GCC Paper Bags Market Market Size

GCC Paper Bags Market Analysis

The GCC Paper Bags market was valued at USD 371.08 million in the previous year and is anticipated to attain a CAGR of 8.16% to reach USD 588.08 million in the next five years. The market size reflects the value of the consumption of paper bags across the end-user industries. End-user verticals included in the study are retail, food that provides for quick service restaurants (QSRs), etc. Paper bags help reduce the overall weight of the final product.

• This kraft paper bag is a sustainable alternative to plastic bags and a clean, safe option for food packaging. Its features include runnability and printability in both flexo and offset printing. The demand for paper bags is expected to increase due to the ban on single-use plastic in the region. Additionally, in June 2022, Abu Dhabi introduced a ban on single-use plastic bags in the Middle East. Alternatives to shoppers include paper bags and thicker traditional-look plastic bags, which are used between four and ten times and can be recycled. Some outlets, such as Spinneys and Carrefour, have removed thicker traditional-type reusable plastic bags altogether. Such initiatives are expected to drive the demand for paper bags.
• The region is witnessing demand for paper packaging, with various countries banning single-use plastics. For instance, in November 2022, Qatar Municipality Ministry organized an introductory meeting on regulations of plastic bag utilization. The Ministry of Municipality, represented by the Health Control Sections at all the municipalities across the country, enforced the ministerial decision No. 143 for 2022 regarding the regulations of using plastic companies, shopping centers, and malls from using single-use plastic bags and using biodegradable and environment-friendly bags instead. Further, in January 2023, the United Arab Emirates announced a ban on single-use plastic shopping bags to take effect next year, the latest initiative to reduce pollution in the oil-rich nation. Such initiatives are driving the demand for paper bags across the region.
• The future of e-commerce relies heavily on an internet-savvy, digitally savvy audience. Over half of the GCC population is under 25, making it a logical target for digital sellers. Internet penetration in this region is among the highest in the world. The real powerhouses here are the United Arab Emirates, Qatar, Kuwait, and Bahrain, with nearly 100% internet penetration. This means a large audience base that is primarily digitally engaged.
• Additionally, e-commerce growth in the GCC from 2019 to 2022 is 33%, and even higher for the region's largest market, such as 39% in Saudi Arabia and 38% in UAE. This is nearly double the global rate of 17%, according to Dubai Commerce City's report MEASA E-Commerce Landscape.
• However, strict forest laws against deforestation are restraining market growth and owes to the low availability of cellulose fibers. To begin with, approximately half of the world's woods have vanished. Every year, another 13 million hectares are lost (though afforestation replaces eight), and the World Resources Institute (WRI) estimates that just around 22% of the world's old-growth forests are still intact.
• The COVID-19 pandemic disrupted the supply of raw materials in various countries, affecting prices. A rise in the paper price owing to short supply and import restrictions drives the cost of paper bags and other packaging materials, boosting concerns among industrialists. Further, the markets post-COVID-19 have become better positioned to mitigate similar risks and are working towards meeting the demand with new preferences covered.