from plastic packaging contributes to environmental pollution. Physical and chemical factors influence the choice of paper bags over plastic ones for various applications. In the warehouse and retail shoes sectors, reusable, recyclable, and biodegradable paper bags are gaining popularity as eco-friendly alternatives to plastic products. Kraft paper, an essential raw material, is used in producing flat paper bags, multi-wall paper sacks, self-opening-style (SOS) bags, and lock paper bags. Stand-up pouches are another application area for paper bags. The kraft process initiates the production of kraft paper, which is used extensively in food packaging. Plastic bags, a significant contributor to waste, are being replaced by these paper-based packaging solutions. As a result, the North American brown kraft segment of the market is projected to grow.

Market End-user Analysis

The retail?segment will account for the largest share of this segment.?Growing awareness of eco-friendly packaging and plastic bag restrictions drive retail paper bag demand. Retailers favor paper bags for their cost-effectiveness, recyclability, and ease of use. They take up less space, weigh less, and offer branding opportunities. In the retail industry, paper bags are increasingly used for personal care, cosmetics, and household goods, enhancing product appeal and differentiation. Premium paper bags with innovative designs further attract consumers, fostering sustainable growth in the market during the forecast period. 

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, 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 research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

Atlantic Packaging Products Ltd., Bulldog Bag Ltd.,  Frontenac Group, Hood Packaging Corp., Huhtamaki Oyj, Inteplast Group, International Paper Co., JohnPac, Kari Out Co., Koch Industries Inc., MapleLeaf Green, Material Motion Inc., Mondi Plc, Novolex, ProAmpac, Sonoco Products Co., United Bags Inc., WestRock Co., and Global Pak Inc.

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.

Market Customer Landscape

The market research report includes the adoption lifecycle of the market research and growth, 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 and forecasting strategies.

 Customer Landscape

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2027, as well as historical data from 2018 to 2022 for the following segments.

• Material Outlook 
  • Brown kraft
  • White kraft

• End-user Outlook 
  • Retail
  • Food and beverage
  • Construction
  • Pharmaceutical
  • Others

Market Analyst Overview:

The market is a significant sector within the region's packaging industry. Paper bags are widely used due to their eco-friendly nature, versatility, and cost-effectiveness. The market's growth is driven by various factors, including increasing consumer awareness towards sustainable packaging solutions and the rise in demand for convenient and disposable packaging options. Key players in the North American paper bag market include suppliers of raw materials, converters, and manufacturers. Major suppliers of paper bags in North America are located in countries like the United States and Canada. These companies focus on innovation, product development, and expansion to cater to the growing demand for paper bags.

Moreover, the market for paper bags in North America is segmented based on the type of paper bags, applications, and regions. The major types of paper bags include Kraft paper bags, recycled paper bags, and coated paper bags. The applications of paper bags include food, beverages, industrial, and retail sectors. The market for paper bags in North America is expected to grow at a steady pace due to the increasing demand for eco-friendly packaging solutions and the rise in consumer awareness towards sustainability. Additionally, the growing food and beverage industry and the increasing demand for convenience packaging are expected to further boost the market's growth.

Market Scope
Report Coverage	Details
Page number	152
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 6.46%
Market growth 2024-2028	USD 926.54 million
Market structure	Fragmented
YoY growth 2023-2024(%)	6.32
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	American Paper Bag, Atlantic Packaging Products Ltd., Bulldog Bag Ltd.,  Frontenac Group, Hood Packaging Corp., Huhtamaki Oyj, Inteplast Group, International Paper Co., JohnPac, Kari Out Co., Koch Industries Inc., MapleLeaf Green, Material Motion Inc., Mondi Plc, Novolex, ProAmpac, Sonoco Products Co., United Bags Inc., WestRock Co., and Global Pak Inc.
Market dynamics	Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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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 growth of the market between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry 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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