The global market for custom paper bags is expected to grow at a steady growth rate. The forecast period for the rise of these bags is from 2021 to 2031. So far, the industry is showing promising numbers.
It is expected that the numbers will show positive growth with the help of its key players. Currently, the market is adopting changes that the major players have a demand for.
According to a recent report, the global market for these bags is standing at a promising 5.9 Billion US Dollars. The industry is expected to reach a CAGR of 5.9 percent during the forecast period.
Now, let us find out the reasons behind the rise of these bags as packaging solutions.
The Leading Types of Custom Paper Bags
The custom paper bags market is divided into different types of bags. These are the leading types of bags with the largest global share in the paper bags market.
These types include the following;
- Paper Carry Bags
- Paper Grocery Bags
- Kraft Paper Bags
- Hemp Paper Boxes
- Paper Bags with Handles
- Paper Bags with Logos
Major Contributors in the Paper Bags Industry
The use of custom paper bags is very common in nearly every industry. However, there are a few business sectors that use them the most. These business sectors are the major contributors to the paper bags industry.
They include the following;
- Food and Beverages
- Pharmaceuticals
- Cosmetics Products
- Personal Care Products
- Customer Goods
These are the major contributors to the growth of the industry. Now, let us see the contribution at a regional level across the globe. There are certain regions in the world that consume more than others.
These regions include North America, South America, Europe, the Middle East and Africa, and Asia Pacific. A brief dissection of the major consumers from these regions is given in the table below.
| Region | Countries |
|---|---|
| North America | United States and Canada |
| South America | Brazil, Columbia, and Argentina |
| Europe | Germany, Russia, France, Italy, and Turkey |
| The Middle East and Africa | United Arab Emirates, Saudi Arabia, Nigeria, Egypt, and South Africa |
| Asia Pacific | China, India, Korea, Japan, Indonesia, Philippines, Thailand, Malaysia, Vietnam, and Australia |
Those, as mentioned above, are the major consumers of paper packaging in different regions.
Paper Bags Market Segment Insights
In this section, we are going to see the insights into the custom paper bags market segment. These insights are divided into different sub-segments, such as product insights, material insights, and end-use insights. They are helpful in understanding the overall growth and impact of these bags. Let us begin!
Paper Bags Product Insights
The global market for custom paper bags is sectioned into five major types. These are pasted valves, flat-bottom paper bags, lock paper bags, stand-up pouches, self-opening-style bags, and others.
The largest segment among these bags is the flat-bottom paper bags, as per revenue share in 2022. The next top performing product is flat-bottom bags, which have the highest demand. It is because they offer an excellent displaying opportunity for the product on-shelf.
Also, they have a strong base to hold lower and medium-weight items. Moreover, the flat bottom requires less material for manufacturing. They are also compact and use less space, thus allowing more display space and a larger volume of products.
Flat-bottom bags offer a strong yet free-standing option. These bags come with five (5) panels that can be used for additional branding.
Paper Bags Material Insights
When it comes to material type insights, the global market is divided into white and brown kraft stocks. The latter, brown kraft stock, remained the top revenue generator for 2022. The basic advantage of brown kraft paper is that it has extraordinary strength. This is because of its higher Sulphur and lower lignin contents.
Eventually, their strength becomes the cause of better revenue growth in this segment. Brown kraft stock comes from a variety of woods. This includes bamboo, pine, and oak. The quality of wood may vary. This allows the blend of high and low-density timbers to make the perfect kraft.
The durability of Kraft paper stock is its key advantage. In addition, it can resist various industrial forces such as heat, moisture, and dampness. Thus, it contributes to the growth of the industry as well as its revenue.
Paper Bags End-Use Insights
The food and beverages industry is the largest consumer of these bags. It is closely followed by the cosmetics industry. Moreover, these bags are a part and parcel of consumer goods and everyday shopping. Their use as shopping carrier bags is very common across the globe.
They are also used to package consumer goods. Brands can use the customization opportunities of these bags for their promotion. Printing brand logos, brand names, unique designs, product specifications, and contact information can be helpful.
Eventually, this helps in increasing the revenue of the industry globally.
Paper Bags Market Drivers
There are different market driving forces that contribute to the growth of the custom paper bags industry. The increasing demand for these bags for food, beverage, and other consumer goods is another driving force.
This demand contributes to the market growth of these bags. Eventually, it helps increase the revenue. Since these bags have no dangerous chemicals or contaminants, they are perfectly safe for edible items.
In addition, they help keep the food at an appropriate temperature for a long period. This results in more revenue for the brand that uses these bags for their edible items. Moreover, these bags have more tensile strength and are more flexible than a plastic sheet of the same gauge.
In addition, they are reusable time and again. They do not expire, so the brand using them need not worry about wear and tear. However, they do have eco-friendly characteristics. They are recyclable, reusable, and reducible. Even if they are dumped in the ground, they decompose naturally without any special process.
Furthermore, these bags come in custom shapes and sizes. This allows brands to get them in the best shapes, colors, and designs to fulfill their needs. In addition, different brands collaborate with each other to increase their respective consumer base. This is another area where customization of these bags comes in handy. This helps brands collaborate efficiently and, at the same time, enjoy increased revenue.
Consumers are also conscious of the increasing environmental concerns. Brands are switching to more eco-conscious packaging choices to gratify their consumers' needs. They use environmentally friendly packaging solutions that benefit the environment. These packaging solutions are safe because they are composed of recycled paper. Also, they are reusable multiple times.
In addition, they are easier to break down in the environment. Thus, they reduce carbon footprint and decrease emissions into the environment. Modern consumers have a keen eye and the power of social media in their hands.
Brand awareness is a tricky game now. Using these bags for products is a wise step and is important to protect a green environment. Moreover, the rising number of competitors in the market is also contributing to the growth of market revenue.
Paper Bags Market Restraints
There are a couple of market restraints for the custom paper bags market as well. For instance, these bags are not water resistant. This is a major factor that restrains the growth of the market for these bags.
The tear strength of these bags starts to fall when they become wet, for whatever reason. Thus, they tear off easily when they are wet. This hinders their usage for a number of business sectors.
For instance, they cannot be used for frozen or refrigerated items. The paper may stick to the product, especially if it is meat or a similar product.
Moreover, there are several misconceptions about these bags that also hinder their market growth. In addition, the lack of awareness among consumers and brands may also be one of the restraints.
Conclusion
In conclusion, there is one thing that we can say for sure: the custom paper bags industry is rising. It is reaching new horizons and exploring new markets every year. The industry experts are confident that the expected growth rate will be achieved.
With the inclusion of new market players and consumers, such as hemp and CBD, reaching the target seems easier than before. The expectations are higher, and the fingers are crossed.
Packaging manufacturers need to increase awareness among consumers to reach the goal more efficiently. If you want to get the best custom paper bags, The Customize Boxes can be your one-stop shop. There is a wide range of bags with numerous customization options.
Get your free custom quote today and step into the world of amazing packaging solutions. You can reach us via email, call, and live chat portals.
