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February 2025
The global carrier bags market is estimated to reach USD 41.27 billion by 2034, up from USD 25.97 billion in 2025, at a compound annual growth rate (CAGR) of 5.15% from 2025 to 2034.
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The carrier bags market is projected to grow steadily in the years to come. Carrier bags are made especially to carry products or commodities that have been bought from stores and shops. Typically, they are made-up of sturdy, lightweight materials like fabric, paper and plastic. Retailers typically provide carrier bags to consumers as a practical way for them to carry their products.
To accommodate a range of item types and quantities, they are available in a variety of sizes and forms. While plastic bags are still commonly utilized due to their low cost and strength, rising environmental concerns have prompted a trend toward more sustainable alternatives such as paper, cotton, jute as well as biodegradable materials. Carrier bags are essential for everyday shopping and packaging, and there are growing global efforts to promote reusable and environmentally friendly alternatives.
The rapid urbanization and the expansion of the retail and e-commerce sectors are expected to augment the growth of the carrier bags market during the forecast period. Furthermore, the rising environmental awareness as well as the stringent government regulations on the single-use plastics is driving demand for the eco-friendly alternatives, which is also anticipated to augment the growth of the market. Additionally, the increasing consumer preference for sustainable and reusable products along with the advancements in the biodegradable and compostable materials coupled with the corporate sustainability initiatives and commitments to reduce carbon footprints is also projected to contribute to the growth of the market in the near future.
The increasing focus on the branding as well as customization is anticipated to augment the growth of the carrier bags market during the forecast period. There is an intense competition in this industry and client satisfaction is important. To increase their consumer base, firms are constantly stepping up their marketing and branding efforts. Companies are always looking for innovative ways to attract attention, build brand awareness, as well as foster long-term connections with current clients. Similar to promotional shopping bags, custom shopping bags are a great choice in this respect. Organizations may easily strengthen their corporate identity with customizable shopping bags.
Furthermore, compared to the other conventional advertising techniques, personalized carry bags are an excellent medium for promoting due to their affordability. As personalized bags are promotional items that last until they are no longer in use, brand promotions continue even after the bags are purchased.
Additionally, giving consumers stylish carry bags improves their shopping experience. In addition to making carrying things easier, a well-designed bag presents a good first impression. When a brand provides well-considered and superior packaging, customers are more likely to remember it and come back. Also, delivering customers a great experience with custom packaging bags is another great way to increase the value of a brand. Through utilizing vivid colors, distinctive designs, and innovative packaging, companies can create moments that are stuck in their minds, which can result in favorable customer feedback and recommendations, which further improves the brand's value and reputation in the eyes of consumers.
Moreover, advancements in the printing technology enable high-quality personalization at affordable costs, which makes branded carrier bags more accessible to small and medium-sized enterprises (SMEs). As consumer choices evolve, demand for fashionable customizable carrier bags is likely to rise, further supporting the growth of the market.
The growing environmental concerns with the single-use carrier bags are projected to hinder the growth of the carrier bags market within the estimated timeframe. Carry bags are used by people to carry goods purchased from stores. Despite being known to harm the environment, these bags that are mostly made-up of plastic—are frequently utilized. Plastic bags are an important part of the litter system for urban solid waste. Numerous negative environmental repercussions have occurred from this such as pollution and obstruction of rivers. Globally, as much as five trillion plastic bags are consumed annually.
Approximately 50% of all the plastic generated is made to be used only once before being discarded. Less than 10% of the seven billion tons of plastic waste produced worldwide to date has been recycled. Sorting process is thought to result in an annual loss of 80 to 120 billion US dollars in the plastic packaging waste. Therefore, a number of national governments have outlawed the use of plastic shopping bags.
Furthermore, increased consumer awareness about plastic pollution and its negative impact on the ecosystems is driving demand for reusable biodegradable alternatives, resulting in a decrease in traditional plastic carrier bag sales. The rising cost of the raw materials for biodegradable as well as compostable bags, combined with difficulties in the recycling infrastructure, creates additional challenges for the growth of the market.
Many companies are also choosing alternate packaging options like as paper wraps and mesh bags, which reduces the demand for traditional carrier bags. Furthermore, large merchants and e-commerce platforms are implementing sustainability measures that reduce their reliance on the single-use packaging while promoting minimal zero-waste alternatives. These factors, together, provide barriers to the expansion of the carrier bag market as the industry shifts toward eco-friendly and regulatory-compliant alternatives.
The growing shift towards sustainable and reusable bags is expected to create substantial opportunity for the growth of the carrier bags market in the near future. Making sustainable decisions is of greater importance than ever in the modern world. Making the move to eco-friendly shopping bags is one such easy yet major change. With increasing concerns about plastic pollution, climate change, and resource depletion, shoppers are actively seeking eco-friendly alternatives to conventional plastic bags. Several companies are actively replacing plastic shopping bags with sustainable alternatives, reflecting a growing commitment to environmental responsibility.
Coles recently replaced its plastic fruit bags with more eco-friendly paper "handbags," which caused a stir among consumers nationwide. All retailers around the country now carry the creative new packaging. Coles has chosen to roll out the move to paper bags in all of its locations across the country after it was successfully tested in Victoria and Tasmania. Over 64 tonnes of plastic were prevented from ending up in landfills in Victoria alone throughout the trial period.
Similarly, it was announced that Morrisons would eliminate all plastic carrier bags from its stores. The supermarket chain made the decision to replace its plastic "bags for life" with paper ones. Morrisons said the action would make it one of the first supermarkets in the UK to fully abandon plastic carrying bags. Every supermarket has made an effort to use less plastic in the recent years. Some of the rivals of the Morrisons also have their own projects. Additionally, Waitrose tested removing its 10p bags for life at certain of its locations in preparation for a wider rollout.
As a result, both consumers and companies are adopting reusable and biodegradable carrying bags as a practical and environmentally friendly alternative. This increased demand is likely to fuel substantial market growth, creating long-term potential for firms who invest in sustainable packaging options.
The integration of the artificial intelligence is likely to reshape the carrier bags market in the years to come. Automation in manufacturing minimizes the material waste, eliminates errors and boosts production efficiency, resulting in high-quality, reasonably priced eco-friendly bags. With the help of AI in demand forecasting, merchants and manufacturers can precisely anticipate customer needs, which means better inventory control as well as reduced surplus production.
AI additionally serves as an integral part of customization, helping companies to utilize the data-driven insights to design and manufacture the personalized carrier bags according to the customer choice. AI is also helping with the sustainability initiatives because machine learning algorithms make it easier to find recyclable and biodegradable materials for production. Through effectively classifying and reusing the used carrier bags, AI-based recycling systems improve the waste management while minimizing their negative effects on the environment.
AI-based supply chain analytics also assist in the transportation optimization and raw material procurement monitoring and this reduces the carbon emissions. One prominent example of the application of AI is the Smurfit Kappa Group, one of the top providers of the packaging solutions. To increase the productivity, the organization has incorporated AI into its supply chain and production processes.
Smurfit Kappa maximizes the packaging designs with AI-driven data analytics, guaranteeing low material consumption without compromising the durability. Furthermore, production processes have also been improved at their manufacturing facilities utilizing AI automation that has increased the energy efficiency and decreased waste. As AI advances, its impact on the carrier bag market is likely to increase, driving sustainability as well as improved consumer experiences across the industries.
The paper segment is expected to grow at the fastest CAGR of 7.67% during the forecast period. Paper is beginning to regain popularity in place of plastic due to sustainability and environmental concerns. An environmentally friendly substitute that can be worth taking into account is paper bags. Customizable kraft paper bags can carry meat, vegetables, canned products, and even gifts. The majority of paper bags can accommodate goods without readily tearing or creasing.
Paper bags can also almost always be recycled to the extent that it is needed, which lowers the quantity of paper one might require for everyday travel. The creation of paper bags does not cause deforestation because they may be recycled multiple times before their fibers become too weak. Furthermore, paper is biodegradable, so even if it is disposed of incorrectly, it will never be wasted. As consumers and brands prioritize sustainability, paper bags are becoming increasingly popular as an ethical and practical packaging alternative.
The online segment held considerable share of 21.35% in the year 2024. This is owing to the changing consumer shopping habits as well as the growing demand for the convenient packaging options. Furthermore, the rise of the online retail giants like Amazon, Walmart and Alibaba has is also expected to contribute to the growth of the segment during the forecast period. Additionally, the surge in the online grocery shopping along with the increase in the food delivery services is further likely to support the segmental growth of the market.
Consumer preference for doorstep delivery, coupled with the increasing influence of digitalization and mobile commerce, has reinforced the dominance of the online segment. Also, firms are implementing biodegradable packaging products to strengthen their sustainability efforts and fulfill regulatory standards. As digital transformation accelerates, the online sales channels are expected to grow steadily in the near future.
North America held largest market share of 28.56% in the year 2024. This is due to the presence of the leading retailers like Walmart, Target and Costco and their shift towards sustainable bags across the region. For instance, in September 2023, multinational retailer Marks & Spencer (M&S) announced the discontinuation of plastic carrier bags. Instead, the retailer is set to introduce eco-friendlier reusable paper bags. Developed in collaboration with the University of Sheffield, these new bags are designed to be both strong and sustainable. With a capacity to hold as much as six four-pint bottles of milk, M&S claims that the bag can be reused up to 100 times.
Additionally, the rising consumer awareness about sustainability and its importance for the environment is also further expected to contribute to the regional growth of the market. Also, the growing demand for the premium & custom bags are also expected to support the regional growth of the market.
Asia Pacific is likely to grow at a considerable CAGR of 7.02% during the forecast period. This is due to the expanding urban population and higher disposable income levels in countries like China and India. For instance, India is expected to have 590 million urban residents by 2030, up from 340 million in 2008. The country's urban population grew by around 230 million people in almost 40 years (from 1971 to 2008), but the next 250 million will be added in half that time. Additionally, the rapid growth of e-commerce and online retail as well as the growing online grocery, food delivery and fashion sectors are also expected to contribute to the regional growth of the market. Furthermore, the expansion of organized retail and supermarkets is likely to contribute to the regional growth of the market.
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