Australia Retail Bags Market Forecast Trends - Market Size, Share, Growth Analysis Report (2025-2034)

Australia Retail Bags Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia retail bags market size reached about USD 573.02 million in 2024. Aided by shifting consumer preferences, sustainability concerns, and regulatory pressures, the market is expected to grow at a CAGR of 5.10% between 2025 and 2034, reaching almost USD 939.80 million by 2034.

Australia’s growing awareness of environmental issues is playing a significant role in Australia retail bags market expansion. The increasing focus on reducing single-use plastics has led to a shift towards alternative materials and sustainable practices within the industry. This has been further reinforced by government legislation, such as the ban on plastic bags in many states and territories. As a result, both retailers and consumers are looking for environmentally friendly alternatives, such as reusable fabric bags, biodegradable plastics, and paper bags. The growing demand for these sustainable options has led to a surge in the production and use of eco-friendly bags, with many retailers offering reusable bags as an alternative to plastic ones.

As per the Australia retail bags market analysis, this shift towards sustainability is not only driven by government regulations but also by evolving consumer preferences. Australian consumers are becoming increasingly conscious of the environmental impact of their purchasing decisions. Many consumers are actively seeking retailers who prioritize sustainability, including those offering eco-friendly alternatives to traditional plastic bags. As a result, retailers are investing more in sustainable packaging solutions, including retail bags made from recycled materials or renewable resources, such as plant-based plastics. This growing preference for sustainable options is expected to drive further innovation in the retail bags market, with companies exploring new materials and technologies to meet the demand for eco-friendly products.

The rise of online shopping is having a significant impact on the Australia retail bags market development. With e-commerce sales continuing to increase, the demand for packaging, including retail bags, has expanded. While the traditional role of retail bags was mainly focused on in-store purchases, online retailing has led to the development of new bag solutions tailored for the needs of e-commerce businesses. For instance, many online retailers are opting for durable, reusable packaging for deliveries, which ensures the products arrive safely and can be reused by the consumer. This shift has also encouraged retailers to rethink their approach to packaging as part of their broader sustainability efforts.

The evolving regulatory environment is also shaping the Australia retail bags market dynamics. In addition to the state-level bans on single-use plastic bags, there are growing calls for national policies that address waste management and packaging sustainability. With governments seeking to reduce plastic pollution and promote recycling, the retail bags market must adapt to changing regulations. This may involve increased investments in bag recycling programs, as well as improvements in biodegradable or compostable bag options. Retailers are increasingly pressured to comply with these regulations, and as such, they are proactively adopting more sustainable packaging solutions, including biodegradable retail bags that break down more easily in the environment.

In response to consumer demand and regulatory pressures, the Australia retail bags market is expected to continue its shift towards eco-friendly products. This will likely include an increase in the availability of bags made from sustainable materials such as recycled plastics, organic cotton, and plant-based polymers. The innovation of biodegradable bags and other environmentally friendly alternatives will play a significant role in the market's growth. Retailers that are able to balance sustainability with cost-effectiveness will likely gain a competitive edge, as eco-conscious consumers seek to support businesses that align with their values.

According to the Australia retail bags market analysis, despite the shift towards sustainability, the cost of eco-friendly bags remains a consideration for both retailers and consumers. While the upfront costs of biodegradable or reusable bags may be higher than traditional plastic bags, the long-term environmental and economic benefits can make them a worthwhile investment. As production techniques improve and consumer demand grows, the cost of sustainable retail bags is expected to decrease, making them more accessible to a broader range of retailers and consumers.

Looking ahead, with the demand for eco-friendly solutions increasing, the Australia retail bags market will likely see further innovation and diversification in bag materials and designs. Additionally, the continued growth of online retail will contribute to the increasing demand for sustainable packaging solutions that meet the needs of both in-store and e-commerce retailers. With sustainability at the forefront of market trends, the future of the Australia retail bags market will be shaped by its ability to adapt to these changes while meeting the needs of consumers and businesses alike.

Market Segmentation

The market can be divided based on type, end use, and region.

Market Breakup by Type

• Paper and Natural fibre
• Plastic

Market Breakup by End Use

• Grocery Stores
• Hospitality
• Industrial
• Food Service
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia retail bags market. Some of the major players explored in the report by Expert Market Research are as follows:

• Detmold Holdings Pty. Ltd.
• Pacific National Enterprises Pty Ltd.
• Gispac Pty Ltd.
• Environmental Resources Pty Ltd. (Biotuff)
• Bag People Australia
• Polypac Converting
• Albury Enviro Bags
• PrimePac
• United Paper
• JMP Holdings
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.