GCC Paper Bags Market Market Size (2024 - 2029)

The GCC Paper Bags Market is experiencing growth driven by increasing demand for sustainable packaging solutions, particularly due to regional bans on single-use plastics. This shift is prompting a rise in the adoption of paper bags as a viable alternative, supported by regulatory measures across various countries in the region. Despite challenges such as strict forest conservation laws impacting the availability of raw materials, the market is poised for expansion as e-commerce continues to thrive in a digitally engaged population.

Market Size of GCC Paper Bags Industry

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GCC Paper Bags Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 434.11 Million
Market Size (2029) USD 642.59 Million
CAGR (2024 - 2029) 8.16 %
Market Concentration Medium

Major Players

GCC Paper Bags Market  Major Players

*Disclaimer: Major Players sorted in no particular order

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GCC Paper Bags Market Analysis

The GCC Paper Bags Market size is estimated at USD 434.11 million in 2024, and is expected to reach USD 642.59 million by 2029, growing at a CAGR of 8.16% during the forecast period (2024-2029).

This kraft paper bag is a sustainable alternative to plastic bags and a clean, safe option for food packaging. Its features include runnability and printability in both flexo and offset printing. The demand for paper bags is expected to increase due to the ban on single-use plastic in the region. 

  • Additionally, in June 2022, Abu Dhabi introduced a ban on single-use plastic bags in the Middle East. Alternatives to shoppers include paper bags and thicker traditional-look plastic bags, which are used between four and ten times and can be recycled. Some outlets, such as Spinneys and Carrefour, have removed thicker traditional-type reusable plastic bags altogether. Such initiatives are expected to drive the demand for paper bags.
  • The region is witnessing demand for paper packaging, with various countries banning single-use plastics. For instance, in November 2022, Qatar Municipality Ministry organized an introductory meeting on regulations of plastic bag utilization. The Ministry of Municipality, represented by the Health Control Sections at all the municipalities across the country, enforced the ministerial decision No. 143 for 2022 regarding the regulations of using plastic companies, shopping centers, and malls from using single-use plastic bags and using biodegradable and environment-friendly bags instead. 
  • Further, in January 2023, the United Arab Emirates announced a ban on single-use plastic shopping bags to take effect next year, the latest initiative to reduce pollution in the oil-rich nation. Such initiatives are driving the demand for paper bags across the region.
  • The future of e-commerce relies heavily on an internet-savvy, digitally savvy audience. Over half of the GCC population is under 25, making it a logical target for digital sellers. Internet penetration in this region is among the highest in the world. The real powerhouses here are the United Arab Emirates, Qatar, Kuwait, and Bahrain, with nearly 100% internet penetration. This means a large audience base that is primarily digitally engaged.
  • Additionally, e-commerce growth in the GCC from 2019 to 2022 is 33%, and even higher for the region's largest market, such as 39% in Saudi Arabia and 38% in UAE. This is nearly double the global rate of 17%, according to Dubai Commerce City's report MEASA E-Commerce Landscape.
  • However, strict forest laws against deforestation are restraining market growth and owes to the low availability of cellulose fibers. To begin with, approximately half of the world's woods have vanished. Every year, another 13 million hectares are lost (though afforestation replaces eight), and the World Resources Institute (WRI) estimates that just around 22% of the world's old-growth forests are still intact.

GCC Paper Bags Industry Segmentation

The study covers the paper bag market tracked in terms of consumption and the sales of paper bags offered by various vendors operating in the market.

The GCC paper bag market is segmented by type (White Kraft and Brown Kraft), end-user (retail and food), and by country (Saudi Arabia, United Arab Emirates, Qatar, and the rest of GCC). The market sizes and forecasts are provided in terms of value USD for all the segments. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The market sizes and forecasts are provided in terms of value USD for all the above segments.

By Type
White Kraft
Brown Kraft
By End User
Retail
Food
By Country
Saudi Arabia
United Arab Emirates
Qatar
Rest of GCC (Oman, Kuwait, Bahrain)
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GCC Paper Bags Market Size Summary

The GCC paper bags market is poised for significant growth, driven by increasing environmental awareness and regulatory measures against single-use plastics. The region's shift towards sustainable packaging solutions is evident as countries like the United Arab Emirates and Qatar implement bans on plastic bags, encouraging the adoption of paper bags. This transition is further supported by the burgeoning retail sector, which is expanding rapidly, with major players investing in new stores and facilities. The demand for paper bags is bolstered by their biodegradable, reusable, and recyclable properties, aligning with the region's sustainability goals. The market is characterized by a semi-consolidated structure, with key players focusing on innovation and expansion to meet the rising demand for eco-friendly packaging solutions.

The growth of e-commerce and the high internet penetration in the GCC countries also contribute to the increasing demand for paper bags, as online shopping continues to rise. The retail and food industries are major consumers of paper bags, with the packaging market experiencing robust growth. Companies are investing in regional production facilities to enhance their capabilities and meet the growing need for paper packaging. Initiatives such as the establishment of new manufacturing plants and the expansion of existing ones underscore the market's potential. Despite challenges like strict forest laws, the focus on biodegradable and recycled materials is expected to drive the market forward, with significant investments in infrastructure and technology supporting this trend.

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GCC Paper Bags Market Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitutes

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Assessment of Impact of COVID-19 on the Industry

    5. 1.5 Import-Export Analysis

    6. 1.6 GCC Paper Bags - Government Regulations/Requirements

    7. 1.7 Paper Bags Raw Material/ Equipment Suppliers

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 White Kraft

      2. 2.1.2 Brown Kraft

    2. 2.2 By End User

      1. 2.2.1 Retail

      2. 2.2.2 Food

    3. 2.3 By Country

      1. 2.3.1 Saudi Arabia

      2. 2.3.2 United Arab Emirates

      3. 2.3.3 Qatar

      4. 2.3.4 Rest of GCC (Oman, Kuwait, Bahrain)

GCC Paper Bags Market Market Size FAQs

The GCC Paper Bags Market size is expected to reach USD 434.11 million in 2024 and grow at a CAGR of 8.16% to reach USD 642.59 million by 2029.

In 2024, the GCC Paper Bags Market size is expected to reach USD 434.11 million.

GCC Paper Bags Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)