Paper bags market to grow: Challenge or Opportunity?

The paper bag market has increased quickly

According to the report, recent changes in the world's paper packaging landscape have primarily influenced the 4% year-over-year growth of the paper bag market in 2019.

According to the report, increasing focus on environment-friendly and cost-effective packaging formats is contributing to the growth of the paper bags market through 2029.

Consumer preference for sustainable packaging, which is easy to handle and has good strength, will continue to provide a fillip to the sales of paper bags in 2019 and beyond.

>>> 7 Most popular types of paper bag for various purposes
The study found that bags manufactured from kraft paper play a vital role in modern lifestyles. In contrast, consumer preference for paper bags is increasing, owing to their benefits, such as cost efficiency, easy usage, and eco-friendly packaging.

The report states that an increasing number of supermarkets and retail shops would bolster the sales of paper bags across the world. In 2018, the pinched-bottom open-mouth paper bag witnessed maximum sales of 900,000 metric tonnes.

"The demand for these paper bags is estimated to shoot up by the end of 2029, as they are great for reducing infestation and act as good moisture barriers. The user-friendly formats and sizes are propelling exponential demand for paper bags among end users," the report stated. Paper bags have further garnered traction as sustainable packaging solutions that ensure biodegradability and ease of disposal.

>>> 10 Different types of paper bags and handles
 

Consumer preference for kraft paper bags

With increasing awareness, end users are experiencing more demand for paper bags. According to a 2017–2018 survey by the European Commission:

• 70% of consumers voted to ban single-use and non-decomposable bags in the supermarket.
• Almost 79% of consumers opt for paper bags.
• Up to 80% of consumers prefer biodegradable grocery bags.

Hence, the key players are adopting recent technologies, which help boost the quality and strength of paper bags as per the requirements of consumers.

The study has concluded that brown kraft paper bags dominate the other paper bags, owing to their lower bleach content. The brown kraft paper bags are manufactured from natural paper, which helps avoid contamination due to bleaching chemicals.

According to the study, growth opportunities for the paper bag market players are picking pace in the Asia Pacific, owing to the growth of the industrial ecosystems in regions such as food and beverages, pharmaceuticals, and others.

Paper bags are considered good food contact material. Since paper bags are made up of natural material, no toxins are released when food articles are packed. The study states that the APEJ paper bag market offers lucrative opportunities for manufacturers, as it is home to some of the world's fastest-growing industries.

Deforestation could stunt paper bag market growth

Although paper bags are more environmentally friendly than plastic, many questions have been raised regarding the justification for using disposable paper bags.

Many people use paper bags at least twice before throwing them away. According to experts, cutting down millions of trees in exchange for a few minutes of paper bag usage amounts to reckless use of available resources. As per estimates, nearly 14 million trees are cut down in the US to cater to the demand for almost 10 billion paper bags.
 
Slogans such as "Trees have more important purposes than being used as paper bags" have been raised. Also, in the US, nearly 80% of paper bags end up in landfills, which do not degrade for decades. In addition, the recycling process for paper bags is not a cakewalk. To some extent, these factors could deter the market's growth, the study states.

The size of the population base, an affluent and growing middle class, rapid urbanization, and growing penetration of the Internet and online retail services have driven the retail sector in India. The region has witnessed increasing penetration of modern retail formats, which is expected to boost the APEJ paper bag market significantly. >>> 7 Surprising facts about paper bags that are actually true
 
The study also found that, due to the increasing consumption of paper bags in Asia Pacific, key players from other regions started investing in this market. In 2018, a Canada-based paper manufacturer, Catalyst Paper, invested in Indian paper bags and the kraft market with the partnership of OTCL Delhi.

The report's business intelligence also underlines groundbreaking insights into the competitive scenario of the paper bags market, along with highlights of the manufacturers' differential strategies. Key players in the paper bag market will continue to draw upon the global sustainability drive by including 'green' offerings in their existing portfolios, which is likely to help them enhance customer confidence.

With increasing awareness among people and the Government of India's proposed ban on single-use plastic, several manufacturing companies have started using paper packaging, replacing plastic and other similar materials. Here, Ismail Sutaria, senior market research consultant at FMI for the packaging and materials domain, lists the top 10 brands that have adopted paper bags in India and the 10 top manufacturers in the country.