Paper Bags Packaging Market Growth Outlook with Key Regional Insights 2032

According to Fortune Business Insights, The global paper bags packaging market was valued at USD 7.26 billion in 2024 and is projected to grow to USD 11.30 billion by 2032, registering a CAGR of 5.69% during the forecast period. In 2023, the market size stood at USD 6.91 billion, with Asia Pacific dominating the global share at 31.68% in 2024.

A paper bag is an essential packaging solution made from recycled paper. The rising adoption of biodegradable flat-bottom paper bags packaging across various end-use industries drives market growth.  

Smurfit Kappa and International Paper Company are leading manufacturers, accounting for the largest paper bag packaging market growth.

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Competitive Landscape

The market features a mix of global and regional players. Major companies include Smurfit Kappa Group, International Paper Company, Huhtamaki Oyj, Mondi Group, Rengo Co. Ltd., and Oji Holdings Corporation.
Notably, Mondi Group announced a USD 431 million investment in a new kraft paper machine in the Czech Republic as part of its USD 1.08 billion expansion strategy to strengthen its sustainable packaging portfolio.

Key Growth Drivers

The market growth is primarily driven by:

• E-commerce expansion: Rising online shopping volumes are increasing the demand for sustainable and durable packaging options such as paper bags for shipping and branding.

• Sustainability initiatives: Growing environmental awareness and government policies encouraging recyclable, biodegradable packaging are accelerating adoption across retail, food, and industrial sectors.

Market Segmentation Insights

By Material

• Brown Kraft paper holds the largest share (around 65.84% in 2024), owing to its strength, eco-friendliness, and cost efficiency.

• White Kraft paper is gaining traction due to its premium appearance and suitability for high-quality printing.

By Type

• Sewn open mouth bags lead the market with nearly 40% share in 2025, favored for their durability and resistance during transportation.

• Self-opening sacks are expected to record the fastest growth (CAGR of around 6.55%), driven by their versatility, printability, and rising use in e-commerce.

By End Use

• Food & Beverages dominate the segment, holding about 53% share in 2025. Paper bags are ideal for bakery, grocery, and fresh produce packaging due to their breathability and reusability.

• E-commerce is another fast-growing segment, projected to expand at a CAGR of 6.26%, supported by online retail and sustainable packaging trends.

Regional Insights

• Asia Pacific: The leading regional market, valued at approximately USD 2.44 billion in 2024, driven by robust e-commerce activity and easy availability of raw materials in China and India.

• North America: Ranks second due to strong recycling initiatives and increasing bans on single-use plastics.

• Europe: Follows closely, supported by high recycling rates and strict sustainability regulations under the EU Packaging Waste Directive.

• Latin America & Middle East & Africa: Witness steady growth due to expanding retail and food service sectors.

Market Trends, Opportunities, and Challenges

Key Trends

• Rapid shift toward eco-friendly and recyclable packaging to replace plastics.

• Increasing demand for customized printed and branded paper bags for promotional and retail purposes.

• Technological advancements such as improved moisture-resistant and self-opening designs.

Opportunities

• Rising online retail activity offers potential for specialized e-commerce paper packaging solutions such as mailer bags and QR-enabled designs.

• Demand for premium paper packaging in gifting and fashion retail creates new product development opportunities.

Challenges

• Fluctuations in raw material prices like wood pulp and recycled paper.

• Supply chain constraints and strict environmental regulations on forest resource utilization.

Outlook for Emerging Markets

Emerging economies, particularly India, are witnessing robust growth due to government campaigns promoting sustainable alternatives to plastic. Initiatives such as eco-friendly paper bags made from agricultural waste like rice or wheat straw are gaining traction. Expanding retail networks and the rapid rise of e-commerce platforms are further boosting demand, although challenges such as raw material costs and limited recycling infrastructure persist.

The paper bags packaging market is set for steady growth, fueled by sustainability trends, consumer awareness, and expanding e-commerce. With an expected CAGR of 5.7% through 2032 and a projected market value exceeding USD 11 billion, the industry offers promising opportunities for innovation. Companies focusing on eco-friendly materials, efficient production, and advanced packaging designs will be best positioned to capture growth in this evolving market.

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KEY INDUSTRY DEVELOPMENTS:

• June 2024- Mondi collaborated with Cemex and introduced its ground-breaking SolmixBag to the building industry in the Mallorca, Balearic Islands of Ibiza, and Menorca. The SolmixBag is a one-ply paper bag made from 100% kraft paper, designed to easily store and transports products such as screed, dry cement, and coarse pre-mixes.

• April 2023- ProAmpac, a leader in flexible packaging and material science, launched its patent-pending PRO-EVO Recyclable platform. This addition to the ProActive Recyclable series of products, PRO-EVO Recyclable, is an efficient multiwall paper-based self-opening-sack (SOS) bag, certified for curbside recycling, ideal for dry pet food.

Trending FAQs (One Line Each)

1. What was the global paper bags packaging market worth in 2023?
   USD 6.91 billion.

2. What is the expected CAGR of the paper bags packaging market from 2024 to 2032?
   5.69%.

3. Which type segment dominates the paper bags packaging market?
   Sewn open mouth type bags.

4. What was the value of the Asia Pacific market in 2023?
   Approximately USD 2.30 billion.

5. What are the key drivers of the paper bags packaging market?
   Rising e-commerce growth and global sustainability initiatives.