GCC Paper Bags Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

GCC Paper Bags Market Trends and Insights

Sustainable-Packaging Regulations Spur Paper Adoption

Coordinated policy frameworks across the GCC are driving an irreversible migration away from plastic carry sacks toward cellulose-based alternatives. Dubai began its phased restrictions in January 2025 and will implement import, production, and trade bans on single-use plastics from January 2026. The UAE federal prohibition mirrors these timelines and is reinforced by an extended producer responsibility pilot that obligates brand owners to finance collection and sorting systems. Oman aligned with its own ban in July 2025.^{[1]Waheed Abbas, “UAE to ban single-use plastic products' import, production, trade from 2026,” Khaleej Times, khaleejtimes.com} Such harmonized measures provide converters with clear visibility into volume uptake, incentivize capital spending on additional kraft lines, and favor suppliers who can document food-contact and compostability certifications under the Saber platform in Saudi Arabia.

E-Commerce Parcel Growth Fuels Protective Paper Mailers

Online retail across the Gulf climbed from USD 8.5 billion in 2018 to USD 21.2 billion in 2023, a 20.2% CAGR, and penetration remains well below the global norm, signaling further upsid. Saudi Arabia accounted for USD 8.7 billion of the total, followed by the UAE at USD 7.5 billion. Large marketplaces such as Talabat, whose Dubai IPO in December 2024 raised USD 2 billion on a USD 10 billion valuation, process millions of orders that require dimensionally consistent mailers able to glide through automated sorters. As fulfillment centers strive to process 1,500 orders per minute, suppliers that deliver tight tolerances in gusset width, basis weight, and tear strength gain a competitive edge.

Vision 2030 Manufacturing Diversification Incentives

Saudi Arabia’s National Industrial Development Center is issuing soft-loan packages, land grants, and customs rebates for downstream packaging projects, as exemplified by its memorandum with Sidel to localize paper-packaging converting systems. Local Content and Government Procurement Authority rules, as well as the IKTVA scoring mechanism, require suppliers to achieve a 70% in-kingdom spend, thereby tilting large public tenders toward domestic mills. MEPCO’s approval of SAR 1.78 billion (USD 475 million) for the cardboard expansion and Waraq’s recycled-paper complex demonstrates the scale of capacity the state is bankrolling. These incentives will lift regional pulp and paper self-sufficiency over the long term and foster technology transfer partnerships.

Food-Delivery Boom Boosts Takeaway Paper Bags

Gulf consumers spent USD 10 billion on food delivery in 2023 and are expected to reach USD 14.9 billion by 2028, with grocery sub-segments growing at an 18.2% CAGR, triple the pace of meal delivery.^{[2]Pierrick Ribes, “Seven Graphs Illustrating the Growth of Saudi Arabia's Food Delivery Industry,” Entrepreneur, entrepreneur.com} Platforms such as Talabat control more than 70% of app-based transactions, enabling them to standardize bag specifications for tens of thousands of restaurants. The roll-out of autonomous sidewalk robots starting in February 2024 introduces engineering requirements for handle strength, grease barrier coatings, and thermal retention to ensure food integrity during unmanned transit. The high average revenue per user in Saudi Arabia, exceeding USD 600 per year, supports premium bag constructions with advanced print finishes.

Volatile Wood-Pulp Prices and Import Dependence

Bleached eucalyptus kraft pulp (BEKP) prices fluctuated between USD 150 and USD 590 per metric ton between July and September 2024, while northern bleached softwood prices remained at USD 740-760, creating a widening spread that squeezes converters’ margins. With negligible native forest resources, Gulf mills rely on long-haul imports from South America and North America, exposing them to fluctuations in freight costs and currency exchange rates. Adding desalinated water requirements increases operating costs in a region where 23.9% of freshwater comes from energy-intensive seawater plants. Although research into using date-palm fronds as pulp feedstock shows promise, commercialization remains years away.

Competition from Reusable PP and Cotton Tote Bags

Dubai’s resolution on single-use items obliges retailers to provide multi-use alternatives at affordable prices, making woven polypropylene and cotton totes attractive to consumers seeking durability.^{[3]Rony Eid, “United Arab Emirates: Regulations on single-use products – Environmental sustainability in Dubai,” Baker McKenzie Insight+, insightplus.bakermckenzie.com} The UAE extended restrictions in June 2024 to cover certain non-plastic disposables, creating uncertainty around one-trip paper bags that lack tear resistance after multiple uses. As levies on single-use carriers escalate, price-sensitive shoppers may gravitate toward purchasing a one-off tote. Luxury brands in malls also favor reusable fabric bags that deliver prolonged advertising exposure.

Segment Analysis

By Bag Type: Flat Bottom Configurations Sustain Volume Leadership

Flat-bottom bags accounted for 36.09% of the value in 2024, reflecting their stability on store shelves and efficient cubing inside cartons. This design remains a staple for fashion, grocery, and pharmacy outlets, anchoring the GCC paper bags market size at the retail checkout. Conversely, pasted open-mouth sacks record the quickest 8.91% CAGR, as grocery e-commerce and produce exporters favor their low-cost, high-throughput filling characteristics. Pasted valve and pinched bottom options serve powdered chemicals and construction adhesives where controlled discharge is vital, while sewn open mouth formats retain a niche in animal feed. The advent of automatic packers in Saudi mega-distribution hubs is pushing converters to achieve tighter depth tolerances and reinforced side seams, which in turn improves pallet stability and shortens line changeovers.

Demand for gusseted constructions is rising in the GCC paper bags market as brands seek billboard-like surfaces for promotional art during high-traffic shopping events such as Dubai Summer Surprises. Digital inkjet presses allow converters to offer SKU-level personalization without lengthy plate setups, supporting promotional cycles as short as four weeks. Saudi regulations governing fruit and vegetable packaging, issued in September 2025, impose recyclability and airflow performance requirements that are most easily met by paper substrates with micro-perforations. As B2C groceries scale same-day delivery, bottom-reinforced paper satchels that maintain shape despite moisture condensation gain favor among aggregators testing refrigerated lockers and robot couriers.

Note: Segment shares of all individual segments available upon report purchase

By Material Type: Brown Kraft Dominates but Recycled Content Gains Traction

Unbleached brown kraft captured 58.91% of revenue in 2024, underpinned by its cost efficiency, runnability, and eco-friendly appearance. The grade meets most tensile and burst requirements with minimal use of wet-strength resins, making it a suitable choice for food service and general retail. Regulatory nudges, however, are fueling a 10.47% CAGR for recycled brown kraft, as the UAE EPR pilot and Dubai’s waste-diversion fees reward high post-consumer fiber content. Bleached and white kraft grades continue to serve luxury boutiques and cosmetics, while coated kraft lines supply moisture-sensitive quick-service restaurant meals.

The GCC paper bags market share for recycled content is expected to expand as Arabian Kraft Paper Manufacturing ramps up its Umm Al-Quwain mill, offering virgin-to-100% recycled mixes that reduce lead times for local converters. Mills are also trialing enzyme-treated date-palm fiber blends to offset imported softwood, aligning with Vision 2030 stewardship goals. Brand owners are increasingly requesting chain-of-custody certification under the Forest Stewardship Council or Programme for the Endorsement of Forest Certification to comply with European customer audits, prompting suppliers to segment their warehouse inventories by certified and non-certified reels.

By Ply Thickness: Multi-Layer Options Balance Strength with Sustainability

Two-ply structures secured a 42.46% share in 2024, striking a balance between tensile strength and material cost for most carry bag applications. Three-ply designs address heavier grocery and take-away loads, whereas four-ply and above are expanding at 9.19% CAGR, primarily for courier satchels, electronics, and bulk foodstuffs in the GCC paper bags market. Single-ply sheets are often used for lightweight bakery items or promotional giveaways, where unit weight is a primary consideration.

Automation in fulfillment centers is driving the need for stiffer multi-wall sacks that can maintain a 90-degree opening angle for robotic grippers, thereby minimizing mispicks. In coastal climates, converters laminate inner plies with water-repellent dispersions to prevent wicking in humid conditions. The push for downgauging is evident as manufacturers experiment with higher-bulk fibers to retain stiffness at reduced grammage, enabling brand owners to meet carbon footprint targets without sacrificing performance.

Note: Segment shares of all individual segments available upon report purchase

By End User: E-Commerce and Food Service Transform Consumption Patterns

Traditional brick-and-mortar retail retained a 33.01% dominance in 2024, largely due to the prevalence of mall culture and extensive hypermarket footprints. However, the migration to online shopping is set to boost e-commerce packaging at a 10.26% CAGR, reshaping demand in the GCC paper bags market. Food service platforms champion grease-resistant kraft laminates capable of retaining heat and preventing leaks during 30-minute delivery cycles. Agriculture and animal feed maintain steady bulk consumption through open-mouth sacks, whereas cosmetics and personal care brands opt for laminated white kraft to signal premium positioning.

Retailers are integrating click-and-collect services, prompting the development of hybrid bag designs that double as online order totes and in-store carriers, thereby reducing the number of SKUs and warehouse overhead. Brands are piloting QR-coded graphics on bag sidewalls to drive post-purchase digital engagement and loyalty-program enrollment. Government-funded farmers’ markets in Saudi Arabia and the UAE require biodegradable carriers, widening addressable volumes among smallholder produce vendors.

Geography Analysis

Saudi Arabia’s 46.98% stake reflects its population scale, a 2025 non-oil GDP growth rate of 4.2%, and Vision 2030 incentives that aim to localize pulp, linerboard, and converting capacity. Riyadh and Jeddah logistics clusters anchor the largest fulfillment centers, funneling multi-wall bag orders to regional distributors. The Saber portal enforces SASO quality tests covering seam strength and ink migration, effectively curbing sub-standard imports and nurturing home-grown mills.

The United Arab Emirates, with a projected 8.51% CAGR to 2030, leverages Dubai’s logistics corridors, Jebel Ali port connectivity, and early-mover environmental regulations to attract brand owners targeting the wider region. EPR pilots and federal bans cement long-term visibility for fiber-based packaging, encouraging converters to add recycled kraft lines and automated paper-mailer machinery. Abu Dhabi’s industrial free zones offer 100% foreign ownership and 50-year tax holidays, persuading multinational groups to site regional distribution hubs that pull in demand for standardized paper carriers.

Qatar benefits from infrastructure built for global sporting events and free-zone incentives that simplify the clearance of raw materials, although its market size remains modest relative to its neighbors. Oman typifies regulatory catch-up through bans effective as of July 2025, which stimulate localized folding-bag production. Bahrain’s government-supported expansion of United Paper Industries underscores the role of public funding in diversification and job creation.