Retail Bags Market

Based on the material, the global retail bag market has been bifurcated into plastic (HDPE, LDPE, PP, etc.), paper (Kraft, Coated, Recycled, etc.), fabric (Cotton, Jute, Non-woven, etc.), and biodegradable compostable materials. The Paper segment dominated the global market in 2024, while the Paper segment is projected to be the fastest–growing segment during the forecast period. Paper bags have gained significant traction in the global retail bag market, driven by increasing consumer preference for sustainable and eco-friendly alternatives. Kraft paper bags, known for their durability and high strength, are commonly used in grocery stores, fashion retail outlets, and department stores. 

Recycled paper bags are also popular, offering a more environmentally friendly option by reusing materials, thereby reducing the demand for virgin paper. The growing trend toward sustainability and environmental responsibility is a major factor propelling the demand for paper bags, as they are biodegradable and easily recyclable compared to plastic alternatives. The shift towards paper bags is particularly prominent in regions with stringent environmental regulations, such as Europe and North America, where consumers and businesses alike are increasingly adopting greener practices.

Based on the product type, the global retail bag market has been bifurcated into shopping bags, tote bags, die-cut handle bags, and t-shirt bags. The Shopping Bags segment dominated the global market in 2024, while the Shopping Bags segment is projected to be the fastest–growing segment during the forecast period. Shopping bags are one of the most common types of retail bags, widely used across various retail environments, including grocery stores, supermarkets, and department stores. 

These bags are designed to carry a variety of items, offering a practical and versatile solution for customers during their shopping trips. Made from different materials such as plastic, paper, or fabric, shopping bags come in a variety of sizes and strengths to accommodate different types of products. Their popularity is driven by the growing demand for convenient, cost-effective, and functional packaging that retailers can offer to their customers. As consumer preference shifts towards sustainability, shopping bags made from biodegradable or recyclable materials have gained traction, providing an eco-friendly alternative to traditional plastic shopping bags.

Based on the end-use industry, the global retail bag market has been bifurcated into grocery supermarkets, fashion apparel, electronics appliances, food beverage, health beauty, and luxury specialty stores.  The Grocery Supermarkets segment dominated the global market in 2024, while the Fashion Apparel segment is projected to be the fastest–growing segment during the forecast period. The grocery supermarket segment remains one of the largest and most influential in the global retail bag market. This segment is driven by the high demand for packaging solutions that can carry a diverse range of products, from fresh produce to packaged goods. 

Grocery stores have been significant drivers of retail bag consumption due to the wide variety of bagging needs required for both fresh and non-perishable items. Historically, plastic bags have been the most commonly used option in supermarkets due to their cost-effectiveness and practicality. However, as environmental concerns grow, many supermarkets are shifting toward more sustainable options, such as paper, fabric, and biodegradable bags. This transition is largely driven by increasing regulations banning single-use plastics, which has spurred supermarkets to find eco-friendly alternatives that still meet consumer needs for functionality and convenience.

Based on the distribution channel, the global retail bag market has been bifurcated into online retail and offline retail. The Offline Retail segment dominated the global market in 2024, while Online Retail segment is projected to be the fastest–growing segment during the forecast period. The offline retail segment, which encompasses traditional brick-and-mortar stores such as grocery stores, fashion retailers, and shopping malls, remains a dominant force in the global retail bag market.

While online retail has been growing, the offline retail sector continues to experience significant demand for a variety of retail bag types, driven by the large volume of in-store purchases. 

In this segment, customers expect a diverse selection of bags, from reusable shopping bags to paper and plastic options, depending on the store's branding and environmental policies. The offline retail market is also witnessing an increasing shift towards sustainable packaging solutions, as more consumers demand eco-friendly alternatives in-store. Many retailers are now offering reusable fabric bags or encouraging the use of biodegradable or recyclable paper bags, responding to growing environmental concerns.

Based on the capacity, the global retail bag market has been bifurcated into small (Up to 5kg), medium (5kg - 10kg), and large (10kg Above). The Small segment dominated the global market in 2024, while the large segment is projected to be the fastest–growing segment during the forecast period. The small capacity retail bags, designed to carry up to 5kg, dominate the global market, primarily due to their versatility and widespread use in grocery stores, fashion outlets, and convenience stores. These bags are ideal for lightweight products such as groceries, small personal items, and accessories. 

The small capacity category includes popular options like plastic bags, paper bags, and reusable fabric bags, which are compact yet strong enough to handle typical retail purchases. As consumer demand for convenience grows, particularly in the grocery and fashion industries, small retail bags continue to be a favored choice for in-store purchases. In addition, the emphasis on sustainability is encouraging the adoption of eco-friendly materials in this category, such as biodegradable plastic and recycled paper bags, making them increasingly attractive to environmentally conscious consumers.

Based on the Region, the global Retail Bags are segmented into North America, Europe, Asia-Pacific, Africa, Latin America, Middle East. The Asia-Pacific dominated the global market in 2024, while the Europe is projected to be the fastest–growing segment during the forecast period. Major demand factors driving the Asia-Pacific market are Asia-Pacific is a region exhibiting a lot of diversity whereby retail bags are influenced by the levels of industrialization as well as the varied nature of consumer behavior and regulatory settings. Increasing consumer spending and fast urbanization are driving the growth of retail bags in China, India, and Japan. 

The UN-Habitat states Asia and the Pacific are home to over 2.2 billion people, which is more than half of the global urban population, and that by 2050 this figure will see a 50% increase. Here, however, serious environmental issues emanating from plastic waste management exist. Thus, in a campaign largely enacted by standard law-the Plastic Pollution Control Action Plan-aiming at reducing, by a significant amount, plastic waste by 2025, the Chinese Government imposed a stringent mode of operations against the premises of plastic waste management.

The banning of plastic bags has been introduced in India, especially in urban centers, which is driving the demand for alternatives in packaging material.