Gusseted Bag Market Report

Due to factors like the introduction of various technological advancements and the introduction of new options in gusset bags like paper-based, recyclable, etc., growth can be seen. The market has been driven by three major factors, which are regulatory influence, consumer preferences, and industry trends. The demand has been increasing due to factors such as the cost-effectiveness and sustainability of the bags. In China, major companies are investing in advanced manufacturing technologies to expand their product lines. To improve consumer engagement, companies have integrated various smart packaging technologies. Growth can be seen in India’s packaging sector due to huge demand driving towards biodegradable packaging options, like gusseted bags. As per European Bioplastics Nova-Institute, in 2023 the biodegradable plastics production capacity was 1136 metric tons and is expected to reach 4605 metric tons by 2028.

The main challenge faced by producers is how to eliminate alternatives such as rigid containers and pouches, which also provide the same features as gusseted bags. Rigid containers are the best available option for the players in the food industry, as the features of safety and cost-efficiency have been fulfilled, along with additional features like durability, being easily transportable, etc. to overcome the need for alternative technological advancements in plastic containers. The second alternative present for gusset bags is pouches, which possess the same quality except for the gusset. The pouches are preferred by various industries due to their lower cost.

The next problem faced by various producers is raw material availability. The raw material that is used for the preparation of bags changes on a daily basis and may hamper the operational expenses of the producer. The prices of raw materials are not fixed and change according to the current demand. Regulatory challenges are again a big question where the producer has to follow the rules and regulations that have been formed either by the government or stakeholders. Government regulation regarding the minimum microns needed, reusable, etc. The overall minimum thickness of a single piece of plastic must be 120 microns due to its reusability.

In August 2023, Crunch Pak, a food and beverage-based industry with a specialty in sliced apples, introduced gusseted bags to their production division with the aim of maintaining product freshness. At the initial level, they introduced gusseted bags in two sizes, which were 14-ounce and 24-ounce. These bags were resealable, which gave users the freedom of opening them, consuming them according to their own will, and again sealing them. In April 2022, TricorBraun announced that it had purchased PBFY, a distributor of flexible companies. TricorBraun was the largest distributor of primary packaging and a leader in global packaging. At that time, they operated from more than 75 locations across Europe, the Americas, Australia, and Asia. PBFY provided flexible packaging services for numerous brands in the food, coffee, tea, health, and beauty markets.

List of companies operating in the Gusset Bags market include United States Plastics Corp., Columbia Burlap & Bag Company, Altapac, Poly Pak Plastics, ELKAY Plastics, Associated Bags, Maco PKG, Clear View Bag Company, International Plastic, Pacific Bag Inc., PBFY Flexible Packaging, TekPak Solutions, American Plastics Company, and others.

As the population rises, the demand for the food and beverage industry is going to rise on a large scale. India, being the home of various spices and specializing in various dry fruits, will export both items on a large scale on an international level. The demand for gusset bags in the packaging of these goods will rise in the near future. Also, with India and China being the most populated countries, the demand for packed and ready-to-eat food will rise. Hence, the Asia-Pacific region shows a green signal, but due to strong government regulations, the price will be the major factor. As stated in the Central Pollution Control Board (CPCB) Report, 3.5 Million metric tons of plastic waste are generated in India annually.

Also, the ban on single-use plastic in Australia, China, India, New Zealand, etc. is opposing the growth of gusset bags. Overall, the Asia-Pacific region will grow due to the increase in demand for consumer goods and packaged goods. The same concerns remain in all markets, as in Western Europe, where the average annual plastic consumption is around 150 kg per person—more than twice the global average of 60 kg—and only about an estimated 9% of the plastics ever produced have been recycled and 12% have been incinerated. But considering the overall situation, the market will show growth in all regions due to regulations on plastic waste, a well-established packaging industry, and the presence of major market players.