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The paper bag market is estimated to increase by USD 1,716.49 million between 2022 and 2027. The size of the market is forecast to grow at a CAGR of 5.93%. The growth of the market depends on several factors, including environmental benefits of these bags, growing preference toward maintaining health and safety, hygiene, and cleanliness, and the implementation of effective marketing strategies.
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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.
The environmental benefits associated with paper bags are notably driving market growth. These products are biodegradable, which makes them environment-friendly. They are more sustainable than plastic, which makes them more acceptable among consumers. They take less time to disintegrate into their simpler forms and hence are recyclable. These products are reusable and cause less pollution. Therefore, various retail and food and beverage companies adopt paperboard containers and encourage their customers to use them same.
Paper bags are usually manufactured from locally available materials, which helps reduce transportation costs and, thus, saves energy. Most products are made from unbleached papers, which are considered better for the environment. They help save energy, conserve natural resources, and reduce greenhouse gas emissions, which, in turn, reduce carbon footprint. The environmental benefits associated will increase the adoption of such products by enterprises in industries, such as retail, which will drive the growth of the market during the forecast period.
The adoption of eco-friendly materials is the primary trend in the market. The rising need for industries to ensure compliance with sustainable production processes and the use of safe materials for consumers' health and waste disposal has resulted in a rise in the use of eco-friendly materials such as edamame beans, waste hazelnuts, and cocoa beans for manufacturing these bags. For instance, after taking out the edible part of the edamame beans from their pod, the remains can be recycled to make soy packaging in which the edamame snack is eventually served.
Furthermore, confectionery production creates wastes such as hazelnut shells and cocoa bean skins. These wastes can be used by pre-treating by a dry-milling process and then added to the middle layer of a triplex folding bag. For instance, Ferrero, a confectionery producer in Italy, manufactures products made of hazelnut shells. Thus, the rise in the use of eco-friendly materials for manufacturing products is expected to drive the market during the forecast period.
The limited durability is the major challenge impeding market growth. The ban on regular plastic carrying bags and packaging has increased the demand. However, durability is a major concern, especially for enterprises in the food and beverage industry. They are not strong enough to carry the weight of food.
Also, paper bags are not feasible to pack liquid food items such as juice, gravy, and curry. Therefore, food loss is a possibility as these bags can tear. Restaurants and food service providers find it difficult to package liquid food items for takeaways using the products as spillage of such food items can cause the hampering of packages leading to food loss and contamination. Hence, durability, especially for enterprises in the food and beverages industry, is a major challenge for their adoption. Such factors will adversely affect the growth of the market during the forecast period.
The 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 growth strategies.
Global Market Customer Landscape
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.
United Bags Inc. - The company offers paper bags such as multi-wall paper bags for chemicals, fertilizers, and food products.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
The market share growth of the brown kraft segment will be significant during the forecast period. Brown Kraft variants are produced from brown kraft items. Brown Kraft materials is produced from chemical pulp using the kraft process. The Kraft process removes most of the lignin present originally in the wood and makes the kraft materials stronger than other materials produced using other pulping processes such as acidic sulfite processes.
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The brown kraft segment was valued at USD 3,501.40 million in 2017 and continued to grow until 2021. Brown Kraft materials is available in various forms, such as unbleached, natural brown, and heavy-duty. The natural brown kraft is the strongest and is commonly used as wrapping materials. Kraft paper has high elasticity and high tear resistance, which makes it suitable for packaging products that demand high strength and durability. It is also used to package food products such as flour, sugar, and dried fruits and vegetables. Owing to the benefits of brown kraft materials, it helps in increasing the market demand during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Changing lifestyles and the increased consumption of fast foods and convenience foods, along with strict regulations on reducing packaging waste, are fueling the demand for packaging. The demand for materials packaging materials with better barrier properties is high. Stringent regulations regarding deforestation are forcing manufacturers to use recycled materials, which is making recycled materials packaging materials a sustainable packaging solution. Increased consumer preference for sustainable packaging materials and increased awareness about the importance of using eco-friendly solutions also boost market growth. Infrastructural developments for the disposal and composting of bioplastics are also aiding the growth of the regional market.
The Market is witnessing a significant surge, driven by environmental concerns and stringent regulations against plastic waste. Coveris, Daio Paper Corporation, Oji Holdings Corporation, and other industry leaders are pioneering low-cost packaging solutions with paper bags. These eco-friendly alternatives decompose naturally, mitigating toxic gases and safeguarding soil, animals, and groundwater levels.
Companies like Wisconsin Converting Inc. and AMERICAN PAPER BAG are at the forefront, catering to the retail sector's growing demand for sustainable shopping bags. Conitex Sonoco focuses on bio-based products, emphasizing responsible sourcing and production practices. Recent developments underscore a shift towards affordable yet environmentally conscious solutions, addressing both social issues and consumer preferences for greener packaging options.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Paper Bag Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.93% |
Market growth 2023-2027 |
USD 1,716.49 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.4 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, Canada, China, France, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bulldog Bag Ltd., Burgass Carrier Bags, C.E.E. R. SCHISLER, Gilchrist Bag Manufacturing LLC, Inteplast Group, International Paper Co., Jinan Xinshunyuan Packing Co. Ltd., Mondi plc, Novolex Holdings LLC, NOVPLASTA CZ s.r.o., Packaging Pro, Paperera de Girona SA, Papier-Mettler KG, ProAmpac Holdings Inc, Ronpak, Smurfit Kappa Group, Sonoco Products Co., Thai Showa Paxxs Co Ltd, United Bags Inc., and WestRock Co. |
Market dynamics |
Parent market analysis, market growth and trends, 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 forecast period. |
Customization purview |
If our market research 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Material
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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