North America Retail Bags Market Size

North America Retail Bags Market Analysis

The North American retail bags market is expected to record a CAGR of 5.57% over the forecast period (2022-2027). The rapidly increasing number of supermarkets, shopping malls, and developed retail sectors has been significantly feeding the global demand for retail bags. The retail bags market is increasing exponentially due to grown retail industries linked with the growing choice for eco-friendly packaging among customers.

• Increasing bans and regulations for plastic material usage in retail bags have incrementally pushed paper material usage, which is expected to drive the retail bag market during the forecast period. Also, increasing bio-based plastic use and recycling is expected to play an essential role in the plastic material segment in the retail bag market.
• As of 2020, nine U.S. states have restrictions or bans on plastic bag use, and 13 states have local ordinances about bag use (Sea Grant Law Center 2020). Recently, Ohio has been in the process of eliminating the local plastic bag ban for Cuyahoga County, which the Governor has currently paused because of the pandemic. The establishment of preemption laws in Ohio is contrary to what has been shown by several studies in Ohio ( Hardy and Bartolotta, 2021). The study reflects that most of the respondents favor the plastic bag ban. This will increase the retail bag industry as a more environmentally friendly option and drive the sector in the near future.
• As per the FDEP 2021 report on retail bags, in the 2021 Legislative Session, Section 403.7033, F.S. was amended to require DEP to review and update the 2010 Retail Bags Report and submit this report to Legislature by December 31, 2021. The Statute directed the report to include an analysis of the need for new or different regulations of wrappings and auxiliary containers. The new report is expected to suggest the use of an alternative method of carrying products from the perspective of benefits of using retail bags being more environmentally friendly, and the use of retail bags will increase, which will further drive the market.
• The covid pandemic has offset the driving factors for reusable bags and has caused a setback in the ban on single-use plastics. With early 2021 concerned about the risks of infection spread, the allied consumers of retail goods went back to throwaway packaging.
• Due to the pandemic in the North American region, many states in the United States and Canada implemented bag ban preemption laws (Sea Grant Law Center 2020), preventing local governments from enforcing plastic bag bans or bans on other single-use plastic items such as Styrofoam or carryout containers. For instance, recently, Ohio has been in the process of eliminating the local plastic bag ban for Cuyahoga County, which the Governor has currently paused because of the pandemic.