This study examines the US market for packaging bags, defined as flexible packaging products that are enclosed on all but one side to form an opening that may or may not be sealed after filling. Historical data are provided for 2011, 2016, and 2021, with forecasts through 2026. Also provided is an analysis of key industry players.
Demand for packaging bags in the US is projected to increase by 2.4% per year to $9.9 billion in 2026. The inflationary pressures on raw material costs that drove prices upward in 2021 and 2022 are expected to recede somewhat in the coming years, which will slow growth in value terms. Meanwhile, growth in unit terms is expected to accelerate somewhat due to an improved outlook for food processing in the US. However, in many applications (including the food market), gains will be limited by the increasing adoption of pouches that offer many of the same advantages of bags that make flexible packaging attractive, as well as a number of performance attributes, such as reclosability and moisture resistance.
Sustainability Remains a Key Issue for Bag Producers and End Users
Bag producers and end users alike will continue to reach for sustainability goals. Initiatives include the use of biobased resins for plastic bags, the use of recycled materials in bag production, and the expansion of recycling paper and plastic bags. At the same time, packaging bags have not been subject to the same level of scrutiny as plastic retail bags, which in some locales are taxed, restricted, or banned outright.
Paper & Plastic Bags Compete on Sustainability & Performance
Paper and plastic are the dominant materials used in the production of packaging bags. While demand for both plastic and paper bags is expected to grow at roughly the overall average rate, this hides significant underlying competition in many applications, especially in food packaging. Paper bags will register faster overall gains in the food market as sustainability and product differentiation efforts lead to greater use of high-end paper bags for their marketing potential. However, plastic bags will gain ground in many non-food applications due to their better performance and moisture resistance.
Pet Food Will Remain a Leading Market; Opportunities in Food Applications More Selective
Packaging bags are generally mature products, so demand for bags is primarily determined by the outlook for the major markets in which they are used. In many markets, growth will be relatively slow due to competition from other packaging formats. Pet food is an exception to this general trend, as bags remain a top packaging format in that market. Gains in the pet food market will be driven by the growing popularity of specialty pet shops offering upscale treats that use packaging formats that emulate the packaging used by bakeries and other upmarket food shops, such as paper bags for both pre-packaged items and those sold from bulk bins.
In general, bags are expected to lose share to pouches and other flexible packaging types. However, there are several areas expected to see gains. Plastic bags are appealing as a low-cost option for larger packages of preformed meat patties. For baked goods, paper bags find use for fresh-baked breads and other in-store baked goods, as well as for other products packaged in a manner to suggest artisanality.
Demand by Market
Food uses accounted for a majority of packaging bag demand in 2021. Meat products, fresh produce, and baked goods are the largest food markets for bags, although paper bags also see significant usage with powdered products (grain, flour, sugar, etc.)
The largest nonfood markets for bags are pet food, agricultural and horticultural products, and paper and textile products.
Though bags face intense competition from pouches and are expected to lose share to them, they still benefit from a general shift away from rigid packaging toward flexible. They will also continue to benefit from their light weight and low cost, particularly important for commodities such as sugar, flour, and bread.
Meat, poultry, and seafood products will remain the largest market for bags, with demand bolstered by the ongoing recovery in foodservice revenues, which rely upon bagged versions of these products.
Nonfood markets that will experience above average growth in bag demand include:
- Pet food, particularly bulk sizes, where bag packaging offers great savings
- Pharmaceuticals, attributable to strong growth in the overall market
- Rack and counter, as dollar stores and other low-end, high-volume retailers continue to proliferate
Demand by Material
Material choice is dependent on key factors such as performance, shelf appeal, and sustainability. Plastic film and paper comprise most bag material demand, though mesh and textile are significant for certain applications.
Plastic will remain the dominant material for bags due to its production efficiencies and performance advantages (particularly in strength and barrier) compared to paper. Plastic film - especially polypropylene - is ideally suited for bag packaging applications because of its advantages, including:
- Light weight
- Relatively low cost
- Versatility
- Good performance
- Oxygen barrier properties
- Excellent marketing capabilities (e.g., ability to print effectively on the package front)
- Favorable source reduction capabilities
Paper accounts for a sizable portion of bag demand due to its low cost, toughness, adequate barrier properties, and widespread availability. Gains for paper bags will result from:
- Increasing concerns over sustainability, with kraft and sulfite paper offering some advantages over plastic alternatives, including the ability to use recycled materials
- Ongoing popularity for use with dry pet foods, cookies, baked goods, candy, sugar, ground coffee, and artisan bread due to their breathability
Packaging Bag Demand, by Material
Among other materials:
Mesh bags are primarily used in the packaging of produce because of their breathability, high strength, and low cost.
Textile bags are primarily used for bulk packaging pet food, produce, and agricultural and horticultural products.
Key Questions Answered:
- What is a packaging bag?
- Bags generally refer to flexible packaging products that are enclosed on all but one side to form an opening that may or may not be closed after filling. When closed, bags feature separate closures such as twist ties, clips, or adhesives. In some applications, bags are known as sacks or liners.
- What is the largest nonfood market for bags in the US?
- The largest nonfood markets for bags are pet food, agricultural and horticultural products, and paper and textile products, which collectively accounted for 53% of nonfood bag demand in 2021.
- What is the market size in the US for packaging bags?
- Demand for packaging bags is expected to grow 2.4% per year to $9.9 billion in 2026, losing share to pouches due to the latter's superior performance properties.
- What market accounted for the largest share of packaging food demand?
- Food uses accounted for a majority of packaging bag demand in 2021, accounting for 54% of the total.
Table of Contents
1. Executive Summary
- Figure 1-1. Packaging Bag Market Outlook
2. About This Report
- Report Details
- Study Scope & Product Description
- Figure 2-1. Packaging Bag Examples
- Impact of the COVID-19 Pandemic
- Table - Packaging Bag Demand by Market & Application, 2019 - 2022
- Table - Packaging Bag Demand by Material, 2019 - 2022
- Figure 2-2. Packaging Bag Demand, 2018 - 2024
3. Overview
- Historical Market Trends
- Table - Packaging Bag Demand, 2011 - 2021
- Figure 3-1. Packaging Bag Demand, 2001 - 2021
- Demand by Market
- Table - Packaging Bag Demand by Market, 2011, 2016, 2021, & 2026
- Table - Annual Packaging Bag Demand by Market, 2018 - 2025
- Figure 3-2. Packaging Bag Demand by Market, 2011, 2016, 2021, & 2026
- Demand by Material
- Table - Packaging Bag Demand by Material, 2011, 2016, 2021, & 2026
- Table - Annual Packaging Bag Demand by Material, 2018 - 2025
- Figure 3-3. Packaging Bag Demand by Material, 2011, 2016, 2021, & 2026
- Plastic
- Table - Plastic Packaging Bag Demand by Market, 2011, 2016, 2021, & 2026
- Table - Annual Plastic Packaging Bag Demand by Market, 2018 - 2025
- Paper
- Table - Paper Packaging Bag Demand by Market, 2011, 2016, 2021, & 2026
- Table - Annual Paper Packaging Bag Demand by Market, 2018 - 2025
- Other Materials
- Table - Other Packaging Bag Demand by Market, 2011, 2016, 2021, & 2026
- Table - Annual Other Packaging Bag Demand by Market, 2018 - 2025
- Pricing Trends
- Table - Packaging Bag Material Price Deflators, 2011, 2016, 2021, & 2026
- Table - Annual Packaging Bag Material Price Deflators, 2018 - 2025
4. Impacting Flexible Packaging Demand
- Competition from Rigid Packaging
- Technology & Product Innovation
- Barrier Properties & Mixed Material Use
- Aqueous Barrier Solutions
- Customization & Industrial Internet of Things (IIoT) Automation
- Growth in E-Commerce
- Regulations
- Sustainability Initiatives
- Source Reduction
- Recycling & Recycled Content
- Biodegradable Packaging
- Compostable Packaging
5. Consumer Preferences
- Importance of Packaging
- Table - "Packaging Is An Important Factor to Me When Making My Grocery Shopping Choices" by Gender & Age Gro
- Preferred Packaging Characteristics
- Table - Packaging Features: Consumer Opinions on Eco-Friendly Packaging by Gender & Age Group, 2022
- Table - Packaging Features: Consumer Opinions on Priority of Eco-Friendly Packaging Features, "Indicate the
- Table - Packaging Features: Microwaveability, "I Put Packaging in the Microwave If Use Instructions Say I Ca
- Table - Packaging Features: Protection, "Rigid Packaging (e.g., Cans & Jars) Can Provide Better Protection F
- Recycling Attitudes & Environmental Responsibility
- Table - Consumer Insights: Attitudes on Environment & Responsibility by Gender & Age Group, 2022
- Table - Consumer Insights: Attitudes on Recycling & Waste by Gender & Age Group, 2022
- Sustainability Views by Material
- Table - Consumer Insights: Sustainability Views by Material, 2022
6. Food & Beverage Markets
- Market Scope
- Demand by Application
- Table - Food Markets for Packaging Bags by Application, 2011, 2016, 2021, & 2026
- Table - Annual Food Markets for Packaging Bags by Application, 2018 - 2025
- Figure 5-1. Food Markets for Packaging Bags by Application, 2011, 2016, 2021, & 2026
- Meat, Poultry, & Seafood
- Market Scope
- Table - Industry Codes Related to Meat, Poultry, & Seafood
- Market Outlook
- Table - Meat, Poultry, & Seafood Market for Packaging Bags by Material, 2011, 2016, 2021, & 2026
- Table - Annual Meat, Poultry, & Seafood Market for Packaging Bags by Material, 2018 - 2025
- Fresh Produce
- Market Scope
- Market Outlook
- Table - Fresh Produce Market for Packaging Bags by Material, 2011, 2016, 2021, & 2026
- Table - Annual Fresh Produce Market for Packaging Bags by Material, 2018 - 2025
- Baked Goods
- Market Scope
- Table - Industry Codes Related to Baked Goods
- Market Outlook
- Table - Baked Goods Market for Packaging Bags by Material, 2011, 2016, 2021, & 2026
- Table - Annual Baked Goods Market for Packaging Bags by Material, 2018 - 2025
- Dairy Products
- Market Scope
- Table - Industry Codes Related to Dairy Products
- Market Outlook
- Table - Dairy Product Market for Packaging Bags by Material, 2011, 2016, 2021, & 2026
- Table - Annual Dairy Product Market for Packaging Bags by Material, 2018 - 2025
- Grain Mill Products
- Market Scope
- Table - Industry Codes Related to Beverages
- Market Outlook
- Table - Grain Mill Products Market for Packaging Bags by Material, 2011, 2016, 2021, & 2026
- Table - Annual Grain Mill Products Market for Packaging Bags by Material, 2018 - 2025
- Frozen Foods
- Market Scope
- Table - Industry Codes Related to Frozen Foods
- Market Outlook
- Table - Frozen Foods Market for Packaging Bags by Material, 2011, 2016, 2021, & 2026
- Table - Annual Frozen Foods Market for Packaging Bags by Material, 2018 - 2025
- Other Foods
- Market Scope
- Table - Industry Codes Related to Other Food Products
- Market Outlook
- Table - Other Food Markets for Packaging Bags by Material, 2011, 2016, 2021, & 2026
- Table - Annual Other Food Markets for Packaging Bags by Material, 2018 - 2025
7. Nonfood Markets
- Market Scope
- Demand by Application
- Table - Nonfood Markets for Packaging Bags by Application, 2011, 2016, 2021, & 2026
- Table - Annual Nonfood Markets for Packaging Bags by Application, 2018 - 2025
- Figure 6-1. Nonfood Markets for Packaging Bags by Application, 2011, 2016, 2021, & 2026
- Pet Food
- Market Scope
- Table - Industry Codes Related to Pet Food
- Market Outlook
- Table - Pet Food Market for Packaging Bags by Material, 2011, 2016, 2021, & 2026
- Table - Annual Pet Food Market for Packaging Bags by Material, 2018 - 2025
- Agricultural & Horticultural
- Market Scope
- Table - Industry Codes Related to Agriculture & Horticulture
- Market Outlook
- Table - Agricultural & Horticultural Market for Packaging Bags by Material, 2011, 2016, 2021, & 2026
- Table - Annual Agricultural & Horticultural Market for Packaging Bags by Material, 2018 - 2025
- Paper & Textiles
- Market Scope
- Table - Industry Codes Related to Paper & Textile Products
- Market Outlook
- Table - Paper & Textile Market for Packaging Bags by Material, 2011, 2016, 2021, & 2026
- Table - Annual Paper & Textile Market for Packaging Bags by Material, 2018 - 2025
- Rack & Counter
- Market Scope
- Market Outlook
- Table - Rack & Counter Market for Packaging Bags, 2011, 2016, 2021, & 2026
- Table - Annual Rack & Counter Market for Packaging Bags, 2018 - 2025
- Chemicals
- Market Scope
- Table - Industry Codes Related to Chemicals
- Market Outlook
- Table - Chemicals Market for Packaging Bags, 2011, 2016, 2021, & 2026
- Table - Annual Chemicals Market for Packaging Bags, 2018 - 2025
- Pharmaceuticals
- Market Scope
- Table - Industry Codes Related to Pharmaceuticals
- Market Outlook
- Table - Pharmaceuticals Market for Packaging Bags, 2011, 2016, 2021, & 2026
- Table - Annual Pharmaceuticals Market for Packaging Bags, 2018 - 2025
- Medical Products
- Market Scope
- Table - Industry Codes Related to Medical Products
- Market Outlook
- Table - Medical Products Market for Packaging Bags by Material, 2011, 2016, 2021, & 2026
- Table - Annual Medical Products Market for Packaging Bags by Material, 2018 - 2025
- Other Nonfood Markets
- Market Scope
- Market Outlook
- Table - Other Nonfood Markets for Packaging Bags by Material, 2011, 2016, 2021, & 2026
- Table - Annual Other Nonfood Markets for Packaging Bags by Material, 2018 - 2025
8. Key Suppliers & Market Share
- Industry Composition
- Market Share
- Figure 7-1. Packaging Bags Market Share by Company, 2021
- Mergers & Acquisitions
- Table - Selected Mergers & Acquisitions
9. Appendix
- Scope
- Table - Relevant Industry Codes
- Definitions
- Methodology
- Study-Specific Methodology
- Sources
- Associations & Agencies
- Related Studies & Reports
- Macroeconomic Assumptions
- Economic Environment
- Table - Macroeconomic Indicators, 2011, 2016, 2021, & 2026
- Demographic Trends
- Table - Population & Households, 2011, 2016, 2021, & 2026
- Food & Beverage Industry Outlook
- Table - Food & Beverage Manufacturing, 2011, 2016, 2021, & 2026
