Grocery Bag Market to Reach USD 21.0 Billion by 2035 — Demand for Reusable Eco-Bags Surges Across APAC, Europe, USA, and Saudi Arabia

The global Grocery Bag Market is experiencing significant growth, driven by increasing demand for sustainable, versatile, and convenient packaging solutions across household and retail sectors. With heightened consumer awareness of environmental sustainability and stricter regulations on single-use plastics, manufacturers are actively adopting eco-friendly and reusable alternatives, fueling market expansion worldwide.

The market’s growth is further supported by the booming retail sector, expansion of supermarkets, and the penetration of e-commerce platforms, all of which have escalated the need for durable, lightweight, and convenient grocery bags. Recent advancements in materials, including polyethylene (PE) innovations and biodegradable alternatives, have enhanced product performance, strength, and consumer appeal, positioning manufacturers to meet evolving consumer expectations.

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Grocery Bag Market Overview

The Grocery Bag Market is projected to grow from an estimated USD 13.4 billion in 2025 to USD 21.0 billion by 2035, registering a CAGR of 4.6%. Key growth regions include North America, Asia-Pacific, and Europe, with leading market players such as RediBag, Lotus Sustainable, Eco-Bags Products, ToughBuilt Industries, ToteBagFactory, Custom Earth Promos, Veno Bags, Baggu, BagPodz, and Planet E Bags.

Emerging Trends in Grocery Bag Market

• Rising consumer preference for reusable and biodegradable bags
• Use of recycled and organic materials in bag production
• Customization and personalization gaining traction among eco-conscious consumers
• Incorporation of RFID and antimicrobial features for hygiene and tracking
• Growth of online grocery shopping driving demand for sturdy delivery-friendly bags
• Enhanced brand visibility through sustainable packaging initiatives

Regional Market Insights

North America: Leading the global grocery bag market, North America’s growth is driven by high consumer spending, luxury shopping trends, and strong environmental awareness. Online grocery penetration and retailer investments in sustainable packaging further support the market, with a projected CAGR of 4.1% from 2025 to 2035.

Europe (Spain): The Spanish market is expected to grow at a CAGR of 4.1%, with consumers increasingly preferring convenient and eco-friendly options. Expansion of grocery bag varieties reflects shifting preferences toward sustainability.

Asia-Pacific (India and China):

• India: The grocery bag market in India is projected to grow at a CAGR of 5.5%, driven by high-quality, durable, and organic bag options such as jute, canvas, and nylon bags. Manufacturers focus on reusable and eco-friendly alternatives to meet environmental goals.
• China: With strict single-use plastic bans and a booming e-commerce and food delivery market, China is expected to witness a CAGR of 1.4%, promoting biodegradable and reusable solutions.

Japan: With increasing consumer prioritization of sustainability, Japan’s grocery bag market is forecasted to grow at a CAGR of 5.0%, reflecting government and consumer initiatives toward eco-friendly alternatives.

Competitive Landscape

The global grocery bag market features a diverse mix of established and emerging players focusing on sustainability, customization, and innovation. Leading companies are

• RediBag
• Lotus Sustainable
• Eco-Bags Products
• ToughBuilt Industries
• ToteBagFactory
• Custom Earth Promos
• Veno Bags
• Baggu
• BagPodz
• Planet E Bags

Recent Developments:

• March 2025: Visy launched heavy-weight biodegradable shopping bags in Melbourne with FSC certification.
• July 2025: Tesco and Morrisons joined the Universal Bag project in the UK, promoting global sustainability initiatives.
• December 2024: Challice Ltd. introduced 100% sustainable plastic shopping bags at a carbon-neutral facility in the UK.

These innovations and partnerships highlight the market’s transition toward eco-friendly, reusable, and consumer-focused grocery bag solutions.

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