Retail Bags Market Research Report Information By Material (Plastic, Paper, Fabric, Biodegradable), By Product Type (Shopping Bags Tote Bags, Die-Cut Handle Bags, T-Shirt Bags), By End-Use Industry (Grocery Supermarkets, Fashion Apparel, Electronics Appliances, Food & Beverage, Health & Beauty, Luxury Specialty Stores), By Distribution Channel (Online Retail, Offline Retail), By Capacity (Small, Medium, Large), and Region (North America, Europe, Asia-Pacific, Africa, Latin America, Middle East) - Forecast till 2035

Retail Bags Market Summary

As per MRFR Analysis, the Global Retail Bags Market was valued at USD 15.2 Billion in 2023 and is projected to grow to USD 25.24 Billion by 2032, with a CAGR of 5.80% from 2024 to 2032. The growth is driven by increased awareness of sustainable packaging solutions and the rise of e-commerce. The market is segmented by material type, with plastic bags dominating due to their durability and cost-effectiveness, while paper bags are gaining traction due to sustainability concerns. Grocery stores are the largest end users, but the food service segment is also expected to grow significantly. North America leads the market, followed by Europe and Asia-Pacific, with a notable shift towards eco-friendly alternatives.

Key Market Trends & Highlights

The Retail Bags market is witnessing significant trends driven by sustainability and e-commerce growth.

• Retail Bags Market Size in 2023: USD 15.2 Billion.
• Projected Market Size by 2032: USD 25.24 Billion.
• CAGR from 2024 to 2032: 5.80%.
• North America holds the largest market share due to eco-friendly regulations.

Market Size & Forecast

2023 Market Size: USD 15.2 Billion

2024 Market Size: USD 16.08 Billion

2032 Market Size: USD 25.24 Billion

CAGR (2024-2032): 5.80%

Largest Regional Market: North America.

Major Players

Key players include Smurfit Kappa Group PLC, BioPak Pty Ltd, Mondi Group PLC, El Dorado Packaging Inc., and International Paper Company.

Environmental awareness, regulatory changes, increasing convenience and portability, the rise of e-commerce, and production cost factors are driving the growth of the Retail Bags Market.

As per the Analyst at MRFR, the worldwide retail bag market has witnessed significant growth over the last few years as a result of growing demand for easy, green, and innovative packaging solutions from various retailing sectors. Previously, the market was controlled by a limited number of players that provided common bags, and consumers' tastes were quite homogeneous. 

But a range of factors have changed the situation. Initially, sustainability emerged as a prime mover, as consumers now make choices that lean toward the greener options of biodegradable, recyclable, and reusable bags. Firms are shifting in response to include post-consumer recyclable material and examining bioplastics in order to accommodate such needs.

 FIGURE 1: RETAIL BAGS MARKET VALUE (2019-2035) USD BILLION

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Retail Bags Market Opportunity

INNOVATION IN BIODEGRADABLE MATERIALS

A favorable opportunity for innovation of biodegradable materials is developing in the retail bag market due to the growing sustainability drive worldwide. Biodegradable bags made of biopolymers, such as cornstarch and algae, are an eco-friendly alternative to plastics. In August 2024, Bio Reform launched eco-friendly biodegradable bags prepared with corn waste, sugars, and cellulose. These compostable bags will decompose within 180 days and have substituted more than 0.006 billion plastic bags within two years. Bio Reform also offers an array of products consisting of carry bags, biomedical waste bags, garbage bags, food pouches, and book wraps. 

The improved environmental credibility of new biodegradable materials being developed by innovative companies will give those companies the edge over their competitors. These materials would be having the potential to biodegrade faster than petrochemical-based plastics, thereby diverting waste from landfills and contributing to the circular economy. Biodegradable bags can also be tailored for particular uses while satisfying environmental requirements. Different biodegradable choices for grocery shopping, takeout food bags, or fashion retail packaging are gaining traction now that companies are aiming to lower their carbon footprint and align themselves with consumers' preferences.

Retail Bags Market Segment Insights

Retail Bags by Material Type Insights

Based on the material, the global retail bag market has been bifurcated into plastic (HDPE, LDPE, PP, etc.), paper (Kraft, Coated, Recycled, etc.), fabric (Cotton, Jute, Non-woven, etc.), and biodegradable compostable materials. The Paper segment dominated the global market in 2024, while the Paper segment is projected to be the fastest–growing segment during the forecast period. Paper bags have gained significant traction in the global retail bag market, driven by increasing consumer preference for sustainable and eco-friendly alternatives. Kraft paper bags, known for their durability and high strength, are commonly used in grocery stores, fashion retail outlets, and department stores. 

Recycled paper bags are also popular, offering a more environmentally friendly option by reusing materials, thereby reducing the demand for virgin paper. The growing trend toward sustainability and environmental responsibility is a major factor propelling the demand for paper bags, as they are biodegradable and easily recyclable compared to plastic alternatives. The shift towards paper bags is particularly prominent in regions with stringent environmental regulations, such as Europe and North America, where consumers and businesses alike are increasingly adopting greener practices.

Retail Bags by Product Type Insights

Based on the product type, the global retail bag market has been bifurcated into shopping bags, tote bags, die-cut handle bags, and t-shirt bags. The Shopping Bags segment dominated the global market in 2024, while the Shopping Bags segment is projected to be the fastest–growing segment during the forecast period. Shopping bags are one of the most common types of retail bags, widely used across various retail environments, including grocery stores, supermarkets, and department stores. 

These bags are designed to carry a variety of items, offering a practical and versatile solution for customers during their shopping trips. Made from different materials such as plastic, paper, or fabric, shopping bags come in a variety of sizes and strengths to accommodate different types of products. Their popularity is driven by the growing demand for convenient, cost-effective, and functional packaging that retailers can offer to their customers. As consumer preference shifts towards sustainability, shopping bags made from biodegradable or recyclable materials have gained traction, providing an eco-friendly alternative to traditional plastic shopping bags.

Retail Bags by End-Use Industry Insights

Based on the end-use industry, the global retail bag market has been bifurcated into grocery supermarkets, fashion apparel, electronics appliances, food beverage, health beauty, and luxury specialty stores.  The Grocery Supermarkets segment dominated the global market in 2024, while the Fashion Apparel segment is projected to be the fastest–growing segment during the forecast period. The grocery supermarket segment remains one of the largest and most influential in the global retail bag market. This segment is driven by the high demand for packaging solutions that can carry a diverse range of products, from fresh produce to packaged goods. 

Grocery stores have been significant drivers of retail bag consumption due to the wide variety of bagging needs required for both fresh and non-perishable items. Historically, plastic bags have been the most commonly used option in supermarkets due to their cost-effectiveness and practicality. However, as environmental concerns grow, many supermarkets are shifting toward more sustainable options, such as paper, fabric, and biodegradable bags. This transition is largely driven by increasing regulations banning single-use plastics, which has spurred supermarkets to find eco-friendly alternatives that still meet consumer needs for functionality and convenience.

Retail Bags by Distribution Channel Insights

Based on the distribution channel, the global retail bag market has been bifurcated into online retail and offline retail. The Offline Retail segment dominated the global market in 2024, while Online Retail segment is projected to be the fastest–growing segment during the forecast period. The offline retail segment, which encompasses traditional brick-and-mortar stores such as grocery stores, fashion retailers, and shopping malls, remains a dominant force in the global retail bag market. While online retail has been growing, the offline retail sector continues to experience significant demand for a variety of retail bag types, driven by the large volume of in-store purchases. 

In this segment, customers expect a diverse selection of bags, from reusable shopping bags to paper and plastic options, depending on the store's branding and environmental policies. The offline retail market is also witnessing an increasing shift towards sustainable packaging solutions, as more consumers demand eco-friendly alternatives in-store. Many retailers are now offering reusable fabric bags or encouraging the use of biodegradable or recyclable paper bags, responding to growing environmental concerns.

FIGURE 2: RETAIL BAGS MARKET SHARE BY DISTRIBUTION CHANNEL 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Retail Bags by Capacity Insights

Based on the capacity, the global retail bag market has been bifurcated into small (Up to 5kg), medium (5kg - 10kg), and large (10kg Above). The Small segment dominated the global market in 2024, while the large segment is projected to be the fastest–growing segment during the forecast period. The small capacity retail bags, designed to carry up to 5kg, dominate the global market, primarily due to their versatility and widespread use in grocery stores, fashion outlets, and convenience stores. These bags are ideal for lightweight products such as groceries, small personal items, and accessories. 

The small capacity category includes popular options like plastic bags, paper bags, and reusable fabric bags, which are compact yet strong enough to handle typical retail purchases. As consumer demand for convenience grows, particularly in the grocery and fashion industries, small retail bags continue to be a favored choice for in-store purchases. In addition, the emphasis on sustainability is encouraging the adoption of eco-friendly materials in this category, such as biodegradable plastic and recycled paper bags, making them increasingly attractive to environmentally conscious consumers.

Retail Bags Regional Insights

Based on the Region, the global Retail Bags are segmented into North America, Europe, Asia-Pacific, Africa, Latin America, Middle East. The Asia-Pacific dominated the global market in 2024, while the Europe is projected to be the fastest–growing segment during the forecast period. Major demand factors driving the Asia-Pacific market are Asia-Pacific is a region exhibiting a lot of diversity whereby retail bags are influenced by the levels of industrialization as well as the varied nature of consumer behavior and regulatory settings. Increasing consumer spending and fast urbanization are driving the growth of retail bags in China, India, and Japan. 

The UN-Habitat states Asia and the Pacific are home to over 2.2 billion people, which is more than half of the global urban population, and that by 2050 this figure will see a 50% increase. Here, however, serious environmental issues emanating from plastic waste management exist. Thus, in a campaign largely enacted by standard law-the Plastic Pollution Control Action Plan-aiming at reducing, by a significant amount, plastic waste by 2025, the Chinese Government imposed a stringent mode of operations against the premises of plastic waste management. The banning of plastic bags has been introduced in India, especially in urban centers, which is driving the demand for alternatives in packaging material.

FIGURE 3: RETAIL BAGS MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Mexico, Germany, UK, France, Russia, Italy, Spain, Switzerland, Belgium, Czech Republic, Portugal, Rest of Europe, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC, Nigeria, Ethiopia, Egypt, Democratic Republic of the Congo (DRC), Tanzania, South Africa, Morocco, Algeria, Tunisia, Rest of Africa, Brazil, Colombia,  Argentina, Peru, Venezuela, Chile, Panama, Rest of Latin America and others.

Global Retail Bags Key Market Players & Competitive Insights

Many global, regional, and local vendors characterize the Retail Bags Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.

The major competitors in the market are Berry Global Inc, COSMOPLAST UAE, Action Packaging, The Clorox Company, International Plastics Inc, NOVOLEX (US),  NOVPLASTA, S.R.O, INTEPLAST Group, Poly-America, L.P, Reynolds Consumer Products LLC, PLASTA Group, Biobag International As, POLYKAR Industries Inc, Universal Plastic & Metal Manufacturing Limited, Alpha Omega Pack Factory L.L.C are among others. The Retail Bags Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Retail Bags Market include

• Berry Global Inc


• COSMOPLAST UAE


• Action Packaging


• The Clorox Company


• International Plastics Inc


• NOVOLEX (US)


• NOVPLASTA, S.R.O


• INTEPLAST Group


• Poly-America, L.P


• Reynolds Consumer Products LLC


• PLASTA Group


• Biobag International As


• POLYKAR Industries Inc


• Universal Plastic & Metal Manufacturing Limited


• Alpha Omega Pack Factory L.L.C

Retail Bags Market Industry Developments

November 2023: Reynolds Consumer Products, the creator of Hefty® Ultra Strong™ trash bags, today announced that Hefty® Ultra Strong™ Fabuloso®* Scented tall kitchen trash bags have been recognized as one of the 2022 New Product Pacesetters™ of 2022.

September 2022: Novolex invested USD 10 million to expand its plastic bag and polyethylene film recycling capacity at its facility in North Vernon, Indiana. This strategic move demonstrates Novolex's commitment to promoting recycling and furthering its capabilities in the sustainable management of plastic materials.

March 2022: Action Bags has successfully acquired Four Star Plastics, a strategic move that will enhance their capabilities and expand product offerings. This acquisition marks a significant milestone for both companies, bringing together Action Bags’ extensive experience in packaging solutions with Four Star Plastics’ expertise in plastic manufacturing.

January 2020: The Clorox Company's Glad® business announced that it has introduced recyclable food bags as part of its integration with TerraCycle's Loop pilot program in the U.S. Through this program, consumers will be able to order the products online and then receive and recycle their favorite food bags through a reusable steel container and return pouch.

Retail Bags Market Segmentation

Retail Bags by Material Outlook

• Plastic


• Paper


• Fabric


• Biodegradable

Retail Bags by Product Type Outlook

• Shopping Bags


• Tote Bags


• Die-Cut Handle Bags


• T-Shirt Bags

Retail Bags by End-Use Industry Outlook

• Grocery Supermarkets


• Fashion Apparel


• Electronics Appliances


• Food & Beverage


• Health & Beauty


• Luxury Specialty Stores

Retail Bags by Distribution Channel Outlook

• Online Retail


• Offline Retail

Retail Bags by Capacity Outlook

• Small


• Medium


• Large

Retail Bags Regional Outlook

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• 
  Europe
  
  
  
  • Russia
  
  
  • Germany
  
  
  • United Kingdom (UK)
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Switzerland
  
  
  • Belgium
  
  
  • Czech Republic
  
  
  • Portugal
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • India
  
  
  • Japan
  
  
  • South Korea
  
  
  • Malaysia
  
  
  • Thailand
  
  
  • Indonesia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Africa
  
  
  
  • Nigeria
  
  
  • Ethiopia
  
  
  • Egypt
  
  
  • Democratic Republic of the Congo (DRC)
  
  
  • Tanzania
  
  
  • South Africa
  
  
  • Morocco
  
  
  • Algeria
  
  
  • Tunisia
  
  
  • Rest of Africa
  
  
  
  


• 
  Latin America
  
  
  
  • Brazil
  
  
  • Colombia
  
  
  • Argentina
  
  
  • Peru
  
  
  • Venezuela
  
  
  • Chile
  
  
  • Panama
  
  
  • Rest of Latin America
  
  
  
  


• Middle East

Report Attribute/Metric	Details
Market Size 2024	USD 16.08Billion
Market Size 2025	USD 16.99Billion
Market Size 2035	USD 29.42 Billion
Compound Annual Growth Rate (CAGR)	5.64% (2025-2035)
Base Year	2024
Forecast Period	2025-2035
Historical Data	2019-2023
Forecast Units	Value, Volume (USD Billion, KG Million)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Material, By Product Type, By End-Use Industry, By Distribution Channel, By Capacity
Geographies Covered	North America, Europe, Asia Pacific, Africa, Latin America, Middle East
Countries Covered	The US, Canada, Mexico, Germany, UK, France, Russia, Italy, Spain, Switzerland, Belgium, Czech Republic, Portugal, Rest of Europe, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC, Nigeria, Ethiopia, Egypt, Democratic Republic of the Congo (DRC), Tanzania, South Africa, Morocco, Algeria, Tunisia, Rest of Africa, Brazil, Colombia,  Argentina, Peru, Venezuela, Chile, Panama, Rest of Latin America
Key Companies Profiled	Berry Global Inc, COSMOPLAST UAE, Action Packaging, The Clorox Company, International Plastics Inc, NOVOLEX (US), NOVPLASTA, S.R.O, INTEPLAST Group, Poly-America, L.P, Reynolds Consumer Products LLC, PLASTA Group, Biobag International As, POLYKAR Industries Inc, Universal Plastic & Metal Manufacturing Limited, Alpha Omega Pack Factory L.L.C
Key Market Opportunities	·         Innovation in biodegradable materials ·         Expansion in emerging markets
Key Market Dynamics	·         Environmental awareness ·         Regulatory changes