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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 Market Trends

Retail Segment is Expected to Have a Significant Share

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.