Paper Bag Market is anticipated to rise at a value CAGR of 6.7% over 2019-2028. According to a study published by Insure Insights on the Paper Bag Market, Paper Bag, as the name suggests, is a bag made up of paper; they are used in as shopping bags and are also used for many other purposes. They are made of different types of Kraft Papers. Their cost-effectiveness and eco-friendly nature of these bags are the factors driving the market growth.
Top Driver: Government Initiatives to ban Plastic Bags is driving the market
Many developed and developing countries are banning the use of plastic bags as it is found to be harmful to the environment. Many countries like Zimbabwe, Australia, France, and even countries like India have also initiated in banning plastic bags. The increased government initiatives across the world against plastic bags are expanding market growth. Rise in the popularity of small size bags, as they are consumer-friendly as they are lightweight factors contributing to the growth of the market. An increase in the use of Paper bags in pharmaceuticals, stationery, personal use products, home care products, and cosmetics are further driving the market growth. Consumers choosing paper bags over plastic bags, so as to protect the environment is driving the growth in the market. An increase in the use of Paper bags in various industries has further expanded the demand of the market.
Brown Kraft to Make Crucial Contribution to Growth of Global Paper Bag Market
Based on the type segment, Brown Kraft paper is widely used in the Paper Bag Market as it is more economical and is more durable and has more strength than other Kraft papers. It is also used in many industrial and commercial applications. It is also known for its high elasticity and high tear resistance; they are extensively used to provide high-quality images for the business. Based on the End User segment food and beverage segment have obtained the highest growth as it offers convenient packaging and can be used for packaging all types of food. It is widely used in restaurants for parcel use; it is also used for Bottle paper bags as they come with a luxury appeal for carrying wine bottles and other liquor.
Huge Manufacturing Activities and Growing Retail Sectors to benefit Asia Pacific Market
Developing countries focus on Manufacturing Activities and Growing Retail Sectors, thus has led to an increase in the use of Paper bags and has tremendously contributed to market growth. Increasing demand for paper bags due to rapid urbanization and modernization have boosted the market growth. Countries like India, Bangladesh, Korea, Taiwan have banned the use of single-use plastic bags and strict government regulation over plastic bags has boosted the market growth. Rise in demand for small size bags and Consumers in the region choosing paper bags over plastic bags, so as to protect the environment is enhancing the market growth.
Strategic acquisitions Merger, Product innovations are the major strategies of the competitors
The competitors of the Global Paper Bag Market are fragmented. The key player in the Global Paper Bag Market are The Mondi Group plc, Smurfit Kappa Group, International Paper Company, United Bags, Inc., Welton Bibby and Baron Limited, El Dorado Packaging, Inc, Paperbags Limited, Novolex Holdings, Inc., JohnPac IA and York Paper Company Limited
The Mondi Group plc: The Mondi Group plc is a giant competitor of the Global Paper Bag market; for instance, in the year 2018, Mondi Group had announced the complete acquisition of Powerflute., this acquisition deal of Powerflute, was made for USD 365 million. The acquisition was made to strengthen the Packaging Paper business unit. of the Mondi’s
Smurfit Kappa: Smurfit Kappa is one of the key competitors of the Global Paper Bag Market. For instance, in July 2019, Smurfit Kappa had announced the acquisition of Reparenco for € 460 million. The acquisition was made by Smurfit Kappa to strengthen its paper and recycling product portfolio and have also added about 405,000 tonnes of recycled containerboard capacity into their system.
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