US Retail Bags Market Research Report: By Material Type (Plastic, Paper, Others) and By End User (Grocery Stores, Food Service, Others) - Forecast to 2035

US Retail Bags Market Overview

US Retail Bags Market Size was estimated at 2.96 (USD Billion) in 2023. The US Retail Bags Market Industry is expected to grow from 3.5(USD Billion) in 2024 to 6.5 (USD Billion) by 2035. The US Retail Bags Market CAGR (growth rate) is expected to be around 5.789% during the forecast period (2025 - 2035).

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

Key US Retail Bags Market Trends Highlighted

The US Retail Bags Market is experiencing significant trends that reflect the changing preferences of consumers and regulatory impacts. One key market driver is the growing emphasis on sustainability. As more consumers become environmentally conscious, retailers are increasingly adopting eco-friendly bags made from recycled or biodegradable materials. This shift is fueled by government regulations encouraging the reduction of single-use plastics, with many states and local municipalities implementing bans or fees on plastic bags. A notable opportunity lies in the expansion of reusable bag initiatives. Retailers are not only promoting the use of reusable bags but also offering incentives for customers who opt for them.This trend aligns with the broader move towards reducing waste and supports consumer demand for sustainable practices. Furthermore, the rise of e-commerce has driven an increase in demand for durable and versatile packaging solutions, enhancing the growth of the retail bags sector. In recent times, the US has seen a rapid evolution in bag design and functionality. Retailers are introducing innovative designs that cater to consumers' on-the-go lifestyles, such as foldable bags and multi-use options. The trend towards personalization is also gaining traction, as businesses offer customized bags that resonate with their brand identity. Overall, the US Retail Bags Market is at a crossroads of opportunity and transformation, driven by sustainability concerns and changing consumer behaviors, allowing retailers to adapt and innovate to meet new demands.

US Retail Bags Market Drivers

Growing Environmental Concerns and Legislation

In recent years, there has been a significant shift in consumer behavior towards eco-friendly products, including retail bags. The US Retail Bags Market Industry is witnessing an increased demand for sustainable bag options as more states and municipalities implement legislation aimed at reducing plastic waste. For instance, California's statewide ban on single-use plastic bags, enacted in 2016, was followed by several other states adopting similar measures.According to estimates from government resources, approximately 100 local governments in the United States have enacted plastic bag bans, with some states targeting a reduction of plastic waste by as much as 50% over the next decade. This evolving regulatory landscape is driving manufacturers to innovate in the production of biodegradable and recyclable bags, positioning them to meet growing consumer demand while adhering to environmental standards.

Increase in E-Commerce Growth

The rapid expansion of e-commerce in the United States is a significant driver of the US Retail Bags Market Industry. The United States Census Bureau reported that e-commerce sales accounted for over 16% of total retail sales in 2021, highlighting a consistent upward trend. This growth is leading retailers to invest in durable and effective packaging solutions, including retail bags, to enhance the customer experience. Major e-commerce players like Amazon have increased their packaging requirements, which in turn boosts the demand for various types of retail bags.The projection indicates that this sector will continue to grow, further propelling the retail bags market as businesses strive to ensure product safety during transport and delivery.

Consumer Demand for Convenience

The ongoing demand for convenience among consumers is significantly influencing the US Retail Bags Market Industry. Busy lifestyles and the increasing preference for on-the-go shopping have made it essential for retailers to provide quick access to bags, particularly reusable options that can be easily carried and stored. The National Retail Federation reported that over 70% of shoppers prefer stores that provide bags for their purchases, which creates a direct correlation between convenient shopping experiences and bag provision.Additionally, the preference for pre-packaged goods further supports the retail bag market as consumers lean towards ease of access and practicality in their shopping habits.

US Retail Bags Market Segment Insights

Retail Bags Market Material Type Insights

In the US Retail Bags Market, the Material Type segment plays a crucial role in defining market dynamics and consumer preferences, encompassing various materials such as plastic, paper, and others. The overall market's transition towards eco-friendly and sustainable packaging solutions has significantly influenced the material choices made by retailers and consumers. Plastic bags, historically dominant due to their durability and low production costs, are facing increasing scrutiny due to environmental concerns and regulatory measures aimed at reducing plastic pollution.Consequently, major retailers are adopting alternatives to plastic, such as paper bags, which have gained traction as a more sustainable option, appealing to environmentally conscious consumers. Paper bags are increasingly being chosen for their biodegradability and recyclability, aligning with the US trend towards sustainable practices in retail. This shift is further bolstered by government initiatives promoting the reduction of single-use plastics and encouraging the adoption of recyclable materials. The 'Others' category also contributes to the material type diversity, incorporating biodegradable bags and reusable options, which are gaining popularity among eco-friendly consumers.Overall, the fluctuations in consumer preferences towards more sustainable solutions are reshaping the material type landscape within the US Retail Bags Market, presenting opportunities for growth and innovation as brands adapt to meet the evolving demands of their customers. The data reflects a market that is responding dynamically to regulatory pressures, technological advancements in material science, and a consumer base that increasingly values sustainability, which will guide future developments in the Retail Bags Market.

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

Retail Bags Market End User Insights

The US Retail Bags Market is intricately segmented by End User, highlighting key sectors such as Grocery Stores, Food Service, and others. Grocery stores play a pivotal role in the retail bags landscape, as they have a consistent demand for various bag types due to customer purchases of diverse products, thus supporting sustainability initiatives through biodegradable and reusable options. Food Service also significantly contributes to the demand for retail bags, driven by trends in takeout and delivery services that require efficient and robust packaging solutions to meet consumer convenience preferences.Additionally, the Others’ category encompasses a range of retail environments, including convenience stores and specialty shops, showcasing the versatility and adaptability of retail bags across diverse consumer needs. Trends such as eco-friendliness and the rise of e-commerce continue to enhance the importance of these segments within the US Retail Bags Market, underscoring the growing focus on sustainable practices in packaging. This segmentation analysis reveals a complex landscape where each sector helps shape the market dynamics, influenced by evolving consumer behaviors and regulatory pressures emphasizing environmental stewardship.

US Retail Bags Market Key Players and Competitive Insights

The US Retail Bags Market is characterized by a robust competitive landscape comprising a variety of players with diverse product offerings. This market, influenced by changing consumer preferences, environmental considerations, and regulatory frameworks, has witnessed significant evolution over recent years. Key competitive insights reveal an increasing focus on sustainable materials and innovative designs in retail bags as brands aim to meet consumer demand for eco-friendly solutions. The competitive dynamics are shaped by factors such as pricing strategies, product differentiation, and the ability to adapt to market trends. Manufacturers are not only competing on quality and price but also on their sustainability practices, which have become a defining aspect of brand reputation in the retail sector.CocaCola has established a notable presence in the US Retail Bags Market through its emphasis on sustainability and innovation. The company has leveraged its massive distribution network and brand recognition to enhance its presence in this sector. CocaCola's strengths lie in its commitment to developing sustainable packaging solutions, including recyclable and biodegradable bags that resonate with environmentally conscious consumers. The company has actively worked on reducing its carbon footprint and enhancing the recyclability of its packaging, which positions it favorably in a market that increasingly values sustainability. This focus not only aligns with the growing consumer trend but also reinforces CocaCola's reputation as a responsible corporate entity, fostering customer loyalty.GeorgiaPacific holds a significant position in the US Retail Bags Market, and its operations reflect a strong commitment to innovation and sustainability. This company offers a wide range of products that include paper shopping bags and packing materials, emphasizing high-quality manufacturing with eco-friendly materials. GeorgiaPacific's strengths are rooted in its advanced technological capabilities and significant investments in research and development, which enable it to produce products that meet current market demands. The company has been involved in various mergers and acquisitions to strengthen its market presence and diversify its product portfolio. Its strategic expansions have allowed GeorgiaPacific to enhance its distribution capabilities and tap into new consumer segments. Furthermore, the company's focus on sustainable practices not only meets regulatory standards but also aligns with the expectations of environmentally conscious consumers, thereby cementing its competitive edge in the market.

Key Companies in the US Retail Bags Market Include

• CocaCola


• GeorgiaPacific


• Walmart


• Procter and Gamble


• PepsiCo


• Nestle


• Reynolds Consumer Products


• Kraft Heinz


• KimberlyClark


• Unilever


• Berkshire Hathaway


• International Paper


• AB InBev


• Target


• Amazon

US Retail Bags Market Industry Developments

Significant developments in the US Retail Bags Market have emerged recently, particularly as companies focus on sustainability and reduce plastic usage. CocaCola, Procter and Gamble, and Target are actively seeking alternatives to plastic bags amidst increasing regulatory scrutiny and consumer demand for eco-friendly products. In March 2023, Walmart announced a new initiative to eliminate single-use plastic bags in favor of paper and reusable options, reflecting a broader industry trend towards sustainable packaging. Notably, the valuation of Georgia-Pacific has been positively impacted by this shift, as the company enhances its production capabilities for paper bags. In August 2022, Reynolds Consumer Products made headlines by acquiring a smaller company specializing in recyclable materials to bolster its sustainability efforts. In recent years, key players like Amazon and Unilever have also committed resources to research and develop innovative bag solutions to stay ahead in the environmentally-conscious market. The momentum towards sustainable practices is further heightened by recent US government regulations aimed at minimizing plastic waste, signaling a decisive shift in the retail bag industry landscape.

US Retail Bags Market Segmentation Insights

Retail Bags Market Material Type Outlook

• Plastic


• Paper


• Others

Retail Bags Market End User Outlook

• Grocery Stores


• Food Service


• Others

Report Scope

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	2.96(USD Billion)
MARKET SIZE 2024	3.5(USD Billion)
MARKET SIZE 2035	6.5(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	5.789% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	CocaCola, GeorgiaPacific, Walmart, Procter and Gamble, PepsiCo, Nestle, Reynolds Consumer Products, Kraft Heinz, KimberlyClark, Unilever, Berkshire Hathaway, International Paper, AB InBev, Target, Amazon
SEGMENTS COVERED	Material Type, End User
KEY MARKET OPPORTUNITIES	Sustainable bag innovations, E-commerce packaging solutions, Custom branding options, Reusable bag demand surge, Biodegradable materials adoption
KEY MARKET DYNAMICS	sustainability trends, regulatory impacts, consumer preferences, competition intensity, innovation in materials
COUNTRIES COVERED	US