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Global plastic bag market value to rise from $24.7B in 2023 to $34.4B by 2033

The retail sector is anticipated to create significant revenue-generation opportunities for plastic bag manufacturing companies through 2033. The target segment will likely progress at a 2.8% CAGR, totaling a revenue of US$ 14,598.1 million by 2033

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MILAN – The global plastic bag market size is estimated to rise from US$ 24,673.5 million in 2023 to US$ 34,424.5 million by 2033, according to a report from by Future Market Insights (FMI). Sales of plastic bags are anticipated to climb at a CAGR of 3.4% during the forecast period. In 2022, the global plastic bag market value totaled US$ 23,745.9 million and is set to exhibit a y-o-y growth of 3.9% in 2023.

Top Segments and their Statistics

As per the latest plastic bag industry analysis, the polyethylene (PE) segment is set to account for around 2/3rd of market share in terms of value by 2033. This is due to the rising inclination of manufacturers toward polyethylene for making plastic bags.

The garbage/refuse/trash bags segment is projected to dominate the worldwide plastic bag market. It will likely hold a market share of about 36.1% by 2033. Over the forecast period, demand for garbage/refuse/trash bags is expected to rise at a CAGR of 4.4%.

The retail sector is anticipated to create significant revenue-generation opportunities for plastic bag manufacturing companies through 2033. The target segment will likely progress at a 2.8% CAGR, totaling a revenue of US$ 14,598.1 million by 2033.

Key Plastic Bag Market Highlights

Market to Expand Around 1.4X through 2033

The global market for plastic bags is forecast to expand around 1.4X through 2033, amid a 0.7% increase in estimated CAGR compared to the historical one. This is due to the robust growth of the retail sector, the high popularity of biodegradable plastic bags, and the increasing usage of plastic bags in households.

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Other factors expected to drive demand for plastic bags include:

  • Multiple benefits of plastic bags, including convenience, versatility, and cost-effectiveness
  • Growing demand for safe and hygienic packaging solutions in food and healthcare sectors
  • Expansion of the e-commerce industry
  • Rapid urbanization and increasing disposable income
  • Growing environmental concerns to facilitate the growth of bioplastic packaging bags
  • Transition toward sustainable alternatives to plastic shopping bags
  • Increasing demand for retail and grocery packaging solutions

Key Trends in the Plastic Bag Market Include-

  • Customization trend
  • Surging demand for food packaging
  • Innovation in materials
  • Escalating demand for eco-friendly plastic bags
  • Transition toward using recycled plastic bags

North America and East Asia remain leading markets

North America and East Asia are projected to remain the leading consumers of plastic bags globally. As per the latest analysis, East and North America are set to cumulatively hold around 39.4% share of the global plastic bag industry in 2033.

It is due to factors such as the exponential growth of end-use industries, including retail, pharmaceutical, and food & beverage. The growing demand for eco-friendly plastic bags and the increasing usage of retail packaging bags are also projected to aid sales.

The United States is expected to dominate the global plastic bag market. On the other hand, countries such as India and China are set to emerge as highly lucrative markets for plastic bag manufacturers. This is owing to rapid population growth, urbanization, surging demand for packaged food, and rising disposable income.

Key manufacturers utilize eco-friendly materials to cope with regulations

Both manufacturers and consumers are becoming more aware of the environmental impact of plastic bags. This has prompted them to look for eco-friendly alternatives. To walk with this trend, key manufacturers are utilizing sustainable materials to develop eco-friendly and biodegradable plastic bags.

Several countries are also implementing initiatives and regulations to promote sustainability and reduce plastic waste. This is projected to create a high demand for biodegradable plastic bags.

Key Plastic Bag Market Dynamics

Rising Convenience Packaging Demand to Boost Growth

The demand for convenience packaging, characterized by user-friendly design and easy accessibility, has surged in recent years. This is benefitting the business landscape across several industries, including plastic packaging since it is a key raw material for the manufacturing of lightweight and easy-to-use bags.

Increasing population and urbanization, rising disposable income, and improving standards of living in developing countries are factors contributing significantly to the growing demand for convenience packaging. This is consequently impacting plastic bag sales.

For instance, as per the Organization for Economic Co-operation and Development (OECD), real household income increased by 0.2% across the OECD countries in the third quarter of 2022. Similarly, the world population is experiencing rapid growth and is expected to rise by over 20% in the next 30 years, as per data from the United Nations (UN). This growth is expected to drive consumption and consequently push the demand for plastic bags.

Outline of Key Trends in the Plastic Bag Market Shaping Growth

Several manufacturers are actively incorporating post-consumer resin (PCR) materials to produce different types of products. The integration of PCR into plastic bags, whether for applications involving food or non-food items, is slowly taking shape as several manufacturers are utilizing this material to achieve sustainability goals.

For instance, in June 2022, sustainable packaging supplier Grounded Packaging announced the launch of its new sustainable line of plastic bags, RE: MONO, which contains over 80% post-consumer recycled (PCR) content.

Global plastic bag market: Country-wise Insights

Booming Retail Sector Elevating Plastic Bag Demand in India
India’s plastic bag market value is estimated to reach US$ 2,853.5 million by 2033. Demand for plastic bags in the country is predicted to rise at a CAGR of 4.3% during the forecast period. This is attributable to the rising usage of plastic bags across India’s thriving retail sector.

According to the India Brand Equity Foundation (IBEF), India’s retail industry is projected to surge by 9% from 2019 to 2030. It will attain a valuation of US$ 1,407 million in 2026 and over US$ 1.8 trillion by 2030. This will create growth opportunities for plastic bag manufacturers as these bags are often utilized for packaging products in the retail sector.

India has the third-leading number of e-retail shoppers. The retail industry in India will be supported by increasing urbanization, rising income, and favorable demographics, thereby expanding sales of plastic bags in the country.

Rising Demand for Convenience to Bolster Sales in the United States

The United States plastic bag market size is predicted to reach US$ 4,215.7 million by 2033. Over the projection period, sales of plastic bags in the United States are likely to soar at a 2.3% CAGR. This is due to the growing demand for convenience and the expansion of e-commerce.

Plastic bags are an affordable and convenient packaging solution used for applications such as food, waste disposal, and retail. This convenience is leading to a rising demand for plastic bags from businesses and consumers in the United States.

Another prominent factor expected to boost sales and improve the United States plastic bag market share is the innovations in materials. Continuous research in material science is leading to the development of novel biodegradable and compostable plastics. The rising adoption of these eco-friendly materials could affect the market landscape in the United States.

Growing popularity of sustainable plastic bags boosting Japan

Japan’s plastic bag market revenue is projected to increase at a 3.9% CAGR, totaling US$ 2,857.5 million by 2033. This can be attributed to the rising preference for sustainable plastic bags and increasing government initiatives to promote sustainability.

The government of Japan is launching several initiatives to promote sustainable packaging solutions, including compostable and biodegradable plastic bags. This is expected to boost the plastic bag industry in the country during the forecast period.

The increasing popularity of online grocery is another key factor impacting sales of plastic bags in Japan. People in the country are showing an inclination toward purchasing products through online grocery stores. This will likely fuel the demand for grocery bags or plastic carry bags as they are widely used for packaging and shipping groceries.

Robust growth of food & beverage industry driving demand in China

China is anticipated to dominate the East Asia plastic bag market during the forecast period. It is expected to attain a valuation of US$ 3,687.6 million in 2033. Over the assessment period, the demand for plastic bags in China is slated to surge at a 3.5% CAGR.

Several factors are expected to drive the demand for plastic bags in the country. These include rapid growth of the food & beverage industry, surging demand for packaged food items, and increasing import/export business.

In China, the food & beverage industry is the leading consumer of plastic bags. Rapid urbanization, changing eating habits, and economic growth are creating a high demand for packaged foods and beverages in China. This is anticipated to fuel sales of plastic bags.

Rising usage in HoReCa sector spurring growth in the United Kingdom

The United Kingdom’s plastic bag industry is projected to thrive at a steady CAGR of 2.4% during the assessment period. Plastic bag sales in the country are predicted to total US$ 902.7 million in 2033.
The growing usage of plastic bags in households, hotels, and restaurants is expected to boost the United Kingdom’s plastic bag market growth. Similarly, the rising popularity of biodegradable, compostable, and recyclable plastic bags is set to fuel sales in the country through 2033.

Competitive Landscape

Top manufacturers of plastic bags are focusing on developing innovations and advancements to stay relevant in the market. They are implementing strategies such as mergers, acquisitions, partnerships, collaborations, and price reductions to boost their revenue and strengthen their presence.

Recent Developments in the Plastic Bag Market

  • In August 2023, Reynolds Consumer Products, through its brand Hefty, announced the launch of the Ultra Strong line of lemon-scented waste bags for consumers.
  • In June 2023, Novolex Holdings announced the launch of new products under its Hilex brand of ProWAVE recyclable and reusable tote bags for packaging in supermarkets, restaurants, and retailers.
  • In January 2023, the RKW Group announced an investment into its Echte site, which has manufacturing lines for the production of valve sacks and trash sacks, among others.
  • In February 2022, ProAmpac LLC announced the acquisition of Belle-Pak Packaging, an award-winning flexible packaging manufacturer of plastic medical and clinical bags based in Canada.

These insights are based on a report by Ismail Sutaria Plastic Bag Market by Future Market Insights.

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