Paper Bag Market Report 2026

The paper bag market size has grown strongly in recent years. It will grow from $6.43 billion in 2025 to $6.84 billion in 2026 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to shift away from plastic packaging, rising environmental awareness among consumers, expansion of retail and grocery sectors, availability of kraft paper materials, growth of food takeaway services.

The paper bag market size is expected to see strong growth in the next few years. It will grow to $8.86 billion in 2030 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to increasing implementation of plastic ban regulations, rising demand for sustainable retail packaging, expansion of e-commerce packaging needs, growing investments in recyclable packaging materials, innovation in paper bag durability. Major trends in the forecast period include increasing adoption of eco-friendly packaging solutions, rising demand for reusable paper bags, growing use of custom printed paper bags, expansion of automated paper bag manufacturing, enhanced focus on strength and load-bearing capacity.

The rapid expansion of online food delivery services is expected to drive the growth of the paper bag market in the coming years. Online food delivery services refer to digital, third-party platforms that facilitate the ordering and delivery of authorized food products. Paper bags serve as a versatile and environmentally friendly packaging solution for these services, offering advantages such as effective branding opportunities, moisture resistance, heat retention, and a sustainable alternative to plastic bags and other packaging materials. For example, in January 2024, according to the Food Standards Agency (FSA), a UK-based government body, during 2022/23 the FSA collaborated with Deliveroo, Just Eat, and Uber Eats on the development of a proposed Food Safety Charter. This initiative outlined aggregator commitments to food safety and their plans to work with the FSA to improve food safety standards. During the same period, agreed milestones were achieved, including the creation of both a high-level framework and a detailed policy proposal for the Food Hygiene Delivery Model (FHDM). Therefore, the growing adoption of online food delivery services is driving demand for paper bags.

Major companies operating in the paper bag market are increasingly focused on developing advanced recyclable and biodegradable paper-based packaging solutions to strengthen their competitive positioning and meet rising sustainability expectations. Recyclable and biodegradable paper-based packaging solutions are products primarily made from paper that can naturally decompose and be reprocessed into new materials after use, thereby reducing environmental impact. For instance, in August 2025, Zeal X, a China-based paper bag manufacturer, introduced its FSC-certified Kraft Paper Bag, a fully recyclable, biodegradable, and plastic-free packaging solution designed for retail, apparel, footwear, and courier applications. The bag is produced using premium kraft paper sourced from sustainably managed forests, offers high tear resistance and strong load-bearing capacity, and supports full customization in size, printing, and handle options to address diverse branding requirements. This launch highlights the accelerating shift toward sustainable, high-performance paper packaging within the paper bag industry.

In October 2023, Rawlings & Son Ltd., a UK-based supplier of glass packaging and drink-processing containers, acquired Paper Bag Co. for an undisclosed amount. Through this acquisition, Rawlings aimed to expand its product portfolio to include sustainable, bespoke, and wholesale paper bags, diversifying its offerings beyond glass packaging and strengthening its presence in the eco-friendly retail packaging segment. Paper Bag Co. is a UK-based manufacturer that produces a wide range of paper bags, including luxury laminated and unlaminated bags, kraft paper bags, twisted-handle and flat-handle carrier bags, catering bags, and custom-printed paper bags for retail customers.

Major companies operating in the paper bag market are International Paper Company, WestRock Company, Smurfit Kappa Group plc, Oji Holdings Corporation, Mondi plc, Visy Industries Pty Ltd, Novolex Holdings LLC, Ronpak Inc., Paperbag Limited, Bagcraft Packaging LLC, Burgass Carrier Bags Ltd., Gilchrist Bag Manufacturing LLC, American Paper Bag LLC, Paperera de Girona SA, Sonoco Products Company, Genpak LLC, Champion Packaging & Distribution Inc., Packaging Pro Inc., International Converter Inc., Global-Pak Inc., CEE Schisler Packaging Solutions LLC, Ampac Holdings LLC, Emerald Packaging Inc.

North America was the largest region in the paper bags market in 2025. Asia-pacific is expected to be the fastest-growing region in the global paper bag market report during the forecast period. The regions covered in the paper bag market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the paper bag market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The paper bag market consists of sales of merchandise bags, euro tote, bakery bags, party bags, mailing bags, plain bags, printed bags, multi-wall bags, and laminated bags. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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