Plastic Bags Market Overview
Global Plastic Bags market size is forecast to reach US$13.1 billion by 2027, after growing at a CAGR of 3.6% during the forecast period 2022-2027. Plastic bags, also known as a polybag, are usually made of thin plastic films. Polyethylene terephthalate, polyethylene, polypropylene, polylactic acid, Polyhydroxyalkanoates, and polypropylene are often used for producing plastic bags. The global plastic bags and sacks market is driven by the increasing demand for plastic bags from various end-use industries such as food & beverage, electronics, cosmetics, and more. Furthermore, the attributes of these plastic bags, such as flexibility, tear resistance, and moisture protection, among others, are expected to fuel the market growth during the forecast period. Furthermore, these are relatively inexpensive and are used as low-cost marketing tools, fueling the market growth. However, the rising environmental concerns owing to the extensive usage of non-biodegradable plastic bags are forcing governments to restrict the usage of plastic bags. This factor is expected to limit market growth in the coming years.
COVID-19 Impact
Before the COVID-19 pandemic, the food & beverage sector was one
of the great success stories for the world and was a great way to highlight the
strength of the industry over the last few years. However, the COVID-19
pandemic had a substantial influence on the food and beverage industry growth
in 2020, resulting in a loss of sales in restaurants, cafés, bars, and the
out-of-home sector around the world. The COVID-19 pandemic curtailed eating out
and encouraged people to cook at home. Large drops in soft drink, juice, water,
and alcoholic beverage production values were nearly mitigated by growth in
wheat flour, dairy, health foods, and ready-to-eat foods. For instance, according
to the United States Department of Agriculture (USDA), food and beverage
products produced by Japan's food processing industry totaled US$218.3 billion
in 2020, down 1.1 percent from US$220.8 billion in 2019. Consumption at home
increased, but out-of-home consumption – which has previously generated the
highest profit margin – slowed. And since plastic bags are extensively utilized
in the food and beverage industry, this standstill consecutively hampered the
market growth of global plastic bags in 2020.
Report Coverage
The report: “Plastic Bags
Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth
analysis of the following segments of the global plastic bags market.
By Type: Non-biodegradable
Plastics [Polyethylene Terephthalate (PET), Polyethylene (PE) (High-density
Polyethylene (HDPE), Low-density Polyethylene (LDPE), Linear Low-density
Polyethylene (LLDPE), and Others), Polypropylene (PP), Polystyrene (PS), and
Others], and Biodegradable Plastics [Polylactic Acid (PLA),
Polyhydroxyalkanoates (PHA), Starch Blends, and Others]
By Product Type: Gusted Bags, Sewn Open Mouth Bags, Shirt Bags, and Others
By Thickness: <50 Microns, 51.0-99.9 Microns, >100 Microns, and Others
By End-Use Industry: Food & Beverage (Fruits & Vegetables, Bakery, Dairy, Confectionary,
Poultry, and Others), Medical & Healthcare (Pharmacy, Sterilization, Transfer,
and Others), Personal Care & Cosmetics (Body Care, Face Care, Eye Care, Nail
Care, and Others), Electrical & Electronics (Laptops, Computers, Mobile
Phones, Televisions, and Others), Agriculture (Fertilizers, Nursery, and Others),
Chemicals (Powders, Liquids), and Others
By
Geography: North America (USA, Canada, and Mexico),
Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and
Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and
New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America
(Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the
World (Middle East, and Africa)
Key Takeaways
- Asia-Pacific dominates the global plastic bags market, owing to the increasing food & beverage industry in the region. The increasing per capita income and evolving lifestyle of individuals coupled with the rising population are the major factors expanding the food & beverage industry in APAC.
- Plastic bags are light and supple, and their elasticity aids in adhering to the weight of the product being packed. Plastic bags have superior barrier properties and are better suited to transporting dry goods than other packaging bags such as jute and paper bags, which is propelling the market growth.
- Increased adoption of sustainable and environmentally friendly products, as well as the implementation of strict government regulations, will raise consumer awareness, resulting in increased demand for bio-plastics in the near future.
- When compared to biodegradable properties non-biodegradable plastic materials are widely available at a lower cost and offer superior properties. Plastic bags made of the aforementioned material, on the other hand, take longer to completely degrade; this factor is limiting the non-biodegradable material segment's growth.
- However, due to the widespread use of plastic bags, soaring environmental concerns and stringent government regulations are expected to limit market growth in the coming years.
Figure: Asia-Pacific Plastic Bags Market Revenue, 2021-2027 (US$ Billion)
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Plastic Bags Market Segment Analysis – By Type
The non-biodegradable plastics segment held a significant share in the
global plastic gag market in 2021 and is forecasted to grow at a CAGR of 2.7% during
the forecast period 2022-2027, as non-biodegradable plastic bags are available
widely at a lower cost and offer superior properties as compared to
biodegradable plastic bags. PE bags are the most common type of plastic bags in
the world. Because of their low cost, strength, versatility, and durability,
they are popular. The popularity of PP bags is growing as a result of their
lightweight, strong, and low-cost characteristics, which make them a popular
choice in industries like grocery stores. They also have excellent barrier
properties, making them ideal for food packaging. Non-biodegradable plastic bags
have a wide range of characteristics that are driving their market growth. However,
plastic bags made up of non-biodegradable material accounts longer duration of
complete degradation; this factor is primarily limiting the growth of the
non-biodegradable material segment.
Plastic Bags Market Segment Analysis – By End-Use Industry
The food & beverage segment held the largest share in the global
plastic bags market in 2021 and is forecasted to grow at a CAGR of 4.2% during
the forecast period 2022-2027, owing to the increasing usage of plastic bags in
food & beverage industry. Food companies must pay more attention to their
packaging equipment and procedures as they expand globally to ensure that their
product is well-preserved in appropriate packaging until it reaches the end
consumer. In the food and beverage industry, HDPE is one of the most commonly
used plastic bags. This semi-translucent, lightweight plastic bags resists
temperature changes, water, and vapor well. It also has high tensile strength
and has been approved by the FDA for food handling purposes. The most common
places to find this type of plastic bags are grocery and convenience stores,
delis, and restaurants. Polypropylene bags, unlike other types of plastic bags,
are not breathable and can be used to store food items such as herbs, buts, and
candies to extend their shelf life in retail situations. These plastic bags are
also FDA-approved and have excellent chemical resistance and strength. Polypropylene
bags are also clearer than LDPE or LLDPE bags, allowing for better product
visibility. Thus, all the above-mentioned factors are significantly
contributing to the food and beverages plastic bags market growth during the
forecast period.
Plastic Bags Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the global plastic bags market in 2021 up to 49%, owing to the bolstering growth of the food and beverage sector in APAC countries. For instance, according to the United States Department of Agriculture (USDA), the South Korean food processing industry generated sales of 76 trillion Korean Won (US$65.2 billion) in 2019, up 4% from the previous year. According to the China Chain Store & Franchise Association, the food and beverage (F&B) sector in China reached US$595 billion in 2019, up 7.8% from 2018. According to Invest India, the Indian food processing industries sector has grown at an average annual rate of around 11.18 percent over the last five years, ending in 2019-20. India's food processing industry is one of the world's largest, with output expected to reach US$535 billion by 2025-26. The Food Manufacturing Industry Transformation Map was launched by the Singapore government. The plan's goal is for the industry to grow at a rate of 4.5 percent per year by 2020, with Singapore becoming a leading food and nutrition hub in Asia by 2025. Thus, the demand for food & beverage packaging in the region is being aided by the bolstering growth of the food and beverage sector in APAC, thereby dominating the plastic bags market in the Asia-Pacific region.
Plastic Bags Market Drivers
Increasing Personal Care & Cosmetic Industries
In the cosmetics and personal care industry, bioplastic and non-biodegradable plastic are frequently used for take-away
packaging. The personal care and cosmetics industry is booming in various
regions due to rising consumer demand. The beauty, cosmetics, and grooming
market in India will grow to US$20 billion by 2025, up from US$6.5 billion now,
according to the India Brand Equity Foundation (IBEF). According to the
International Trade Administration, Thailand's beauty and personal care products
market was worth around US$6.2 billion in 2018 and is expected to grow to
US$8.0 billion by 2022. (ITA). Thailand's beauty and personal care industry is
expected to grow at a rate of 7.3 percent per year from 2019 to 2022. The average annual expenditure on personal care
products and services in the United States increased from US$762 in 2017 to
US$768 in 2018, and finally to US$786 in 2019, according to the Bureau of Labor
Statistics (BLS), an increase of 0.8 percent and 2.3 percent, respectively. Furthermore,
the Cosmetics Europe The Personal Care Association estimates that Germany will
be Europe's largest national market for cosmetics and personal care products in
2020, with a market value of €14 billion (US$15.9 billion). Because the
personal care and cosmetics industries are booming, there is a significant
increase in demand for personal care and cosmetics packaging. Thus, the increasing personal care and cosmetic sector act as a
driver for the plastic bags market during the forecast period.
Flourishing Pharmaceutical Sector
In developing countries, the global pharmaceutical market is increasing at a rapid pace. According to the European Federation of Pharmaceutical Industries and Associations (EFPIA), the Brazilian, Chinese, and Indian markets grew by 11.2 percent, 6.9%, and 11.1 percent, respectively, between 2014 and 2019, compared to 5.4 percent for the top five European Union markets and 6.1 percent for the US market. The pharmaceutical industry in India is expected to reach US$65 billion by 2024 and US$120 billion by 2030, according to Invest India. The pharmaceutical industry in the United Kingdom, according to Enterprise Ireland, is a major global hub for pharmaceutical production and is critical to the UK economy. Between 2018 and 2023, the value of the UK pharmaceutical industry is expected to rise 19.3 percent to £25 billion, equating to 3.6 percent annual growth. According to the Industrial Chamber of Argentine Pharmaceutical Laboratories, in the year 2020, the Argentine pharmaceutical industry sales in units amounted to 690 million the year, an increase of 1.35% compared to 2019 sales in units amounted to 681 million. Due to this increase in the pharmaceutical industry, pharmaceutical packaging is expected to exhibit rapid growth, thereby driving the plastic bags market growth over the forecast period.
Plastic Bags Market Challenges
Various Drawbacks Associated with Plastic Bags
There are various drawbacks associated with the
usage and production of plastic bags. Plastic bags have a long history of
wreaking havoc on the environment. It can take up to 1000 years for a single
plastic bags to decompose completely. This allows the bags to stay in the
environment for longer, resulting in a large build-up on the natural landscape
(much more than degradable materials like paper). To put it another way, the
more plastic bags used, the greater the risk of environmental harm. According
to the Marrickville Council of Australia, up to 100,000 whales, turtles, and
birds die each year as a result of plastic in their environment. Plastic bags
not only harm our natural habitats but they have also been linked to the deaths
of many animals, primarily due to suffocation when consumed. Because plastic bags
do not decompose, the only way to dispose of them is to burn them. Though
lighting a match to them is simple, it comes with several drawbacks. The most serious
of these is that smoldering plastics can release toxic fumes into the
atmosphere, causing air pollution to skyrocket. Thus, all these drawbacks are
hindering the non-biodegradable plastic bags market growth during the forecast
period.
Stringent Government Regulations
Various government bodies are implementing stringent regulations related to plastic bags. For instance, in May 2019, the Nigerian government passed the Plastic Bags Prohibition Bill (Bill) which proposed to prohibit the use, manufacture, and importation of all plastic bags used for commercial and household packaging. In February 2021, In Germany, the First Act to Amend the Packaging Act went into effect. Beginning January 1, 2022, the amendment prohibits the distribution of lightweight plastic bags at points of sale of goods or products. Plastic bags with a wall thickness of fewer than 50 microns are considered lightweight. Taiwan announced its plan to ban petroleum-based plastics in stores in 2020, starting with a ban on offering bags in stores, increasing the price in 2025, and finally banning petroleum-based bags entirely by 2030. Thus, such regulations are hampering the global non-biodegradable plastic bags market growth.
Plastic Bags Industry Outlook
Technology launches,
acquisitions, and R&D activities are key strategies adopted by players in
the global plastic bags market. Global plastic bags market top 10 companies are:
1. Berry Plastics Inc
2. Novolex Holdings Inc.
3. Mondi Group
4. Ampac Holdings LLC
5. International Plastics Inc.
6. BioBags International AS
7. Polykar Industries Inc
8. Inteplast Group
9. Hanoi Plastic Bags JSC
10. Extrapack Ltd.
Recent Developments
- In November 2021, Danimer Scientific, a bioplastics company based in Georgia, has broken ground on a new biodegradable plastic manufacturing facility. The company plans to build a new 2,000,000ft2 facility to manufacture polyhydroxyalkanoate, a biodegradable plastic.
- In December 2020, Toraphene, a UK biotech firm, is planning to unveil the world's first truly biodegradable, compostable, and commercially viable plastic packaging alternative.
- In October 2019, Novamont has announced a 40,000-tonne increase in Mater-Bi (biodegradable and compostable bioplastics) capacity in the province of Frosinone, Patrica.
Relevant Reports
Bio-plastics Market –
Forecast (2022 - 2027)
Report
Code: CMR 0846
Biodegradable Bags Market –
Forecast (2022 - 2027)
Report
Code: CMR 1169
Biodegradable Plastic Market
– Forecast (2022 - 2027)
Report
Code: CMR 0308
For more Chemicals and Materials Market reports, please click here
LIST OF TABLES
1.Global Plastic Bag Market, by Type Market 2023-2030 ($M)2.Global Plastic Bag Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
3.Global Plastic Bag Market, by Type Market 2023-2030 (Volume/Units)
4.Global Plastic Bag Market Analysis and Forecast by Type and Application Market 2023-2030 (Volume/Units)
5.North America Plastic Bag Market, by Type Market 2023-2030 ($M)
6.North America Plastic Bag Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
7.South America Plastic Bag Market, by Type Market 2023-2030 ($M)
8.South America Plastic Bag Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
9.Europe Plastic Bag Market, by Type Market 2023-2030 ($M)
10.Europe Plastic Bag Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
11.APAC Plastic Bag Market, by Type Market 2023-2030 ($M)
12.APAC Plastic Bag Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
13.MENA Plastic Bag Market, by Type Market 2023-2030 ($M)
14.MENA Plastic Bag Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
LIST OF FIGURES
1.US Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)2.Canada Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
3.Mexico Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
4.Brazil Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
5.Argentina Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
6.Peru Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
7.Colombia Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
8.Chile Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
9.Rest of South America Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
10.UK Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
11.Germany Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
12.France Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
13.Italy Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
14.Spain Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
15.Rest of Europe Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
16.China Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
17.India Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
18.Japan Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
19.South Korea Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
20.South Africa Global Plastic Bag Industry Market Revenue, 2023-2030 ($M)
21.North America Global Plastic Bag Industry By Application
22.South America Global Plastic Bag Industry By Application
23.Europe Global Plastic Bag Industry By Application
24.APAC Global Plastic Bag Industry By Application
25.MENA Global Plastic Bag Industry By Application