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Paper Bags Packaging Market, remarkable growth estimated during 2017 to 2023,
Market Overview
A paper bag is a pre-formed container made from paper, and the packaging refers to the conversion of paper to packaging. Food, communication, and consumer products are few industries that utilize this particular phenomenon, which leads to these industries being more accessible to the consumers. The Market Research Future (MRF) reports a comprehensive evaluation of the global paper bags packaging market which covers the challenges, advantages as well as industry news in the market along with competition assessment during the forecast period 2017 to 2023. Paper bags packaging market is poised to surge at a CAGR of 4.3% during the forecast period 2017 to 2023. Advancing packaging technology gives rise to new innovations in the companies that use paper bags, preferring paper bags to conventional methods of packaging.
These bags offer many eco-friendly benefits, they are reusable, recyclable, biodegradable as well as lightweight. These factors alleviate the consumption of packaged and processed food, among the consumers. The Market Research Future reports extensively that the paper bag packaging market is on an upward rise, demonstrating an aggressive growth by 2023.
Factors that trigger the market growth are, booming retail sector in developed economies, increasing penetration of the retail sector in emerging markets, advanced innovation in product design and strong consumer base in retail sales.
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Segmentation
The global market is segmented based on product, application, and region.
On the basis of product, the market is further segmented into flat paper bag, multi-wall paper sacks. Based on application, the market is segmented into pharmaceutical, food & beverage, construction, retail as well as chemicals. In this, retail dominates the application segment of the market.
Industry news
In recent reports, Novolex Holdings Inc. is in the lead to acquire Newell Brands Inc. Waddington Group Inc. Unit for more than $2 billion. The Waddington Group (TWG) is a major global packaging manufacturer and marketer.
On the other hand, WestRock Company (U.S) participated in investor conferences that took place in May 2018.
DS Smith is slated to acquire Corrugated Container Corporation (CCC), a US based corrugated packaging product company. This acquisition will further reinforce DS Smith’s position in the corrugated packaging sector.
Key players
Smurfit Kappa Group Plc. (Ireland), International Paper Company (U.S.), WestRock Company (U.S.), OJI Holding Corporation (Japan), Industrial Development Company (INDEVCO) sal (Lebanon), Holmen Group (Sweden), Georgia-Pacific LLC. (U.S.), S Smith Plc. (U.K.) and Hood Packaging Corporation (Canada) are some of the prominent vendors competing in the Global Paper Bags Packaging Market.
Regional Analysis
North America has an upper hand in the market. The U.S. is the dominant market in North America. Asia pacific is also another strong market that has a major customer base in this market. India, China, Japan, Australia are other prominent markets in the region that make huge contribution to this market. China accounts for largest share in the market, due to advancing urbanization, mall development, changing lifestyle and increasing per capita income. These factors also contribute to the drive of the growth rate in all the other regions that hold share in the market. Ban on plastic bags is pushing many economies to opt for paper bags that help in environment conservation and are recyclable.
Competitive Analysis
Global Paper Bags Packaging Market is highly competitive due to the presence of various large and small vendors operational in the market. After detailed analysis of recent developments, MRFR states that the strategies employed by the key players are Product Launch, Agreement & Partnership, Acquisition and expansion. Strategic alliance between key players enhances the growth and expansion scheme during the forecast period. Coming to product and sales side, companies are investing in innovation/R&D, brand building, and cultivating strong relationships with customers to authenticate their position in the market.
Mergers and acquisitions of existing companies in the market help them obtain quality staff, additional skills, diversify their products and services, asses funds, widen the customer base and many more benefits. These strategies help them gain a highly prominent position in the already competitive and highly fragmented market. It also helps reduce costs and overhead expense that leads to higher purchasing power to both the companies involved.
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