The global biodegradable shopping bags market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of XX% during 2023–2031. The market is driven by growing environmental awareness and rising demand for various consumer household products.
Increasing expenditure on household products is likely to have a significant impact on the growth of the biodegradable shopping bags market. Shopping bags have become an important part & parcel of today’s consumer-oriented environment. The rise of disposable income and higher living standards in several developing economies have led to a boom in the shopping culture.
This, along with the spread of environmental awareness, is giving rise to the trend of using biodegradable carry bags, handbags, as well as shopping bags. Several bag manufacturers are highly focused on the development of high-quality biodegradable bags, which are of premium quality and provide a luxurious shopping experience to consumers. This, in turn, is likely to boost growth opportunities for the companies in the market.
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In May 2021, Compostic, one of the prominent market players in the US, launched a new range of reusable bags and biodegradable cling wraps. The manufacturer is one of the significant contributors to the development of plastic substitutes that are even home-compostable.
Biodegradable shopping bags do not release any toxic chemicals and can be decomposed quickly, thereby helping in waste management and environmental conservation. The manufacturing process of these bags does not involve the use of fossil fuels. Moreover, the increasing usage of biodegradable products has encouraged various consumer-oriented businesses to adopt environmentally sustainable production procedures. The companies are largely using recyclable ingredients for production to reduce the carbon footprint, which is likely to boost the use of biodegradable shopping bags, thereby, propelling the market.
The research report finds that the COVID-19 pandemic hampered the market, due to the lockdown imposed by governments all across the world. To prevent the spread of infection, the majority of shopping places including supermarkets and convenience stores were closed or operating at limited times. This led to a sharp decrement in commercial activities, declining the demand for commodities and affecting the use of biodegradable shopping bags. Furthermore, the supply chain network was also disrupted, which created a deficit between the supply and demand of products. However, as the situation has improved, the market is likely to have steady growth during the projection period.
Biodegradable Shopping Bags Market Dynamics
Major Drivers
Increasing consumer demand for household and personal care products is expected to boost the market. The inclination among consumers for online and offline shopping activities has significantly propelled the consumption of such products. With the prevalence of consumer culture, convenience stores, and supermarkets are facilitating a convenient shopping experience that fosters the growth of easy-to-carry handbags for carrying grocery products. Moreover, the rapid shift in consumer preference for premium online grocery products further fuels the demand for biodegradable shopping bags.
Stringent government regulations regarding the production and use of plastic products are projected to drive the market during the forecast period. Conventional plastic, made from toxic chemicals such as styrene and bisphenol-A, can contaminate food due to its chemical filtration. Additionally, its high carbon bonds make it difficult to decompose properly, and incinerating it produces toxic fumes that cause air pollution.
Several regulatory bodies have taken steps to restrict the use of single-use plastics. Biodegradable shopping bags made from natural biodegradable polymers including extruded polylactic acid fiber, polyhydroxyalkanoates, and polybutylene succinate have a high recycling rate. The regulations are accelerating the usage of biodegradable shopping bags as packaging in major sectors such as food and beverage, medical and healthcare, and personal care, thereby driving the growth of the biodegradable shopping bags market. For instance,
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In 2021, the Government of India’s Ministry of Environment, Forest and Climate Change implemented the Plastic Waste Management Amendment Rules. These regulations prohibit entirely the use of single-use plastic in India by 2022.
Existing Restraints
Availability of cost-effective and affordable alternatives is likely to hinder the market during the projection period. The manufacture of biodegradable shopping bags often involves costly equipment and additional steps in the production cycle, which increases the overall cost of the end product. On the other hand, the production of normal plastic shopping bags as well as single-use plastic shopping bags is significantly cost-effective in comparison and is easy to carry. This is likely to impact the progress of the biodegradable shopping bags market.
Emerging Opportunities
Rising environmental awareness is anticipated to provide considerable growth opportunities for the market. People are becoming increasingly aware of the harmful impact of plastic on the environment as well as food products. Several studies show that chemicals often get leeched into the food products contained in plastic bags. In addition, plastic shopping bags are extremely hard to decompose. Most plastic bags can take up to 500 years to decompose, which is a lot when compared to biodegradable alternatives that can decompose in 2-3 months, without harming the environment.
Scope of the Biodegradable Shopping Bags Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Biodegradable Shopping Bags Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Reusable bags and Non-Reusable Bags), Material (Jute & Hemp, Bioplastic, Paper, Cotton, and Others), and Distribution Channel (Offline Stores [Supermarkets & Hypermarkets, Convenience Stores, and Retail Stores] and Online Stores)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Abbey Polythene Ltd.; BASF SE; CerePlast; Georgia-Pacific; Mondi; Novolex; Smurfit Kappa; Vegware Ltd.; WestRock Company; compostic; and YEILD10BIOSCIENCE, INC.
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Biodegradable Shopping Bags Market Segment Insights
Type Segment Analysis
Based on type, the biodegradable shopping bags market is divided into reusable bags and non-reusable bags. The reusable bags segment is projected to hold the major share of the market during the projection period, due to their excellent physical properties and dependability. The reusable biodegradable bags are stronger in comparison to the non-reusable bags and therefore can be used to carry a wide range of products of different weights. Their reusability makes them a highly cost-effective option for both, shopping establishments as well as the customers.
Material Segment Analysis
On the basis of material, the global market is segregated into jute & hemp, bioplastic, paper, cotton, and others. The jute & hemp segment is projected to register a CAGR during the forecast period, owing to the high strength and abundant availability of raw materials. Shopping bags made using jute and hemp are not only highly eco-friendly but also have a high weight-holding capacity. This makes them versatile and is therefore used by a large number of people for carrying everything from groceries to household utilities and clothes. In addition, there has been a trend of increasing adoption of jute & hemp bags by various luxury brands and business establishments, which is likely to drive the growth of this segment.
The Bioplastic segment is projected to register a considerable CAGR during the forecast period, as it is very sustainable and produces less waste. Bioplastic is easily decomposable and does not release any toxic chemicals upon regular usage. Furthermore, the manufacturing process of biodegradable plastic does not hinge on any petroleum derivatives and entails less energy consumption in its production in comparison to plastic shopping bags. These aspects are likely to boost the rise of this segment during the projection period.
Distribution Channel Segment Analysis
On the basis of distribution channel, the biodegradable shopping bags market is segmented into offline stores and online stores. The offline segment is further divided into supermarkets & hypermarkets, convenience stores, and retail stores. The offline stores segment is anticipated to register a robust growth rate during the forecast period, as these shopping avenues have the highest number of customers visiting for buying various regular-use products. In addition, since offline stores such as convenience stores have the availability of a wide range of products related to daily utilities, foods & beverages, and groceries, it provides favorable conditions for the increasing adoption of biodegradable shopping bags.
Regional Outlook
In terms of region, the global biodegradable shopping bags market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, due to high spending on luxury shopping products and the existence of affluent and developed countries such as Canada and the United States. These nations have well-established supply-chain networks and strong consumer cultures. Moreover, the region's growing demand for food and beverage products is expected to boost the demand for biodegradable shopping bags to carry various food and beverage items.
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According to the report published by the Bureau of Economic Analysis, US Department of Commerce in November 2022, the overall GDP of the United States grew by 5.9% in 2021 after a decline of 2.8% in 2020. The manufacturing sector experienced a growth of 9.7% as compared to the previous year. This growth is a positive sign for various industries post-COVID-19 and indicates growing consumer demand for multiple products.
The market in Asia Pacific is likely to experience rapid growth, owing to the presence of several developing economies and rising demand for biodegradable shopping bags in emerging economies such as China and India. The growing retail shopping for various consumer goods in these countries is anticipated to propel the usage of biodegradable shopping bags. For instance, the concerns regarding the increasing use of single-use plastic bags in India have led the government to take concrete steps towards creating environmental sustainability by forming encouraging policies for the adoption of biodegradable products.
Segments
The biodegradable shopping bags market has been segmented on the basis of
Type
- Reusable bags
- Non-Reusable Bags
Material
- Jute & Hemp
- Bioplastic
- Paper
- Cotton
- Others
Distribution Channel
- Offline Stores
- Supermarkets & Hypermarkets
- Convenience Stores
- Retail Stores
- Online Stores
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Abbey Polythene Ltd.
- BASF SE
- CerePlast
- Georgia-Pacific
- Mondi
- Novolex
- Smurfit Kappa
- Vegware Ltd.
- WestRock Company
- YEILD10BIOSCIENCE, INC.
- compostic
- CJ CHEILJEDANG CORP.
Competitive Landscape
Key players competing in the global biodegradable shopping bags market share are Abbey Polythene Ltd.; BASF SE; CerePlast; Georgia-Pacific; Mondi; Novolex; Smurfit Kappa; Vegware Ltd.; WestRock Company; YEILD10BIOSCIENCE, INC; compostic; and CJ CHEILJEDANG CORP.
These companies adopt various development strategies including mergers, collaboration, partnerships, product launches, acquisitions, and production expansion to cater to customers worldwide. These market players constantly overcome obstacles such as fluctuations in the price of raw materials, and emerging competition from local brands and extensively invest in research for the development of better products. For instance,
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In June 2022, Hilex, one of the prominent market players, released RollStar EZ Open Produce Bags. These bags are compostable and highly compatible with food products including meat, vegetables, seafood, and fruits. They are highly user-friendly and solve the problem of opening a produce bag with sticking sides.
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In May 2022, CJ Biomaterials, a division of prominent South Korea-based market player, CJ Group, collaborated with NatureWorks by signing a Master Collaboration Agreement (MCA). This partnership is intended to develop high-performing biopolymers that can replace all plastics based on fossil fuel.
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