US Packaging Bags

US Packaging Bags

Demand for packaging bags in the US is projected to increase 2.4% per year to $9.9 billion in 2026. The inflationary pressures on raw material costs that drove prices upward in 2021 and 2022 are expected to recede somewhat in the coming years, which will slow growth in value terms. Meanwhile, growth in unit terms is expected to accelerate somewhat due to an improved outlook for food processing in the US. However, in many applications (including the food market), gains will be limited by the increasing adoption of pouches that offer many of the same advantages of bags that make flexible packaging attractive, as well as a number of performance attributes, such as reclosability and moisture resistance.

Sustainability Remains Key Issue for Bag Producers and End Users

Bag producers and end users alike will continue to reach for sustainability goals. Initiatives include use of biobased resins for plastic bags, use of recycled materials in bag production, and expansion of recycling of paper and plastic bags. At the same time, packaging bags have not been subject to the same level of scrutiny as plastic retail bags, which in some locales are taxed, restricted, or banned outright.


Paper & Plastic Bags Compete on Sustainability & Performance

Paper and plastic are the dominant materials used in the production of packaging bags. While demand for both plastic and paper bags is expected to grow at roughly the overall average rate, this hides significant underlying competition in many applications, especially in food packaging. Paper bags will register faster overall gains in the food market as sustainability and product differentiation efforts lead to greater use of high-end paper bags for their marketing potential. However, plastic bags will gain ground in many non-food applications due to their better performance and moisture resistance.

Pet Food Will Remain a Leading Market; Opportunities in Food Applications More Selective
Packaging bags are generally mature products, so demand for bags is primarily determined by the outlook for the major markets in which they are used. In many markets, growth will be relatively slow due to competition from other packaging formats. Pet food is an exception to this general trend, as bags remain a top packaging format in that market. Gains in the pet food market will be driven by the growing popularity of specialty pet shops offering upscale treats that use packaging formats that emulate the packaging used by bakeries and other upmarket food shops, such as paper bags for both pre-packaged items and those sold from bulk bins.

In general, bags are expected to lose share to pouches and other flexible packaging types. However, there are a number of areas expected to see gains. Plastic bags are appealing as a low-cost option for larger packages of preformed meat patties. For baked goods, paper bags find use for fresh-baked breads and other in-store baked goods, as well as for other products packaged in a manner to suggest artisanality.

Study Description

This study examines the US market for packaging bags, defined as flexible packaging products that are enclosed on all but one side to form an opening that may or may not be sealed after filling. Historical data are provided for 2011, 2016, and 2021, with forecasts through 2026. Also provided is an analysis of key industry players.