April 12, 2024

Navigating Market Dynamics: Foodservice Paper Bags Market Targets US$ 1,575.9 Million by 2032

Projected to hit US$ 958.4 million in 2022, the global foodservice paper bags market is poised to grow at a Compound Annual Growth Rate (CAGR) of 5.1% from 2022 to 2032. By the close of 2032, this market segment is expected to surge to US$ 1,575.9 million. The robust expansion is driven by various factors, including increasing consumer preference for eco-friendly packaging solutions, stringent regulations promoting sustainability, and the rising demand for takeaway and delivery services in the foodservice industry. As businesses adapt to changing consumer behaviors and environmental concerns, paper bags emerge as a favored option for packaging solutions.

Initially, the foodservice industry relied on traditional plastic bags for delivering food products to consumers. However, the shift towards sustainable practices, driven by government initiatives and plastic usage bans, has opened new avenues for growth in the global foodservice paper bags market. The emergence of numerous foodservice outlets worldwide is anticipated to drive increased demand for foodservice packaging, with a specific emphasis on eco-friendly options like foodservice paper bags, aligning with the growing preference for environmentally conscious solutions in the food industry.

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The foodservice paper bag market has shown steady growth with a CAGR of 4.1% from 2015 to 2021. It is poised for further expansion in the future, driven by factors such as heightened environmental concerns, government regulations, and the overall growth of the foodservice industry.

Key Takeaways

  • Brown kraft-based paper bags are expected to account for more than 4/5th of market value, owing to their stiffness.
  • Non-handle bags will remain the most sought type, capturing nearly 2/3rd of market value, backed by their convenience and low cost.
  • On the basis of end-use, restaurants are poised to capture more than half of overall global value, ascribed to the rising trend of take-away.
  • Europe is projected to spearhead the regional landscape of the market, capturing more than 1/3rd of market value.
  • East Asia will prevail as the second most lucrative regions through the forecast period, holding a quarter of the market value.

Key Players:

  • WestRock Company
  • Hutamaki Oyj
  • Novolex Holdings LLC
  • Ronpak Inc.
  • Mondi Group
  • Amcor Ltd
  • International Paper Company

Competitive Landscape

Major players operating in the global foodservice paper bags market are trying to expand their capacities by developing their facilities. Also, several key players are adopting the merger and acquisition strategy to strengthen and increase their resources. These players are focusing on developing innovative paper bags to gain more market shares.

Some of the latest developments by key players are as follows–

  • In August 2022, Novolex Holdings LLC announced the launch of innovative paper bags for more secure deliveries for retailers and restaurants. The paper bag offers a wide opening for easy loading, a flat bottom to keep items secure, and sturdy paper twist handles for easy & reliable carrying.
  • In March 2022, WestRock Company expanded its production facility by investing US$ 47 Million at its consumer facility in Claremont.
  • In January 2022, Huhtamaki Oyj acquired a company named Smith Anderson Group Ltd. in Portland. The company manufactures and sells paper bags in Eastern Europe.

Foodservice Paper Bags: Impact on the Food Industry

The Foodservice Paper Bags Market’s impact extends beyond its eco-friendly nature. These bags offer practical advantages to both businesses and consumers:

  • Heat Retention: Insulated paper bags are excellent at retaining heat, making them a preferred choice for delivering hot foods like pizzas and other takeout orders.
  • Breathability: Paper bags allow food to breathe, preventing sogginess in products like fried items and maintaining their crispness.
  • Branding and Advertising: Customized paper bags serve as mobile advertisements, showcasing a brand’s identity to potential customers as they’re carried around.
  • Consumer Preference: As consumers become more conscious of their environmental footprint, businesses that offer sustainable packaging options like paper bags gain a competitive edge.

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Key Segmentations:

By Material Type:

  • Brown Kraft
  • White Kraft

By Bag Type:

  • Handle Bags
  • Non-handle Bags

By End User:

  • Foodservice Outlets
  • Online Food Delivery
  • Institutional

By Region:

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Middle East & Africa
  • Oceania

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