Retail Bags Market Report 2026

The retail bags market size has grown strongly in recent years. It will grow from $19.12 billion in 2025 to $20.4 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to rising retail and grocery sales, demand for single-use plastic alternatives, growth in supermarket chains, increased consumer awareness about packaging, expansion of e-commerce retail packaging.

The retail bags market size is expected to see strong growth in the next few years. It will grow to $26.45 billion in 2030 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to adoption of smart and connected packaging, rise in sustainable and reusable bag initiatives, integration of AI and automation in bag production, regulatory push for eco-friendly packaging, growth in premium and branded retail packaging. Major trends in the forecast period include eco-friendly and biodegradable bag adoption, customization and branding on retail bags, lightweight and durable material usage, increase in reusable bag programs, cost optimization in bag production.

The growth of e-commerce is expected to drive expansion in the retail bags market moving forward. E-commerce, which involves buying and selling goods and services over the Internet, has seen significant growth due to advancements in mobile technology, digital marketing, logistics, and supply chain management. Retail bags play a crucial role in e-commerce by facilitating the packaging and delivery process, thereby enhancing customer convenience. For example, in the first quarter of 2024, U.S. retail e-commerce sales reached approximately $289.2 billion, showing a 2.1% increase (±0.7%) from the previous quarter, according to data from the United States Census Bureau. Therefore, the rise of e-commerce is a key driver for the growth of the retail bags market.

Leading companies in the retail bags market are focusing on innovation, particularly in developing environmentally friendly products such as locally-made retail paper bags, to promote sustainability and improve product durability. Locally-made retail paper bags are crafted within specific geographic areas or communities, offering businesses an opportunity to align with sustainability goals and support local economies. For instance, Visy Industries, an Australia-based packaging and recycling company, introduced locally-made retail paper bags in February 2024. These bags are constructed from thicker paper material, ensuring enhanced strength and durability suitable for carrying heavier items without risk of tearing. They are fully recyclable through Australian curbside recycling programs, providing consumers with a convenient and eco-friendly disposal option.

In January 2023, Premier Paper Group, a UK-based leading supplier of paper, packaging, and materials, acquired WBC for an undisclosed sum. This acquisition enables Premier to expand its offerings by entering value-added and complementary markets. In turn, WBC will benefit from greater resources, logistical support, and expertise from Premier. WBC is a UK-based provider specializing in packaging and retail displays, including retail jute bags, cloth bags, and market bags.

Major companies operating in the retail bags market are Flexo Converters USA, International Paper, Smurfit Kappa Group plc, Mondi Group plc, Novolex Inc., Burberry Group plc, ProAmpac Intermediate Inc., Coveris SA, Antalis Group, Atlantic Packaging, Welton Bibby and Baron Limited, BioPak Pty Ltd., EI Dorado Packaging Inc., Global-Pak Inc., Rutan Poly Industries Inc., Atlantic Poly Inc., Attwoods Packaging, GreenPack Limited, Rainbow Packaging Inc., SPP Poly Pack Pvt Ltd., The Carry Bag Company, Kiwi Office, Europages UK.

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

The retail bags market consists of sales of shopping bags, gift bags, promotional bags, specialty bags, and eco-friendly 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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