United States plastic bag market size is predicted to reach USD 4,215.7 million by 2035.

The global plastic bag market is navigating a new era of transformation. Estimated at USD 26.4 billion in 2025, it is projected to grow steadily to USD 36.9 billion by 2035, marking a CAGR of 3.4% over the forecast period. Despite ongoing environmental debates, the sector continues to adapt by combining affordability and convenience with sustainable innovation, offering opportunities for both established giants and ambitious new entrants.

Quick Market Highlights

• 2025 Market Value: USD 26.4 billion
• 2035 Forecast Value: USD 36.9 billion
• CAGR (2025–2035): 3.4%
• Leading Bag Type Segment (2025): T-shirt bags (29.4%)
• Top Growth Regions: North America, Asia-Pacific, and Europe
• Key Players: Berry Global Group, Novolex Holdings, Amcor Plc, Mondi Plc, Sonoco Products Company, RKW Group, 3M, Thantawan Industry Plc., Inteplast Group, Allstate Plastics LLC, among others

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Why Plastic Bags Remain Indispensable

Plastic bags continue to dominate retail, foodservice, and household applications worldwide. Their success lies in cost-efficiency, versatility, and adaptability, making them the go-to packaging choice for millions of businesses and consumers.

At the same time, rising environmental regulations and consumer awareness are prompting manufacturers to rethink their approach. Companies are introducing biodegradable, compostable, and recycled-content bags, ensuring compliance with sustainability goals while maintaining affordability.

The balance between operational efficiency and eco-conscious innovation is expected to drive steady growth across both developed and developing regions.

Segmental Insights

T-shirt Bags Stay on Top

Accounting for 29.4% of total market share in 2025, T-shirt bags remain the workhorse of retail packaging. Their appeal lies in their low production cost, durability, and flexibility in design. Despite criticism over environmental impact, their dominance continues thanks to large-scale demand from supermarkets, grocery stores, and retail chains.

The rise of biodegradable T-shirt bags has further strengthened the segment, allowing manufacturers to balance convenience with compliance.

Polyethylene: The Material of Choice

With a 46.7% market share, polyethylene bags remain the leading material segment. Durable, lightweight, and cost-effective, polyethylene’s adaptability to large-scale production and printing keeps it at the forefront.

Manufacturers are now producing high-recycled-content PE bags to address environmental concerns, ensuring this material remains central to the industry’s future.

Bricks-and-Mortar Retail Dominates Distribution

Despite the surge of e-commerce, brick-and-mortar stores hold 35.8% share in distribution. From local convenience stores to global supermarkets, physical outlets continue to drive bulk demand for plastic bags as an integral part of point-of-sale operations.

Offline retail remains especially strong in emerging markets, where consumer footfall continues to grow, reinforcing the need for affordable packaging solutions.

Market Dynamics and Key Drivers

The global plastic bag market is expected to expand by 1.4X between 2025 and 2035, driven by several factors:

• Rising demand for convenience packaging in retail and households
• Growth in e-commerce and grocery delivery services
• Expansion of the food & beverage and fast-food industries
• Increasing adoption of biodegradable and recycled plastic bags
• Rapid urbanization and rising disposable incomes in Asia-Pacific

Notably, countries like India, China, and Japan are emerging as high-growth markets, while North America and East Asia remain global leaders in consumption.

Regional Perspectives

• United States: Forecast to reach USD 4.2 billion by 2035 at a CAGR of 2.3%, driven by e-commerce expansion and material innovations in biodegradable bags.
• India: Poised to grow at a 4.3% CAGR, hitting USD 2.8 billion by 2035, supported by booming retail and a surge in e-retail shoppers.
• China: Expected to dominate East Asia with a valuation of USD 3.6 billion by 2035, fueled by rapid growth in food packaging.
• Japan: Set to expand at 3.9% CAGR, with government initiatives promoting compostable and recyclable alternatives.
• United Kingdom: Projected to hit USD 902.7 million by 2035, supported by growing usage in HoReCa (hotels, restaurants, and catering).

Innovation and Sustainability at the Forefront

Manufacturers are racing to align with green regulations and consumer preferences:

• Grounded Packaging launched its RE: MONO bags in June 2025, featuring over 80% post-consumer recycled (PCR) content.
• Novolex Holdings expanded its Hilex ProWAVE line in mid-2025, offering recyclable and reusable tote bags for retailers and restaurants.
• Reynolds Consumer Products, through its Hefty brand, unveiled lemon-scented Ultra Strong waste bags in August 2025, blending consumer convenience with performance.
• ProAmpac LLC strengthened its portfolio in February 2025 with the acquisition of Belle-Pak Packaging, a Canadian producer of clinical and medical plastic bags.

Even research institutions are innovating. In April 2024, scientists at the University of California developed a way to make compostable plastics degrade faster using polyester-eating enzymes, paving the way for next-generation biodegradable solutions.

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Competitive Landscape: Big Players and Rising Stars

The market is shaped by a mix of global leaders and nimble innovators.

• Berry Global Group, Amcor Plc, and Mondi Plc dominate with global distribution networks and large-scale investments in eco-friendly lines.
• Novolex Holdings and ProAmpac LLC stand out for their focus on acquisitions and specialized product launches.
• Emerging players like Dagöplast AS, Allstate Plastics LLC, and Novplasta s.r.o. are tapping into niche opportunities, focusing on affordability and localized eco-friendly designs.

This blend of scale and agility ensures continuous innovation and competitiveness across global markets.

The Road to 2035

By 2035, the plastic bag market is expected to generate nearly USD 11 billion in new value, underpinned by:

• Widespread adoption of recycled and biodegradable materials
• Growth in retail and e-commerce packaging
• Rising consumer demand for hygienic, safe packaging solutions
• Expansion of household applications, which are projected to grow at 5.2% CAGR, outpacing retail

Ultimately, plastic bags are no longer seen only as cost-efficient carriers. They are evolving into sustainable, customizable packaging tools that align with both environmental goals and business efficiency.

For manufacturers—whether established giants or new entrants—the decade ahead offers a wealth of opportunities to innovate, expand, and redefine their role in a sustainable packaging future.

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries. 

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