Market Trends of North America Retail Bags Industry
This section covers the major market trends shaping the North America Retail Bags Market according to our research experts:
Increasing Demand for Sustainable Packaging Alternatives in the Retail Sector
- As per the study by the American Forest and Paper Association 2021, the study shows 94% of Americans have access to community paper recycling programs. There has been an increase of about 14 million people since 2014. About 79% of Americans had access to residential-curbside recycling programs in 2021.
- The growing preference toward eco-friendly packaging has led retailers to shift focus toward paper-based bag packaging for general public consumers of today and the future as the consumers view paper to be the most eco-friendly alternative to plastic. According to industry experts, plastic takes approximately 100 to 500 years to decompose and causes pollution. Therefore, paper is considered one of the best biodegradable materials for manufacturing retail bags.
- As per the American Forest and Paper Association and Forest Products Association of Canada, Paper is one of the most recycled materials in North America, with a recovery rate of 68% in the United States and 70% in Canada. These figures reflect the increasing trend and focus has been shifting toward the use of paper for manufacturing of carrying bags in the region.
- Organizations and consumers across the world are favoring recycled paper bags to curb deforestation issues in conventional paper production for retail bags. This recycled paper has a similar quality to conventional paper and can be used for making strong bags to contain various retail products. Also, due to the increasing costs and consumption rates of wood-based paper, consumers are starting to look for alternatives to minimize the impact on the environment.
- As per the American forest and paper association, paper is one of the most recycled materials, which is confirmed by continuously high recycling rates. In 2021, the recycling rate for cardboard boxes was 91.4%, and the paper recycling rate climbed to 68%. The figures reflect the shift in consumer behaviors toward paper bags.
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Government Regulatory Accounted to be the Key to Drive the Market
- State legislatures have considered measures to reduce plastic bags at grocery stores and other retail businesses for carrying products. Reducing plastic bag use can mitigate harmful impacts on rivers, oceans, lakes, forests, and wildlife.
- Some states are focusing on implementing effective recycling programs and imposing fees or bans to discourage the use of plastic bags altogether. It can also relieve pressure on landfills and waste management.
- SUCP bans have been implemented in New Jersey, Colorado, and New York, while states such as Indiana, Arkansas, and Ohio continue to prohibit local governments from banning SUCP.
- Documentation on the effectiveness of SUCP is limited. A California study reported for the San Francisco Bay Area the effects of a SUCP ban (Taylor et al., 2019). The study found that they estimated the ban eliminated GBP 40 million of carryout plastic bags but that this was offset by a GBP 12-million increase in trash bag purchases.
- Other regulatory options that have grown in use in some US states and municipalities include fees on plastic bag use, requiring certain minimum recycled content in SUCPs, and requiring retailers to provide recycling options.
- As per The American Forest & Paper Association (AF&PA) report released on April 2022, total packaging papers & specialty packaging shipments in April decreased two percent compared to April 2021. They were up one percent compared to the same four months of 2021. Many paper products used every day across the US have an 80% or more community access rate, which means things like newspapers, cardboard boxes, pizza boxes, and paper bags are widely accepted for recycling.
- With more states across the United States banning single-use plastic bags, the need for paper shopping bags continues to grow. In fact, the state of New Jersey is set to implement one of the strictest bans in the nation starting on May 4, 2022.
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