Kraft Paper Bag Market Size, Trends, Value Chain & Trade Analysis 2025-2035

According to Towards Packaging consultants, the global kraft paper bag market is projected to reach approximately USD 7.25 billion by 2034, increasing from USD 4.81 billion in 2025, at a CAGR of 4.65% during the forecast period 2025 to 2034.

Ottawa, Nov. 18, 2025 (GLOBE NEWSWIRE) -- The global kraft paper bag market size stood at USD 4.81 billion in 2025 and is projected to reach USD 7.25 billion by 2034, according to a study published by Towards Packaging, a sister firm of Precedence Research.

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What is Meant by Kraft Paper Bag?

The kraft paper bag market is significant because of its role as an eco-friendly option to plastic packaging, driven by government regulations, environmental concerns, and consumer preferences. Its importance is thus bolstered by the durability as well as versatility of kraft paper, which makes it suitable for a range of sectors, including food and beverage, retail, and industrial applications.

Brands use kraft paper bags to showcase a commitment to sustainability, which can attract environmentally conscious users. There is a rising consumer preference for brands that provide sustainable packaging options. Stricter regulations against single-use plastics are forcing businesses to switch to more sustainable packaging, such as kraft paper bags. The market is also fueled by the expansion of e-commerce and the demands of the food and beverage sector, which need durable and eco-friendly packaging.

Major Government Initiatives for Kraft Paper Bags:

Bans on Single-Use Plastics (SUPs): Numerous governments, including India and several US states, have implemented full or partial bans on specific single-use plastic items, directly increasing the demand for alternatives like kraft paper bags.
Extended Producer Responsibility (EPR) Guidelines: Policies in regions like the EU and India introduce EPR, making manufacturers, importers, and brand owners responsible for the collection and recycling of their packaging waste, including a push towards more easily recyclable materials like paper.
Thickness Regulations for Plastic Bags: To encourage reuse and reduce littering, some regulations (e.g., in India) mandate an increase in the minimum thickness of plastic carry bags, which indirectly favors the adoption of paper bags as a more cost-effective alternative for single-use applications.
Awareness and Education Campaigns: Governments and affiliated bodies (e.g., Swachh Bharat Mission in India) run public campaigns to educate consumers about the environmental hazards of plastic and encourage the use of eco-friendly alternatives like paper or cloth bags.
Incentives for Sustainable Manufacturing: Government programs, such as the PMEGP Scheme in India, may offer subsidies or support to businesses (including MSMEs) transitioning to or establishing manufacturing units for eco-friendly packaging solutions like paper bags.

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What are the Latest Trends in the Kraft Paper Bag Market?

Development of Innovative Functional Features

Consumers are increasingly environmentally conscious and even actively choose brands that use eco-friendly, recyclable, and even biodegradable packaging. This strong preference forces businesses to innovate along adopt kraft paper bags, which naturally work with circular economy goals. Moreover, specific industries have unique needs. The food service sector demands features such as grease-resistant linings, tamper-evident seals, and insulated bags for hot foods, which producers are developing to meet the growing need for takeout and delivery services.

Integration of Digital Elements

Digital technologies such as QR codes, RFID tags, and even blockchain systems are embedded into paper bags to provide real-time visibility throughout the logistics chain. This assistance ensures product authenticity, combat counterfeiting, and enhances overall supply chain management for brands as well as consumers alike. Smart packaging applications can incorporate sensors that monitor factors such as temperature or humidity for perishable goods, guaranteeing product freshness during transport and storage, and reducing waste.

What Potentiates the Growth of the Kraft Paper Bag Market?

Stringent Government Regulations Against Single-Use Plastics

This is mainly by mandating a shift to sustainable options, which drives the need for readily available, biodegradable, and recyclable materials such as kraft paper. Industries that traditionally utilized significant amounts of single-use plastic, like retail, food & beverage services, and even e-commerce, are now rapidly transitioning to paper-driven solutions. For example, companies such as Flipkart have replaced plastic polybags with some recycled kraft paper pouches.

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Regional Analysis

Who is the Leader in the Kraft Paper Bag Market?

Asia-Pacific leads the market because of a combination of factors, including a large and rising need from urbanization, e-commerce, and even food industries; a strong supply chain with cost-effective production due to raw material availability and also lower labor costs; and government support through regulations restricting single-use plastics. China, mainly, is a major hub for paper bag production, with advanced technology and even economies of scale that enhance efficiency and product quality.

China Kraft Paper Bag Market Trends

China’s market is rising due to environmental regulations, growing consumer knowledge of sustainability, and booming retail and e-commerce sectors. Government policies banning single-use plastics and encouraging sustainable packaging are the main drivers, increasing the need for eco-friendly options across sectors such as food, apparel, and e-commerce logistics.

Japan Market Trends

Japan's market is boosted by government regulations against plastic bags, increasing environmental knowledge, and a strong retail and even food service sector. Key trends include the ultra-light bags, the advancement of high-durability, the need for eco-friendly features such as FSC-certified paper, and the usage of bags for packaging food and retail goods.

How is the Opportunistic Rise of North America in the Kraft Paper Bag Industry?

This is driven mainly by increasing consumer environmental knowledge, stringent government regulations on single-use plastics, and even the rapid expansion of e-commerce. Numerous states and municipalities in the U.S. and Canada have incorporated bans or restrictions on single-use plastic bags. This legislative push forces retailers as well as food service manufacturers to transition to eco-friendly alternatives, creating a significant, forced need for kraft paper bags. The U.S. has a strong paper recycling rate, which supports a circular economy for paper products and even reinforces their sustainable image compared to plastics.

U.S. Kraft Paper Bag Market Trends

The U.S. market is driven by sustainability regulations and rising consumer choice for eco-friendly products, leading to a rebound in demand after a temporary dip. Key trends include the supremacy of brown kraft paper, expansion in the food service along with e-commerce sectors, a growth in customizable and even premium packaging options, along innovations in durable, high-quality designs.

Canada Market Trends

The Canadian market is rising due to the increasing need for sustainable packaging, boosted by government regulations against single-use plastics and even rising consumer awareness. Key trends involve the strong performance of brown kraft paper because of its durability and even eco-friendly properties, expansion in e-commerce and food delivery, and a shift in the retail sector towards paper options.

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Segment Outlook

Paper Insights

Why did the Brown Kraft Paper Segment dominate the Kraft Paper Bag Market in 2024?

This is due to its combination of durability, strength, and eco-friendly properties, such as being biodegradable and recyclable. Thus, this makes it a preferred, sustainable preference for businesses and even consumers in retail, food, and also e-commerce, mainly as governments ban single-use plastics along environmental awareness grows. Increasing consumer and corporate knowledge of environmental impact has led to an increase in the need for eco-friendly packaging solutions, thus, with brown kraft paper bags being a primary choice.

The white kraft paper segment expected to grow at the fastest rate in the market, driven by its bright, clean, and smooth appearance, which makes it ideal for vibrant branding, along with conveying a sense of quality and even cleanliness. Industries are willing to pay a premium for the improved aesthetic appeal of white kraft paper to generate a more upscale brand image. Moreover, retail, food and beverage, along with luxury goods sectors, are increasingly utilizing white kraft paper to improve their brand image and even appeal to environmentally conscious users who are looking for quality, sustainable options to plastic.

Product Insights

Why did the Pasted Valve Segment Dominate the Kraft Paper Bag Market in 2024?

This is due to its automated filling lines, compatibility with high-speed, which are vital for industries such as construction and even chemical manufacturing. These bags are programmed with a valve for efficient, along with dust-free filling and sealing, making them ideal for bulk packaging of granular, powdered, and liquid products such as cement, flour, and animal feed.

Thickness Insights

Why did the 1 Ply Segment Dominate the Kraft Paper Bag Market in 2024?

This is because of its cost-effectiveness, driven by lower production costs and reduced transportation expenses, and its suitability for a broad range of applications that don't need heavy-duty strength. 1-ply bags are cheaper to manufacture, which makes them an attractive, low-cost packaging alternative for businesses seeking to reduce operational expenses. Bans on single-use plastics have increased the need for alternatives such as kraft paper bags, further boosting the market for all kinds of kraft bags, including 1-ply.

End Use Insights

Why did the Food Service Segment dominate the Kraft Paper Bag Market in 2024?

This is due to its combination of functionality, sustainability, and branding advantages. The high need for quick-service restaurants and online delivery services is boosted by consumer and regulatory pressure to decrease plastic waste, while kraft paper offers the necessary features, such as breathability, grease resistance, and durability for food safety and freshness. Kraft paper bags offer a versatile surface for printing, permitting food businesses to improve their branding and also marketing efforts to attract customers in a competitive market.

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Recent Breakthroughs in the Global Kraft Paper Bag Industry

In October 2024, Mondi, a worldwide leader in sustainable packaging and paper, will be showcasing its portfolio of many innovative sustainable packaging solutions at the end of this year’s Scanpack for a broad range of end-markets. The packaging leader showcased fit-for-purpose innovation solution’s solutions from its packaging portfolios made by paper and plastic, or a combination of both paper & plastic

Top Companies in the Kraft Paper Bag Market & Their Offerings:

Mondi Group: Produces sustainable sack and specialty kraft papers that are converted into strong industrial and shopping bags.
Smurfit Kappa Group: Manufactures industrial and retail kraft paper bags with enhanced tear resistance and moisture protection.
WestRock Company: Supplies various kraft paper bags for the retail and foodservice industries, including grease-resistant and custom-printed options (now part of Smurfit WestRock).
Georgia-Pacific LLC: Provides diverse kraft paper products, used for bulk supply to retail chains and the food industry.
PaperKraft Industries: Offers a range of brown and white kraft paper bags, grocery bags, and custom printed carry bags.
Ronpak: Manufactures custom printed paper carry-out bags, pinch bottom bags, and flat wraps primarily for the foodservice and retail sectors.
Huhtamäki Oyj: Offers paper bags primarily for the foodservice industry, focusing on functional properties like heat resistance and insulation.
International Paper Company: Produces a variety of kraft paper bags, including strong grocery bags and multi-wall industrial bags.
Seaman Paper Company: Specializes in high-quality, custom-printed paper bags for retail, promotional, and gift applications.
BillerudKorsnäs (Billerud): Provides high-performance kraft and specialty papers optimized for efficient processing into strong industrial bags.
SHAMROCK: Supplies a wide range of natural and recycled kraft paper products in rolls and sheets for conversion into various bags.
Nordic Paper: Produces high-quality unbleached kraft paper used as the base material for different types of paper bags.
Novolex (Bagcraft, Duro Bag Brand): Offers a comprehensive selection of paper bags for retail, grocery, and foodservice applications.
Proampac LLC: Provides flexible packaging solutions including paper-based options for food and consumer goods, focusing on customized designs.
B&H Bag Company: Offers various food service paper bags, including brown kraft and white bags with block or flat bottoms for items like coffee, bread, and takeaways.

Segments Covered in the Report

By Paper

Brown Kraft Paper
White Kraft Paper

By Product

Sewn Open Mouth
Pinched Bottom Open Mouth
Pasted Valve
Pasted Open Mouth
Flat Bottom
Others

By Thickness

1 Ply
2 Ply
3 Ply

By End Use

Food Service
Retail
Pharmaceutical
E-commerce
Others

By Geography

North America
- U.S.
- Canada
Europe
- U.K.
- Germany
- France
Asia-Pacific
- China
- India
- Japan
- South Korea
- Malaysia
- Philippines
Latin America
- Brazil
- Rest of Latin America
Middle East & Africa (MEA)
- GCC
- North Africa
- South Africa
- Rest of the Middle East & Africa

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About Us

Towards Packaging is a global consulting and market intelligence firm specializing in strategic research across key packaging segments including sustainable, flexible, smart, biodegradable, and recycled packaging. We empower businesses with actionable insights, trend analysis, and data-driven strategies. Our experienced consultants use advanced research methodologies to help companies of all sizes navigate market shifts, identify growth opportunities, and stay competitive in the global packaging industry.

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