Global Paper Shopping Bags Market to Reach USD 3.8 Billion by 2034, Driven by Eco-Consciousness and Retail Growth

The global Paper Shopping Bags Market is showing steady growth as consumers, retailers, and governments move toward sustainable alternatives to plastic.

VANCOUVER, BC, CANADA, September 9, 2025 /EINPresswire.com/ -- The global Paper Shopping Bags Market is showing steady growth as consumers, retailers, and governments move toward sustainable alternatives to plastic. Valued at USD 2.8 billion in 2024, the market is projected to reach USD 3.8 billion by 2034, growing at a CAGR of 3.10% over the forecast period.
The shift is largely fueled by stricter regulations against single-use plastics, rising eco-consciousness among consumers, and the expansion of the retail sector worldwide.

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Market Outlook

The paper shopping bags industry continues to grow steadily despite challenges such as raw material price fluctuations and competition from reusable bags. The market’s value CAGR of 3.10% outpaces its volume CAGR of 2.4%, showing a strong consumer shift toward higher-value and more sustainable products.

Market Size (2024): USD 2.8 billion
Forecast (2034): USD 3.8 billion
CAGR (2024–2034): 3.10%
Market Volume (2024): 1.5 million tons
Market Volume (2034): 1.9 million tons

Regional Insights

North America leads the market with the largest share, accounting for about 40% of total volume in 2024. Growth is supported by strict environmental regulations and consumer demand for sustainable packaging.
Asia Pacific is the fastest-growing region, driven by rapid urbanization, rising retail activity, and supportive government policies promoting green practices.

Key Market Drivers

Eco-consciousness & Regulations: Growing awareness of plastic waste has pushed governments to act. For instance, the EU’s Single-Use Plastics Directive reduced plastic bag consumption by 30% in 2024. Similarly, the U.S. Environmental Protection Agency’s (EPA) initiatives led to a 15% increase in paper bag usage the same year.

Retail Sector Growth: With the global retail market expanding by 8% in 2024 and digital spending up by 15% year-on-year, supermarkets and retail giants like Walmart and Tesco are increasing their adoption of paper shopping bags.

Corporate Commitments: Leading companies are innovating in eco-friendly designs. In April 2023, Mondi launched a new sustainable paper bag, highlighting the industry’s focus on greener solutions.
Market Challenges

Despite positive growth, the industry faces hurdles:

Raw Material Price Volatility: Pulp costs rose by 10% in 2024 due to supply chain disruptions and energy price hikes, directly affecting manufacturing costs.
Competition from Reusable Bags: Reusable bags gained popularity, with usage in Europe rising by 20% in 2024, as consumers sought durable, long-term alternatives.

Regulatory Compliance Costs: Stricter packaging and waste directives have raised compliance costs for manufacturers, increasing operational pressure.
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Price Trends

The average price per ton of paper shopping bags increased by 5% in 2024, largely due to higher pulp and energy prices. Regional variations are also seen: North America faces higher costs due to logistics and tariffs, while European manufacturers saw a 3% increase in import costs linked to currency fluctuations.

Companies adopting AI-driven pricing models reported up to 4% higher average selling prices and a 1.8% margin improvement, helping mitigate cost pressures.

Segmentation Insights

By Product Type

Kraft Paper Bags lead the market with a 45% share in 2024, valued for their strength and biodegradability. This segment is expected to grow at 3.5% CAGR, reaching USD 1.7 billion by 2034.
Coated Paper Bags and Recycled Paper Bags also contribute significantly, aligning with sustainability trends.

By Application

Retail is the largest segment, worth USD 1.2 billion in 2024, expected to reach USD 1.6 billion by 2034 at a 2.9% CAGR. The segment benefits from growing supermarket chains, specialty stores, and government mandates.
Food & Beverage, Pharmaceuticals, and Others also drive demand, though retail remains the dominant end-use sector.
Paper Shopping Bags Competitive Strategies & Notable Developments

Top 10 Companies

Smurfit Kappa
Mondi Group
WestRock
International Paper
DS Smith
Georgia-Pacific
Stora Enso
Oji Holdings
Nine Dragons Paper
Pratt Industries

Strategy

Top players in the Paper Shopping Bags market are competing through sustainability initiatives, product innovation, and strategic partnerships. Smurfit Kappa, for instance, expanded its recycling operations in March 2023, enhancing its sustainability credentials. Mondi Group focuses on product innovation, launching an eco-friendly bag in April 2023.

Paper Shopping Bags Market Segmentation

By Product Type
Kraft Paper Bags
Coated Paper Bags
Recycled Paper Bags

By Application
Retail
Food & Beverage
Pharmaceuticals
Others

By End User
Supermarkets
Specialty Stores
Online Retailers

By Distribution Channel
Direct Sales
Distributors
Online Channels

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