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E-Commerce Surge Drives Growth In Retail Bags Market: The Driving Engine Behind Retail Bags Market Evolution in 2025
Retail Bags
Retail Bags Market Size Growth Forecast: What to Expect by 2025?
The size of the retail bags market has experienced robust growth in the past few years. The market is projected to expand from $17.98 billion in 2024 to $19.3 billion in 2025, with a compound annual growth rate (CAGR) of 7.4%. The historic growth can be linked to factors such as the increase in urbanization, a boost in tourism, the rise of home delivery services, the expansion of e-commerce, and the growth of online shopping.
How Will the Retail Bags Market Size Evolve and Grow by 2029?
The size of the retail bags market is anticipated to experience robust growth in the subsequent years. The market is estimated to expand to $25.29 billion by 2029, growing at a compound annual growth rate (CAGR) of 7.0%. The projected growth during this period could stem from factors such as the expansion of the retail sector, increasing number of shopping centres, rising consciousness regarding waste production, an ascending count of supermarkets, and an upward trend in consumer expenditure. Significant trends forecasted during this period encompass developments in technology, biodegradable bags, environment-friendly substances, innovative packaging techniques, and subscription-based models.
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What Drivers Are Propelling the Growth of Retail Bags Market Forward?
The burgeoning of e-commerce is predicted to boost the expansion of the retail bags market in the future. E-commerce encompasses the online purchase and sale of products and services, and its growth can be attributed to advancements in mobile technology, digital marketing, logistics, and supply chain management. Retail bags play a crucial role in e-commerce as they offer packaging solutions for goods bought virtually, thereby improving customer convenience. For example, data by the United States Census Bureau, a US-based government entity, shows that in the initial quarter of 2024, the total sales from U.S. retail e-commerce touched roughly $289.2 billion, registering a growth of 2.1% (±0.7%) from the last quarter of the preceding year, 2023. As a result, the surging e-commerce trend is fostering the development of the retail bags market.
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Which Emerging Trends Are Transforming the Retail Bags Market in 2025?
Leading organizations in the retail bag industry are prioritizing the creation of unique merchandise like locally-manufactured retail paper bags, in order to champion environmental preservation and improve product longevity. These paper bags, made in a specific locality or community, present an excellent option for firms seeking to meet sustainability objectives while boosting their local economy. For example, in February 2024, Visy Industries, an Australian packaging and recycling firm, introduced locally-manufactured retail paper bags. These bags, made from thick paper, offer increased durability and robustness, making them apt for carrying heavy items without tearing. They are designed to be fully recyclable through Australian curbside recycling bins, providing an easy and environmentally friendly way to dispose of them for customers.
What Are the Key Segments in the Retail Bags Market?
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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Who Are the Key Players Shaping the Retail Bags Market's Competitive Landscape?
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
What Geographic Markets Are Powering Growth 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.
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