Kraft Paper Bags Market Poised for Strong Growth, Reaching USD 9.48 Billion by 2035
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The kraft paper bags market is poised for significant expansion in the coming decade. Valued at approximately USD 4,960 million in 2025, the market is expected to nearly double, reaching around USD 9,480 million by 2035. This represents a solid compound annual growth rate (CAGR) of 6.7%, indicating steady and robust demand growth globally.
This growth projection is underpinned by multiple factors that reflect both evolving consumer preferences and regulatory frameworks targeting environmental sustainability.
The global packaging industry is undergoing a transformative shift, with sustainability and environmental consciousness taking center stage. Among the myriad alternatives emerging in response to environmental concerns, kraft paper bags have carved out a prominent position.
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Kraft paper bags are made from kraft paper, a robust and coarse material produced by the chemical conversion of wood into pulp through the kraft process. These bags are celebrated for their strength, biodegradability, and recyclability. Typically brown or natural in color, kraft paper bags are often used as a sustainable substitute for plastic bags in retail, food service, and e-commerce packaging.
Their inherent properties of durability, affordability, and environmental friendliness, make them an attractive choice for businesses seeking to align with sustainability goals while meeting functional packaging requirements.
Key Takeaways From the Kraft Paper Bags Market
- United States kraft paper bags market expected to grow at a CAGR of 6.5% from 2025 to 2035.
- United Kingdom projected CAGR of 6.0% over the same period.
- European Union market anticipated to grow at a CAGR of 6.3%.
- Japan’s market forecasted to expand at a CAGR of 6.1%.
- South Korea showing a strong CAGR of 6.4% between 2025 and 2035.
- Solid Unbleached Board segment predicted to dominate with 54.1% market share in 2025.
- The 2 & 3 ply thickness segment expected to hold the largest share at 61.7% in 2025.
Rising Consumer Preference for Eco-Friendly Packaging
One of the most significant drivers of the Kraft paper bags market is the increasing consumer awareness and preference for sustainable and biodegradable products. With heightened global concern over plastic pollution’s adverse effects on marine life and ecosystems, consumers are demanding alternatives that reduce environmental impact.
Kraft paper bags, made from natural wood pulp and often sourced from sustainably managed forests, offer a renewable and biodegradable solution that resonates with environmentally conscious shoppers.
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Key Driving Factors of Kraft Paper Bags Market
- Growing Environmental Awareness: Increasing consumer preference for eco-friendly and biodegradable packaging solutions is driving the demand for Kraft paper bags as a sustainable alternative to plastic bags.
- Strict Government Regulations: Implementation of stringent regulations and bans on single-use plastic bags worldwide is accelerating the adoption of Kraft paper bags in retail and packaging industries.
- Rising Retail and Foodservice Sectors: Expansion of retail chains, supermarkets, and the foodservice industry boosts the demand for Kraft paper bags for packaging and carrying goods.
- Cost-Effectiveness and Durability: Kraft paper bags offer an economical and sturdy packaging option, appealing to businesses aiming to reduce costs without compromising quality.
- Customization and Branding Opportunities: The ease of printing and customization on Kraft paper bags allows companies to promote their brand effectively, enhancing their marketing efforts and customer engagement.
Innovation in Kraft Paper Bag Design and Functionality
Innovation is a key trend shaping the future of the Kraft paper bags market. Manufacturers are investing in developing bags with enhanced strength, moisture resistance, and aesthetic appeal to compete with plastic counterparts. For example, multi-ply Kraft paper bags combine durability with biodegradability, making them suitable for carrying heavier items without compromising environmental benefits.
Additionally, some Kraft paper bags are being treated with natural coatings to improve water resistance or incorporate biodegradable inks and adhesives to maintain full compostability. These innovations not only improve product performance but also expand the application scope of Kraft paper bags in areas previously dominated by plastic or non-paper alternatives.
Competitive Landscape: Key Players and Strategies
The kraft paper bags market is moderately fragmented, with a mix of global and regional players competing to capture market share. Leading companies focus on several strategic initiatives:
- Mondi Group: Expanded production of 100% recyclable kraft paper bags for retail and food packaging in 2024.
- Novolex ( Duro Bag): Launched grease-resistant and moisture-resistant kraft bags for foodservice in 2025.
- Smurfit Kappa Group: Provided printed kraft paper bags with FSC certification and custom branding options in 2024.
- International Paper: Enhanced production lines to meet large-scale retail demand for reinforced kraft shopping bags.
