Retail Bag Market Research Report by Material [Plastic (HDPE, LDPE, PP, etc.), Paper (Kraft, Coated, Recycled, etc.), Fabric (Cotton, Jute, Non-woven, etc.), Biodegradable Compostable Materials], by Product Type (Shopping Bags, Tote Bags, Die-Cut Handle B

The global retail bag market will expand at a CAGR of 5.64% to achieve a value of USD 29,422.52 million by the end of 2032. A retail bag refers to the shopping bag given to customers at the point of sale to carry their goods. They are available in different forms such as paper, plastic, or reusable cloth bags, often customized with the retailer’s branding.

Environmental consciousness is on the rise and is having a major impact on the market for retail bags all over the world. Problems with the environment, such as the increased use of plastic, poor waste management, and climate change, are shaping buyers' choices, especially among the younger generation, which is more interested in sustainability than in cost or convenience. Retailers and producers are turning to recyclable, biodegradable, and reusable items, which are supported by certifications and eco-labeling. Retailers and manufacturers are adopting recyclable, compostable, and reusable alternatives, backed by certifications and eco-labeling. External pressure from NGOs, influencers, and regulatory bodies amplifies this trend, making sustainability not just a consumer preference but a critical growth driver for the industry.

Key Company Development
Plasta Group has been reinvigorating the environmentally-friendly bag industry with its methodical moves. One of the major milestones was in January 2024, when it decorated the Baltic market with the introduction of “Trash Panda,” a concept of waste bags that are completely made of recycled household plastic. In April 2024, Plasta GmbH announced the launch of ECOP¬lasta, an inventive brand that takes care of producing garbage bags and liners made out of recycled post-consumer waste only. At the same time, with the October 2023 acquisition of LLC GEROVÉ, the group got the opportunity to upgrade its production capacity, thus permitting a larger use of recycled materials and allowing the group to expand its customer base.

Major Competitors
Major players in the global retail bags market include Smurfit Kappa, BIOPAK PTY LTD, Mondi plc, INTERNATIONAL PAPER, Novolex Holdings, Inc., Stora Enso, Huhtamäki Oyj, HE Koch & Co., Billerud AB, Attwoods, The Carry Bag Company, Carrier Bag Shop, Inteplast Group, Dongguan Huanyou, Package Products Co., Ltd., and COSMOPLAST UAE.

Report Attribute Details
• Market Size 2022: USD 15,237.0 Million
• Market Size 2035: USD 29,422.52 Million
• CAGR (2024-2035): 5.64%
• Base Year: 2023
• Market Forecast Period: 2024-2035

Market Segmentation Insights
• By Material: Plastic – 4.19%, Paper - 6.34%.
• By Product Type: Shopping Bags – 5.70%, Tote Bags – 5.56%.
• By End Use Industry: Grocery Supermarkets – 5.65%, Fashion Apparel – 6.08%.
• By Distribution Channel: Online Retail – 5.67%, Offline Retail – 5.62%.
• By Capacity: Small (Up to 5kg) – 5.59%, Medium (5kg – 10kg) – 5.63%.

Regional Perspectives
One of the main drivers for change in the retail bag market in North America is the tightening of environmental laws and consumers’ demands/supervision to companies in the giving of a wide range of green alternatives. The idea of the U.S. to do away with plastic waste by 2040 has deeply impacted the whole industry causing the adoption of biodegradable and recyclable bags to become a standard practice.
Europe has ushered itself in the front line among the world leaders in terms of environmentally conscious reforms in the packaging industry within the retail bag market. Commitments made on the whole EU, supported by the tough recycling targets in place, force companies to limit their use of single-use plastics. National policies in the likes of the UK and France are bringing about a market shift from paper- and fabric-based products towards compostable ones.
Asia-Pacific is a vibrant and changing market for the retail bag, with rules and consumer awareness that have changed the market quickly. China and India are pushing for more strict bans and waste regulations, whereas Japan has been at the forefront of creating innovative compostable and reusable alternatives.
Brazil, Argentina, and Colombia have taken steps to regulate plastic usage and promote biodegradable alternatives. Urban centers are leading the shift as awareness of sustainability grows, although small retailers face higher cost barriers. International chains such as Carrefour and Walmart are expanding partnerships with suppliers of eco-friendly bags, driving further growth across the region.
Africa’s retail bag market is emerging as countries adopt firm stances on plastic waste reduction. Kenya and South Africa are leading with comprehensive bans, while other nations are introducing regulations to curb plastic pollution. Growing environmental awareness and urbanization are fueling consumer demand for sustainable bags. Show more