This report provides a complete analysis of the Global Paper Bags industry in terms of market segmentation By Material Type (Brown Kraft Paper, White Kraft Paper, and Recycled Paper), By Application (Retail, Food & Beverage, E-commerce, and Others) for the historical period of 2021-2024, the estimates of 2024 and the forecast period of 2026-2031.
The Global Paper Bags market showcased growth at a CAGR of 4.21% during 2021-2024. The market was valued at USD 6.22 billion in 2024 which is expected to reach USD 8.88 billion in 2031. The global paper bags market has experienced substantial growth in recent years and continues to expand rapidly, driven by increasing environmental awareness, stringent regulations against single-use plastics, and changing consumer preferences toward sustainable packaging. As governments worldwide implement stricter policies to combat plastic pollution, industries are being compelled to transition to biodegradable and recyclable alternatives. Consumers, in turn, are showing growing concern about environmental degradation, influencing purchasing decisions and prompting retailers, food chains, and manufacturers to adopt eco-friendly packaging solutions such as paper bags. Moreover, the rise of conscious consumerism, especially among millennials and Gen Z, has made sustainability a core element of brand identity for many businesses, encouraging investment in innovative paper-based packaging.
A major catalyst for the global growth of the paper bags market is the widespread implementation of plastic bag bans and environmental regulations. Countries such as Kenya, Rwanda, India, France, and the United Kingdom have introduced strict measures to reduce or entirely eliminate the use of plastic carry bags, leading to a significant shift toward paper-based alternatives. These legislative moves have created a favorable policy environment that not only supports the production and use of paper bags but also encourages innovation and investment in biodegradable materials. Additionally, many corporations have voluntarily pledged to reduce their environmental footprints by incorporating paper-based packaging into their supply chains. This trend is particularly evident in large retail and e-commerce companies, which are replacing plastic mailers and shopping bags with more sustainable, recyclable paper bags.
Economic development and industrial expansion across emerging economies have also contributed significantly to market growth. As retail infrastructure expands and e-commerce penetration deepens, especially in countries with growing middle-class populations, the demand for cost-effective, durable, and eco-conscious packaging solutions like paper bags is surging. Furthermore, the hospitality and tourism sectors in regions like Southeast Asia, the Middle East, and Africa are promoting the use of paper bags as part of their green initiatives, enhancing brand reputation and aligning with global sustainability goals. Rising urbanization and increasing disposable incomes further fuel this trend by encouraging premium shopping experiences and high-quality packaging.
Asia Pacific dominates the global paper bags market, both in terms of production and consumption. This dominance can be attributed to the region's large and rapidly growing population, increasing environmental consciousness, and robust manufacturing capabilities. Countries such as China, India, Japan, and South Korea have not only enacted regulations to reduce plastic usage but also invested heavily in the paper industry, boosting local production capacities. India, for instance, has implemented strict bans on single-use plastics in several states, thereby fostering demand for alternative packaging options across its diverse retail and foodservice sectors. Similarly, China's “Green Packaging” initiative supports eco-friendly production and packaging, fueling demand for paper bags in e-commerce and logistics. Japan’s cultural affinity toward minimalism and high-quality craftsmanship further supports the growth of aesthetically designed and sustainable paper bags. The cost-effective labor and material availability in Asia Pacific also make it a global manufacturing hub, allowing it to cater to both domestic and export markets effectively.
In addition to Asia Pacific, North America and Europe represent significant markets for paper bags, driven by strong environmental regulations and a well-established consumer culture around sustainability. The United States and Canada have seen increasing efforts at state and municipal levels to reduce plastic waste, and large retailers like Walmart and Whole Foods have committed to more sustainable practices. Europe, known for its progressive environmental policies, has a mature market with high demand for recyclable and biodegradable packaging. Countries such as Germany, the UK, and France continue to lead the way in eco-innovation and have fully integrated paper bags into daily commercial and consumer use. Meanwhile, the Middle East and Africa are emerging as high-potential markets, particularly as retail and tourism expand and governments begin to prioritize environmental reforms. Countries like the UAE and South Africa are showing promising growth through initiatives that promote green packaging in retail and hospitality sectors.
The market is segmented by material type into brown kraft paper, white kraft paper, and recycled paper. Each material segment caters to specific industry needs and consumer preferences. Brown kraft paper, known for its durability and cost-effectiveness, is commonly used in grocery, industrial, and wholesale packaging. Its natural, rustic appearance also appeals to eco-conscious consumers and businesses looking for a minimalistic design. White kraft paper is often chosen for premium retail and luxury packaging due to its clean and refined appearance, which allows for high-quality printing and branding. It is widely used in boutiques, cosmetics, and specialty stores that want to reflect a polished image. Recycled paper, on the other hand, is gaining ground as companies and governments push for circular economy models. It supports the growing demand for eco-friendly packaging by minimizing the use of virgin materials and reducing overall carbon footprints.
By application, the paper bags market is divided into retail, food & beverage, e-commerce, and others. The retail sector is a primary driver of demand, as supermarkets, department stores, and fashion outlets increasingly adopt paper bags to replace plastic alternatives. This trend is supported by both government regulation and brand-driven sustainability goals. In the food & beverage segment, paper bags are widely used for takeout, deliveries, and packaging dry or fast food. The sector benefits from the growing demand for biodegradable packaging in quick-service restaurants and cafes. E-commerce is another rapidly growing application segment, where companies are shifting to paper-based mailers and delivery bags to align with environmental commitments and meet consumer expectations for sustainable shipping.
The global paper bags market is highly competitive and fragmented, with the presence of both international giants and regional players. Key companies such as International Paper Company, Mondi Group, Smurfit WestRock, Stora Enso, Oji Holdings Corporation, Klabin, and Novolex dominate the market landscape. These companies invest heavily in research and development to innovate stronger, more attractive, and more environmentally friendly paper bag solutions. Many of them operate integrated manufacturing and recycling facilities, which allow them to offer customized solutions while maintaining control over quality and supply chains. Partnerships with retailers, food chains, and e-commerce platforms further enhance their reach and adaptability. In addition, many regional manufacturers are gaining traction by focusing on niche markets or offering competitively priced alternatives. The intense competition is fostering innovation in product design, print quality, and material science, making paper bags more functional, aesthetically appealing, and environmentally viable.
The Global Paper Bags market showcased growth at a CAGR of 4.21% during 2021-2024. The market was valued at USD 6.22 billion in 2024 which is expected to reach USD 8.88 billion in 2031. The global paper bags market has experienced substantial growth in recent years and continues to expand rapidly, driven by increasing environmental awareness, stringent regulations against single-use plastics, and changing consumer preferences toward sustainable packaging. As governments worldwide implement stricter policies to combat plastic pollution, industries are being compelled to transition to biodegradable and recyclable alternatives. Consumers, in turn, are showing growing concern about environmental degradation, influencing purchasing decisions and prompting retailers, food chains, and manufacturers to adopt eco-friendly packaging solutions such as paper bags. Moreover, the rise of conscious consumerism, especially among millennials and Gen Z, has made sustainability a core element of brand identity for many businesses, encouraging investment in innovative paper-based packaging.
A major catalyst for the global growth of the paper bags market is the widespread implementation of plastic bag bans and environmental regulations. Countries such as Kenya, Rwanda, India, France, and the United Kingdom have introduced strict measures to reduce or entirely eliminate the use of plastic carry bags, leading to a significant shift toward paper-based alternatives. These legislative moves have created a favorable policy environment that not only supports the production and use of paper bags but also encourages innovation and investment in biodegradable materials. Additionally, many corporations have voluntarily pledged to reduce their environmental footprints by incorporating paper-based packaging into their supply chains. This trend is particularly evident in large retail and e-commerce companies, which are replacing plastic mailers and shopping bags with more sustainable, recyclable paper bags.
Economic development and industrial expansion across emerging economies have also contributed significantly to market growth. As retail infrastructure expands and e-commerce penetration deepens, especially in countries with growing middle-class populations, the demand for cost-effective, durable, and eco-conscious packaging solutions like paper bags is surging. Furthermore, the hospitality and tourism sectors in regions like Southeast Asia, the Middle East, and Africa are promoting the use of paper bags as part of their green initiatives, enhancing brand reputation and aligning with global sustainability goals. Rising urbanization and increasing disposable incomes further fuel this trend by encouraging premium shopping experiences and high-quality packaging.
Asia Pacific dominates the global paper bags market, both in terms of production and consumption. This dominance can be attributed to the region's large and rapidly growing population, increasing environmental consciousness, and robust manufacturing capabilities. Countries such as China, India, Japan, and South Korea have not only enacted regulations to reduce plastic usage but also invested heavily in the paper industry, boosting local production capacities. India, for instance, has implemented strict bans on single-use plastics in several states, thereby fostering demand for alternative packaging options across its diverse retail and foodservice sectors. Similarly, China's “Green Packaging” initiative supports eco-friendly production and packaging, fueling demand for paper bags in e-commerce and logistics. Japan’s cultural affinity toward minimalism and high-quality craftsmanship further supports the growth of aesthetically designed and sustainable paper bags. The cost-effective labor and material availability in Asia Pacific also make it a global manufacturing hub, allowing it to cater to both domestic and export markets effectively.
In addition to Asia Pacific, North America and Europe represent significant markets for paper bags, driven by strong environmental regulations and a well-established consumer culture around sustainability. The United States and Canada have seen increasing efforts at state and municipal levels to reduce plastic waste, and large retailers like Walmart and Whole Foods have committed to more sustainable practices. Europe, known for its progressive environmental policies, has a mature market with high demand for recyclable and biodegradable packaging. Countries such as Germany, the UK, and France continue to lead the way in eco-innovation and have fully integrated paper bags into daily commercial and consumer use. Meanwhile, the Middle East and Africa are emerging as high-potential markets, particularly as retail and tourism expand and governments begin to prioritize environmental reforms. Countries like the UAE and South Africa are showing promising growth through initiatives that promote green packaging in retail and hospitality sectors.
The market is segmented by material type into brown kraft paper, white kraft paper, and recycled paper. Each material segment caters to specific industry needs and consumer preferences. Brown kraft paper, known for its durability and cost-effectiveness, is commonly used in grocery, industrial, and wholesale packaging. Its natural, rustic appearance also appeals to eco-conscious consumers and businesses looking for a minimalistic design. White kraft paper is often chosen for premium retail and luxury packaging due to its clean and refined appearance, which allows for high-quality printing and branding. It is widely used in boutiques, cosmetics, and specialty stores that want to reflect a polished image. Recycled paper, on the other hand, is gaining ground as companies and governments push for circular economy models. It supports the growing demand for eco-friendly packaging by minimizing the use of virgin materials and reducing overall carbon footprints.
By application, the paper bags market is divided into retail, food & beverage, e-commerce, and others. The retail sector is a primary driver of demand, as supermarkets, department stores, and fashion outlets increasingly adopt paper bags to replace plastic alternatives. This trend is supported by both government regulation and brand-driven sustainability goals. In the food & beverage segment, paper bags are widely used for takeout, deliveries, and packaging dry or fast food. The sector benefits from the growing demand for biodegradable packaging in quick-service restaurants and cafes. E-commerce is another rapidly growing application segment, where companies are shifting to paper-based mailers and delivery bags to align with environmental commitments and meet consumer expectations for sustainable shipping.
The global paper bags market is highly competitive and fragmented, with the presence of both international giants and regional players. Key companies such as International Paper Company, Mondi Group, Smurfit WestRock, Stora Enso, Oji Holdings Corporation, Klabin, and Novolex dominate the market landscape. These companies invest heavily in research and development to innovate stronger, more attractive, and more environmentally friendly paper bag solutions. Many of them operate integrated manufacturing and recycling facilities, which allow them to offer customized solutions while maintaining control over quality and supply chains. Partnerships with retailers, food chains, and e-commerce platforms further enhance their reach and adaptability. In addition, many regional manufacturers are gaining traction by focusing on niche markets or offering competitively priced alternatives. The intense competition is fostering innovation in product design, print quality, and material science, making paper bags more functional, aesthetically appealing, and environmentally viable.
Scope of the Report
- The report analyses the Paper Bags Market by Value (USD Million).
- The report analyses the Paper Bags Market by Region (Americas, Europe, Asia Pacific, Middle East & Africa) and 10 Countries (United States, Canada, Mexico, Germany, United Kingdom, France, Italy, China, Japan, and India).
- The report presents the analysis of Paper Bags Market for the historical period of 2021-2024, the estimated year 2025 and the forecast period of 2026-2031.
- The report analyses the Paper Bags Market By Material Type (Brown Kraft Paper, White Kraft Paper, and Recycled Paper).
- The report analyses the Paper Bags Market By Application (Retail, Food & Beverage, E-commerce, and Others).
- The key insights of the report have been presented through the frameworks of SWOT Analysis. Also, the attractiveness of the market has been presented by region, By Material Type, By Application.
- Also, the major opportunities, trends, drivers, and challenges of the industry has been analyzed in the report.
- The report tracks competitive developments, strategies, mergers and acquisitions and new product development. The companies analyzed in the report are International Paper Company, Mondi Group, Smurfit Westrock, Oji Holdings Corporation, Stora Enso, Klabin, and Novolex.
Table of Contents
1. Market Background
2. Analyst Recommendations
3. Global Paper Bags Market: Historic and Forecast
4. Paper Bags Market, Region Analysis
5. Americas Paper Bags Market: Historic and Forecast
6. Europe Paper Bags Market: Historic and Forecast
7. Asia Pacific Paper Bags Market: Historic and Forecast
8. Middle East & Africa Paper Bags Market: Historic and Forecast
9. Competitive Positioning
List of Figures
List of Tables
Companies Mentioned
- International Paper Company
- Mondi Group
- Smurfit WestRock
- Oji Holdings Corporation
- Stora Enso
- Klabin
- Novolex
