In the last few years, the demand for paper bag packaging has increased across diverse sectors such as food & beverages, retail, e-commerce, and pharmaceuticals. This growth is driven by the surge in preference for eco-friendly alternatives to plastic. Paper bags are now widely used for grocery shopping, takeaway packaging, and premium branding. Moreover, innovative formats such as flat-bottom designs and brown kraft paper bags are transforming the packaging landscape.

Reasons behind the surge in use of paper bags

Paper bags offer significant environmental benefits over plastic bags. Made from renewable resources such as wood pulp, paper bags are biodegradable and compostable, breaking down naturally without leaving harmful residues. This helps reduce pollution in landfills and oceans, where plastic bags persist for hundreds of years, posing threats to wildlife and ecosystems. In addition, paper bags are often recyclable, supporting circular economy initiatives and reducing the demand for virgin materials.

From a consumer and business perspective, paper bags align with surge in sustainability trends and corporate social responsibility goals. Their sturdy construction makes them suitable for a variety of uses, and they can be easily customized with branding or messaging. Many businesses showcase their environmental transition by choosing paper bags to enhance brand reputation and appeal to eco-conscious customers. Paper bags represent a practical and responsible alternative to plastic, contributing to a cleaner and greener planet.

A look into different forms of paper bags

In the past few years, kraft paper remained the most common material for paper bags, prized for its strength, durability, and eco-friendliness. Brown kraft paper bags dominate the industry, accounting for over 70% of usage due to their ability to carry heavy items and their biodegradable nature. These are widely used in grocery stores, retail, and industrial applications.

On the other hand, corrugated paper bags feature two or three layers, including a wavy middle layer for added strength. They are mainly designed for sturdiness. These are suitable for carrying heavier or bulkier items and are increasingly used in e-commerce & industrial packaging.

Furthermore, recycled paper bags from post-consumer or pre-consumer recycled content are at the forefront of sustainability efforts. Special paper bags, such as those lined with foil or made from anti-static materials, cater to niche needs such as food preservation or electronics packaging.

The evolution of paper bags in modern packaging

The paper bag industry has witnessed prominent growth due to the increase in applications of these bags across diverse fields. According to AMR, the industry is expected to rise at a CAGR of 5.8% from 2023 to 2032. Nowadays, retailers, from supermarkets to luxury boutiques rely on paper bags for packaging goods. Custom-printed bags with logos enhance brand visibility and align with consumers’ preference for sustainable packaging. Fashion stores often use flat or elegantly designed paper bags for accessories and apparel.

Moreover, the food & beverage industry is the largest consumer of paper bags, accounting for nearly half of the industry share. Restaurants, bakeries, and grocery stores use greaseproof, moisture-resistant, and sturdy paper bags for takeout, delivery, and fresh produce. Rise in proliferation of organic and specialty foods has further fueled demand for these specialized bags.

With the surge in penetration of online shopping, paper mailing bags are replacing plastic mailers. These bags are designed for durability, composability, and ease of branding, supporting the shift toward sustainable packaging in logistics and delivery. On the other hand, decorative paper bags are popular for gift wrapping, party favors, and event giveaways. Their customizable surfaces allow for creative designs, making them a preferred choice for weddings, corporate events, and celebrations.

Cordovan Capital and Mayr Melnhof joined hands to advance sustainable packaging

In March 2025, Cordovan Capital, a micro-cap private equity investor announced its acquisition of the Mayr Melnhof paper sack business, based in Northern Ireland. Stephen McClelland, partner at Cordovan Capital, expressed enthusiasm about partnering with John Fitzgerald and the Bangor team under Declan McGrady’s leadership, recognizing them as pioneers in the paper sack sector. He noted that the acquisition supports Cordovan’s mission to invest in environmentally impactful businesses, aiming to boost innovation, reach of the sector, and leadership in sustainable packaging. John Fitzgerald, joining as executive chairman, emphasized Bangor’s unique role as Ireland’s sole paper sack producer, highlighting its importance in delivering eco-friendly alternatives to single-use plastics and supporting clients in transitioning to more sustainable, recyclable packaging solutions.

Endnote

With rise in emphasis on sustainability across the globe, the paper bag industry is expected to experience exponential growth and continuous innovation. Due to driving demand for eco-conscious consumers and businesses, paper bags offer a practical, biodegradable alternative to plastic. They support environmental goals, enhance brand value, and contribute to a greener, more responsible packaging future.