Flexible Plastic Bags Packaging Market

Packaging formats used in the global logistics and retail environment are shifting their focus towards reducing freight costs. There is a trend toward using packaging formats that have lower handling complexity and allow for greater loads on trucks. The trend toward using flexible plastic packaging solutions has increased significantly with the growth of e-commerce. Examples of flexible plastic bags used in e-commerce include courier bags, heavy-duty industrial bags, and flexible mailers. By utilizing flexible plastic packaging solutions in accordance with vertical weight, flexible plastic bags enable the optimal use of warehouse space and the lowest possible freight costs. Many large e-commerce and omnichannel retail companies ship millions of packages daily and utilize flexible plastic packaging solutions to provide the fastest order processing times and reduce last-mile delivery expenses. Estimates for 2026 indicate that a total of 260 billion parcels will be shipped annually worldwide, resulting in an ongoing increase in demand for more durable, tear-resistant bags that feature tamper-evident seals and customizable printing. The adoption of logistics-friendly, flexible plastic bags in the global distribution network will drive future growth and success for these businesses.

The pressure for all regions of the world, including North America, Europe, Asia Pacific, and Africa, to restrict or prohibit the use of single-use polyethylene bags is growing due to increasing concern over the volume of plastic waste being generated. The adoption of policies such as national bans, plastic bag levies, Extended Producer Responsibility (EPR) fees, and mandatory recycled-content thresholds has resulted in increased complexity and cost in producing traditional bags. Retailers are under pressure to eliminate or charge for single-use carryout bags, leading consumers to opt for reusable or non-plastic substitutes to avoid the associated costs of using single-use bags. As a result of the regulatory tightening that is producing a decrease in the use of thin-gauge grocery bags, which represent one of the largest volume contributors to the plastic bag industry in the past, businesses that produce these types of bags are experiencing increased production costs and have difficulty expanding into other regions due to the aggressive nature of the regulations in those regions, such as minimum PCR requirements and mandatory traceability for plastic film bags. As a result, compliance with evolving global standards has generated additional costs for businesses and a slowdown in their growth potential.

There is a tremendous opportunity for advanced material engineers to work with plastic shopping bags, particularly mono-material polyethylene (PE) film and high-strength post-consumer recycled (PCR) blend products, to develop improved solutions. As manufacturers shift away from traditional multilayer film products and adopt recyclable materials with durable properties to meet the requirements of the circular economy, we are starting to see the benefits of these advancements. Overall, a greater emphasis will be placed on advancing film extrusion processes, improving the odor performance of recycled plastic materials, and producing higher clarity PCR-based low-density polyethylene (LDPE)/linear low-density polyethylene (LLDPE) products. With further advancements in these technologies, brands will soon have opportunities to sell fully recyclable retail bags, courier bags, medical waste bags, and industrial linings. The desire to create closed-loop systems has led to increased opportunities to utilize “take-back” programs where retailers and logistics providers will accept used bags, which will be reprocessed back into new film products. All of these innovations are enabling a high-value segment in sustainable bag formats, especially in geographical areas like Europe and Oceania, which place a greater emphasis on circularity and, as a result, offer new investment opportunities for film converters and bag manufacturers.

The increasing use of new materials for flexible plastic bags hasn't changed the fact that, in general, these types of bags still rely heavily on Polyethylene and Polypropylene resins (the raw materials that flexible plastic bags are made from). The price of these resin materials is contingent upon the price of crude oil, which fluctuates constantly worldwide; therefore, the price of flexible plastic bags also varies accordingly. This fluctuation creates numerous issues for manufacturers who produce high-volume flexible plastic bags to sell to retail and industrial customers, who often have narrow profit margins. In addition to price volatility from crude oil, there are numerous geopolitical events (such as wars, natural disasters, and oil and gas supply shortages) and refinery closures due to government regulations, all of which can lead to sudden and extreme price increases for manufacturers. For smaller manufacturers, it is challenging to remain profitable during these times; larger manufacturers also face significant challenges when attempting to negotiate long-term pricing agreements with retailers. These unpredictable material cost increases pose a continual challenge for the flexible plastic bag industry, making it difficult to achieve sustainable growth and invest in new technologies and capacity expansions.