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Garbage Bag Market - Drivers & Restraints, Market Segmentation, Region-wise Outlook and Key Players 2026

11-23-2017 06:28 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Future Market Insights

/ PR Agency: Future Market Insights
High-performance characteristics and excellent tensile strength are anticipated to increase the market share of HDPE garbage bags. This segment accounted for a revenue share of close to 30% in the garbage bag market in Europe in 2016 and is likely to gain more than 100 basis points by 2026. Revenue contribution of the HDPE segment is projected to register a CAGR of 5.5% during the forecast period. The HDPE segment is a relatively cost-effective option and therefore likely to experience a rapid Y-o-Y growth rate during the forecast period. Its cost-effectiveness and ability to hold a significant weight is anticipated to propel the market for HDPE garbage bags over the period of assessment. HDPE garbage bags are relatively inexpensive and can hold considerable weight compared to other material types. The segment is projected to expand 1.7x during the forecast period. By value, the segment is likely to create an incremental opportunity of more than US$ 300 Mn between 2016 and 2026.

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The biodegradable quality of HDPE garbage bags is likely to drive its demand across the European region

The waste management policies in Europe aim to reduce the environmental and health impacts of waste and improve the region’s resource efficiency. The policy also strives to enhance the use of oxo-biodegradable or oxo-degradable garbage bags, to collect waste generated in households, industries, and institutions. This is expected to fuel the demand for HDPE garbage bags over the forecast period. Disposable income and purchasing power of consumers is leading to increasing demand for convenient and cost-effective garbage bags for collecting waste. These macroeconomic factors are anticipated to positively impact the demand for HDPE garbage bags in Europe. Furthermore, improvement in Europe’s economic performance and the rising standards of living of the middle income population group is expected to strengthen the sale of HDPE garbage bags.

Biodegradable plastic garbage bags such as HDPE bags are made up of domestic biomass materials, which reduce dependency on oil and provide a domestic solution to plastic resin or film manufacturers. They are also easier to recycle and can be used more frequently. Moreover, with the mounting pressure of consumers and legislators to address the environmental issues caused by harmful garbage bags, the demand for HDPE garbage bags is anticipated to grow significantly over the assessed period. Demand for premium garbage bags is likely to gain traction particularly in the advanced economies of Germany and the U.K. Two major trends fuelling their sales are their stretchable strength and odour control nature. Consumers are willing to pay a premium for these features. This particular factor is creating robust development in the HDPE garbage bag segment.

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Increasing taxation and stringent government policies pertaining to the ban of HDPE plastic bags is anticipated to hinder its growth during the projected period

The government of Europe is actively imposing regulations in order to restrict sales of lightweight bags, with various countries such as France and Italy enforcing a complete ban on single-use HDPE plastic bags. These bans on plastic bags can help mitigate harmful impacts on the environment particularly oceans, rivers, lakes, and the wildlife inhabiting them. This is one of the major restraints faced by HDPE plastic garbage bags, which is influencing manufacturers to shift to the production of eco-friendly and green plastic garbage bags. Governments across Europe are increasing taxation and imposing extra charges on the use of plastic garbage bags. Customers at large retail outlets and convenience stores are charged extra for plastic garbage bags. Such initiatives play a major role in reducing consumption of HDPE garbage bags and compel manufacturers to shift production towards more eco-friendly and biodegradable garbage bags.

About FMI

Future Market Insights is the premier provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India.

FMI’s research and consulting services help businesses around the globe navigate the challenges in a rapidly evolving marketplace with confidence and clarity. Our customised and syndicated market research reports deliver actionable insights that drive sustainable growth. We continuously track emerging trends and events in a broad range of end industries to ensure our clients prepare for the evolving needs of their consumers.

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