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E-Commerce Surge Drives Growth In Retail Bags Market Driver: A Major Catalyst in the Evolution of the Retail Bags Market in 2025
Retail Bags Market
In the past few years, the retail bags market has enjoyed robust growth. From $17.98 billion in 2024, it is projected to increase to $19.3 billion in 2025, with a compound annual growth rate (CAGR) of 7.4%. This substantial increase during the previous years can be associated with factors such as increased urbanization, upsurge in tourism, a rise in home delivery services, growth in e-commerce and an expansion in online shopping.
It is projected that the size of the retail bags market will experience robust expansion in the upcoming years. The market is expected to achieve a value of $25.29 billion by 2029, with an annual growth rate (CAGR) of 7.0%. The anticipated growth can be credited to a burgeoning retail sector, an increase in shopping malls, rising consciousness about waste production, an expanding number of supermarkets, and amplified consumer expenditure. The major trends predicted for this period include technological progression, the use of biodegradable bags, implementation of eco-friendly materials, smart packaging techniques, and subscription models.
What Is Stimulating Growth in the Retail Bags Market?
The growth of the retail bags market is predicted to be driven by the increasing prominence of e-commerce. E-commerce, also known as electronic commerce, involves the online purchasing and selling of products and services. This growth is attributed to developments in areas such as mobile technology, digital marketing, as well as logistics and supply chain management. Retail bags play a crucial role in e-commerce by providing packaging for products that have been bought online, thereby improving customer convenience. For example, the United States Census Bureau, an American government agency, reported in May 2024 that retail e-commerce sales in the U.S. during the first quarter of 2024 amounted to roughly $289.2 billion. This represented a 2.1% (±0.7%) increase from the last quarter of 2023. Consequently, the upsurge in e-commerce is fuelling the expansion of the retail bags market.
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Who Are the Major Industry Players Fueling Retail Bags Market Expansion?
Major companies operating in the retail bags market are Flexo Converters USA, International Paper, Smurfit Kappa Group plc, Mondi Group plc, Novolex Inc., Burberry Group plc, ProAmpac Intermediate Inc., Coveris SA, Antalis Group, Atlantic Packaging, Welton Bibby and Baron Limited, BioPak Pty Ltd., EI Dorado Packaging Inc., Global-Pak Inc., Rutan Poly Industries Inc., Atlantic Poly Inc., Attwoods Packaging, GreenPack Limited, Rainbow Packaging Inc., SPP Poly Pack Pvt Ltd., The Carry Bag Company, Kiwi Office, Europages UK
Which Key Developments Are Influencing the Retail Bags Market?
Leading corporations in the retail bag sector are concentrating on the creation of innovative items, such as Locally-made retail paper bags, as a way of endorsing environmental responsibility and boosting product resilience. These bags, made within a given geographical region or neighborhood, can be the ideal option for companies hoping to match their sustainability objectives while also bolstering their local economies. In February of 2024, for instance, Visy Industries, a packaging and recycling company based in Australia, rolled out their locally-made retail paper bags. The bags, made from a thicker paper material, offer increased strength and resistance, making them suitable for holding heavier items without risk of ripping. These groundbreaking bags can be easily recycled using Australian curbside recycling bins, offering customers an easy and environmentally-friendly way of disposal.
How Is the Segmentation of the Retail Bags Market Defined?
The retail bags market covered in this report is segmented -
1) By Material Type: Plastic, Paper, Other Material Types
2) By Pattern: Textured, Printed, Solid, Other Patterns
3) By End User: Grocery Stores, Food Service, Other End Users
Subsegments:
1) By Plastic: High-Density Polyethylene (HDPE) Bags, Low-Density Polyethylene (LDPE) Bags, Polypropylene (PP) Bags, Biodegradable Plastic Bags, Reusable Plastic Bags
2) By Paper: Kraft Paper Bags, Recycled Paper Bags, Coated Paper Bags, Paper Bags With Handles, Paper Bags Without Handles
3) By Other Material Type: Cotton Bags, Jute Bags, Non-Woven Fabric Bags, Hemp Bags, Linen Bags
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What Is the Leading Region in the Retail Bags Market?
North America was the largest region in the retail bags market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the retail bags market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Is Covered In The Retail Bags Global Market Report?
- Market Size Analysis: Analyze the Retail Bags Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Retail Bags Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Retail Bags Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Retail Bags Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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