The Global Paper Bags Market is expected to grow at a high CAGR of 3.8% during the forecasting period (2022-2029).
Paper bags are made from several types of papers such as kraft, zipper & matt window, multi-wall paper, flat paper bags, multicolour bags and tote-style paper bags. These bags are used for packaging of the retail items from stores, gift shops, groceries, malls etc. available in multicolour. The paper bags are made from recyclable waste papers with the help of several manufacturing equipment and machines. pre-formed container made from paper. Typically, they are produced from Kraft paper due to their elasticity and tear-resistance properties. Paper bags usually have an opening on one side for easy packaging.
Depending on their intended use, paper bags vary in size, strength and characteristics. It comes in various sizes as small as traditional brown lunch bags and as large as residential yard and food waste bags. If the bag’s intended contents are generally lighter, paper bags are typically made from a single layer called a ply of paper. However, if the intended contents are generally heavier, they are made from multiple layers of paper and can include other flexible materials to increase strength. Generally, paper shipping sacks are used for transporting bulk materials such as sugar, flour, fertilizer, animal feed, dry chemicals and cement.
The global paper bags is driven by rising plastic bag banned by several government countries to use for retail shops, stores etc. Further increasing consumer awareness about eco-friendly bags to control plastic pollution around the globe drives the demand for the paper bags market.
Rising demand for paper bags due to government support and schemes with the surge in consumers awareness
The market is driven by rising demand for paper bags from end-users such as retail stores, hotels, restaurants, malls, etc. with the surge in government initiatives to enhance the awareness about paper bags. For instance, in 2019, the United Nations Environment Program (UNEP) has launched a global campaign for enhancing the awareness about the advantages of using paper bags and disadvantages of the use of microplastics to prevent its excessive usage to avoid environmental and water pollution regarding the use of plastics across the globe.
Rising strict rules and regulations for the use of plastic bags have propelled the alternative paper bags market
An increase in the adoption of paper bags by several sectors from automotive, pharmaceuticals, hotels, malls to retail shops due to strict rules and regulations for the use of plastic bags have propelled the demand for the paper bags market. For instance, in 2018, the United Kingdom banned the sale of products containing plastics microbeads such as shower gels and face scrubs, plastic bags to prevent these tiny pieces of plastic to enter the ocean. Further on 10th June 2019, 10, 2019, Prime Minister Justin Trudeau from the Canadian government has taken necessary measures for reducing plastic pollution. The government have decided to ban items such as plastic bags, water bottles, straws by 2021. It created a massive demand for alternative eco-friendly renewable paper bags. Further rising demand for the grocery stores, functional retail market owing to changing attitude of the people towards the protection of the environment around the globe.
Rising competition owing to fragmented market and high cost of the raw material, wood due to ever-growing use which hinders the global paper bags market
Rising competition owing to fragmented market and high cost of the raw material, wood due to ever-growing use which hinders the global paper bags market. The high cost of the paper bags and the life of the paper bags are less as compared to the other nonoven and compostable bags which hampers the growth of the paper bags market.
COVID-19 Impact Analysis
The global Paper bags Market has shown slight declination due to theCovid-19 pandemic, as several leading manufacturing plants closed due to lockdown in many countries. Further, demand for paper bags slightly increased in August as several hotels, malls, shops, grocery stores, etc were opened. Several governments have provided initiative and funds for the small and medium scale businesses to retain the losses due to the covid-19 pandemic. For instance, during March and April, the Government of India released funds under Market Development Assistance (MDA) to Khadi Institutions and artisans to support small scale businesses. Further demand will boost in 2021 as soon as the pandemic will over.
The global Paper bags Market is segmented based on types, usage, paper type, capacity, size, sealing and handle, shape, distribution channel, end-user and region.
Rising demand for flat paper bags for the retail, grocery stores with the surge in consumer spending around the globe
In terms of type, the global paper bags market is bifurcated into zipper & matt windows, multi-wall paper sacks, flat paper bags, multicolour bags and others. Among these flat paper, the bags segment has the highest market share in 2019, this is primarily due to its demand for the retail, grocery stores with the surge in consumer spending around the globe. As per the Census Government Organization in September 2019, sales of the retail & food services market in the United States reached around US$ 549.3 billion. It created a massive demand for the flat paper bags used in the retail stores.
Similarly, multi-wall paper sacks, flat paper bags, pasted valve, lock paper bags, self-opening-style (SOS) bags, stand up pouchmulticolor bags segments are also growing at a faster pace owing to rising demand for paper bags for the fast-moving consumer's goods industry, gift packing, chemical industry as well as by food processing industry. Zipper & matt window paper bags are being used by the leading food processing manufacturers due to the government ban for plastic use owing to environmental concerns as well as several leading manufacturers are launching innovative designs of the paper bag for the packaging. For instance, on 4th June 2020, Woolworths launched new innovative paper shopping bags made with 70% recycled paper content in response to the increasing customer demand for easy recyclable alternatives across Australia.
Single usage paper bags are increasing due to rising adoption by the retail outlets by the leading players around the globe
In terms of usage, the global paper bags market is divided into single-use and re-usable. Among these, the single-use segment has the highest market share in 2019, this is due to rising the adoption of these paper bags for packaging of bakery mixes, spices, cement, chemicals, feed products, food products, fertilizer etc. Further increasing demand by the retail outlets by the leading food company has propelled this segmental growth. For instance, in 2020 Cargill Inc doubled its retail outlet to around 800,000 due to rising its branded consumer business in India. It created massive demand by these outlets for paper bags.
Rising utilization of the kraft paper by the paper bags manufacturers for making multicolour bags have propelled the kraft paper segmental growth
Depending on paper type, the global paper bags market is divided into Kraft paper, white cardboard, coated paper, offset paper and others. Among this kraft paper has the highest market share in 2019, owing to rising demand for pharmaceutical, food & beverages, personal care & cosmetics and others. Further rising paper consumption by the global leading paper bags manufacturers have propelled the demand for the kraft paper market. Paper use is steadily increasing year on year which exceeded 400 million tonnes per year with more than half of this consumption showed in China, the USA and Japan, with a further in Europe.
Depending upon the capacity, the global paper bags market is classified as Less Than 1 Kg, 1 Kg-5 Kg, 5 Kg-10 Kg and More Than 10 Kg. Among these, less than 1 Kg has the highest market share owing to surge in demand by the retail stores around the globe
Based on the Size the global paper bags market is divided into Small Size, Medium Size, Large Size and Extra Large Size.
In terms of shape, the global paper bags are divided into rectangular, circular, square, and others. Among these, rectangular bags have the highest market share owing to increasing adoption by the malls, retail shops, stores etc.
Based on sealing and handle, the global heat seal, hand length handle, ziplock, twisted handle, flat handle and others Among this, the hand length handle segment has the highest market share owing to rising usage in the food and beverages packaging, retail shops, and many others.
Convenience Stores are expected to dominate the global Paper bags Market during the forecast period.
Based on the distribution channel, the global paper bags are divided into Convenience Stores, Supermarkets/Hypermarkets, Specialty Stores, E-Commerce and others and others. Among these, convenience stores has the highest market share in 2019, this is due to increasing adoption by the retail stores with rising global population due to rising urban population. As per the India Brand Equity Foundation Organization in 2018, the retail industry in India reached around US$ 950 billion in 2018 which is growing with a 13% CAGR and is projected to reach US$ 1.1 trillion by 2020. It created a massive demand for the paper bags market.
Similarly, rising online shopping owing to increasing E-commerce sale which uses paper bags for packaging. As per the India Brand Equity Foundation in 2019, growing online retail sales by 31% y-o-y to reach US$ 32.70 billion in 2018 and the revenue generated from online retail is projected to reach US$ 60 billion by 2020 in India.
In terms, of the end-user, the global paper bags market is divided into retail stores, food and beverages, animal feed, cosmetic products, agriculture, construction, pharmaceuticals, chemicals and others. Among these, retail stores have the highest market share owing to the surge in the number of retail outlets with the growing adoption of paper bags due to growing awareness among the people about eco-friendly bags.
Asia-Pacific region holds the largest market share global Paper bags Market
Asia-Pacific region is dominating the global Paper bags Market accounted for the largest market share in 2019, due to presence of the several manufacturing industries with growing retail sectors due to rapidly increasing urbanization and modernization. As per the Down To Earth Organization in 2015, Asia-Pacific urban population reached around 2.3 billion which propels the demand for paper bags in the retail store of the urban areas. Similarly, the NorthAmerica region is also growing at the fastest speed owing to rising e-commerce growth, strict rules & regulations regarding plastic use and rising consumers awareness and spending. As per the Census Government Organization in 2019, United States consumer spending reached around aroundUS$586.92 billion in eCommerce sales increased by 14% as compared to 2018. It created a massive demand for the paper bags used for packaging of the products in the E-commerce industry.
The paper bags market is moderately competitive with the presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include United Bags, Smurfit Kappa Group, JohnPac Inc, The Mondi Group plc, El Dorado Packaging, Global-Pak, International Paper Company, Welton Bibby And Baron Limited, Paper bags Limited, Novolex Holdings, York Paper Company Limited and among others.
The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of the Paper bags Market globally. For instance, on 2nd October 2020, Smurfit Kappa launched 100% paper-based BanaBag developed from bananas. The paper biodegradable BanaBag was designed for a wide range of sustainable and biodegradable products for the agricultural sector.
The Mondi Group plc
Overview: The Mondi Group plc, founded in 2015, office based in San Diego, California, United States. Mondi Group plc is one of the leading providers of packaging and paper solutions with innovative and sustainable solutions. The Company product portfolio includes paper grades, extrusion-coated, siliconized materials and laminating films used in packaging production. The packaging solution includes corrugated boxes and sheets, industrial bags, consumer and carrier bags, food and liquid packaging, solid board, protective wrapping and labels.
Product Portfolio: The Company has a diverse product portfolio of paper bags including:
BarrierPack Recyclable, FlexiBag RecyclableStripPouch
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