News & Insights | sustainable

FMI’ Analyst view: “Sustainable Chic: The Eco-Friendly Evolution of Garbage Bags”

Published: January 18, 2024
Author: TEXTILE VALUE CHAIN

Exhibiting a y-o-y growth of 3.3%, the global garbage bag market size reached US$ 9,382.6 million in 2023. Over the forecast period, global sales of garbage bags are projected to surge at 4.2% CAGR. Total market valuation is estimated to increase from US$ 9,681.0 million in 2024 to US$ 14,602.3 million by 2034.

Demand remains particularly high for PE garbage bags due to their strength and tear-resistance properties. The majority of PE garbage bags are made from LDPE & LLDPE, while the remaining ones are made from HDPE. The target segment is set to account for a market share of 71.7% in 2034.

Garbage bags are becoming essential in waste disposal globally. They are widely used in residential, commercial, and industrial sectors to collect and dispose of waste. The global market for garbage and waste bags is set to witness steady growth due to increasing waste generation and the ever-increasing development of residential and family houses.

Consumers’ disposable income and purchasing power are leading to an increasing demand for convenient and cost-effective trash bags for waste collection. Similarly, improving economic performance and rising living standards of the middle-income population are expected to boost the sales of HDPE garbage bags.

Other Factors Expected to Boost Garbage Bag Market Growth Include

·         Exploding population and rapid urbanization

·         Higher waste generation in households, coupled with the growing need for easily disposable garbage bags

·         Growing demand for convenient and sanitary waste disposal bags triggered by increasing focus on hygiene and sanitation

·         Incorporation of garbage bags in smart bins and other waste management systems

·         Rising awareness about cleanliness and hygiene

·         Increasing government initiatives aimed at promoting waste recycling

·         Expansion of housing facilities across the globe

·         Rise of online shopping

·         Increasing demand for garbage bags in hospitals

Key Garbage Bag Market Trends

·         Transition towards eco-friendly packaging solutions like paper garbage bags, biodegradable trash bags, and compostable garbage bags

·         Innovations in garbage bag materials and design

·         Incorporation of features like odor control and antimicrobial properties in garbage bags

·         High adoption of recyclable garbage bags in residential and HoReCa sectors

Key Factors Restraining Growth of the Garbage Bag Market

·         Environmental hazards associated with plastic garbage bags will likely limit market expansion

·         Implementation of stringent regulations on the usage of plastic packaging, including garbage bags, is expected to impact the market negatively

Growing Demand for Premium Garbage Bags Trending in the Market

Consumers are becoming aware of the importance of odor-resistant, eco-friendly, and durable waste disposal solutions. This is leading to a shift from traditional options to premium-quality garbage bags.

In advanced economies, the demand for high-quality garbage bags will likely gain momentum. Two key trends fuelling their sales are their stretchable strength and odor control nature. These premium bags are made of proprietary/patented materials that prevent punctures.

The market growth is supported by the integration of aesthetically pleasing designs and customizable options. These innovations are changing the perception of trash bags and making them more than utilitarian items.

Country-wise Insights

The below table shows the estimated growth rates of the top countries. India, China, and Japan are set to record lucrative CAGRs of 6.8%, 5.7%, and 4.2%, respectively, through 2034. This is attributable to factors like rapid urbanization, rising waste generation, increasing usage of garbage bags in households, and the growing popularity of biodegradable plastic garbage bags.

High Usage of Compostable Scented Garbage Bags Boosting the United States Market

The United States garbage bag market value is estimated to total US$ 1,841.7 million in 2024 and US$ 2,600.9 million by 2034. Overall demand for garbage bags in the United States is projected to rise at a CAGR of 3.5%. Some of the key drivers/trends include:

·         Growing adoption of garbage bags across residential, commercial, and industrial settings

·         Rising emphasis on hygiene and sanitation

·         Increasing popularity and usage of compostable scented garbage bags

·         Easy availability of trash bags on online shopping platforms

·         Innovations in garbage bag materials and designs

Garbage bags, usually made from polyethylene, are tough and light and hold garbage securely without leaking or spilling. As a result, they are widely used across residential, commercial, and industrial sectors.

In the United States, plastic trash bags are witnessing significant demand from the residential sector. These bags allow people to collect and dispose of waste generated in households easily. They help to keep homes and communities clean.

Several cities and states in the United States have taken steps toward zero-waste policies. For instance, the ban on single-use plastic bags has been passed in 11 states, and more cities are considering bans on other single-use food ware and packaging. This is directing the trash bag market towards compostable garbage bags.

The United States is home to several leading garbage bag manufacturers, including Berry Global Inc. and Reynolds Consumer Products LLC. These top players are leading the charge in helping the market transition to eco-friendly products.

Several government organizations are also striving to reduce plastic usage and explore new biodegradable materials. For instance, in January 2022, the United States Department of Energy (DOE) invested US$ 13.4 million to develop next-generation plastics technologies. This will likely have a positive impact on the United States garbage bag market share.

Rising Urbanization Making Japan a Lucrative Market for Garbage Bag Companies

Japan’s garbage bag market size is anticipated to expand from US$ 419.7 million in 2024 to US$ 632.7 million by 2034. Over the forecast period, sales of garbage bags in Japan are projected to soar at 4.2% CAGR, making it a lucrative trash bag market for manufacturers. This is attributable to factors like:

·         Rapid urbanization, coupled with increasing waste generation in households

·         Increasing waste management regulations

·         Rising cultural emphasis on cleanliness and hygiene

·         Shift towards eco-friendly garbage bags amid crackdown on plastic usage

·         High consumer spending on waste disposal solutions, including trash cans and garbage bags

Developments in the manufacturing sector have led to higher adoption of garbage bags in Japan. This can be attributed to the high standard of living, which has contributed to a high disposable income.

In Japan, garbage bags are considered more of a commodity than a luxury. They are becoming ideal solutions for reducing waste and enhancing cleanliness of households. With rapid urbanization, garbage bag market demand in Japan is set to rise steadily.

Garbage bags are widely used in retail, industrial, and institutional segments. Demand for star-sealed bottom garbage bags is high due to their high durability and storage capacities.

Drawstring garbage bags are increasingly used in the retail segment. Hence, growth of retail as well as HoReCA sectors is projected to also play a key role in bolstering sales of garbage bags across Japan during the forecast period.

Competitive Landscape

Leading manufacturers of garbage bags are concentrating on developing novel products, such as compostable garbage bags from sustainable and eco-friendly materials. They are also inclined towards adopting strategies like partnerships, distribution agreements, mergers, and collaborations to boost their revenue and expand their footprint.

Recent Developments in the Garbage Bag Market

·         In May 2022, a new range of high-strength refuse sacks was introduced by Berry Global’s United Kingdom refuse sack business. The new products are manufactured from recycled plastics at Berry’s recycling and manufacturing facility in Heanor, Derbyshire.

·         In May 2022, Reynolds Consumer Products launched an updated line of small and medium waste bags with premium features.

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