Industrial Paper Bags Market Report

The industrial paper bag market is now also used in the food industry due to its feature of bulk handling and storage. The food industry has been using industrial paper bags for mostly packing dry fruits, grains, and cereals. Due to the rising world population, the demand for the food industry is expected to rise. According to the Food and Rise Organization, the world population in 2050 is predicted to be 9.7 billion, and the rise in the rate of food production is expected to rise by 70%, which will boost the demand for the packaging industry, to be precise, for the industrial paper bag market. Industrial paper bags can also be used in the fertilizer sector and can be seen as an opportunity, as according to the data of the World Bank Group, the current global fertilizer consumption is 139.8 kilograms per hectare of arable land. Hence, the growing use of fertilizer and pesticides can be an opportunity for the industrial paper bag market.

The major challenge that is faced by the manufacturers is rising concerns regarding the environment. The industrial paper bags are produced by using natural resources, specifically wood pulp, which is extracted from trees. This indirectly affects the environment and gives rise to deforestation, which is viewed as a top environmental concern. Hence, manufacturers face challenges from various NGOs as well as government policies regarding the deforestation concern. Another challenge faced by the manufacturers is regarding the cost of industrial paper bags. Compared to normal plastic bags, the cost of industrial paper bags is quite expensive. Hence, due to the availability of cheap alternatives, the demand for the industrial paper bag market is affected, and plastic bags are preferred over the industrial paper bag market. In some cases, it is also experienced that due to heavy rains, the industrial paper bags get torn as they lack a waterproof solution, due to which their use has been restricted to some products, and also in rain, industrial paper bags are considered a less reliable option for packaging.

Major manufacturers in the paper packaging market are focusing on developing novel products that meet the ongoing market demand. They also employ various market strategies such as novel product developments, mergers, and acquisitions in order to gain a competitive edge in the market. For instance, in October 2020, Mondi launched water-resistant paper bags for the cement industry. Mondi had partnered with Adelaide Brighton Cement and Pope Packaging on the development of a new water-resistant paper bag called 'Rain Barrier,' made out of Mondi's Advantage Protect White sack kraft paper, for the Australian construction market. In December 2023, the growth of the e-commerce sector significantly boosted the demand for industrial paper bags. Companies like WestRock and International Paper reported increased orders for custom paper bags designed to enhance the unboxing experience and align with sustainable packaging trends.

The demand for industrial paper bags is expected to rise in Africa, as according to the World Cement Association, the demand for cement in Africa is expected to rise by 77% by 2030; similarly, the growth for the cement industry in India is projected to rise by 42% by 2030 and 20% in North America. Due to the rising demand of the cement market, the industrial paper bag market is expecting a boom. Also, the Asia-Pacific region can be considered a promising market, as according to the report of the World Economic Forum, China is considered the world manufacturing superpower where above 30% of global manufacturing is carried out. Hence, more manufacturing signifies a greater amount of packaging, due to which China is considered a promising market. The United States stands second in the global manufacturing list, where 18% of total global production is carried out, which can also be considered a lucrative market.