Plastic Bag & Sack Market 2017–2027
A plastic bag and sack, are also referred to as polybag and is completely composed of thin plastic film. Plastic bag and sack is widely used across packaged industry for packaging packed food products, apparel, fresh produce, stationery, and other product. These bags are considerably transparent, offer flexibility and tear-resistance. Moreover, it also provides a superior moisture barrier properties. Retail & consumer, food and beverage, institutional services, and other industrial applications are some of the major application area of plastic bag and sack.
The global plastic bag and sack market is projected to reach around US$ 29.4 billion by the end of 2027, in terms of revenue, growing at CAGR of 4.2% during the forecast period (2019-2027).
Declining prices of oil &gas around the globe are projected to drive the market growth of the plastic bag and sack. According to a report by the Energy Information Administration (EIA), the global crude oil inventory rose by around 500 barrels in 2015 that translated to 40% drop in oil prices from US$ 46 per barrel in 2014 to US$ 33 per barrel in 2015. Therefore, the declining price of oil &gas is encouraging manufacturer to use these raw materials for the production of plastic bags.
Growing focus of manufacturers to use plastic bags as a marketing platform for the brand is estimated to foster the market growth of plastic bag and sack. For example, printed plastic bags are providing excellent marketing tool to promote and create brand awareness, across various end-use industries such as apparel, consumer products, food & beverage, bakery, and others. Therefore, using plastic bags as a form of brand promotion among various companies is expected to fuel the market growth of plastic bag and sack.
On basis of the region, Europe region dominated the global plastic bag and sack market in 2018, accounting for 32% share in terms of value, followed by Asia-pacific and North America, respectively
Figure 1. Global Plastic Bag and Sack Market, Revenue Share (%), By Region, 2018
In order to reduce the usage of single-use plastic bags, various governments around the globe are increasing taxation and also putting extra charges on the usage of plastic bags. Growing implementation of such initiatives by the government is expected to reduce the consumption of thin single-use High-density polyethylene (HDPE) plastic bags, which is projected to hinder the market growth of plastic bag and sack over the forecast period.
Increasing adoption of paper bags or with other effective substitutes of plastic bag is projected to hinder the market growth over the forecast period. Growing awareness regarding the harmful impact of plastic bag among consumer is encouraging manufacturer to opt for eco-friendly packaging products. Aforementioned factors are projected to restrict the market growth of the plastic bag and sack over the forecast timeframe.
Increasing focus of manufacturers for producing innovative plastic bags will favor the market growth in the near future. For instance, in May 2016, Interplast Group introduced a new and extensive line of industrial can liners developed for environmentally-focused businesses and industries. The product is ideal for diverse applications and is available in High-density polyethylene (HDPE) and Linear low-density polyethylene (LLDPE), in a wide range of sizes and gauges.
The growing introduction of biodegradable plastic bags is expected to impact the market growth positively over the forecast period. For instance, in June 2019, LyondellBasell has joined forces with a Finland-based energy company to produce two forms of plastics made from renewable sources instead of fossil fuels. The company has partnered with Neste, an oil refiner, and producer of renewable diesel, to create a new bio-based polypropylene and low-density polyethylene products, two of the most common types of plastics.
Figure 2. Global Plastic Bag and Sack Market– Opportunity Analysis
The global plastic bag and sack industry is experiencing an ongoing trend of strategic acquisitions and mergers among major players who are actively looking to expand their presence around the globe. This ongoing trend is expected to foster market growth over the forecast period. For instance, in February 2018, Arkansas-based Delta Plastics has acquired California-based plastics firm Command Packaging, along with its Encore Recycling subsidiary. Command Packaging, based in Los Angeles, makes plastic carryout bags for the food service, grocery, and retail markets.
Growing focus of manufacturer to recycle the plastic content is gaining traction in the market and this is expected to propel the market growth of plastic bag and sack over the forecast period. The advent of a plastic bag with highly recycled plastics content is projected to reduces carbon emissions and carbon footprint of the companies and help them to contribute to the environmental sustainability. This factor is expected to propel the market growth.
Figure 3. Global Plastic Bag and Sack Market, Revenue Share (%), By Application, in 2018
On the basis of application, in 2018, retail & consumer application accounted the largest market share of 69% in terms of value, followed by industrial and institutional respectively.
Figure 4. Global Plastic Bag and Sack Market – Value Chain Analysis
Key players operating in global plastic bag and sack are AEP Industries Inc., Mondi Group, Berry Plastics Inc., Alpha T-shirt, Novolex, Ampac Holdings LLC, Bischof & Klein GmbH & Co. KG, Inteplast Group, Starlinger & Co Gesellschaft M.B.H, Da Nang Plastic Joint Stock Company, Hanoi Plastic Bag JSC, Goglio Group, Schur Flexibles Group
Few Recent Developments
Berry Plastics Inc.
- In August 2016 Berry Plastics Group, Inc, and AEP Industries Inc. have entered into a definitive merger agreement under which Berry will acquire all of the outstanding shares of AEP in a cash and stock transaction.