Multiwall and Kraft Paper Bags Market Size
The global multiwall and kraft paper bags market reached US$7,718.96 million in 2023, rising to US$8,108.15 million in 2024 and is expected to reach US$ 11,798.10 million by 2032, growing at a CAGR of 4.8% from 2025 to 2032.
The global push for sustainability is one of the key driving factors for the multiwall and kraft paper bag market. As consumers and businesses increasingly prioritize eco-friendly alternatives to plastic, kraft paper bags are gaining traction due to their biodegradable and recyclable properties. The environmental impact of plastic waste has become a critical concern, with more than 8 million tons of plastic entering the ocean each year and only 9% of plastic being recycled. By 2050, it's projected that there will be more plastic in the ocean than fish, highlighting the urgent need for sustainable packaging alternatives. In this context, sustainable packaging solutions, such as multiwall and kraft paper bags, are gaining significant traction. These alternatives help reduce plastic waste and can lower carbon emissions by up to 60%.
Market Industry Trends and Strategic Insights
- Asia-Pacific leads the global multiwall and kraft paper bags market, capturing the largest revenue share of 39.87% in 2024.
- By capacity segment, 11Kg to 25Kg lead the global multiwall and kraft paper bags market, capturing the largest revenue share of 40.22% in 2024.
Global Multiwall and Kraft Paper Bags Market Size and Future Outlook
- 2024 Market Size: US$8,108.15 million
- 2032 Projected Market Size: US$11,798.10 million
- CAGR (2025–2032): 4.8%
- Dominating Market: Asia-Pacific
- Fastest Growing Market: North America
Market Scope
| Metrics | Details |
| By Product Type | Kraft Paper Bags, Multiwall Bags |
| By Material | Solid Unbleached Board, Solid Bleached Board, Virgin Bleached Board, Others |
| By Capacity | Below 5Kg, 6Kg to 10Kg, 11Kg to 25Kg, Above 25Kg |
| By End-User | Food Packaging, Fertilizer, Minerals, Building and Construction, Chemicals and Coatings, Animal Feed, Pet Food, Petrochemicals, Pharmaceutical Industry, Others |
| By Region | North America, South America, Europe, Asia-Pacific, Middle East and Africa |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth |
Market Dynamics
Increasing Environmental Awareness and Regulatory Support
The global multiwall and kraft paper bag market is significantly influenced by the rising environmental consciousness among consumers and the supportive regulatory frameworks established by governments worldwide. This combination of consumer demand and legislative action is propelling the shift from plastic to paper-based packaging solutions.
Environmental concerns have reached unprecedented levels, with widespread awareness about the detrimental effects of plastic pollution on ecosystems and human health. Reports indicate that millions of tons of plastic waste enter the oceans annually, leading to severe consequences for marine life and biodiversity. This alarming scenario has prompted consumers to seek sustainable alternatives, thereby increasing the demand for eco-friendly packaging solutions.
In response to this growing environmental awareness, governments and regulatory bodies are implementing stringent policies to curb plastic usage. For example, the European Union has enacted directives aimed at reducing single-use plastics, mandating member states to achieve significant reductions in plastic consumption.
Segment Analysis
The global multiwall and kraft paper bags market is segmented based on product type, material, capacity, end-user, and region.
Increasing E-commerce Packaging Evolution
The evolution of e-commerce packaging is significantly propelling the growth of the global multiwall and kraft paper bag market, driven by increasing online retail activities and a heightened emphasis on sustainable packaging solutions. The exponential growth of e-commerce has led to a substantial increase in the demand for reliable and eco-friendly packaging materials. Kraft paper bags, known for their strength and recyclability, have become a preferred choice for packaging a variety of products, including clothing, books and electronics.
Modern consumers are increasingly conscious of the environmental impact of their purchases. This awareness has driven e-commerce businesses to adopt sustainable packaging solutions, such as kraft paper bags, to meet customer expectations and enhance brand image. The natural and organic appeal of kraft paper also resonates with the growing trend of health-conscious and eco-friendly consumer preferences in food packaging.
Rising Demand in Processed Food Sector
The rising boom in processed food industries is significantly driving the growth of the global multiwall and kraft paper bag market, primarily due to the increasing need for durable, food-safe and eco-friendly packaging. With the growing demand for convenience foods, ready-to-eat meals and bakery products worldwide, manufacturers are turning to multiwall paper bags to package flour, sugar, grains, spices and dry mixes. These bags offer critical advantages such as moisture resistance, breathability and strength, which are essential for maintaining product quality and shelf life during transport and storage.
For instance, in 2024, according to Mondelēz International’s State of Snacking: Future Trends report, nearly 60% of global consumers now favor smaller meals or snacks throughout the day rather than a few large meals. Additionally, modern consumers are increasingly valuing sustainability in their purchasing decisions. A recent survey revealed that over 70% of consumers are willing to pay a premium for products packaged in environmentally friendly materials. This trend is evident in the processed food sector, where brands are adopting kraft paper packaging to meet consumer expectations.
Geographical Penetration
DOMINATING MARKET: Asia-Pacific Leads Dominance Driven by Cost-Effectiveness and Expanding Food & Beverage Sector
Asia-Pacific multiwall and kraft paper bag market is witnessing an increasingly robust demand landscape, primarily driven by regional industrialization, environmental regulations and rising consumer awareness towards sustainable packaging. The ongoing phase-out of single-use plastics in many countries is further reinforcing the shift towards paper-based alternatives, especially in countries like India, China, Indonesia, Australia, Vietnam, Japan and South Korea, where governmental and corporate initiatives are increasingly aligned with sustainability goals.
The food and beverage sector is one of the primary drivers of kraft and multiwall paper bag usage in Asia-Pacific. In 2024, Indonesia alone recorded over 14.7 million metric tons of processed food consumption, a major portion of which was transported and retailed in paper-based packaging formats. This growth pattern is consistent in emerging economies like Vietnam and the Philippines, where urbanization and changes in dietary habits are triggering demand for efficient, high-barrier and moisture-resistant packaging materials.
China Multiwall and Kraft Paper Bags Market Insights
China is the dominant country in the Asia-Pacific multiwall and kraft paper bags market, driven by its massive manufacturing and export industries. The country faces unique regulatory considerations, with strict standards on packaging materials, particularly for food and pharmaceutical products. This ensures a focus on high-quality, compliant packaging solutions. Demand is rising across sectors like building materials, food grains, and chemicals, with significant latent demand in e-commerce logistics.
India Multiwall and Kraft Paper Bags Market Industry Growth
India is the fastest-growing country in the Asia-Pacific multiwall and kraft paper bags market, primarily driven by a booming industrial sector, government initiatives promoting local manufacturing, and a shift towards sustainable packaging. The expansion of the organized retail sector, coupled with growth in agriculture and construction, is contributing to increased demand for durable and cost-effective packaging solutions like multiwall and kraft paper bags.
FASTEST GROWING MARKET: North America is the Fastest-Growing Market Due to the Stringent Regulations on Single-Use Plastics and Rising Consumer Preference for Sustainable Packaging
The demand for multiwall and kraft paper bags in North America has continued to grow in 2023 and 2024, driven by environmental policies and changing consumer preferences. In US, the Environmental Protection Agency (EPA) reported that in 2023, approximately 3.7 million tons of paper bags and sacks were generated, with a recycling rate of about 47%. This marks a slight increase from previous years, reflecting ongoing efforts to promote sustainable packaging solutions. State-level regulations have further influenced this trend. For example, New York's ban on single-use plastic bags, implemented in 2020, has led to a sustained increase in paper bag usage, with the New York State Department of Environmental Conservation noting a 20% rise in paper bag consumption by retailers in 2023.
US Multiwall and Kraft Paper Bags Market Outlook
The US remains the largest market in North America, characterized by a strong industrial and agricultural base. Demand is fueled by sectors such as construction (cement, sand), agriculture (animal feed, fertilizer), and chemicals. The market is mature, with a high focus on product durability, sustainability, and advanced shipping solutions.
Canada Multiwall and Kraft Paper Bags Market Trends
In Canada, packaging materials that contact food or health products are subject to Health Canada regulations, which govern material safety, labeling, and environmental claims. This regulatory framework guarantees excellent product quality and safety, fostering a market environment where certified, sustainably sourced, and correctly labeled packaging is preferred. The agricultural and retail sectors are significant drivers of multiwall and kraft paper bag usage.
Regulatory Analysis
Across the Asia-Pacific region, governments are increasingly introducing regulations to curb plastic pollution and promote sustainable packaging, creating significant opportunities for the multiwall and kraft paper bag market. In India, the government has imposed a nationwide ban on single-use plastics since July 2022, encouraging businesses and retailers to adopt biodegradable alternatives such as kraft paper bags. China, under its Plastic Pollution Control Action Plan, has progressively restricted the use of plastic bags in major cities and is pushing industries toward paper-based and recyclable packaging formats.
Similarly, Japan has implemented the Plastic Resource Circulation Law, which mandates companies to reduce plastic use and improve packaging recyclability, spurring demand for kraft paper alternatives. Other countries like Australia and South Korea have introduced state-level and national policies that phase out plastic carry bags and encourage reusable, recyclable materials—further accelerating market growth for sustainable packaging across retail, food service and e-commerce sectors in the Asia-Pacific region.
Competitive Landscape
Competition from plastic packaging remains a significant restraint for the global multiwall and kraft paper bag market, as plastic continues to dominate the packaging industry due to its advantages in cost, versatility and durability. Plastic bags are cheaper to produce compared to kraft paper bags, with materials like polyethylene being less expensive and easier to source in bulk.
This price advantage makes plastic packaging more attractive to companies, particularly in price-sensitive markets, as it helps keep production costs low and ensures affordability for consumers. Moreover, plastic packaging offers superior durability and flexibility, being more resistant to moisture, tearing and physical damage. This makes it a preferred choice for items requiring extra protection during shipping and storage, such as liquids, perishable foods and fragile goods.
Despite increasing regulatory pressures to phase out plastic packaging in regions like the European Union and certain US states, plastic still holds strong in markets where regulations are less stringent, particularly in developing countries where its affordability and practicality delay the transition to more sustainable options like multiwall and kraft paper bags.
Key Developments
- On April 2024, DS Smith, a leading global manufacturer of fibre-based sustainable packaging solutions, announce a supplier agreement with Jonsac, a Swedish company that produce e-commerce bags from FSC-certified wooden raw materials.
What Sets This Global Multiwall and Kraft Paper Bags Market Intelligence Report Apart
- Granular Market Intelligence: Detailed assessment of market size, growth drivers, and segment-by-segment through 2032. This provides a complete view of the evolving opportunity landscape, including the shift from plastic alternatives.
- Regulatory Intelligence: In-depth, actionable analysis of key global regulations impacting the market. This includes single-use plastic bans, packaging waste directives (like EU PPWR), recycled content mandates, forestry and sustainability certifications (FSC, PEFC), and evolving global trade policies affecting pulp and paper flows.
- Competitive Benchmarking: Thorough evaluation of the strategies, production capacities, mill expansions, and market share of leading global integrated players and specialized regional converters. This enables informed competitive positioning in a fragmented but consolidating market.
- Investment and Opportunity Mapping: Identification of high-growth applications and emerging profit pools across key sectors such as cement & building materials, chemicals, agriculture, food & groceries, and e-commerce packaging, with targeted insights on high-growth regional markets across Asia Pacific, North America, and Europe.
- Supply Chain Strategy: Critical analysis of cost structures, pulp and recycled fiber availability, energy cost volatility, key production bottlenecks, and strategic opportunities across the value chain from virgin and recycled pulp sourcing to paper manufacturing, bag conversion, and downstream logistics.
- Expert, Forward-Looking Insights: Strategic recommendations and insights derived from industry specialists with deep expertise in pulp & paper markets, packaging trends, sustainability frameworks, and global supply chain dynamics, designed to inform high-stakes investment, capacity expansion, M&A, and corporate growth decisions.
