Grocery Bag Market
Grocery Bag Market Overview 2025-2035
The grocery bag market is projected to grow significantly, reaching USD 13.8 billion by 2025, with an anticipated CAGR of 5.6% to hit USD 21.1 billion by 2035. The surge in demand for eco-friendly, reusable, and biodegradable grocery bags is reshaping the market landscape. Regulatory restrictions on plastic usage, evolving consumer preferences, and sustainable retail initiatives are the primary growth drivers.
| Market Attributes |
Details |
|---|---|
|
Market Size (2025) |
US$ 13.8 billion |
|
Projected Market Size (2035) |
US$ 21.1 billion |
|
CAGR (2025-2035) |
5.6% |
Key Market Trends
- Sustainability Shift – Increasing bans on single-use plastic bags are fueling the adoption of biodegradable, compostable, and reusable alternatives.
- Retailer Incentives – Supermarkets and e-commerce platforms are promoting eco-friendly grocery bags, offering discounts and loyalty rewards for reusable bags.
- Customization & Branding – Personalized bags with logos and designs are gaining traction as brands leverage sustainable packaging for marketing.
- Technology Integration – Smart grocery bags with RFID tags enable purchase tracking and improve logistics.
- E-commerce Expansion – Growth in online grocery delivery fuels the demand for durable and recyclable grocery bags.
Segment & Category Analysis
By Material
| Material Type |
Market Share (2025) |
|---|---|
|
Plastic (PE, PP, PET) |
70% |
|
Paper |
15% |
|
Biodegradable Materials |
10% |
|
Fabric (Cotton, Jute) |
5% |
Plastic-based grocery bags dominate due to their durability and low cost, but biodegradable and fabric-based alternatives are growing in popularity due to sustainability concerns.
By Application
| Application |
Market Share (2025) |
|---|---|
|
Household |
55% |
|
Shopping & Retail |
35% |
|
Commercial |
10% |
Households remain the primary consumers of grocery bags, with increased demand from supermarkets, hypermarkets, and convenience stores.
By Product Type
| Product Type |
Market Share (2025) |
|---|---|
|
Reusable Grocery Bags |
60% |
|
Non-Reusable Grocery Bags |
40% |
Reusable grocery bags are gaining popularity due to rising consumer awareness and strict regulations on plastic waste.
Regional Analysis
| Country |
CAGR (2025-2035) |
|---|---|
|
United States |
4.1% |
|
Spain |
4.1% |
|
India |
5.5% |
|
China |
5.2% |
|
Japan |
5.0% |
- North America: Dominates the market due to high disposable incomes and sustainable packaging trends.
- Asia-Pacific: Fastest-growing region, with India and China leading in demand for biodegradable grocery bags.
- Europe: Increasing regulatory frameworks are driving innovation in compostable grocery bags.
Competitive Landscape
The grocery bag market is highly competitive, with major players focusing on sustainable material innovations, smart packaging solutions, and collaborations with retailers.
Key Companies
- RediBag
- Lotus Sustainable
- Eco-Bags Products
- ToughBuilt Industries
- ToteBagFactory
- Custom Earth Promos
- Veno Bags
- Baggu
- BagPodz
- Planet E Bags
Market Challenges
- Regulatory Hurdles – Stricter bans on single-use plastic impact traditional plastic bag manufacturers.
- Cost Implications – Biodegradable and reusable bags are more expensive than conventional plastic bags.
- Consumer Adaptation – Transitioning to sustainable bags requires behavioral shifts in consumer purchasing habits.
Frequently Asked Questions (FAQs)
1. How big is the grocery bag market?
The market is valued at USD 13.8 billion in 2025 and expected to reach USD 21.1 billion by 2035.
2. What is the market growth rate?
The grocery bag market is growing at a CAGR of 5.6% from 2025 to 2035.
3. Which country has the highest growth potential?
India leads with a CAGR of 5.5%, driven by rising environmental concerns and government policies favoring biodegradable materials.
4. Why are reusable grocery bags gaining traction?
Growing eco-awareness, government regulations, and retailer incentives are propelling the shift to reusable bags.
5. How are retailers supporting sustainable grocery bags?
Retailers are offering discounts, loyalty rewards, and promotional campaigns for customers using reusable grocery bags.
Call to Action
Take action now! Contact us today to access the full report and propel your business forward.