Retail Bags Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The Retail Bags Market is expected to grow at a CAGR of 5. 2% over the forecast period 2021 to 2026.
The Retail Bags Market is expected to grow at a CAGR of 5. 2% over the forecast period 2021 to 2026. The rapidly increasing number of shopping malls, supermarkets, and developed retail sectors have been significantly feeding the demand for retail bags globally.
New York, July 20, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Retail Bags Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)"
Owing to grown retail industries linked with growing choice for eco-friendly packaging among customers, the retail bags market is increasing exponentially.
- Increased usage of handbags among working-class women on a global level is expected to remain a key trend. The accelerated growth of the corporate and established sectors has been feeding the demand for goods in the countries, including India, and China, South Korea, and Indonesia.
- As such services as Grubhub, DoorDash, and Uber Eats become more popular, they will need useful bags to get food to customers safely. Also, the development of high-quality retail plastic carryout bags compliant with regulations will increase competition between paper and plastic for the retail takeout market.
- Japan has started to ask drugstores, convenience stores, supermarkets, and other retail outlets to price for plastic shopping bags, in line with a global aim of decreasing plastic waste to fight marine pollution.
- Most retailers are having their contemporary bag policies, especially those utilizing paper bags. As plastic is presently the type of bag making the most notice and being reduced to many bans and restrictions, the paper seems to be the reliable choice for in-store shopping bag use for retailers.
- Implementing explicit policies about the use of plastic bags in retail is anticipated to influence the market. Nevertheless, with the rise in need for reusable plastic and the usage of plastic in some states, the segment is supposed to grow during the forecast period.
- For instance, many restaurants - especially fast-food chains such as Wendy’s, Burger King, and McDonald’s - already rely principally on paper bags, and reusable bags are not a reasonable choice for restaurants in general.
- A high disposable income has increased the demand for shopping bags. However, the shopping bags market is expected to witness a decline in sales during the forecast period. This is due to the disruption caused by the COVID-19 pandemic across the world. As tourists from several countries may not travel as much as in the past few years, the growth rate is subdued.
- The onset of coronavirus has set back the ban of single-use plastics. With early 2020 concerning about the risks of infection spread, the allied consumers of retail goods went back to throwaway packaging. Simultaneously, driven by consumer behavior, the bans on disposable items got delayed in the United Kingdom and the United States. For instance, California and Oregon lifted plastic bag bans, Maine delayed its own ban, and other multiple US cities and grocery chains banned reusable bags. These setbacks have caused an abrupt change of course after a years-long trend of governments banning or taxing the use of plastic bags.
Key Market Trends
Plastic Material to Have a Dominant Share in the Market
- The increase in the use of paper bags for packaging is driven by the increasing demand for sustainable products by consumers and brands. This is primarily driven by the growing awareness of the impact of plastics on the environment and the need to reduce the dependency of the human race on fossil fuels.
- Plastic material is commonly utilized for the production of retail carry bags. These plastic retail carry bags are comfortable, affordable, and adaptable options for shopping. Plastic retail carry bags are prevalent across all retail sectors, covering general stores, supermarkets, apparel, general merchandise, and specialty stores.
- The most popular plastic material type used in plastic bags is high-density polyethylene (HDPE) plastic. Other commonly used plastic material types comprise low-density polyethylene (LDPE) plastic and polypropylene (PP) plastic.
- According to the US Department of Energy, Polypropylene, a kind of plastic often used to create everyday products such as plastic straws, yogurt tubs, and hangers are a major source of ocean pollution. Moreover, according to US Census Bureau, USA alone exported 1.37 billion pounds of plastics to other nations. Most of this plastics ends-up in Asian countries like Indonesia, Malaysia, etc.
- A growing interest in personal grooming and the increasing awareness of beauty products are driving investments from companies that develop packaging solutions for cosmetic companies.
APAC to Have a Significant Market Growth
- Asia-Pacific is supposed to have meaningful growth due to the increasing number of production plants, combined with the growing customer base all over the region, contributing to the growth of the Retail Bags Market. For instance, According to the National Bureau of Statistics of China 2021, China had a total capacity of 7.23 million metric tonnes production of plastic materials, which is one of the most demanded materials for retail bags.
- The growth of the retail sector in the region is also encouraging the need for retail bags. For example, in countries like China, according to the National Bureau of Statistics of China, the retail business revenue of consumer goods in China amounted to around 3.2 trillion yuan in May 2020.
- Due to the growing need for paper pulp in countries like China and India, the APAC region is supposed to be the quickest developing region. There is an expansion in the transit packaging division in China, coupled with mounting consumerism heading to a swiftly building demand for retail paper bags.
- Along with this demand for paper bags, the need for recycled paper is also increasing, which is having a massive impact on the market. According to the Source by China Customs, in 2020, China imported almost 7 million metric tonnes of paper from foreign countries, most of which to be recycled and to be used in packaging indutries.
- There is a growing rate of exports in the developing logistics sector as the corrugated boxes are anticipated to control the market in this APAC region. Due to substantial growth in industries, like cosmetics and fast-moving consumer goods (FMCG), the rapidly-growing middle-class population is presumed to support the need for paper bags and thus fuel the retail bags market region.
The Retail Bags Market studied is moderately competitive, with a considerable number of regional and global players. The primary strategies adopted by these firms include expansions, product innovations, and mergers and acquisitions. The principal players dominating the global handbags market are Attwoods Packaging Company, Mondi Group PLC, El Dorado Packaging, Inc., SPP Poly Pack Pvt. Ltd., and the Carry Bag Company, among others. An advanced distribution network gives a competitive edge to the principal market players. Furthermore, players need to innovate continuously, to work and grow in the market, due to the quickly evolving consumer needs and choices.
- June 2020 - Mondi, has successfully completed the implementation of a new state-of-the-art paper sack converting machine at its Nyíregyháza site in Hungary. The machine – a Windmöller & Hölscher AD 8320 / AM 8115 – allows the plant to produce a new line of sophisticated paper sacks for food packaging.
- May 2020 - Novolex, introduced new non-fluorinated, grease-resistant wraps and clamshells. Manufactured by Novolex brands Bagcraft and Burrows Packaging, the new products include sandwich wraps, sandwich bags, bakery bags, chip bags, deli bags, and micro-flute clamshells. These new non-fluorinated products all offer performance quality comparable to grease-resistant products made with conventional materials.
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