US Packaging Bags

Report Overview

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This report includes data from 2011-2031 in 5 year intervals and tables featuring year-by-year data for 2018-2025.

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.

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.

Demand by Market

Food uses accounted for a majority of packaging bag demand in 2021. Meat products, fresh produce, and baked goods are the largest food markets for bags, although paper bags also see significant usage with powdered products (grain, flour, sugar, etc.)

The largest nonfood markets for bags are pet food, agricultural and horticultural products, and paper and textile products.

Though bags face intense competition from pouches and are expected to lose share to them, they still benefit from a general shift away from rigid packaging toward flexible. They will also continue to benefit from their light weight and low cost, particularly important for commodity items such as sugar, flour, and bread.

Meat, poultry, and seafood products will remain the largest market for bags, with demand bolstered by the ongoing recovery in foodservice revenues, which rely upon bagged versions of these products.

Nonfood markets that will experience above average growth in bag demand include:

• pet food, particularly bulk sizes, where bag packaging offers great savings
• pharmaceuticals, attributable to strong growth in the overall market
• rack and counter, as dollar stores and other low-end, high-volume retailers continue to proliferate

Demand by Material

Material choice is dependent on key factors such as performance, shelf appeal, and sustainability. Plastic film and paper comprise most bag material demand, though mesh and textile are significant for certain applications.

Plastic will remain the dominant material for bags due to its production efficiencies and performance advantages (particularly in strength and barrier) compared to paper. Plastic film – especially polypropylene – is ideally suited for bag packaging applications because of its advantages, including:

• light weight
• relatively low cost
• versatility
• good performance
• oxygen barrier properties
• excellent marketing capabilities (e.g., ability to print effectively on the package front)
• favorable source reduction capabilities

Paper accounts for a sizable portion of bag demand due to its low cost, toughness, adequate barrier properties, and widespread availability. Gains for paper bags will result from:

• increasing concerns over sustainability, with kraft and sulfite paper offering some advantages over plastic alternatives, including the ability to use recycled materials
• ongoing popularity for use with dry pet foods, cookies, baked goods, candy, sugar, ground coffee, and artisan bread due to their breathability

Among other materials:

• Mesh bags are primarily used in the packaging of produce because of their breathability, high strength, and low cost.
• Textile bags are primarily used for bulk packaging of pet food, produce, and agricultural and horticultural products.