The Rise of Paper Bag Usage in India: Market Share Projections for the Next Two Years

The use of paper bags in India is witnessing a significant increase. Market share projections suggest a growth from 3% in 2024 to an impressive 7% by 2026. This surge in paper bag popularity can be attributed to several factors, including heightened awareness of the environmental impact of plastic bags, government initiatives to curb plastic bag usage, and the growing recognition of the advantages of paper bags. Not only are paper bags environmentally friendly, but they are also cost-effective.

Tracing the History of Paper Bag Usage in India

India, a country steeped in rich culture and history, has a long-standing tradition of using paper bags. This practice, which has been prevalent for centuries, is currently experiencing a revival. But what’s driving this renewed interest in paper bags?

There are several reasons. Firstly, the environmental consequences of plastic bag usage are becoming increasingly evident. Plastic bags are not only challenging to recycle, but they also occupy substantial space and often end up in landfills. Secondly, paper bags are biodegradable and do not contribute to air pollution. Furthermore, the Indian Government’s strict ban on single-use plastic from July 2022 has played a significant role. Lastly, paper bags are more economical than plastic bags.

So, what market share can we anticipate for paper bag usage in India over the next two years?

Given the environmental and economic benefits, we can expect a substantial growth in paper bag usage in the next two years. It’s projected that paper bags will account for around 15% of the grocery market in India by 2024.

Factors Driving the Growth of Paper Bag Usage in India

The paper bag market in India is expanding rapidly, with an expected market share of around 20% in the next two years. Key drivers of this growth include the rise in grocery shopping and the expansion of online grocery shopping. The online grocery market is projected to grow at a CAGR of 21.5% over the next five years.

Projected Market Share of Paper Bag Usage in India in the Next Two Years

Currently, paper bag usage in India is on an upward trend. The market for paper bags is expected to soar from the current $200 million to a staggering $2.5 billion by 2024. This growth can be attributed to several factors:

• Environmental Concerns: One of the primary reasons for the increased use of paper bags is environmental consciousness. Paper bags, made from natural materials, are far more eco-friendly than plastic bags.
• Economic Reasons: Studies have shown that paper bag usage can help reduce waste production. Additionally, paper bags can help decrease litter production.
• Food Hygiene Concerns: Another factor contributing to the increased use of paper bags is food hygiene. Paper bags are less likely to harbor bacteria and are sturdy enough to withstand rough handling.

Conclusion

India is among the countries where paper bag usage is rapidly increasing. The market share of paper bags in India is expected to reach Rs. 2,500 crore by 2024. This trend is not confined to India but is evident in other countries as well. The use of paper bags is not just a trend; it’s a lifestyle.

India is poised to become one of the world’s leading paper bag markets in the next two years. According to a study by market research firm, Millward Brown, the paper bag market in India is predicted to grow by 19% in 2024 and by a further 23% in 2026. This growth is primarily due to the increasing environmental awareness and the need to reduce plastic bag usage.