United States (USA) Paper Bag Market Overview, 2029

The United States paper bag market has experienced notable growth over the past decade, spurred by increasing environmental awareness, evolving regulatory frameworks, and shifting consumer preferences. Historically, the US packaging industry was dominated by plastic due to its cost-efficiency, durability, and ease of production. However, growing concerns over plastic waste and its detrimental environmental impacts have led to a significant shift towards more sustainable alternatives, such as paper bags. The regulatory landscape in the US has been pivotal in accelerating this transition. Several states, including California, New York, and Washington, have implemented stringent bans or levies on plastic bags, pushing both consumers and businesses to adopt eco-friendly packaging solutions. For instance, California's statewide ban on single-use plastic bags, implemented in 2016, set a precedent for other states to follow. Local governments across the country have further promoted sustainability by introducing recycling mandates and sustainability initiatives, incentivizing the use of recyclable paper bags. Moreover, the rising demand for biodegradable and compostable materials aligns with broader national objectives aimed at reducing the environmental footprint of the packaging industry. This evolving regulatory environment, coupled with increasing consumer awareness and demand for sustainable products, has cemented the importance of paper bags within the US packaging sector. Today, paper bags are widely used across industries, including retail, food service, and e-commerce, reflecting their versatility and alignment with environmental goals.

According to the research report "US Paper Bag Market Overview, 2029," published by Bonafide Research, the US paper bag market is projected to grow at more than 4.53% CAGR from 2024 to 2029. Several factors are driving this growth, including evolving consumer preferences for eco-friendly packaging, technological innovations, and an expanding e-commerce sector. The retail industry, in particular, has embraced paper bags as a core element of its sustainability strategies, which has been a major contributor to the rising demand. Large retail chains and small businesses alike are transitioning to paper bags as part of their efforts to reduce their environmental impact. Additionally, food and beverage outlets, especially those providing takeout and delivery services, are making the shift to paper bags in response to both regulatory pressures and consumer expectations for sustainable packaging. Technological advancements have also played a key role in enhancing the functionality of paper bags. Innovations in production processes have led to the creation of more durable and structurally sound paper bags, which are now capable of carrying heavier loads while remaining eco-friendly. Furthermore, advancements in printing technology allow for high-quality, intricate designs, making paper bags more visually appealing and suitable for branding. Leading players in the US market, including companies such as WestRock and International Paper, are investing heavily in sustainable packaging solutions, which is further driving growth. Personalized packaging, a growing trend, is another key driver, as businesses seek to differentiate themselves in a competitive market by offering customized, branded paper bags that align with their sustainability commitments. These developments present ample growth opportunities across various industries, especially as more businesses prioritize eco-friendly packaging to enhance their brand image and comply with environmental regulations.

The US paper bag market can be divided into several distinct segments based on bag types, each catering to different industry needs. The most prominent segments include Pasted Valve, Sewn Open Mouth, Pinched Bottom Open Mouth, Pasted Open Mouth, and Flat Bottom bags. Pasted Valve bags are extensively used in industries such as agriculture, chemicals, and construction. These bags are ideal for packaging products like grains, cement, and fertilizers, offering a reliable seal and ease of handling. The secure seal provided by Pasted Valve bags ensures that products remain contained and protected during transportation and storage. Sewn Open Mouth bags, on the other hand, are predominantly used in the food and beverage industry, as well as in the pet food sector. Their durability and secure closure make them well-suited for packaging products like flour, pet food, and powdered goods, which require reliable containment. Pinched Bottom Open Mouth bags have gained popularity in the industrial sector, especially for packaging fine materials such as cement, chemicals, and minerals. Their quick filling capabilities and high durability make them a preferred choice for industrial packaging. Pasted Open Mouth bags are another important segment, often used for bulk packaging in both food and non-food industries, where easy filling and secure sealing are crucial to maintaining product integrity. Flat Bottom bags, known for their stability and space-efficient design, have become increasingly popular in retail and food packaging. Their ability to stand upright and their aesthetic appeal make them ideal for displaying products in retail settings. The versatility and durability of these various bag types have contributed to their widespread adoption across multiple industries, reinforcing the importance of the paper bag market in the US economy.

The end-user industries for paper bags in the US are diverse, spanning key sectors such as food and beverage, retail, agriculture, building and construction, and chemicals and pharmaceuticals. In the food and beverage sector, paper bags are widely used for takeout services, groceries, and specialty packaging. The growing emphasis on biodegradable packaging that meets consumer expectations for sustainability has driven significant growth in this segment. Retailers, particularly in the fashion and luxury goods sectors, have increasingly adopted paper bags as a way to promote their brand while aligning with eco-conscious consumer preferences. High-quality, customizable paper bags are becoming an integral part of retail branding strategies, helping companies enhance their image while reducing their environmental impact. The agriculture industry relies on durable paper bags for the packaging of seeds, animal feed, and fertilizers, where strength and reliability are paramount. Paper bags are also essential in the building and construction industry, used for packaging materials like cement and mortar. These bags offer durability, ease of handling, and dust-resistant properties, making them suitable for tough environments. In the chemicals and pharmaceuticals industry, paper bags are often used for packaging lighter materials and powdered substances that require secure, dust-resistant containment. The market is further segmented by bag thickness, with options ranging from 1-ply for lighter goods to 3-ply or more for heavier industrial applications. Brown kraft paper and white kraft paper are the primary materials used in production, with brown kraft paper favored for its natural, eco-friendly appeal and white kraft paper preferred for its smooth surface, which is ideal for branding and high-quality printing. Distribution channels are split between offline and online sales, with the online segment gaining traction due to the rapid growth of e-commerce and direct-to-consumer business models.

The US paper bag market is strategically poised for sustained growth, bolstered by a combination of regulatory support, shifting consumer preferences toward sustainable packaging, and ongoing innovations in manufacturing and design. A significant driving force behind this growth is the increasing awareness among consumers regarding environmental issues, leading to a marked preference for eco-friendly alternatives over traditional plastic packaging. As various states and municipalities implement stricter regulations on single-use plastics, businesses are increasingly compelled to seek sustainable packaging solutions. This regulatory landscape encourages the widespread adoption of paper bags across numerous sectors, solidifying their status as a favored choice for environmentally conscious consumers and businesses alike. The versatility of paper bags is another critical factor contributing to the robust demand across diverse industries, ranging from retail and food service to construction and agriculture. Their adaptability allows companies to utilize paper bags for a wide array of applications, ensuring they meet the specific needs of various markets. Retailers, especially in the fashion and luxury sectors, increasingly leverage paper bags not just for their functional benefits but also for their aesthetic appeal, using them as a medium for branding and enhancing the customer experience. Additionally, in the food service industry, paper bags have become essential for takeout and delivery packaging, reflecting a commitment to sustainability while meeting consumer demands for convenience. Key players in the US paper bag market are responding to this evolving landscape by investing heavily in eco-friendly solutions and technological advancements. Manufacturers are innovating to improve the quality, durability, and design of paper bags, with a notable emphasis on customization options that cater to individual business branding. The adoption of biodegradable materials and sustainable production practices further aligns with growing consumer expectations for environmentally responsible products. This shift towards customization not only enhances brand identity but also addresses the rising demand for tailored packaging solutions in an increasingly competitive marketplace. As the market evolves, the ongoing focus on enhancing the functionality and appeal of paper bags will sustain the upward trajectory of the industry. The increasing integration of technology in the manufacturing process enables higher production efficiencies and more sophisticated designs, ensuring that the US remains a key player in the global paper bag industry. This commitment to innovation, combined with a strong consumer shift towards sustainability, positions the US paper bag market for continued expansion in the years to come.




Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Paper Bag market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Pasted Valve
• Sewn Open Mouth
• Pinched Bottom Open Mouth
• Pasted Open Mouth
• Flat Bottom
• Others

By End-User Industry
• Food & Beverage
• Retail
• Agriculture
• Building & Construction
• Chemicals & Pharmaceuticals
• Others

By Thickness
• 1 Ply
• 2 Ply
• 3 Ply or More

By Material Type
• Brown Kraft Paper
• White Kraft Paper

By Distribution Channel
• Offline
• Online

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Paper Bag industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.