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U.S. Retail Bags Market Size is expected to reach revenues of over $4 billion by 2025, growing at a CAGR of 2% during the forecast period.
This industry research report covers U.S. retail bags market size and forecast, share, trends, drivers, market growth, and vendor analysis. The study includes insights by products, material, end-user, and geography.
The U.S. retail bags market is in the transition mode. This transition not only includes the changes in regulatory policies for plastic bags but also changing consumer preferences. With a high number of online retailers expanding their brick and mortar footprints, the demand for retail bags is expected to grow during the forecast period. The growing awareness of plastic waste in the U.S. has led several companies to adopt sustainability solutions to boost brand image and sales.
The COVID-19 pandemic has impacted retail bags sales throughout the country. The sales are expected to decrease further in Q2 and Q3 in the US (for the year 2020). The industry has experienced a slowdown in the supply chain amid the outbreak of the COVID-19 virus due to the lockdown of factories. The retail sale decreased by around 0.5% in February 2020 and is expected to decline further in Q2 2020. There is a disruption in the whole supply chain network in the country. A few stores, such as grocery stores, supermarkets, and all other stores, which have been allowed to sell daily need products, are expected to offset the impact to a certain extent in 2020.
The retail sale decreased by around 0.5% in February 2020 and is expected to decline further in Q2 2020. There is a disruption in the whole supply chain network in the country. A few stores, such as grocery stores, supermarkets, and all other stores, which have been allowed to sell daily need products, are expected to observe a surge in 2020.
- The materials segment is likely to observe an absolute growth of over 17% during the forecast period.
- The carry bags segment is expected to reach revenues of over $2.5 billion by 2025.
- The supermarket segment is projected to reach $1.5 billion by 2025.
The U.S. retail bags market share is expected to grow at a CAGR of over 2% during the period 2020–2025.
U.S. RETAIL BAGS MARKET SEGMENTATION
This research report includes a detailed segmentation of products, material, end-user, and geography.
INSIGHTS BY PRODUCT
The retail bag industry has become a large and profitable one in the country. Thousands of factories are manufacturing fanciful, reusable colorful, low -high price bags in different formats. Carry bags are simple and non-printed ones, which are mostly used in the industry. The carry bag market is established in the retail sector and is expected to increase during the forecast period.
Cloth bags are one of the eco-friendly products used in the market. They are highly encouraged to use as they are reusable and recyclable, which is increasing the market size of cloth bags.
A high disposable income has increased the demand for shopping bags. However, the shopping bags market is expected to witness a decline in sales during the forecast period. This is due to the disruption caused by the COVID-19 pandemic across the world. As tourists from several countries may not travel as much as in the past few years, the growth rate is hence subdued.
The U.S. consists of a wide cluster of luxury apparel brands such as Victoria secrets, Calvin Klein, and Tommy Hilfiger, among others. Most famous brands in the country are highly visited by domestic as well as international tourists, creating a demand for stylish shopping baggage.
INSIGHTS BY MATERIAL
The U.S. retail bags market is a highly fragmented market with the presence of several plastic, paper, cloth, and other manufacturers. Due to several policies regarding single-use plastic and paper ban, some retailers are shifting from plastic to paper for manufacturing. However, retailers are adopting high-quality recycled plastic bags due to strict regulations in the US.
The implementation of certain policies regarding the use of the plastic bag is expected to affect the market. However, with the increase in demand for reusable plastic and the use of plastic in some states, the segment is expected to increase during the forecast period.
With the increasing awareness of hazardous effects on plastic on the environment, the paper bag market is expected to grow. The growing consumer demand for sustainable packaging has raised the demand for sustainable paper packaging. The paper bags demand has observed a sharp increase. The rise is due to the ban on the use of the single-use plastic bag, U.S. producers are having a hard time ramping up capacity. However, there is an ongoing debate: whether the paper is the best choice for the environment, especially for groceries, where heavy paper materials are required.
INSIGHTS BY END-USER
The increase in expansion projects and higher footfall in major supermarkets has increased the sale of retail bags. The growth is expected to increase further by several investments in supermarket chains, boosting the economy in the retail market. Supermarkets are the most visited stores in the country, making them the most profitable outlets compared to other retail stores. Market survey on bags in the U.S. revealed approximately 40% of Americans make a weekly trip to supermarkets, while 6% visit grocery stores seven times a week.
Several supermarkets have implemented the use of reusable paper, increasing the reusable bag market size in the US. In the US, hypermarket stores are less than supermarkets. Most supermarkets use reusable ones at checkout counters. The increased use of retail bags in supermarkets, hypermarkets, and other stores is driving the market share of retail bags.
The rise of large retail format has affected departmental stores in the US. The change in consumer preference has influenced the sale of departmental stores, which consequently decrease the sale of retail bags. However, the demand for retail bags is expected to grow by the growth in departmental stores from low-income level consumers.
INSIGHTS BY GEOGRAPHY
The U.S. retail industry is well-established with large distribution channels. It is highly competitive as there are several establishments across the country. The retail industry has been growing YOY and is expected to grow further in terms of new stores. Several investments by supermarket chains and other multinational chains are expected during the forecast period.
The retail sector has been undergoing a shift in terms of consumer policies and behavior. However, the sector is expected to grow steadily, which has a direct impact on retail bag sales. Regulations concerning the usage of single-use plastic and paper are frequently updated and impact the retail bags market.
INSIGHTS BY VENDORS
The competitive scenario in the US retail bags market size is currently growing. Rapidly changing policies regarding paper and plastic are impacting the market. With the demand for retail bags is growing, the competition is increasing as the market has low entry barriers. The market is highly fragmented. Many vendors are involved in the manufacturing of paper and other types of materials.
There is intense competition among the key players. The entry of large packaging companies in the market poses a threat to small vendors in the retail bags market. However, there are local vendors providing products with similar specifications at low prices, intensifying the price war among vendors.
The U.S. retail bags market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Product
- Carry Bags
- Shopping Bags
Segmentation by Material
Segmentation by End-user
- Departmental Stores
Key Questions Answered
- What is the market size of the retail bags market in the US?
- What are the factors impacting the growth of the market?
- What are the drivers, trends, and restraints in the market?
- Who are the leading vendors, and what are their market shares?
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