Plastic Bag Market - Forecast(2023 - 2028)

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)

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)

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Biodegradable Bags Market – Forecast (2022 - 2027)

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Biodegradable Plastic Market – Forecast (2022 - 2027)

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