Craft Bags Market
Craft Bags Market Overview 2025-2035
The global craft bags market is witnessing substantial growth due to the rising demand for eco-friendly packaging solutions, especially in retail, food, and grocery sectors. The market, valued at USD 1,637.3 million in 2025, is projected to reach USD 2,517.8 million by 2035, expanding at a CAGR of 5.4% during the forecast period.
| Market Attributes |
Details |
|---|---|
|
Market Size (2025) | USD 1,637.3 million |
|
Projected Market Size (2035) | USD 2,517.8 million |
|
CAGR (2025 – 2035) | 5.4% |
Market Trends & Growth Drivers
Key Factors Driving Market Expansion
- Eco-Friendly Packaging Preferences
- Increased consumer awareness regarding sustainable and biodegradable packaging solutions.
- Governments imposing stringent regulations on plastic usage, promoting paper-based alternatives like craft bags.
- Growth in Food & Beverage Industry
- Widespread adoption of craft bags for food takeaways, bakery items, and groceries.
- Custom printing and branding on craft bags enhance product visibility and marketing impact.
- Expansion of E-Commerce & Retail
- Online retailers are increasingly utilizing paper-based bags for sustainable shipping.
- Craft bags provide enhanced durability and better recyclability than plastic counterparts.
- Consumer Shift Towards Convenience Packaging
- Lightweight, easy-to-carry grocery and food craft bags are gaining popularity.
- Retailers are opting for custom-sized, branded craft bags to improve customer experience.
Segment & Category Analysis
By Product Type
Block-bottom craft bags lead the market due to their versatile applications in groceries, retail, and food packaging.
| Product Type |
Market Share (2025) |
|---|---|
|
Block Bottom Bags | 45.3% |
|
Paper Carry Bags | 27.6% |
|
Checkout Bags | 14.8% |
|
Confectionery Bags | 12.3% |
By Material Type
Recycled paper is the preferred material due to environmental sustainability concerns.
| Material Type |
Market Share (2025) |
|---|---|
|
Recycled Paper | 58.9% |
|
Virgin Kraft Paper | 41.1% |
By End-Use Industry
The food industry remains the dominant sector, followed by retail and personal care packaging.
| End-Use Industry |
Market Share (2025) |
|---|---|
|
Food & Beverages | 42.1% |
|
Retail & Grocery | 35.8% |
|
Pharmaceuticals | 12.5% |
|
Cosmetics & Personal Care | 9.6% |
Regional Insights & Market Opportunities
| Region |
CAGR (2025 – 2035) |
Key Growth Factors |
|---|---|---|
|
North America |
4.9% | Stringent bans on plastic bags, high consumer awareness, and growing retail sector. |
|
Europe |
5.2% | Sustainability regulations and a strong food packaging industry. |
|
Asia-Pacific |
6.1% | Rapid urbanization, increasing retail outlets, and growing demand for eco-friendly packaging. |
|
Latin America |
4.7% | Rising disposable income and increasing adoption of paper-based packaging. |
|
Middle East & Africa |
4.2% | Expanding supermarket chains and regulatory pressure on plastic use. |
Regional Highlights
- United States (4.9% CAGR) – Growing adoption of sustainable packaging regulations in retail and food industries.
- China (6.3% CAGR) – Increasing paper packaging production and e-commerce expansion.
- Germany (5.1% CAGR) – Rising government incentives for eco-friendly packaging.
- India (6.5% CAGR) – Government initiatives against single-use plastics boosting craft bag sales.
Market Challenges & Constraints
- Cost of Production & Raw Material Prices
- The fluctuating cost of recycled paper and production processes increases manufacturing expenses.
- Plastic alternatives remain cheaper, making adoption slower in price-sensitive markets.
- Competition from Alternative Packaging Solutions
- Reusable cloth bags and bio-based plastics pose competition to craft bags.
- Paper bags with water-resistant coatings are preferred over traditional craft bags in certain applications.
- Durability & Performance Issues
- Water resistance and strength limitations of craft bags make them less suitable for wet or heavy products.
- Innovations in coating solutions are required to enhance durability.
Competitive Landscape & Key Players
The craft bags market is highly fragmented, with numerous global and regional manufacturers investing in sustainable solutions and customization options.
Major Companies & Strategic Developments
- International Paper – Expanding eco-friendly craft bag production with recyclable coatings.
- Stanpac – Introducing high-durability paper bags for grocery and food applications.
- Kent Paper – Innovating in customizable craft bags with premium printing options.
- Biopac – Focusing on biodegradable and compostable paper bags for retail.
- Genpak – Strengthening presence in takeaway and foodservice packaging.
- Novolex – Developing water-resistant craft bags for diverse applications.
📌 Contact our advisory team to explore leading and emerging players in the industry.
Frequently Asked Questions (FAQs)
1. What is the projected market size of the craft bags industry in 2025?
The market is expected to reach USD 1,637.3 million in 2025.
2. What is the estimated growth rate of the market from 2025-2035?
The market is projected to expand at a CAGR of 5.4% during this period.
3. Which region is expected to witness the highest growth?
Asia-Pacific is projected to register the highest CAGR at 6.1%, driven by increased demand for biodegradable packaging and strict plastic ban regulations.
4. Which industries are driving the demand for craft bags?
The food & beverage, grocery, and personal care industries are the primary consumers of craft bags.
5. What are the latest trends in the market?
- Customized and printed craft bags for branding purposes.
- Use of water-resistant coatings for improved durability.
- Introduction of fully biodegradable and compostable paper bags.
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