Market Size of Retail Bags Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.20 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Retail Bags Market Analysis
The retail bags market is expected to record a CAGR of 5.2% over the forecast period (2022-2027). The rapidly increasing number of shopping malls, supermarkets, 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.
- The growing regulations and bans for plastic material usage in retail bags have incrementally pushed paper material usage, and this is expected to proliferate the retail bag market during the forecast period. Also, increasing recycling and bio-based plastic usage is expected to play a pivotal role in the plastic material segment in the retail bag market that would replace the use of virgin plastic.
- Moreover, with the increasing demand for packaging across the end-user industries, the packaging waste generated is also rising. According to the United States Environmental Protection Agency (EPA,) packaging contributes to almost 77.9 metric tons of municipal solid waste per year. Almost 30% of the total amount of waste and packaging represents a staggering 65% of all household trash.
- On the other hand, the Japanese government launched a proposal in 2018 to reduce plastic waste by 25% until 2030. Also, a mandatory fee for plastic shopping bags was levied by July 2020. Similar laws have already been implemented in 66% of countries globally.
- Supermarkets in developed nations are regarded as heavy plastic use areas, with consumers opting for single-use retail bags. A curb on these segments with respect to plastic carry bag use has been witnessed, thus driving the market.
- However, the onset of coronavirus has set back the ban of single-use plastics. With early 2020 concerned about the risks of infection spread, the allied consumers of retail goods went back to throwaway packaging.
- Simultaneously, driven by consumer behavior, the bans on disposable items got delayed in the United Kingdom and the United States. For instance, California and Oregon lifted plastic bag bans, Maine delayed its own ban, and other multiple US cities and grocery chains banned reusable bags. These setbacks have caused an abrupt change after the long trend of governments banning or taxing the use of plastic bags. This has slightly given an edge for the development of paper-based retail bags.
