New Delhi, September 15, 2023: The global craft bags market was valued at US$ 1,567.3 million in 2022. According to the market survey report, from 2018 to 2022, a CAGR of 3.4% was registered for the growing sales of craft bags.
In the current year, 2023, the overall market value is estimated to be valued at US$ 1,636.3 million. Furthermore, FMI forecasts it to register a CAGR of 4.4% from 2023 to 2033 and conclude at US$ 2,516.8 million. Growth is attributed to the growing demand for eco-friendly packaging solutions.
A craft made from wood fibre offers maximum strength and natural beauty. Primarily plan craft bags used for the packaging of grocery items. Generally, two types of craft bags are available in the market that is white and brown. Craft bags are mostly used for lightweight products such as fresh vegetables and fruits.
According to Future Market Insights, craft bags can also be utilized for many purposes, such as grocery products, medicine, and electronic goods. Craft bags are easily handled and are convenient for use, which, in turn, led the demand to grow among consumers. The global market for craft bags is expected to grow at a significant rate due to its several uses.
Craft bags are degradable and cost-effective, leading manufacturers to invest in craft bag production. The lightweight and easy-handling properties of craft bags are attracting the interest of consumers towards the use of craft bags.
Some Prominent Drivers Spearheading Craft Bags Market Growth
Craft bags are cheap, easy to use, and easily recyclable, making craft bag packaging grab the attention of manufacturers and consumers. Increasing demand for eco-friendly packaging is boosting the consumption of a broad range of products, with the rise in demand for paper-based product packaging.
Increasing demand for convenient, smaller pack sizes and rising grocery and personal care products in the market are fuelling demand for global craft bags. It is estimated that the demand for craft bags may exceed supply in coming years owing to increasing consciousness about nature safety. Also, paper industries are expected to invest in craft bag packaging due to the rise in demand among consumers.
Challenges Faced by the Craft Bags Industry
Although the overall market has numerous end uses, multiple obstacles likely challenge market growth. The availability of alternatives like paper and plastic packaging may hinder the growth of the overall market. Also, the high cost of craft bag packaging is another restraining factor towards developing the craft bag market.
North America Emerging as an Opportunistic Craft Bags Market
The growing demand for eco-friendly packaging products is expected to augment the regional market in North America. North America accounts for a 25% share of the total market share of the global market. Craft bag packaging represents the leading market in the paper industry. A substantial portion of the produced paper in the United States is acquired to manufacture craft bags.
The rapidly growing retail industry, along with increasing consumer preference for biodegradable and eco-friendly packaging products, is one of the key factors driving the market growth in the region. Stringent rules and restrictions regulating plastic consumption and increased consumer awareness and expenditure also boost the regional market’s growth in North America.
Europe Contributing to the Growth of the Craft Bags Market
Europe accounts for a 20% revenue share of the global market. A huge food and beverage industry in the region boosts European market growth. Specialty paper boxes, bags, and packaging play an important role in restaurants and other food businesses. Craft bags are a good packaging solution in the food industry. These bags come in various options and sizes for all types of food and beverages.
Craft bags are a popular option for a wide variety of foods. Being flexible and durable, they are inexpensive and make an excellent eco-friendly alternative to plastic bags. The growing trend of ready-to-eat food, frozen food, and the increasing trend of packed food in the region drives the sales of craft bags. The technological advancement has motivated the market players to enhance their product portfolio, contributing to the growth of the global market for craft bags.
Asia Pacific to Emerge as an Attractive Craft Bags Market
Demand for craft bags may continue to grow in the Asia Pacific due to the manufacturing economies of China and other emerging countries. The overall market for craft bags is likely to grow significantly in the forecast period. With a growing literacy rate and awareness in people regarding environmental degradation due to plastics, consumer preference is moving towards the adoption of eco-friendly and safe packaging solutions such as craft bags in the region.
The significant e-commerce growth, stringent rules and restrictions regulating plastic consumption, and increased consumer awareness and expenditure in the region boost the market’s growth in the Asia Pacific.
In some regions, plastic bags are prohibited to overcome environmental degradation, so they emphasize the utilization of alternative products such as paper bags and craft bags. For instance, in India, according to the Plastic Waste Management Amendment Rules, 2021, the manufacture, import, distribution, sale, and use of plastic carry bags having a thickness of fewer than 75 microns have been banned.
Market Competition
Key participants in the global craft bags market include International Paper, Stanpac, Kent Paper, Biopac, Genpak, Bemis Company Incorporated, Berry Plastics Corporation, Novolex, and Linpac Packaging Limited, among others.
The market is highly competitive due to the presence of substantial participants. While global players such as International Paper, Stanpac, Kent Paper, Biopac, Genpak, and Bemis Company Incorporated account for a considerable market size, several regional-level players are also operating across key growth regions, particularly in the Asia Pacific.
· In April 2020, Genpak introduced Harvest Fiber Oval Bowls! Genpak’s excellent additions to the Harvest Fiber line of sustainable packaging. They are perfect for grab-and-go and take-out applications when paired with their clear, no-leak, over-cap lids. Giving customers peace of mind and a guilt-free experience to enjoy their take-out meal with Harvest Fiber food packaging.
· In May 2022, ProAmpac, a leader in flexible packaging and material science, today announced that it had acquired Specialty Packaging, Inc. (Specialty Packaging), a family-owned manufacturer of specialty paper, film, and foil packaging products for the fast food and food services industries.
These insights are based on a report Craft Bags Market by Future Market Insights.
Corporate Comm India (CCI Newswire)
