New report reveals major global shift in shopping habits: 'Robust growth'
Future Market Insights estimates that the paper bag market will have a value of $10.3 billion by 2035 with a compound annual growth rate of 4.4% over the next decade.
It identified five key trends driving this demand: retail expansion, brand customization, government regulations banning single-use plastics, food safety, and sustainability.
While shopping with reusable bags and bringing your own silicone takeout containers to restaurants are perhaps some of the most impactful ways to reduce waste, the burgeoning paper bag market is nonetheless a step in the right direction for businesses.
Paper bags are generally recyclable and biodegradable. On the other hand, plastic bags are derived from polluting dirty fuels, and their manufacturing process involves toxic chemicals, as the Secretariat of the Pacific Regional Environment Programme explains.
They take up to 1,000 years to break down, contributing to the untimely deaths of hundreds of thousands of marine creatures that mistake them for food each year.
According to FMI, the food and beverage sector leads paper bag growth, with a news release revealing the industry accounts for 46% of the market share. Brown kraft paper is the most popular material in the paper bag market, as it is more cost-effective than white kraft paper and requires fewer chemical treatments.
Perhaps surprisingly, FMI didn't cite food safety as the primary factor accelerating the food and beverage industry's adoption of paper bags, even though microplastic pollution is linked to health complications, including cancer, dementia, and reproductive difficulties.
In the release, it highlighted policies outlawing single-use plastic bags and businesses' desire to advertise their sustainability commitments as key drivers of the growth.
It also listed "high demand for greaseproof and food-grade paper bags" as a factor, underscoring how public health can benefit from eco-friendly policymaking as businesses pivot to meet consumer demand for sustainability.
When you think about a product's packaging, which of these factors is more important to you?
The way it looks
The information it provides
The waste it produces
I don't think about packaging at all
Click your choice to see results and speak your mind.
Regardless of which factor weighs more in the accelerated push, transitioning away from plastics is still a win on multiple levels.
Ismail Sutaria, lead consultant in packaging at FMI, suggested that the paper bag market's "robust growth" could change the packaging game.
"To ensure long-term success, manufacturers need to focus on improving the durability and water resistance of paper bags while addressing cost concerns through sustainable production innovations," Sutaria said.
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