Retail Bags Market

Global Retail Bags Market Overview

Retail Bags Market Size valued at USD 15.2 Billion in 2023. The Retail Bags industry is projected to grow from USD 16.08 Billion in 2024 to USD 25.24 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.80% during the forecast period (2024 - 2032). Increased awareness and adoption of sustainable and eco-friendly packaging solutions and a rise in e-commerce and online shopping are the key market drivers enhancing the growth of market.

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Retail Bags Market Trends

Growing awareness and the adoption of sustainable and eco-friendly packaging solution

Market CAGR for retail bags is being driven by the rising awareness and adoption of sustainable and eco-friendly packaging solutions. The growing concern about environmental issues, like plastic pollution and climate change, has led consumers and businesses to prioritize eco-friendly practices. Many consumers now actively seek products and brands that demonstrate a commitment to sustainability. Governments and regulatory bodies globally are imposing stricter regulations on single-use plastics and encouraging the use of environmentally friendly packaging materials.

Additionally, the preferences of consumers are shifting towards eco-friendly and reusable packaging solutions. Many shoppers prefer to patronize businesses that offer reusable bags or use materials like recycled paper, Paper Straw, cloth or biodegradable plastics for Retail Bags. The retailers recognize the importance of their brand image and reputation. Using sustainable Retail Bags not only aligns with corporate social responsibility but also enhances a brand’s image as environmentally conscious and socially responsible. Further, the businesses that adopt sustainable Retail Bags can attain a competitive edge in market. Sustainability practices can attract new customers, retain existing ones, and differentiate a brand from its competitors. While sustainable materials may have higher upfront costs, they often provide long-term cost savings. Reusable Retail Bags, for example, can reduce the need for frequent bag replenishment, ultimately benefiting a retailer’s bottom line.

Offering reusable and eco-friendly Retail Bags can foster customer loyalty. Shoppers who appreciate a retailer’s commitment to sustainability are more likely to return for further purchases. Environmental organizations and campaigns raise awareness about the detrimental impact of single-use plastics. Such efforts influence consumer behavior and encourage the use of reusable bags. Many businesses have set sustainability targets and initiatives as part of their corporate responsibility strategies. Adopting eco-friendly Retail Bags aligns with these goals and demonstrates a commitment to sustainability. The advancements in materials science have led to the development of innovative, sustainable materials for Retail Bags, including recycled paper. Organic fabrics and biodegradable plastics.

For instance, international agreements and initiatives, such as the United Nations Sustainable Development Goals, focuses on the importance of reducing plastic waste and promoting sustainability. Retailers may align their practices with these commitments. Thus driving the Retail Bags market revenue.

Retail Bags Market Segment Insights

Retail Bags Material Type Insights

The Retail Bags market segmentation, based on material type, includes Plastic, Paper and Others. The plastic segment dominates the market, accounting for the largest market revenue, as plastic bags have been widely used in various retail sectors for several decades, mainly due to their durability, cost-effectiveness, versatility and ease of production. The plastic bags are lightweight, transparent and can be easily customized and recycled. Further, paper bags are expected to witness significant growth due to the emphasis on sustainability and government regulations.

Retail Bags End User Insights

The Retail Bags market segmentation, based on end users, includes Grocery Stores, Food Service and Others. The grocery stores category dominates the market, as the grocery stores generate a consistently high volume of bag usage on a daily basis due to the large number of customers they serve. These stores require a range of bag sizes to accommodate different types of items, and most of the grocery stores provide single-use plastic bags to customers. However, due to environmental concerns, there is a shift toward more sustainable options like paper bags, reusable cloth bags and biodegradable plastics. Further, the growth of online grocery shopping and delivery services has increased the demand for Retail Bags. On the other hand, the food service segment is expected to experience sustainable growth throughout the forecast period.

Figure 1: Retail Bags Market by End User, 2022 & 2032 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Retail Bags Regional Insights

By region, the study gives market insights into the North America, Europe, Asia-Pacific and the Rest of the World. The North American Retail Bags market area dominates the market of Retail Bags as it boasts a thriving retail sector with a multitude of grocery stores, supermarkets, department stores and food service establishments. The region has implemented restrictions and a ban on single-use plastic bags, promoting the adoption of eco-friendly alternatives. Also, the region’s retailers often view Retail Bags as an extension of their branding and marketing efforts.

Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.

Figure 2: RETAIL BAGS MARKET SHARE BY REGION 2022 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Retail Bags market accounts for the second-largest market share due to the shift towards sustainable packaging, growth in e-commerce and use of Retail Bags as a means of branding and marketing. Further, the German Retail Bags market held the largest market share, and the UK Retail Bags market was the rapid-growing market in the European region.

The Asia-Pacific Retail Bags Market is anticipated to grow at a rapid CAGR from 2023 to 2032. This is because of the rapid expansion of e-commerce in the region, ongoing urbanization in several countries of this region and the shift towards sustainable packaging solutions. Moreover, China’s Retail Bags market held the largest market share, and the Indian Retail Bags market was the fastest-growing market in Asia-Pacific region.

Retail Bags Key Market Players & Competitive Insights

Leading market players are investing hugely in research and development in order to expand their product lines, which will help the Retail Bags market grow even more. Market players are also undertaking a variety of strategic activities to spread their footprint, with important market developments including higher investments, new product launches, contractual agreements, mergers and acquisitions, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, the Retail Bags industry must offer cost-effective items.

Manufacturing locally to reduce the operational costs is one of the key business tactics used by the manufacturers in the Retail Bags industry to benefit clients and grow the market sector. In recent years, the Retail Bags industry has offered some of the most significant advantages to several commercial industries. Major players in the Retail Bags market, including Smurfit Kappa Group PLC, BioPak Pty Ltd, El Dorado Packaging Inc., Mondi Group PLC, International Paper Company, Global-Pak Inc., Attwoods Packaging Company, The Carry Bag Company, GreenPack Limited, Welton Bibby and Baron Limited, and others, are trying to increase market demand by investing in the research and development operations.

CCL Industries, founded in 1951 and headquartered in Toronto, Ontario, Canada, is a multinational company that specializes in the production of labels, packaging and various other innovative solutions for businesses across different industries. The CCL Container specializes in the manufacturing of specialty aluminum aerosol cans and bottles. Their products are used in the personal care, pharmaceutical and industrial sectors. In August 2022, CCL Industries Inc, a leader in specialty packaging labels, announced a partnership with Avery Dennison Corporation, a leader in labeling and packaging materials, to develop and commercialize smart Retail Bags that can track product movement and provide other valuable insights to retailers. This partnership will enable CCL Industries to offer its customers more innovative retail bag solutions.

Smurfit Kappa Group plc, commonly referred to as Smurfit Kappa, is a multinational packaging company headquartered in Dublin, Ireland. The company operates in the packaging and paper industry, specializing in corrugated packaging, containerboard and other paper-based products. It serves customers across a wide range of industries, including the food and beverage, consumer goods, industrial and e-commerce. In November 2022, Smurfit Kappa Group plc, a leading provider of paper-based packaging solutions, acquired Recycled Paper Products, Inc., a leading manufacturer of recycled paper bags, for $1.4 billion. This acquisition gives Smurfit Kappa a stronger position in the sustainable Retail Bags market.

Key Companies in the Retail Bags market include

• Smurfit Kappa Group PLC
• BioPak Pty Ltd
• Mondi Group PLC
• El Dorado Packaging Inc.
• International Paper Company
• Attwoods Packaging Company
• Global-Pak Inc.
• The Carry Bag Company
• Welton Bibby and Baron Limited
• GreenPack Limited

Retail Bags Industry Developments

October 2022: Mondi plc, a leader in packaging and paper, acquired Advanced Packaging Solutions (APS), a leading manufacturer of customized Retail Bags, for $225 million. This acquisition gives Mondi a broader portfolio of Retail Bags and expands its customer base.

September 2022: Huhtamaki Oyj, a leader in ipn food packaging, announced a partnership with BIO-On S.p.A., a leading manufacturer of bioplastics, to develop and commercialize sustainable Retail Bags made from bio-based materials. This partnership will enable Huhtamaki to offer its customers more sustainable Retail bag options.

August 2021: CCL Industries Inc., a leader in specialty packaging labels, announced a partnership with Avery Dennison Corporation, a leader in labeling and packaging materials, to develop and commercialize smart Retail Bags that can track product movement and provide other valuable insights to retailers. This partnership will enable CCL Industries to offer its customers more innovative bag solutions.

Retail Bags Market Segmentation Insights

Retail Bags Material Type Outlook

• Plastic
• Paper
• Others

Retail Bags End User Outlook

• Grocery Stores
• Food Service
• Others

Retail Bags Regional Outlook

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Australia
  • Rest of Asia-Pacific
• Rest of the World
  • Middle East
  • Africa
  • Latin America

Retail Bags Market Segmentation

Retail Bags Material Type Outlook (USD Billion, 2018-2032)

• Plastic
• Paper
• Others

Retail Bags End User Outlook (USD Billion, 2018-2032)

• Grocery Stores
• Plastic Service
• Others

Retail Bags Regional Outlook (USD Billion, 2018-2032)

• North America Outlook (USD Billion, 2018-2032)
  • North America Retail Bags by Material Type
    • Plastic
    • Paper
    • Others
  • North America Retail Bags by End User
    • Grocery Stores
    • Plastic Service
    • Others
  • US Outlook (USD Billion, 2018-2032)
  • US Retail Bags by Material Type
    • Plastic
    • Paper
    • Other
  • US Retail Bags by End User
    • Grocery Stores
    • Plastic Service
    • Others
  • CANADA Outlook (USD Billion, 2018-2032)
  • CANADA Retail Bags by Material Type
    • Plastic
    • Paper
    • Other
  • CANADA Retail Bags by End User
    • Grocery Stores
    • Plastic Service
    • Others
  • Europe Outlook (USD Billion, 2018-2032)
    • Europe Retail Bags by Material Type
      • Plastic
      • Paper
      • Other
    • Europe Retail Bags by End User
      • Grocery Stores
      • Plastic Service
      • Others
    • Germany Outlook (USD Billion, 2018-2032)
    • Germany Retail Bags by Material Type
      • Plastic
      • Paper
      • Other
    • Germany Retail Bags by End User
      • Grocery Stores
      • Plastic Service
      • Others
    • France Outlook (USD Billion, 2018-2032)
    • France Retail Bags by Material Type
      • Plastic
      • Paper
      • Other
    • France Retail Bags by End User
      • Grocery Stores
      • Plastic Service
      • Others
    • UK Outlook (USD Billion, 2018-2032)
    • UK Retail Bags by Material Type
      • Plastic
      • Paper
      • Other
    • UK Retail Bags by End User
      • Grocery Stores
      • Plastic Service
      • Others
    • ITALY Outlook (USD Billion, 2018-2032)
    • ITALY Retail Bags by Material Type
      • Plastic
      • Paper
      • Other
    • ITALY Retail Bags by End User
      • Grocery Stores
      • Plastic Service
      • Others
    • SPAIN Outlook (USD Billion, 2018-2032)
    • Spain Retail Bags by Material Type
      • Plastic
      • Paper
      • Other
    • Spain Retail Bags by End User
      • Grocery Stores
      • Plastic Service
      • Others
    • Rest Of Europe Outlook (USD Billion, 2018-2032)
    • Rest Of Europe Retail Bags by Material Type
      • Plastic
      • Paper
      • Other
    • REST OF EUROPE Retail Bags by End User
      • Grocery Stores
      • Plastic Service
      • Others
    • Asia-Pacific Outlook (USD Billion, 2018-2032)
      • Asia-Pacific Retail Bags by Material Type
        • Plastic
        • Paper
        • Other
      • Asia-Pacific Retail Bags by End User
        • Grocery Stores
        • Plastic Service
        • Others
      • China Outlook (USD Billion, 2018-2032)
      • China Retail Bags by Material Type
        • Plastic
        • Paper
        • Other
      • China Retail Bags by End User
        • Grocery Stores
        • Plastic Service
        • Others
      • Japan Outlook (USD Billion, 2018-2032)
      • Japan Retail Bags by Material Type
        • Plastic
        • Paper
        • Other
      • Japan Retail Bags by End User
        • Grocery Stores
        • Plastic Service
        • Others
      • India Outlook (USD Billion, 2018-2032)
      • India Retail Bags by Material Type
        • Plastic
        • Paper
        • Other
      • India Retail Bags by End User
        • Grocery Stores
        • Plastic Service
        • Others
      • Australia Outlook (USD Billion, 2018-2032)
      • Australia Retail Bags by Material Type
        • Plastic
        • Paper
        • Other
      • Australia Retail Bags by End User
        • Grocery Stores
        • Plastic Service
        • Others
      • Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)
      • Rest of Asia-Pacific Retail Bags by Material Type
        • Plastic
        • Paper
        • Other
      • Rest of Asia-Pacific Retail Bags by End User
        • Grocery Stores
        • Plastic Service
        • Others
      • Rest of the World Outlook (USD Billion, 2018-2032)
        • Rest of the World Retail Bags by Material Type
          • Plastic
          • Paper
          • Other
        • Rest of the World Retail Bags by End User
          • Grocery Stores
          • Plastic Service
          • Others
        • Middle East Outlook (USD Billion, 2018-2032)
        • Middle East Retail Bags by Material Type
          • Plastic
          • Paper
          • Other
        • Middle East Retail Bags by End User
          • Grocery Stores
          • Plastic Service
          • Others
        • Africa Outlook (USD Billion, 2018-2032)
        • Africa Retail Bags by Material Type
          • Plastic
          • Paper
          • Other
        • Africa Retail Bags by End User
          • Grocery Stores
          • Plastic Service
          • Others
        • Latin America Outlook (USD Billion, 2018-2032)
        • Latin America Retail Bags by Material Type
          • Plastic
          • Paper
          • Other
        • Latin America Retail Bags by End User
          • Grocery Stores
          • Plastic Service
          • Others