United States Trash Bags Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United States Trash Bags Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The US trash bags market was valued at USD 2.40 billion in 2021, and it is projected to be worth USD 3.83 billion by 2027, registering a CAGR of 7.98% during 2022-2027. Trash bags, typically made of polyethylene, are tough, light, and hold garbage securely without leakage or spillover. Thus, they are adopted across various residential, commercial, and industrial end-user industries.

Key Highlights

• However, governments and related regulatory bodies are imposing bans on plastics to reduce the plastic footprint. The resulting prohibition of plastic usage may drastically affect the trash bags market. For instance, in recent years, lawmakers of New York imposed a state-wide ban on most types of single-use plastic bags from retail sales, changing the way of life for millions of New Yorkers, as legislators sought to curb the omnipresent source of litter.
• As trash bags are finding increasing adoption across end-users, such as the residential, commercial, and retail sectors, companies are looking for alternatives to dispose of the waste generated by the usage of bags. The bans on the usage of plastic trash bags allow trash bag manufacturers to develop biodegradable or recyclable trash bags that enable them to support their business activities, thereby boosting the market growth.
• The residential waste generated in urban and rural households across the United States is increasing significantly, and this factor is driving the growth of the market studied. According to the Bureau of Labor Statistics, the producer price index of waste collection and remediation services in the United States was 136 in 2020 compared to 131.5 in 2019.
• With the outbreak of COVID 19, there was a very minimal impact that is expected to be only for the short–term for trash bag manufacturers. Some of the effects of lockdowns include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, and fluctuating prices that may cause the final product production.
• In the earlier phase of the COVID-19 pandemic, the demand for trash bags peaked due to the unavailability of PPE kits. In some hospitals, doctors and nurses resorted to tapping the garbage sacks to their arms to shield themselves while they worked to save patients, as hospitals ran out of disposable coats. For instance, frontline nurses in the New York Mount Sinai Hospital wore trash bags as protective gear.

Key Market TrendsResidential Sector holds the Largest Market Share

• The residential sector of the market studied generates a significant amount of waste. Therefore, the penetration of trash bags is substantial for the consumer segment. The players operating in the market studied are focusing on innovative product development for domestic waste management, which further boosts the segment's growth.
• According to the United States Census data and Simmons National Consumer Survey (NHCS), 49.78 million Americans will use 25 or more bags of indoor garbage bags in 2020. HDPE trash bags are good for lightweight trash and are usually preferred at home.
• Americans are often impulsive in their food purchases, unrealistically assessing how much food is required, and as a result, buying more food than they need or buying food they will not actually eat. It is estimated that the average United States household produces 19.36 metric tons of food waste per year, which is one of the highest amounts worldwide (source: The United States Environmental Protection Agency). Such instances lead to a major demand for recyclable and trash bags.
• Furthermore, non-durable goods, such as clothing and newspaper, account for an additional 20% of US garbage, with yard trimmings (13.3%) and food and other organic materials (14.9%), accounting for a substantial share as well (source: Columbia University study).
• The increasing penetration of recyclable bags results in significant growth of the segment. In January 2020, the Clorox Company's Glad business announced that it introduced recyclable food bags as part of its integration with TerraCycle's Loop pilot program in the United States. The Glad Products Company specializes in kitchen and outdoor trash bags and food protection products. Through such a program, consumers will be able to order products online and then receive and recycle their favorite food bags through a reusable container and return pouch.
• At the time of COVID-19, government authorities across the regions were regulating new policies to increase households' safety. For instance, in March 2020, the City of Kingston increased the number of garbage bags allowed per household from one to four per week without requiring bag tags. This limit was effective immediately and was put in place until May 2020. This measure was put into place to help families who were self-isolating dispose of their garbage safely.

Commercial Sector to Exhibit the Highest Growth Rate

• Retail, convenience stores, health care, food service, hospitality, and office building, among others, are some of the critical establishments within the commercial industry that constitute a significant share of the market studied.
• According to the National Retail Foundation (NRF), there were over 1 million retail establishments across the United States as of 2020. The country has witnessed a growth of almost 4% Y-o-Y in retail sales since 2010. The reports from NRF also suggest that for every retail company closing its stores, five other companies are opening their retail stores. Of which, convenience stores are gaining stores at 97%, compared to 3% of stores closing down.
• About 30% of food in American grocery stores is thrown away. The US retail stores generate about 16 billion pounds of food waste every year. Wasted food from the retail sector is valued at about twice the profit from food sales (source: US Department of Agriculture).
• Recently, organizations are becoming more conscious of managing and reducing their waste. Although some organizations are satisfied to have a system of trash removal or disposal, the more proactive organizations are putting more effort into managing their wastes. Some examples of common office building waste products include litter, paper products, and electronic goods. Office supplies, such as staplers, pens, and glue sticks, are tossed in the trash and sent to the landfill.
• Furthermore, waste in the US healthcare system is USD 760 billion to USD 935 billion annually, or 25% of total medical spending, according to a new analysis published in JAMA ( Journal of the American Medical Association).
• The United States spends more on health care than any other country, with costs approaching 18% of the gross domestic product (GDP). Prior studies estimated that approximately 30% of health care spending might be considered waste. Despite efforts to reduce overtreatment, improve care, and address overpayment, substantial waste in US health care spending likely remains (source: JAMA ( Journal of the American Medical Association)). The Biohazard waste goes in red bags and containers, whereas infectious waste is generally kept in plastic bags. This caters to the significant demand for trash bags.

Competitive Landscape

The competitive rivalry in the United States Trash Bags Market is high owing to the presence of some key players such as Berry Global Inc., Hefty (Reynolds Consumer Products LLC), and many more. The players in the market are involved in strategic partnerships that have enabled them to come up with product developments, in turn fueling the market growth.

• January 2022 - The Department of Energy (DOE) of the United States announced USD 13.4 million in funding for next-generation plastics technologies that reduce the energy consumption and carbon emissions of single-use plastics. Led by industry and universities, seven selected research and development projects may convert plastic films into more valuable materials and design new plastics that are more recyclable and biodegradable.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Berry Global Inc.
Riverside Paper Co.
Fast Bags Corp. (BAGUPS)
Hefty (Reynolds Consumer Products LLC)
International Plastics Inc.
Novolex
Inteplast Group
Neway Packaging Corporation
AR
BEE Transparent Products Inc.
Universal Plastic Bag Co.